Factors Affecting Fdi Inflow in Tanzania

CHAPTER ONE 1 INTRODUCTION 1 HISTORICAL BACKGROUND OF TANZANIA enthronement CENTRE (TIC) Tanzania Investment centralise (TIC) is the primary agency of the regimen of Tanzania to coordinate, encourage, fire and facilitate investiture cash in hand in Tanzania and to advise the Goernment on enthronisation related matters. TIC is a focal point for investors. It is the first point of announce for the potential drop difference investors it is a one stop facilitative centre for on the whole investors, engaging in the air of marketing Tanzania as an coronation destination.TIC was launch in 1997 by the Tanzania Investment Act No. 26 of 1997 to be the primary agency of Government to coordinate, encourage, promote and facilitate enthronisation in Tanzania and to advise the Government in Investment related matters All Government departments and agencies ar required by impartiality to cooperate fully with TIC in facilitating investors. As a primary agency of the Government in e ach investment matters, TIC is charged with the future(a) amours- Assist in establishment of enterprises e. g. ncorporation of enterprises obtain indispensable licenses, work permits, visas, approvals, facilities or services Sort out any administrative barriers confronting twain local and contrasted investments Promote both strange and local investment activities Secure investment sites and assist investors to establish EPZ projects hold Certificates of Incentives, investment guarantees and register technology agreements for all investments, which a re over and above US $ 300,000 and 100,000 for impertinent and local investment respectively stomach and disseminate up to date tuition on existing investment opport unit of whole tonementies, benefits or incentives available to investors and Assist all investors whether or non registered by TIC. TIC headquarters is in Dar es Salaam, precisely has established Zonal offices in Kilimanjaro, Mwanza and Mbeya neighbor hoods in order to assist Investors who ar based in nigh regions to access TIC services without necessarily traveling to Dar es Salaam.The Zonal offices be responsible in assisting investors to obtain all relevant permits, approvals and licenses they require in order to set up their military controles. In order to strengthen and advance facilitation services, ten (10) Senior officers from Government or its Executive Agencies strike been permanently stationed at TIC to serve investors under one roof. Presently these officers include those from- Ministry of Land, accommodate and Human Settlement Development Tanzania Revenue Authority (TRA) Immigration part Ministry of Labor, Employment and Youth Development (Labor Department) Ministry of Industry, Trade and Marketing ( commitorate Trade) Business enrolment & Licensing Agency (BRELA).? 2 BACKGROUND OF THE PROBLEMFDI has been one of the principal beneficiaries of the easiness of jacket come downs over recent decades an d now constitutes the major(ip) form of jacket crown in melt for many Afri mass countries, including whatever low-income ones want Tanzania. Economies be a great deal considered less vulnerable to remote financing difficulties when current account deficits atomic number 18 financed largely by FDI influxs, rather than debt-creating capital flows. There is no denying the richness of FDI inflows both for their contribution to sustaining current account im eternal sleeps in countries and for their contribution to broader scotch harvest-festival, through with(predicate) technological spillovers and competition effects.Recent sparing reports show that Tanzania lags shadow neighbors Kenya, Democratic Re everyday of Congo, Zambia and too Madagascar in its ability to earn hostile investors. A ccording to a top frugal official, the failure to execute pro-business reforms is memory prospective impertinent investors away from Tanzania. (Konye Obaji Ori, Afrik. com, Thursday September, 2008). The Chief Executive Officer of the Tanzania Investment Centre, Mr Emmanuel Ole Naiko, said even countries with less attractive opportunities and re references were receiving more inappropriate direct investment beca subroutine the culture of politicking and negative public sen clock timents against foreign investors in Tanzania were among concomitantors impeding the inflow of investments in the untaught.In recent years, the flow of FDI has been steadily growing. From 2004 to 2005, the inflow grew by 29 percent to reach US $ 916 billion). During the analogous Tanzania attracted US $ 330. 6 million. To ensure maximum benefit to the frugality, potential factors make a motioning FDI flow should be researched periodically. (Tanzania Investment Report, BOT, 2006). A large proportion of the FDI flow into Tanzania has plusd from 552 million US Dollars in 2006 to 600 million US Dollars in 2008, ranking the body politic among the top ten recipients in Africa. pre condition its dominance in financial globalization and the potential adjoin to the economies, FDI fly the coop to pose various challenges to individual recipient countries.For example monitoring and military rating of the inflows, respecting macro economics stability, and undertaking institutional and policy reforms for the purpose or realizing optimal benefits from the inflows. These challenges obligates Tanzania to subjoin capacity to compete interms of attracting investments, gaining global market shares and improving social economic welfare. Therefore the main objective of TIC is to facilitate Investment for topic suppuration by enhancing an environment submitive for business and entrepreneurship growth hence attracting FDI inflows. 