Urban Poverty & Climate Change in Dar es Salaam, Tanzania:

Fig. 23 Sources of capital for surveyed entrepreneurs
Source: University of Dar es Salaam, Case Study Team (2010)
Entrepreneurs were asked about problems they face in their business. The top ten are shown
in Table 8, and some of these are climate related, such as disease, dust and environmental
degradation. Shortages in water availability, which may be exacerbated with possible drought
intensification in future, can result in low electricity generation and inability for vendors to
use equipment such as fridges and electric stoves.
Table 8: Problems Commonly Faced by Entrepreneurs in Dar es Salaam’s Informal Settlements
Problem Rank
Low income of customers
1
Low capital
2
Few customers
3
Poor work equipment (fridges, stoves)
4
High prices of input items
5
Diseases
6
Customers do not make timely payment 7
Dust
8
Filthy environments, flies
9
Disruption by city authorities
10
Source: University of Dar es Salaam, Case Study Team (2010)
The low incomes of customers can result in delayed payment, which in turn affects the
financial status of the vendors/traders and their ability to run a profitable business. Low
capital inhibits the purchase of useful equipment such as refrigeration or deep freezers to
store decomposable items. Other problems mentioned included rainfall, poor roads, high
taxes charged by city authorities, and lack of proper venues for entrepreneurial activities.
Lack of transport and disturbances caused by city authorities (who attempt to curtail activities
that may contribute to filthy environments) are institutional problems that need to be
addressed.
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