This is a nation of small entrepreneurs. Despite extensive government ownership (due
to the father of the country introducing socialism after independence in the
1960s), 18th century economist Adam Smith would recognize the activities of the
common people here as capitalistic. In
cities, towns, and villages, there are innumerable tiny shops selling an
assortment of goods, from grocery staples to stationary to clothing, new and
used. Carpenters work out of small
buildings or under a makeshift roof and take orders to build beds, tables,
chairs, or whatever is needed. People
set up tables along the roadside to sell produce from their gardens. Women set up charcoal stoves on street
corners to fry fish or maandazi (muffins), or roast corn cobs, and sell them to
passersby. At the official marketplaces,
people sell produce, shoes, jewelry, used clothing, household goods, and
videos, much like a flea market in the States.
Even middle-class people get into the act. Some of the teachers at our school have
sidelines selling phones, beauty products, vitamins, dresses, shoes, and
purses. (I know, this sounds like Avon,
Pampered Chef, and Tupperware.) There is
a very nice house nearby on a path used by primary school students on their way
to and from school. The lady of the
house (or possible the maid) sets up a display of snacks and drinks on the
front porch every afternoon, to sell to the children after school.
One of the surprising thing to me is the fact that
vendors are allowed to hawk their wares to teachers in the staff lounge. Yesterday, during our mid-morning break, a
woman made a pitch for the health benefits of green tea, and invited the
teachers to a seminar this weekend.
Other times, people have promoted magazine subscriptions, kitchenware,
and even underwear! Some of the
Tanzanian teachers react with interest to these pitches, and all are tolerant
of them. As I was told, these people
have to make a living, and they have a very small profit margin on their goods.
But this is all small potatoes stuff. Business on a larger scale runs into barriers
of bureaucracy and corruption. A small
business owner in Arusha tells us of the difficulties of getting permits. He has a Facebook page but not a website, so
as not to attract the attention of the authorities. A permit for a website is costly, and leads
officials to think that a person has money for taxes and bribes.
Another barrier is lack of capital. The small entrepreneur can borrow funds from
family and friends, but it is very difficult to get business loans from banks
for a larger business. International
sources of funds often hesitate to supply them because of the corruption and bureaucratic
inefficiency here. Until the country
can clean up those issues, the larger economy will not thrive.