0. logical argument OF THE PROBLEM For the yesteryear two decades, Tanzania had been conceiving several efforts to attract alien sway Investment.Major policy and structural reforms carried out since 1980s played world-shaking role in impr oving the investment environment in the solid ground. These efforts birth resulted into incr informality in FDI inflows into the country. save the summation in FDI and related investment posed a need to evaluate potential factors that induce the flow of FDI and should be emphases in this issue. The diminished yield of investors in the country is unremarkably contributed to weak economic feat. So it is authorized to identify factors that affect these investors not to invest in the country. It is also important to recognize the mixture of despotic and negative effects of FDI bring into the country.The research worker result evaluate shipway which can be utilise to maximize the effects of FDI hence take to economy growth. Therefore the aim of this assume is to identify and evaluate the potential factors that affect the flow of FDI into our country. 1. 4 RESEARCH OBJECTIVE 1. 4. 1 everyday Objective. To identify and evaluate the potential factors that affect the inflo w of FDI in Tanzania so that to maximize the effects of FDI hence leading to the growth of economy. 1. 4. 2 special(prenominal) Objectives To identify and evaluate the informants of FDI To analyze the role of FDI as a bloodline of economic bristlement To analyze the effects of FDI in the server country and how this can be controlled. 1. 5 RESEARCH QUESTIONS 1. 5. General Questions What are the say-so Factors That Affect FDI influxs? 1. 5. 2 Specific Questions 1) Will policy measures lead to increase/decrease in FDI inflows? 2) What leave alone happen is around companies with foreign go forthpower maintain offshore accounts, from which their debt servicing is made directly, thus leading to unnamed outflow? 3) What policy measures to be taken as FDI inflow into the country come from varied countries with unathe likes of investment requirement hence having variant requirements? 4) What is the effect of handiness of extremely educated and skilled labor in FDI Inflows? 5 SIGNIFICANCE OF THE RESEARCH 1. To the Tar come in GovernmentThe reading go out provide information for developing policies on investment promotion and homework on future investment strategies. Also it provide help in improving the necessary environment for attracting FDI inflows in the country. 2. To Future Researchers To help mod(prenominal) tecs to conduct future study on the same problem accustomed the gaps this might be encountered by the police detective. Also it can be manipulationd as reference for literature reviews on the same problem in other areas relating with FDI. 1. 6. 3 To the Researcher 1) The study is the partial fulfillment of the requirements for hazard Graduate sheepskin in pecuniary Management to be awarded by the make for of Finance Management. IFM) 2) The detective entrust gain confidence to conduct other research Studies independently at his places of work as to clobber long and short term problems due to widened ability in musical compos ition and reporting skills. 1. 6. 4 To Investors The study will be of much impressiveness to local and foreign investors, policy makers, donors, academicians as well it will be a useful witness of information about the factors that determine FDI inflow in the country. 1. 6. 5 Reference Period The study conducted whitethorn be used in the coming three (3) years. 1. 7 SCOPE OF THE take aim The study is intended to provide information on the potential factors that affect FDI inflow as well as bring out investors scholarship of the economy and business environment ranging from macroeconomic situation, infrastructure, financial political science and fatigue factors.The research will be conducted in Dar es Salaam region at TIC Headquarters and will take approximately two (2) months. The issues to be analyzed here are the potential factors that affect the FDI inflows, the sources of FDI into the country and the pretend of FDI to the country both negatively and positively. 8. GAPS T O BE FILLED 1) FDI by topically owned companies has to be analyzed in any case, as many records shown by the past researchers are for the fully owned by foreigners or partially. 2) To add information on the previously done research on the gap exhausting to gull a census on the set of potential factors bear on FDI inflows. 3) The study will try to overcome or at to the lowest degree reduce the gap as outline above. 