The Challenge of Upgrading in African Industries: Socio-Spatial Factors and the Urban Environment in Mwanza, Tanzania

SummaryThis paper examines the challenges facing small-scale furniture makers in the city of Mwanza, Tanzania, assesses the prospects for these firms to upgrade their manufacturing activities, and evaluates the degree to which clustering activities are influencing the prospects for upgrading. Through in-depth observations of firms and interviews with business owners, data on the demographic characteristics, networking strategies, market orientations, and the physical location and situational attributes of furniture making firms are analyzed in relation to their performance and innovation levels. The data and analyses reveal several significant findings regarding the performance of manufacturers in Tanzania, the value (or limited utility) of clusters, the ways in which Mwanza’s markets, institutions, and spatial characteristics influence clustering activities and the marketing strategies of firms, and about how upgrading in Tanzania’s manufacturing sector might be better supported by state and municipal governments.