Supporting business functions influencing the formalization of charcoal business in Tanzania

Charcoal business, production, and sustainability are all under the control of government regulations. In Tanzania, the entire charcoal value chain employs approximately two million people. As a result, there are unreliable records for registered actors, and it is difficult to accurately quantify th...

Full description

Bibliographic Details
Main Authors: William Didas Marandu, Greyson Zabron Nyamoga, Romanus Ishengoma
Format: Article
Language:English
Published: Elsevier 2024-06-01
Series:Trees, Forests and People
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2666719324000499
_version_ 1797253940548468736
author William Didas Marandu
Greyson Zabron Nyamoga
Romanus Ishengoma
author_facet William Didas Marandu
Greyson Zabron Nyamoga
Romanus Ishengoma
author_sort William Didas Marandu
collection DOAJ
description Charcoal business, production, and sustainability are all under the control of government regulations. In Tanzania, the entire charcoal value chain employs approximately two million people. As a result, there are unreliable records for registered actors, and it is difficult to accurately quantify the annual amount of charcoal production and revenue collected by the Tanzanian government. Supporting functions are legally provided activities and services to support charcoal actors to formalize their business, including participation in the formulation of forest laws, market infrastructure development, training, access to information, and financial services. Supporting business functions available for charcoal actors such as producers, wholesalers, and retailers to facilitate the formalization of the charcoal business in Tanzania. This study was conducted to determine the supporting functions that are important to charcoal actors in Tanzania to formalize their activities. A total of 107 charcoal actors were administered a semi-structured questionnaire using the multiple sampling technique, which involved 31 wholesalers and 42 retailers trading in two of the largest markets, one in Dar es Salaam and the other in Zanzibar. Both markets depend on charcoal production in Handeni district, located in Tanga Region. Principal component analysis (PCA) indicated that formalizing the charcoal sector in Tanzania necessitates public-private partnerships (22.9%), financial services and legal environments (21.9%), and market infrastructures (15.6%). We concluded that the charcoal business needs the collaboration of the government with non-government organizations to share resources such as forest staff, vehicles, and incentives to motivate the participation of actors in the training of the legal procedure of charcoal business management, the formulation of registered charcoal groups or associations, and the establishment of charcoal selling centres. Moreover, the development of forest laws should be participatory to involve charcoal business stakeholders to have a reasonable cost of issuing licenses and other permits.
first_indexed 2024-04-24T21:42:03Z
format Article
id doaj.art-e3e6fb698c724859a5d2d0a715214e64
institution Directory Open Access Journal
issn 2666-7193
language English
last_indexed 2024-04-24T21:42:03Z
publishDate 2024-06-01
publisher Elsevier
record_format Article
series Trees, Forests and People
spelling doaj.art-e3e6fb698c724859a5d2d0a715214e642024-03-21T05:37:53ZengElsevierTrees, Forests and People2666-71932024-06-0116100542Supporting business functions influencing the formalization of charcoal business in TanzaniaWilliam Didas Marandu0Greyson Zabron Nyamoga1Romanus Ishengoma2Department of Tourism Management, College of African Wildlife Management, P. O. Box 3031, Mweka, Tanzania; Department of Forest and Environmental Economics, College of Forestry, Wildlife and Tourism, Sokoine University of Agriculture, P.O. Box 3011, Morogoro, Tanzania; Corresponding author.Department of Forest and Environmental Economics, College of Forestry, Wildlife and Tourism, Sokoine University of Agriculture, P.O. Box 3011, Morogoro, TanzaniaDepartment of Forest and Environmental Economics, College of Forestry, Wildlife and Tourism, Sokoine University of Agriculture, P.O. Box 3011, Morogoro, TanzaniaCharcoal business, production, and sustainability are all under the control of government regulations. In Tanzania, the entire charcoal value chain employs approximately two million people. As a result, there are unreliable records for registered actors, and it is difficult to accurately quantify the annual amount of charcoal production and revenue collected by the Tanzanian government. Supporting functions are legally provided activities and services to support charcoal actors to formalize their business, including participation in the formulation of forest laws, market infrastructure development, training, access to information, and financial services. Supporting business functions available for charcoal actors such as producers, wholesalers, and retailers to facilitate the formalization of the charcoal business in Tanzania. This study was conducted to determine the supporting functions that are important to charcoal actors in Tanzania to formalize their activities. A total of 107 charcoal actors were administered a semi-structured questionnaire using the multiple sampling technique, which involved 31 wholesalers and 42 retailers trading in two of the largest markets, one in Dar es Salaam and the other in Zanzibar. Both markets depend on charcoal production in Handeni district, located in Tanga Region. Principal component analysis (PCA) indicated that formalizing the charcoal sector in Tanzania necessitates public-private partnerships (22.9%), financial services and legal environments (21.9%), and market infrastructures (15.6%). We concluded that the charcoal business needs the collaboration of the government with non-government organizations to share resources such as forest staff, vehicles, and incentives to motivate the participation of actors in the training of the legal procedure of charcoal business management, the formulation of registered charcoal groups or associations, and the establishment of charcoal selling centres. Moreover, the development of forest laws should be participatory to involve charcoal business stakeholders to have a reasonable cost of issuing licenses and other permits.http://www.sciencedirect.com/science/article/pii/S2666719324000499CharcoalBusinessFormalizationSupporting functions
spellingShingle William Didas Marandu
Greyson Zabron Nyamoga
Romanus Ishengoma
Supporting business functions influencing the formalization of charcoal business in Tanzania
Trees, Forests and People
Charcoal
Business
Formalization
Supporting functions
title Supporting business functions influencing the formalization of charcoal business in Tanzania
title_full Supporting business functions influencing the formalization of charcoal business in Tanzania
title_fullStr Supporting business functions influencing the formalization of charcoal business in Tanzania
title_full_unstemmed Supporting business functions influencing the formalization of charcoal business in Tanzania
title_short Supporting business functions influencing the formalization of charcoal business in Tanzania
title_sort supporting business functions influencing the formalization of charcoal business in tanzania
topic Charcoal
Business
Formalization
Supporting functions
url http://www.sciencedirect.com/science/article/pii/S2666719324000499
work_keys_str_mv AT williamdidasmarandu supportingbusinessfunctionsinfluencingtheformalizationofcharcoalbusinessintanzania
AT greysonzabronnyamoga supportingbusinessfunctionsinfluencingtheformalizationofcharcoalbusinessintanzania
AT romanusishengoma supportingbusinessfunctionsinfluencingtheformalizationofcharcoalbusinessintanzania