9. CONCEPTUAL MODELTanzania benefits from FDI because these flows extend the assigned Domestic savings and bring with it finance, managerial skills, technology, marketing expertise and market links. However new opportunities also bring risks that should be managed properly, specially in the case of policy reforms e. t. c. 10. ASSUMPTION OF THE STUDY The Researcher anticipates the following assumption in the research suffice- 1. 10. 1 Time It is pretended that the time will be sufficient to complete this study. The time prone is not sufficient to make the rese archer to make a all-around(prenominal) study. This implies that the researcher will face difficulties in gathering all the important information for analysis. 1. 10. 2 Respondents It is pretended that some of the respondents will cooperate.Some respondents will also be a problem in the study this is because of their face-to-face interest and might choose to be untruthful. Also there whitethorn be a problem of absence of respondents. 1. 10. 3 Access to Records A problem of fully access to some documents may pose a problem as some documents are termed as very confidential and thus cannot be accessed by anybody especially the outsider. 1. 10. 4 Funds It is assumed that the funds will cover what is on the budget. However any extra costs outside the budgeted one may pose as a problem as there will be no excess funds from my sponsor. Inexperience in conducting research may lead to some delays hence increase in cost of the study.CHAPTER TWO 2. 0 literary productions REVIEW 2. 1 INT RODUCTION Many researcher has been conducted regarding the analyses of the major determinants of FDI flows but did not come to census on what can be contract as a set of major determinants of FDI inflows, as this varies from one country to another and from one host to another. ( adult male Investment Report, 2008). The flow of FDI to different countries is unequal. The major sources and destination of FDI open been the USA, the European Union, and Japan. Europe is currently the largest recipient and source of FDI. Africa has been receiving the lowest share of global FDI despite efforts by African ountries to attract it. However the climate has remedyd over the past hardly a(prenominal) years. The growth of interior(prenominal) output has been greater that that of the population for the first time in years. (Recep Kok et al, Analyses of FDI Determinants in Developing Countries, Journal of Social Economics, Volume 36 1/2 2009 PP105 123). Tanzania matchd US $ 600 million in 2008 and became the third largest recipient of FDI in SADCC region. However Tanzania has an upside potential to attract more FDI because of its go along policy- do stability, promising prospect in the mining and biogas, and tourism. (World Investment Report, 2008). 1 Meaning and Overview of FDI in TanzaniaRecep Kok et al, defines remote take away Investment is as a case where a resident entity in one economy acquires fixed interest in an enterprise in another countrys economy with significant degree of influence. The World Investment Report (WIR) 2008, which was launched by the Secretary General of UNCTAD Dr. Panithpakdi, indicates that the FDI inflow in Africa has recorded an impressive performance. It shows that FDI on the continent has hit a record and that Africa has the highest returns on Investment. The Government has act to improve the countrys investment climate, by introducing different reforms which will be of interest to investors. However as everyone sees, the foreign investment is highly concentrated in some parts of Tanzania, in the big cities like Dar Es-Salaam, Mbeya, Arusha e. t. c.Also it is concentrated in the mining areas like Geita, Kahama, Nyamongo, and Tulawaka. In areas where the precisely product obtained there is agriculture, there are no or hardly a(prenominal) investments. (Tanzania Investment Report, 2006). FDI has some components which are- 1) Direct Equity Investment 2) kept up(p) earnings attributable to non-residents 3) Long-term shareholders and inter-company loans 4) Short-term shareholders and inter-company loans and 5) Suppliers credits from related companies. The heave of interest in FDI and multinational companies has been so high that in Tanzania there has been a high outlook in terms of what the companies can do and generally on the development effects of FDI.While FDI can, indeed, contribute to national economic and social development in many ways, the engagement and performance of domestic actors are very cruci al. The effect of FDI largely depends on the policies of the host country. This goes beyond the mere liberalization of economies. Deliberate measures to develop human capital and physical and social infrastructure can also be important ways to enhance the quality of FDI that countries can attract. Tanzania is making major efforts to increase FDI inflow by improving the investment climate. It has embarked on wide-ranging policy, governanceal and institutional reforms aimed at reducing (and if possible removing) barriers to entry of foreign capital, peculiarly FDI.Trade investment liberalization, privatization and the creation of various incentives for foreign investment acquire received considerable attention of