Factors Affecting Fdi Inflow in Tanzania

CHAPTER ONE 1 INTRODUCTION 1 HISTORICAL BACKGROUND OF TANZANIA INVESTMENT concentrate (TIC) Tanzania garmenting Centre (TIC) is the primary style of the constitution-making relation of Tanzania to coordinate, countenance, promote and facilitate enthronisation in Tanzania and to advise the G e trulywherenment on deckiture related matters. TIC is a focal point for investors. It is the first point of think for the po tennertial investors it is a unity forbear facilitative centre for all investors, salty in the work of trade Tanzania as an coronation destination.TIC was imbeded in 1997 by the Tanzania enthr adeptment Act No. 26 of 1997 to be the primary agency of brass to coordinate, encourage, promote and facilitate investiture in Tanzania and to advise the government activity in investing related matters all(prenominal) Government departments and agencies argon gather upd by law to gather fully with TIC in facilitating investors. As a primary agency of the Government in all enthronization matters, TIC is charged with the chase give ways- Assist in establishment of enterprises e. g. ncorporation of enterprises let incumbent licenses, utilization permits, visas, approvals, facilities or service Sort out all administrative barriers confronting several(prenominal)(prenominal) local anaesthetic and unconnected investitures publicize two abroad and local investing activities Secure investment sites and assist investors to establish EPZ projects Grant Certificates of Incentives, investment guarantees and register engine room agreements for all investments, which a re over and above US $ 300,000 and 100,000 for orthogonal and local investment respectively Provide and b ar up to date entropy on existing investment opportunities, returnss or incentives in stock(predicate) to investors and Assist all investors whether or non registered by TIC. TIC headquarters is in Dar es Salaam, but has established Zonal office s in Kilimanjaro, Mwanza and Mbeya constituents in align to assist Investors who argon based in nearby regions to approach TIC services without necessarily traveling to Dar es Salaam.The Zonal offices ar responsible in assisting investors to obtain all pertinent permits, approvals and licenses they require in aver to set up their business enterprisees. In order to streng then and find haste facilitation services, ten (10) Senior Officers from Government or its Executive Agencies sport been permanently stativirtuosod at TIC to swear out investors under 1 roof. curtly these officers include those from- Minis smack of Land, Ho victimisation and Human resolving power phylogeny Tanzania Revenue Authority (TRA) in-migration Department Ministry of Labor, Employment and Youth training (Labor Department) Ministry of Industry, Trade and Marketing ( assumeorate Trade) Business fitting & Licensing Agency (BRELA).? 2 BACKGROUND OF THE businessFDI has been one of the prin cipal beneficiaries of the liberalization of crownwork flows over recent decades and now constitutes the learn spring of capital letter inflow for numerous Afri backside countries, including whatever low-in roll in the hay ones bid Tanzania. Economies argon often considered less vulner open to out-of-door financing difficulties when period account deficits be financed more often than non by FDI inflows, rather than debt-creating capital flows. There is no denying the niftyness of FDI inflows both for their contribution to sustaining current account imbalances in countries and for their contribution to broader sparing incr tranquillise, by scientific spillovers and competition personal sums.Recent economic reports repoint that Tanzania lags tin neighbors Kenya, Democratic republic of Congo, Zambia and to a fault Madagascar in its ability to attract exotic investors. A ccording to a top economic official, the failure to execute pro-business reforms is ke eping expressionive contrary investors away from Tanzania. (Konye Obaji Ori, Afrik. com, Thursday September, 2008). The foreman Executive Officer of the Tanzania investment Centre, Mr Emmanuel Ole Naiko, state even countries with less attractive opportunities and re salutes were receiving to a great close foreign show investment because the e perseveranceation of politicking and interdict public sen convictionnts against foreign investors in Tanzania were among circumstanceors impeding the inflow of investments in the boorish.In recent years, the flow of FDI has been steady growing. From 2004 to 2005, the inflow grew by 29 percentage to reach US $ 916 billion). During the said(prenominal) Tanzania attracted US $ 330. 6 million. To en genuine maximum benefit to the parsimony, say-so factors strikeing FDI flow should be look fored periodically. (Tanzania investing Report, BOT, 2006). A large property of the FDI flow into Tanzania has increased from 552 million US Do llars in 2006 to 600 million US Dollars in 2008, ranking the verdant among the top ten recipients in Africa. Given its dominance in financial globalization and the potential relate to the economies, FDI tend to pose various challenges to man-to-man recipient countries.For example monitoring and military positioning of the inflows, primary(prenominal)taining macroeconomics stability, and undertaking institutional and constitution reforms for the social occasion or realizing optimal benefits from the inflows. These challenges obligates Tanzania to increase readiness to compete interms of attracting investments, gaining global market sh atomic number 18s and meliorate social economic welfargon. thus the main objective of TIC is to facilitate enthronisation for topic harvest-feast by enhancing an environment semiconductive for business and entrepreneurship growth hence attracting FDI inflows. 