Analysis of Cost-Benefit Model for the Adoption of Remanufacturing Operations in Tanzania

This research develops a cost-benefit analysis (CBA) model to evaluate the financial and environmental feasibility of remanufacturing operations in Tanzania’s manufacturing sector. A mixed-methods approach combining qualitative and quantitative insights was employed. The study sampled 125 garages, workshops, and recycling companies in Tanzania. Quantitative data was obtained through face-to-face interviews with business owners, while qualitative data was gathered via surveys with workshop employees. Data was analyzed using factor analysis (SPSS Version 20), Smart PLS 4 for structural equation modeling, and Fuzzy Logic for risk assessment. Remanufacturing operations demonstrated strong financial viability, with profitability indices ranging from 1.59 to 1.92 and net present values (NPVs) between 1E + 9 and 1.6E + 9 annually over five years. Payback periods averaged three years, and internal rates of return exceeded discount rates (15–23%). Barriers include infrastructure limitations, technological gaps, and low public awareness. The model underscores the economic potential of remanufacturing operations while identifying critical barriers requiring policy interventions. However, fluctuating economic conditions in Tanzania and global markets may influence long-term feasibility. The study integrates a robust CBA model validated through sensitivity analysis, providing a practical tool for stakeholders to promote sustainable manufacturing.