A Dissertation Submitted to Mzumbe University, Dar es Salaam Campus College in Partial Fulfillment of the Requirements for the Award of Master of Business Administration in Corporate Management (MBA-CM) of Mzumbe University
The study aimed at assessing the salient impact of FDI on Tanzania agriculture sector with the following objectives; to find out FDI attractions in Tanzania agriculture sector, to analyse the impacts of FDI inflow in Tanzania agricultural sector, to examine the effectiveness of FDI inflow in Tanzania agricultural sector and to determine strategies of improving effectiveness of FDI inflow to the sector. A sample size of 65 respondents was drawn using quota and judgmental sampling procedures.
Moreover, data collection methods included questionnaires, interview guide and documentary review. In course of data collection and analysis, the study revealed that attractions for FDI inflows in Tanzania agricultural sector included tax incentives offered by the Government, integrated service delivery (TIC, TRA, Migration and Land authorities) to enhance quick services under one roof, infrastructural improvements in terms of communication, power production and supply and transportation both marine, air and road throughout the southern agricultural growth corridor of Tanzania (SAGCOT), Government guarantees and moderated trade environment through conducive policies and regulations.
A regression analysis run to test the null (FDI inflow in Tanzania agriculture sector is infective) and alternative (FDI inflow in Tanzania agriculture sector is effective) hypothesis on effectiveness of FDI inflow in Tanzania agriculture sector rejected the null hypothesis and accepted the alternative hypothesis due to the fact that results ranked effectiveness of FDI inflow in Tanzania agricultural Sector as somewhat effective given its highest positive t stat of 64.46263 in the model.
The study advised the Government to take lead in supervising FDI policies, carry out regular monitoring and evaluation of projects implanted over time as well as facilitating local investors to harness the opportunities availed in the sector, thus making FDI come in form of a joint venture. However, assessment of policy implications towards FDI inflow in Tanzania agriculture sector was suggested as areas for further studies.