A Dissertation Submitted in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Public Administration (MPA) of
Mzumbe University.
The study was carried out to investigate issues constraining implementation of Investment Policy of 1996 towards achieving Foreign Direct Investment (FDI). Specifically, the study was carried out to examine how the extent to which infrastructures constrain implementation of Investment Policy of 1996, to investigate how bureaucracy affects implementation of the policy and to investigate how resources constrain implementation of the policy. The study employed a case study design and a sample size of 60 respondents was drawn through a purposive sampling technique. The study used primary data and secondary data whereby data collection methods were questionnaire, interview and documentary review. In addition to that, data were analyzed qualitatively and quantitatively. The study findings revealed that issues constraining implementation of investment policy include inadequate designed areas for investment projects, inadequate and unreliable power supply, inadequate ICT facilities/equipment, red tape, corruption practices, unnecessary delays, inadequate number of staff, inadequate skilled man power, inadequate financial resources, absence of continued commitment in prioritization for each regime, the outdated of the investment policy 1996 which has failed to cope with the social economic changes taking place in the world today, lack of political will and failure of the citizens to differentiate between investment policy and trade policy. Additionally, the study found that there is a contradiction of laws and policies that involved in the implementation of FDI. It was also revealed that amendments to some laws by the parliament affect Foreign Direct Investment. The study concludes that although Foreign Direct Investment (FDI) has been regarded as the key engine for boosting a country’s economy, the problem is on the implementation of investment policy in achieving the growth of FDI. Based on the study findings, it is recommended that there should be more efforts by the government and stakeholders to address the highlighted challenges.