A dissertation submitted in fulfillment of the requirements for award of the degree of master of business administration (MBA) of Mzumbe University
This study aimed at finding the role of FDI on reducing unemployment rate in Tanzanian. The interest to conduct the study was prompted by the recognition that most important factor of shifting poor people out of poverty is access to employment being it formal (employed by an organization) or informal (self-employed).
The study was conducted at Alliance One Tobacco Tanzania Limited, specifically to find out people’s awareness towards organizations under FDI, to determine people’s perception towards being employed under FDI firms, to find out the kind of training package provided by organizations under FDI, and to determine the level of employee’s turnover within organization under FDI.
The sample size was 60 respondents who are currently employed by Alliance One Tobacco Tanzania Limited (AOTTL) and 10 respondents who were formally employed by AOTTL. Structured questionnaires were used to interview employees of AOTTL together with those who were formally employed by AOTTL. Check-list was also utilized to collect information form key informants. The data was analyzed statistically by using Statistical Package for Social Science (SPSS) computer program to obtain frequency distribution and percentages.
It was discovered that FDIs’ contributes in reducing unemployment rate in Tanzania although is of a diminutive percentage compared to the present population. It has as well been discovered that FDIs’ including AOTTL are facing different challenges like employment turnover which is caused by factors like ; new posts, management style, job environment, employment security and salary to mention few. It was also been discovered that most of people have no or very little knowledge about FDI. It has been therefore advised that, the government should encourage more foreign investments so as to increase the government fund and to reduce the unemployment rate in Tanzania. Knowledge on FDI should as well be disseminated to the community. The existing FDIs should improve the employment security to their workers, management style should be personalized, job environment should be tailored and salary should be related to the employees’ level of knowledge and positions they hold in the company to reduce the rate of employment turnover.