By Keith Marsden
Read Online or Download African Entrepreneurs: Pioneers of Development (Discussion Paper (International Finance Corporation)) PDF
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Extra info for African Entrepreneurs: Pioneers of Development (Discussion Paper (International Finance Corporation))
In Tanzania introduction of foreign exchange retention accounts has made it easier for a transport business to acquire spare parts and has allowed the business to expand without having to endure time-consuming approval procedures. But a cumbersome bureaucracy and high personal 9 see Keith Marsden, Impact of Government Interventions on Industrial Competitiveness in the Côte d'Ivoire, December 1989 (available from the author). 10 See Keith Marsden. " Finance and Development, September 1983. Page 17 and corporate taxes remained major constraints for a Tanzanian food manufacturer.
Nevertheless, because the sample is small, the survey also examined evidence for a wider range of firms and countries to test the general validity of the findings. The major findings are presented below. 1 The Middle is Not Missing Thirty-six African entrepreneurs were interviewed and all are running modern enterprises with hired labor. A quarter of their enterprises are small (549 workers); half are medium-scale (50299 workers), of which more than half employ over 100 workers; and a quarter are large enterprises with more than 300 employees each.
Three types of assistance are provided for new investment projects under the Automatic Financial Assistance (AFA) of the FAP. The first is reimbursement of business (corporate) taxes on company income. For enterprises operating in rural areas, 100 percent business tax reimbursement is provided during the first three years, 75 percent in the fourth year and 50 percent in the fifth year. Reimbursement to urban enterprises is 100 percent for two years, declining to 25 percent in the fifth year. Second, grants are paid to cover part of the cost of unskilled labor.
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