Bibliography: leaves 100-103. / The use of Insecticide Treated Nets (ITNs) has already proved to be a cost effective way of malaria vector control. The important emphasis now should therefore be on how to increase the accessibility and utilization of the mosquito nets through devising viable financing and promotional mechanisms that are sustainable and equitable in the long run. One way of financing ITNs that has been propounded by the Roll Back Malaria (REM) has been the issue of the reduction or elimination of tariffs and domestic taxes on ITNs and their inputs. The purpose of this study was to look at how and in what way this RBM financing policy on eliminating tariffs and domestic taxes on ITNS and their inputs would benefit the consumer given the complex nature of ITN industry operations and the consumer behaviour. The study concentrated on information gathered from net manufacturers and insecticide providers, wholesalers and retailers and some key personnel in the overall ITN industry to gather information on production, sales and marketing trends. The analysis revealed that there are indeed gains to be realized by both the consumer and the private sector if tariffs and taxes are removed, in terms of the increase in demand and supply of the product. The elimination of the 15% tariff on ITN input prices in Zimbabwe, ceteris paribus, would lead to the retail price of ITNs falling by between 4% and 12%. This would result in consumer purchases increasing by between 2% and 11%. The elimination of both taxes, other things constant, would lead to the price falling by between 4% and 23 %, leading to retail purchases increasing by between 2% and 21%. Depending on the price elasticities of demand and supply, the fall in retail prices and the consequent increase in retail purchases are quite substantial in a developing country context where incomes are very low. Sensitivity analysis using different demand and supply elasticities also showed that the elimination of tariffs and taxes on ITNs and their inputs would lead to a substantial fall in retail purchases resulting in retail purchases increasing.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uct/oai:localhost:11427/6952 |
| Date | January 2002 |
| Creators | Shamu, Shepherd |
| Contributors | Rehnberg, Clas |
| Publisher | University of Cape Town, Faculty of Commerce, School of Economics |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Master Thesis, Masters, MSocSc |
| Format | application/pdf |
Page generated in 0.0028 seconds