Entrepreneurship in East Africa is in its infant stage and is growing rapidly. The
most important entrepreneurship area is the development of small scale
entrepreneurs (SSEs), the sector which is facing several challenges due to economic
instability of the East African countries. This study aims to investigate the impact of
the use of differential currencies on the performance of cross border SSEs in East
African Community, a case of Namanga border. Data for this study were collected
using field observation, questionnaires and interview. The study showed that there
was a good performance in daily businesses of the cross border SSEs in which 77%
of the 31 money vendors and 57.1% of the 70 other SSEs respondents ranked the
cross border business as good and above. Also the data revealed that, the cross
border SSEs stay longer in the business and the businesses attract more new
It was also observed that there was currency loss and gain for SSEs when calculated
by spot exchange rate and through SSEs responds, whereby money vendors gain
while other SSEs lose about 2 TShs for each 1 KShs in exchange, and even more
through buying commodities from Kenya side. Furthermore, in currency volatility
when compared to the United States of America Dollar (US Dollar), 77% of
respondents showed that Tanzania currency is more volatile than Kenya currency.
That means the currency and economy of the studied East African countries is more
unstable than the US Dollar, and hence resulted in SSEs income fluctuation. The
SSEs in cross border business face various challenges including the use of difference
currency, lack of SSEs knowledge and skills, common market and social services. As
such, the use of common currency, establishment of common market and SACCOS,
entrepreneurship training as well as soft loan availability could be an opportunity for
improving the performance of cross border SSEs businesses in particular at Namanga
The study concluded that, the use of different currencies and currency stability are
the key parameters in defining the performance of the Tanzanian SSEs in cross
border businesses at Namanga. As such proper measures such as the use of common
currency and formation of common market should be taken into consideration for
development of such an important sector.
SSA, R (2021). Impact Of Differential Currencies On Performance Of Small Scale Cross Boarder Entrepreneurs In The East African Community: A Case Of Namanga Border. Afribary.com: Retrieved May 13, 2021, from https://afribary.com/works/impact-of-differential-currencies-on-performance-of-small-scale-cross-boarder-entrepreneurs-in-the-east-african-community-a-case-of-namanga-border
Research, SSA. "Impact Of Differential Currencies On Performance Of Small Scale Cross Boarder Entrepreneurs In The East African Community: A Case Of Namanga Border" Afribary.com. Afribary.com, 26 Apr. 2021, https://afribary.com/works/impact-of-differential-currencies-on-performance-of-small-scale-cross-boarder-entrepreneurs-in-the-east-african-community-a-case-of-namanga-border . Accessed 13 May. 2021.
Research, SSA. "Impact Of Differential Currencies On Performance Of Small Scale Cross Boarder Entrepreneurs In The East African Community: A Case Of Namanga Border". Afribary.com, Afribary.com, 26 Apr. 2021. Web. 13 May. 2021. < https://afribary.com/works/impact-of-differential-currencies-on-performance-of-small-scale-cross-boarder-entrepreneurs-in-the-east-african-community-a-case-of-namanga-border >.
Research, SSA. "Impact Of Differential Currencies On Performance Of Small Scale Cross Boarder Entrepreneurs In The East African Community: A Case Of Namanga Border" Afribary.com (2021). Accessed May 13, 2021. https://afribary.com/works/impact-of-differential-currencies-on-performance-of-small-scale-cross-boarder-entrepreneurs-in-the-east-african-community-a-case-of-namanga-border