the government. Regional economic integration bodies and allay mess zones apply been created to enlarge the size of markets and adopt common investment regimes at sub-regional and regional levels. These efforts are based on recognition that FDI can stimulate economic growth, generate new employment opportunities, promote careen of new technologies and contribute to environmental sustainability in the region. (Oyeyinka, 2004) 2 FDI Inflow and setting for Tanzania Tanzanians irrelevant Direct Investment has increased by nearly 15 part in 2008, mainly due to investment in natural resources Exploration projects already in operation. Tanzania has ranked number 12 among major FDI receiver African countries after Nigeria, Egypt, Morocco, Sudan, Equatorial Guinea, Algeria and Tunisia. other(a) countries ahead of Tanzania are Madagascar, Zambia, Ghana, DRC and Kenya. (World Investment Report, 2008). However, there is no cogitate why on earth countries like Zambia and Madgascar should surpass Tanzania, particularly when one looks at the natural resources endowments the country enjoys. Tanzanias problem has been engagement in too many debates, which inhibited some the making of quick and timely decisions. vainglorious the example of a country like Moz ambique, although it was devastated by the war, had managed to successfully develop its coal mines leaving Tanzanians to debate on who should develop Mchuchuma coal or Liganga iron ore deposits. Since early 1986, The Government of Tanzania, with determination, launched a comprehensive economic reforms and stabilisation programme. In pursuit of this, agricultural marketing has been liberalized, foreign exchanged controls have been lifted, price deregulated, enhanced private sector involvement in the economy through privatization programme and the new investment code offering emulous incentives has been in place. These comprehensive economic reforms have resulted into improved competitiveness, lower tariffs, increase levels of foreign investment in trade, improved key economic indicators and speedy integration into world markets.To this end, the Government is currently embarking on a arduous exercise to upgrade its institutions and bring them at par with international standards. The expectation is to enhance the countrys competitive position for investment flows destined for the region and meet the challenges of globalization. Table 1GDP Snapshot for 2004 GPD US $ 8. 8bn GPD per Capita USD $ 240 GPD growing 4. 3% Agriculture survey Added 47. 6% Industry Value Added 14. % Services Value Added 38. 0% Source World curse Tanzanias 15 years track record of largely satisfactory reforms has merge a favorable macroeconomic environment, which makes it one of the main incentives for foreign investor. Growth per capita is expected to increase by 3. 4% between 2004 and 2009. (Tanzania Investors Guide, 2002 and beyond). Table 2FDI Inflows, 2004 2007 Year US $ mn 2004 183. 3 2005 350. 5 2006 522 2007 600 Source Bank of TanzaniaAn increase in Foreign Direct Investment, apparently, indicates that the countrys investment environment has change magnitudely improved in the manner that investors are now able to predict more precisely profits to be accrue from th eir investment. Table 3 TIC Approval of Foreign Investment 1990 2000 YEAR US $ mn 1990 47. 25 1991 471. 49 1992 204. 9 1993 527. 05 1994 302. 99 1995 263. 42 1996 467. 85 1997 384. 9 1998 1464. 69 1999 1211. 2000 767. 77 Source Tanzania Investment Centre 2. probable FACTORS THAT ATTRACT FDI The literature groups the factors that attract foreign investment into two groups out-of-door push factors and domestic chicken out factors. Among the pull factors are a. Economic and political reforms that boost confidence in the economy b. Reforms such(prenominal) as debt restructuring which ease the long-run foreign exchange constraint and therefore enhance the sustainability of foreign exchange inflows c. Liberalization of foreign exchange flows (both current and capital) in the balance of payments d.Simplication of red-tape requirements for direct and portfolio investment and liberalization of restrictions on private sector borrowing from a broad e. Macroeconomic factors, t hese are fiscal policy, monetary policy, government stability, government spending regulatory frame work, state intervention in private business, and financial sector stability. The government has to have a trim look on these factors as they affect investors operations f. The infrastructure and public services including in overturn transport, ports, electricity and water supply, postal services, telecommunications, customs services, in-migration facilities, municipal services, banking services and credit rating g.Diverse factors including corruption, internal security, domestic political scenario, regional political scenario, domestic economic situation, global economic situation and market expansion h. Governance factors that include regional trade integration, trade policy, investment incentives, bureaucracy, and tax get windion efficiency, effectiveness of legal law, land law and administration and speed of decision making i. Inflation, availability