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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Public Control and Public Enterprise Performance in Sub-Saharan Africa: The Case of Tanzania and Zambia
Author:Makoba, J. Wagona
Periodical:Africa Development: A Quarterly Journal of CODESRIA (ISSN 0850-3907)
Geographic terms:Tanzania
import substitution
public enterprises
Economics and Trade
Abstract:This paper examines the impact of State policies of nationalization, Africanization and import substitution on public enterprise performance in Tanzania and Zambia. It is based on an analysis of NDC (National Development Corporation) companies in Tanzania and Indeco (Industrial Development Corporation) companies in Zambia. The financial performance of locally managed public enterprises is compared with that of those managed by foreign expatriates in both countries. Furthermore, the capacity utilization of wholly State-owned enterprises and of those that were joint ventures in both States is analysed. The evidence suggests that State policy and practice are the most important constraints to public enterprise performance in Tanzania and Zambia. The nationalization measures appear to have overextended the organizational and managerial capabilities of both States. The rapid Africanization programme not only diluted the quality of local management in the public enterprises, but also failed to provide sufficient skilled local personnel. Furthermore, State political interference limited the operational autonomy of local management. Finally, import substitution industrialization has failed to promote economic growth and instead created an unintended dependence on imported inputs and technology. Bibliogr., notes., sum. in French.