OWNER MANAGERS’ PERCEPTION OF THE IMPACT OF REGULATIONS ON THE COMPETITIVENESS OF FOOD PROCESSORS IN TANZANIA

Abstract

This paper assesses the owner managers’ perception of the impact of regulations on competitiveness of food processors in Tanzania. Specifically, the paper examines the perceived relevance of existing regulations in the food processing sector, the level of enterprises’ satisfaction with the regulatory authorities in the sector and the extent to which competitiveness of food processors is affected by regulations. Based on review of the legislations directed to the food processing sector and the results of a survey of 115 firms, the findings reveal that even though most enterprises appreciate the value of regulating the food sector, they are relatively dissatisfied with the level of services offered by regulatory authorities. The study also shows that due to over-regulation, enterprises operating in the food processing sector incur significant compliance costs, and this cost is detrimental to their competitiveness. In view of the theory of regulation, the paper recommends the review of regulatory framework by ensuring that regulations in the food sector are implemented based on the principles of the Regulatory Impact Assessment (RIA). Further research is also recommended to advance the theory of regulation in a context of the developing economy, and to inform policy makers on how best to harmonise regulations in highly regulated sectors.