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Additional info for African Entrepreneurs: Pioneers of Development (Discussion Paper (International Finance Corporation))

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The owner of a tobacco estate in Malawi suffers from the low level of commitment of small-scale tenant farmers. A food manufacturer in Tanzania regretted the low level of skills in workshops that repair transport vehicles. Modern entrepreneurs in Côte d'Ivoire complained of unfair competition 5 See Dennis Anderson, "Small Industry in Developing countries: A Discussion of Issues," World Development, Vol. 10, No. 11, 1982. Page 11 from informal sector enterprises who were less efficient but escaped the heavy burden of taxes and regulations imposed on the modern sector.

The study found that locally owned private firms were the most efficient and profitable and the least protected (in terms of the effective rates of protection--ERP coefficients) of the three categories. The local private sector firms were efficient earners/savers of foreign exchange with low longrun domestic resource costs. 7 The relative efficiency of modern African entrepreneurs can be influenced by many factors, including their personal characteristics. The profiles reveal a wide range of social and educational backgrounds and age groups.

He provides them with fishing nets and iceblocks to Increase their productivity and reduce spoilage. A producer of poultry and eggs helped to raise the protein intake of the urban poor during periods of severe import restrictions. His day-old chicks replenish the small flocks of rural households, thus maintaining consumption levels and a source of cash income for smaller farmers. A Malawian cotton ginner made cotton growing a viable proposition in an underdeveloped region. He thus raised the incomes of poor farmers, who in turn generated new opportunities for rural craftsmen and traders.

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