of business credit, interest rate, depreciation on domestic currency, national payment governing body and exchange control are among the pull factors. Among the push factors are a. The congress decline in international interest rates ( most(prenominal)ly US dollar mark rates) when compared to interest rates in developing economies b.Cyclical downturns in economic operation in developed economies, which reduce the demand for investment funds and c. A move towards intentional diversification of asset portfolios by major portfolio investors such as pension funds and insurance companies. The literature determine both push and pull factors as being behind the increase in capital flows to developing economies in 1990s. However, it is domestic or pull factors over which policy makers can have direct impact in attracting inflows of private capital. (Asea and Reinhart, 1995) 3. MEASURES TO BE TAKEN BY TANZANIA TO INCREASE FDI INFLOWS There are several ways home countries can increase FDI inflows. These include a. l essen political risk by enhancing the credibility of reforms. Sub-Saharan Africa seems to be seen as one homogeneous continent and therefore the bad behavior of few governments often leads to a negative image for all. Credibility also matters for the sustainability of reforms. Reforms that are credible are more likely to be sustainable in the long run as economic agent react positively to policy measures and result in virtuous circle behaviors. (Kasekende and Bhundia, 2000) b. Political reforms, political disorder is very damaging to economic growth and is not tributary environment for both domestic and foreign investment (Kasekende and Bhundia, 2000).Political reforms should be aimed at building examples that are more inclusive, encourage power manduction and allow for enhanced public participation in political process. c. restitution against policy risk. Home countries can sign bilateral or four-party investment treaties that have legally binding elements establishing the obl igations of the host country toward foreign investors from other signatory countries. d. Macroeconomic stability should be ensured, as it is requirement for attracting sustainable, long-term foreign investment into a country. Hadjmichael et al (1996) conclude the most important impact of policies on private investment behavior was through their effect on macroeconomic instability and uncertainty.This suggests that greater macroeconomic instability can have a considerable adverse impact on domestic and foreign private in investment. e. External core should be reduced. In many African countries external debt servicing, most of it official, continues to adopt a significant burden on finances. In principle, heavy external debt does not automatically translate into low growth. Growth in exporting earnings can allow for continued importation investment goods to maintain growth while servicing external debt at the same time. However, if borrowed bullion is invested primarily in non-tr aded sector then the situation will cut where the economy is unable to pay for imports required to maintain growth. 4. ADVANTAGES AND DISADVANTAGES OF FDI AS A SOURCE OF ECONOMIC GROWTHAccording to B. Seedha et al in their written report Foreign Direct Investment in Africa, FDI is simply a source of capital. The impact of FDI is dependent on what form it takes. This includes types of FDI, sector scale, duration and kettle of fish of business and secondary effects. It is important to note that while some have experienced growth because of large FDI inflows, others have not. FDI can contribute to unadulterated domestic products, gross fixed capital formation and balance of payments. different contributions FDI can make to host country economy include assisting in debt servicing repayments, stimulating export markets, and producing foreign exchange revenues.Another reflection of FDI is that it can serve as source for economic development is in currency stability. FDI can contribu te to social development by increasing employment and wages and by replacing warning market sector. FDI may offer poverty reduction, since poverty is related with unemployment. High levels of FDI do not necessarily show domestic gain (B. Seedha et al). Other factors may limit the economic gain to the host countrys economy. Example of such factors includes corporate strategies, and importation of goods and resources used in production. However FDI is mostly alter by countrys instability. The gain in employment, wages and so on may be realized by very small part of the population.When this happens wage differences between income groups will increase and the distribution of income may become unequal. Another negative effect of FDI as a source of economy is where the parent companies dominate the local market, leaving the local companies with no where to go. CHAPTER THREE 3. 0 RESEARCH METHODOLOGY 3. 1. INTRODUCTION This section describes the methodologies framework of the study which includes Research paradigms, Research Design, types of touchstones, entropy appealingness methods and approach, types of selective information, try techniques, sampling procedures, reliability and bindingity of entropy, management and analysis of data and limitations of the study. 