Contribution Of Mobile Phone Vending Services To Poverty Reduction Among Vendors In Tanzania: A Case Of Dodoma Municipality

ABSTRACT

There are limited employment opportunities in formal sectors in Africa and Tanzania

in particular, and that the number of people engaged in informal sectors as daily

source of income generation is increasing. In addition informal sector consists of

small scale units engaged in production and distribution of goods and services with

the primary objective of generating income. This study was conducted to examine

how mobile phone vending services contribute to poverty reduction among mobile

phone vendors in Tanzania, a case of Dodoma Municipality .The specific objectives

included to determine effectiveness of the type of mobile phone services provided by

different companies, to determine the effectiveness of the vending process, to

determine the benefits of vending services to poverty reduction, and to determine

challenges and suggestions for improving the businesses.

Data were collected through cross–sectional survey using interviews and

questionnaires and used a sample size of 105 respondents, which comprised officers

from the mobile phone companies in Dodoma urban. The data gathered were

analyzed using Statistical Package for Social Scientist (SPSS Version 16) as well as

content analysis.

The findings indicate that, the leading mobile phone services vendors belong to

Vodacom, followed by Tigo, Airtel, and Zantel. There were also vendors who

provided a combination of these different mobile phone companies services.

It is concluded that benefits obtained from vending mobile phone services, include

provision of employment, increased income and increased in social capital network.

It concluded that there is ineffective and inefficient of mobile phone services

provision because of lack of working capital, reliable permanent work places, poor

training and skills.

Therefore, it is recommended that Mobile Phone Companies should provide a room

for training their customers particularly, vendors on how to operate their business and

promote skills for better services provision among vendors, and mobile phone service

vendors should be used as formal employment rather than informal employment.