Role of Education in Shaping Recycling Investment Decisions: Evidence from Small-Scale Firms in Tanzania

This study examines the role of educational attainment on recycling investment decisions among small-scale recycling (SSR) firms in plastics, metals, paper, glass, and e-waste. Using a quantitative methodology, data were collected from 400 SSR entrepreneurs across three urban centers—Dar es Salaam, Mwanza, and Arusha—and analyzed using a Multivariate Probit (MVP) model. The findings revealed that entrepreneurs with primary and secondary education are significantly more likely to invest in plastic recycling (coefficients of 0.990 and 1.319, respectively, p<0.01) but significantly less inclined to engage in more technically demanding or capitalintensive streams such as metals, paper, and e-waste. Education showed no significant effect on investment decisions in glass recycling, suggesting that external factors such as infrastructure and market conditions play a more decisive role. Additionally, urban firm location positively influenced plastics and glass recycling investments, while higher investment costs positively correlated with investments in paper and e-waste recycling. Privately owned firms demonstrated higher likelihoods of investing in plastics, metals, and glass, reflecting greater flexibility or risk tolerance. These results underscore that while education positively shapes investment in simpler recycling streams like plastics, broader sectoral engagement requires complementary support such as targeted technical training, financial incentives, and improvements in infrastructure. Consequently, the study recommends integrated policy interventions that combine educational advancement with financial support mechanisms, technical capacitybuilding, and market-access improvements to facilitate more diversified and inclusive investment in Tanzania's recycling sector.