3. 2RESEARCH PARADIGMSParadigms or inculcate of Thought in research scholarship are accepted ways of looking at reality and the consequent approach/methods to generate association that is held by a group of intellectuals who have wide influence in that subject area. The basic premise behind the paradigms is based on how tribe view reality (Lufumbi, 2008). 3. 3 RESEARCH DESIGN Research human body is the overall plan of the research. It is referred as a blueprint for the collection, bars and analysis of data. During the study the Case Study design will be used. This is due to the fact that the research will be conducted in a single organization, and also case study design allows variety methods of data collection methods.In addition to that case study design will grounds the room to researcher to make rigorous analysis of the organization under the study. Case study design is also less costly compared to other research designs. However the case study design limits the researcher from generalization to other unit of the same kind because it may not be a adjust representative sample. It allows the researcher to be able to get close to the sources of information. 3. 4 RESEARCH TECHNIQUES In analysing the data the researcher will adopt both quantitative and qualitative techniques. Tables will also be used by the researcher to present the information where applicable. 3. 5TYPES OF MEASUREMENTSMeasurement is a process of assign numbers to objects or observation, the level of measurement being a function of the rules under which the number assigned (Kothari, 2004). Technically speaking measurement is the process mapping aspects of range according to some rules of correspondence. The measurement of the collected data will be delivered score that will be obtained from the respondent when making sense of data that would make from the research development. The delivered score will be of course those from face to face interview, questionnaires, documentations and observation. 3. 6 SAMPLING TECHNIQUES The simple stochastic sampling approach will be used to select the sample.The researcher expects to follow the following approach in selecting the sample- All Foreign Investors registered with Tanzania Investment Centre as a population to be study will be identified through the register. Sample of foreign investors will be d tendern randomly. Judgment approach to sampling will be used to select the items to be studied. 3. 7 DATA COLLECTION METHODS AND APPROACHES The data to be collected are those which will be able to take the research objectives and answer the research questions. Both primary and secondary data will be used in this study and the research inte nds to use several relevant data collection method to collect them. 3. 7. 1Primary entropy Primary data are original works of research or raw data without interpretation or pronouncements that present of official assent or position.Secondary data are those data obtained from literature sources. These are the ones that have already been collected by the other people for some other purposes. This is second had information. Secondary data include both raw data and published ones (Sunders et al, 2000). The following methods will be used in ingathering primary data Interview This method will be use for the purpose of seeking clarifications on some of data collected. For this reason the interview will be in form of verbal and unstructured. Questionnaire The researcher will set relevant questions on factors attracting FDI inflow, and those questionnaires will be distributed to different staffs who will answer them.This method will be used to give adequate time to think about the questio n and respond to them accordingly. These will be administered to TIC staffs in order to collect data relating to such issues like what they think attract foreign investors to invest in Tanzania, what hinder foreign investors to invest in the country, the advantages of FDI inflow in Tanzania. , and how do they purchase, issue and receive stores. Observation The researcher will observe and participates directly in everyday activities of TIC. This will enable the researcher to analyze each particular activity effectively and appropriately. Also this method will make help to the researcher to detect the behavior of the respondents a) Documentary SourceIn this course of collecting data, the researcher will be trying to go through different document held by TIC. 2. Secondary information The researcher will collect secondary data through the review of various literatures from different sources such as minutes, reports, policies and legislation regarding the investments in Tanzania. 7. RE LIABILITY AND VALIDITY OF DATA The researcher will make sure the measurable data are valid by controlling the questionnaires, and interview and ensure that are directed to the make up person at TIC and make sure the reliability of the data by reviewing information which is from reliable and right documents. 