Challenges Facing Food Processing MSEs in Tanzania : A Qualitative Case Study of the Sunflower Oil Industry in Babati, Manyara

Abstract: Food processing micro- and small-scale enterprises (MSEs) play an important role in the national economic development of Tanzania. Though many of them have great growth potential, they face a number of constraints hindering further development, and large amounts of cooking oil are imported each year. The aim of thesis has therefore been to identify and analyse the different factors affecting these MSEs in order to find out which the major growth challenges are. The case study is mainly based on individual semi-structured interviews with sunflower oil processors and farmers in Babati districts, conducted in February and March 2016, and earlier research and studies on the topic of MSE growth make up the theoretical framework used for analysis of the data. The findings show that there are indeed numerous challenges facing these processors, and the major constraint was found to be lack of capital; an issue causing or worsening a majority of the other challenges at hand. Other problems are related to raw material, equipment & electricity for processing, regulations, market accessibility, and competition. These obstacles need to be overcome in order to enable the industry's expansion within and outside of Tanzania, and further research is recommended.