An Emperical Study on the Strategies to Attract Foreign Direct Investments in Tanzania

Abstract

This paper dwells on the investment strategies in attracting FDI into Tanzania, the investment reforms have been expected to become a major factor responsible for the increased FDI inflow in to the country, these reforms including political system, economic management and government administration. Despite of the several efforts such as the far reaching reform in the economy done by Tanzania to increase FDI inflows in the country, the results are far from satisfactory. It has been revealed that the unsatisfactory FDI inflow into Tanzania is primarily caused by the improper strategies resulted from the inadequacy of FDI determinants in the country. The study found that Tanzania lacks the adequate strategies due to poor FDI determinants that would attract a substantial FDI inflow into the country. This makes it necessary for the country to make sure that the determinants like better infrastructure, adequacy of government agencies; favorable macro economic, political conditions are available in adequate amount and quality. It is concluded that proper strategies in influencing investment regulatory frameworks, policies that promote macroeconomic stability, improved physical infrastructure and institutional reforms are important in attracting more FDIs into a country and therefore are highly recommended.