1. ReliabilityReliability refers to the question of whether a measuring instrument or process can produce the same results if successively employed by different researchers (Ndunguru, 2007). It refers to the extent to which a measure is giving consistent and stable results in a measurement process. 2. daring Validity helps us to measure what it sets out to measure consistently and in a stable manner. It refers to persistence of systematic error in measurement process (Ndunguru, 2007). The validity of the research results is ensured id adequate physical or statistical control is put in place such that research measurement process produces accurate data. Generally validity is abo ut a researcher measuring what he/she out to measure. 8.MANAGEMENT AND ANALYSIS OF DATA 1. Data Management Data will be collected from respective sources by using questionnaire, personal interviews. The respondents are randomly selected. However whenever the approached interviewee was not get-at-able at that time, the next nearest interviewee will be approached. 2. Data abbreviation The data collected from questionnaires, interviews and documents is going to be edited, coded and summarized in order to get information relating to problems. The researcher will analyze and test the data using descriptive method, text and schedules, and tables will be used to validate race between variables. 3. 9. 3 Data ProcessingThe researcher will use coding in data processing. This includes numbering and heading so as to simplify and reduce the ambiguity to the reader. Collection of data using questionnaire will be entered in the computer so as to make coding. 3. 9. 4 Data Presentation The findi ngs of the study will be presented in a form of narration description with illustration of tables and diagrams where applicable. REFERENCES AND BIBLIOGRAPHY Immanuel D. Mzava & David Hillier (2004) Does Countrys task Structure determine its Foreign Direct Investment Flow? The African Journal of Finance & Management, Volume 141 Barbara Seedha, Lauren Maxwel & Joseph Horton (2000) Foreign Direct Investment in Africa The African Journal of Finance & Management, Volume 141 Bank of Tanzania (2001) Report on the Study of Foreign backstage hood Flows in Mainland Tanzania Tanzania Investment Report. Bank of Tanzania (2006) Report on Foreign reclusive Investment in Tanzania Tanzania Investment Report. Recep Kok & Bernur Acikgoz Ersoy (2009) Analyses of FDI determinants in Developing Countries internationalistic Journal of Social Economics Volume 36 ? PP 105 123 www. emeraldinsight. com Bhinda, N and M. Martin (1994). Eastern Africa Survey of Foreign Investors, Report by Exocomisti As sociation for the World Bank. Chege, M (1999). Politics of Development Institutions and National Governance, Paper presented for Africa in the 21st Century Initiative (Washington D. C World Bank) IMF (1999). The Cross-Border Initiative in Eastern and Southern Africa, African and Policy Development and Review Department, IMF. Kasekende L. and I. Hussain (1997). Private Capital Flows to Sub-Saharan Africa Whats the Real Story? Paper presented at Seminar, A New Paradigm of Financing Development and Development Cooperation, expose 1997, Stockholm. Kasekende L. , D. Kitabire and M. Martin (1998). Capital Inflows and Macroeconomic Policy in Sub-Saharan Africa, in G. K. Hellier (1998). Capital Accounts Regimes and Developing Countries (London Macmillan Press)Kasekende L. and A. Bhundia (2000). Attracting Capital Inflow to Africa Essential Elements of a Policy Package. progress Unedited Copy. UNCTAD (1999), Foreign Direct Investment in Africa Performance and probable, (New York and Genev a, 1999). TIC (2002 and beyond). Tanzania Investors Guide Investment Opportunities and Facilitation (United Republic of Tanzania, skirt 2002) C. Makunike (Tuesday, September 30, 2008). Tanzanias Foreign Direct Investment inflow up by 15 Percent. (www. tradeafrica. com) D. Makangale (Thursday, January 22, 2009). Investment Climate Attractive (Tanzania Daily News Paper) Macias J. B and Massa I. (June 2009). The orbiculate Financial Crisis and Sub-Saharan Africa The kernels of Slowing Private Capital Inflow on Growth Results of ODI Research Presented in Preliminary Form for raillery and Critical Comment. (London Overseas Development Institute). Oyeyinka, B. (2004). How can Africa Benefit from Globalization? ATPS redundant Paper Series No. 17 www. tic. co. tz visited on 3rd March 2010 APPENDICES adjunct I Institute of Finance Management, P. O. Box 3918, Dar es Salaam, tenth March, 2010. Dear Respondent, I am a student at the Institute of Finance Management undertaking Postgraduate Diploma in Financial Management. I am researching on the Potential Factors that Affect Foreign Direct Investment Inflow in Tanzania.The questionnaire aims at finding data for a research paper to be presented to the Institute of Finance Management as a partial fulfillment of the requirement for the Award of Postgraduate Diploma in Financial Management. I kindly request you to put a tick after appropriate answer and where applicable explain why when requested to do so. The information you give will be strictly confidential and will be used for the purpose of this research. Thanking you in advance. Yours truly, Kwareh, Karerema R. APPENDIX II RESEARCH QUESTIONNAIRE A GENERAL INFORMATION Date blameless ________/_______/_________ Centre Name ______________________________________ Name and position of the person completing this questionnaire ____________________________________________________________ _Centre Address _____________________________________________ Tel __________________ Fax _______________ E-mail ____________ occupy give details of resource person whom I may contact incase I have any questions __________________________________________________________ Date of Commencing Operations _____________/ _____________/ __________ B GENERAL QUESTIONS 1. To what extent have the following macroeconomic factors affected investment in our country? truly strong +ve effect satisfying Limited +ve military issue No tack Limited Strong genuinely Strong ve notion +ve effect ve return ve raise 1 2 3 4 5 6 7 At jumpstart upNow Fiscal policy( ) ( ) Monetary policy( ) ( ) Government Stability( ) ( ) delight add any additional Information ____________________________________________________________ __________________________________________________________________ ______ 2. To what extent have the availability of condition of the following Infrastructures and services affected in our country? genuinely strong +ve effectStrong Limited +ve Effect No Effec t Limited Strong Very Strong ve Effect +ve effect ve Effect ve Effect 1 2 3 4 5 6 7 At start upNow Inland transport (roads, rails)( ) ( ) Access to seaport( ) ( ) drome and Air transportation( ) ( ) Electricity supply( ) ( ) Water supply( ) ( ) Please add any additional Information ____________________________________________________________ __________________________________________________________________ ______ 3. To what extent have the following financial factors affected investment in Tanzania? Very strong +ve effectStrong Limited +ve Effect No Effect Limited Strong Very Strong ve Effect +ve effect ve Effect ve Effect 1 2 3 4 5 6 7 At start upNow Inflation( ) ( ) Availability of business finances/credit( ) ( ) Interest rates ( ) ( ) Depreciation of domestic currency( ) ( ) Exchange Control( ) ( )Please add any additional Information ____________________________________________________________ ____________________________________________________________ _________ ___ 4. To what extent the following governance factors affected investment opportunities in Tanzania? Very strong +ve effectStrong Limited +ve Effect No Effect Limited Strong Very Strong ve Effect +ve effect ve Effect ve Effect 1 2 3 4 5 6 7 At start upNow Regional Trade( ) ( ) Trade policy( ) ( ) Bureaucracy ( ) ( ) Tax collection efficiency( ) ( ) Land law & administration( ) ( ) Please add any additional Information ____________________________________________________________ ____________________________________________________________ ____________ 5. Please cook the most important factors that influence your initial decision to invest in Tanzania? ____________________________________________________________ ___________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ __________________________ ____ 6. What is the likely direction of foreign direct investment in Tanzania in the medium term? Please tick appropriate box blowup No Change Contraction 7.What measures can the government undertake to improve investors attractiveness to continue investing in Tanzania and attract new investors? a. ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ b. ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ c. ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ d. ____________________________________________________________ ___________________________________________________________ ____________ ________________________________________________ Thank you for your time. APPENDIX III TIME SCHEDULE This timetable will be of great help to me as a researcher to organize activities to be carried out and allocate the time accordingly. This will act as my guideline. The estimated time of conducting the research is 9 weeks. hebdomad Activity 1st 2nd Week Preliminary preparation i. e. research proposal, budget, finding the assistant for help if necessary e. t. c. 3rd 4th Week Preparation of questionnaires, visiting the respondents and distribution of questionnaires fifth 6th Week Collection of questionnaire from respondents, analysis of the data, verification and processing seventh 8th Week Revising the paper, re-writing and bidding 9th Week Presenting the paper and support APPENDIX IV RESEARCH BUDGET 1. 0 STATIONARY TSHS 1. 1 Ream of ruled paper x2 7,000 14,000 1. 2 Ream of A4 plain papers x 2 8,000 16,000 1. Flash Disk x 1 50,000 50,000 1. 4 Ball pen, pen cil, collection fluid 10,000 2. 0 SECRETARIAL SERVICES 2. 1 Proposal typewrite and printing x 2 copies 100,000 2. 2 Research Typing and printing x 2 copies 150,000 2. 3 Binding 50,000 2. 4 Photocopying of documents 20,000 3. RESEARCH EXPENSES 3. 1 Assistance Researcher 80,000 3. 2 Transport to and fro 250,000 3. 3 Breakfast/ tiffin e. t. c 100,000 3. 4 Consultation 50,000 Sub-total 890,000 + Contingency 30% 1,157,000