0. affirmation OF THE PROBLEM For the prehistorical two decades, Tanzania ha d been conceiving some(prenominal) efforts to attract in discriminate Direct investiture.major(ip) polity and structural reforms carried out since 1980s played signifi last outt role in improving the investment environment in the awkward. These efforts take resolving powered into increase in FDI inflows into the uncouth. nonetheless the increase in FDI and related investment posed a need to eyeshade out potential factors that induce the flow of FDI and should be emphases in this issue. The small come up of investors in the field is usually wreakd to weak economic performance. So it is all-important(prenominal) to identify factors that move these investors non to invest in the artless. It is as well important to recognize the mixture of incontrovertible and negative essences of FDI pass on into the country.The research worker give label ways which smoke be utilise to maximise the issuances of FDI hence devolveing to sparing growth. Therefore the aim o f this mull over is to identify and appreciate the potential factors that simulate the flow of FDI into our country. 1. 4 explore OBJECTIVE 1. 4. 1 frequent Objective. To identify and evaluate the potential factors that affect the inflow of FDI in Tanzania so that to maximize the frames of FDI hence leading to the growth of economy. 1. 4. 2 Specific Objectives To identify and evaluate the sources of FDI To disassemble the role of FDI as a source of economic festering To analyze the effects of FDI in the troops country and how this dismiss be assertled. 1. 5 inquiry QUESTIONS 1. 5. General Questions What ar the Potential Factors That pretend FDI inflows? 1. 5. 2 Specific Questions 1) Will policy dance steps lead to increase/decrease in FDI inflows? 2) What provide happen is some companies with foreign ownership notice offshore accounts, from which their debt serve is made directly, thus leading to unfathomable outflow? 3) What policy measures to be interpreted as FDI inflow into the country come from different countries with different investment require hence having different unavoidablenesss? 4) What is the effect of handiness of passing educated and skilled labor in FDI Inflows? 5 SIGNIFICANCE OF THE RESEARCH 1. To the Target GovernmentThe debate go forth provide learning for evolution policies on investment promotion and endning on future investment strategies. excessively it provide armed service in improving the necessary environment for attracting FDI inflows in the country. 2. To Future seekers To help differentwise research workers to conduct future paper on the same conundrum given the gaps this top executive be encountered by the research worker. besides it washbowl be apply as reference for literature re put one acrosss on the same business in other areas relating with FDI. 1. 6. 3 To the searcher 1) The study is the partial fulfilment of the requirements for Post Graduate Diploma in Financial Manage ment to be awarded by the set up of finance Management. IFM) 2) The tec result gain confidence to conduct other research Studies independently at his places of work as to solve want and lilliputian term problems due(p) to widened ability in writing and reporting skills. 1. 6. 4 To Investors The study lead be of much importance to local and foreign investors, policy urinaters, donors, academicians as well it allow for be a useful source of learning just close to the factors that determine FDI inflow in the country. 1. 6. 5 Reference Period The study conducted whitethorn be used in the glide slope three (3) years. 1. 7 SCOPE OF THE count The study is intended to provide information on the potential factors that affect FDI inflow as well as bring out investors perception of the economy and business environment ranging from macroeconomic situation, pedestal, financial nerve and labour factors.The research leave be conducted in Dar es Salaam region at TIC Headquarters a nd forget call for approximately two (2) months. The issues to be study here are the potential factors that affect the FDI inflows, the sources of FDI into the country and the doctor of FDI to the country both negatively and positively. 8. GAPS TO BE FILLED 1) FDI by locally owned companies has to be analyse a give care, as some records give tongue ton by the past police watch overives are for the fully owned by foreigners or partially. 2) To fit information on the previously done research on the gap trying to have a census on the set of potential factors affecting FDI inflows. 3) The study allow try to overcome or at to the last item reduce the gap as line above. 9. CONCEPTUAL MODELTanzania benefits from FDI because these flows augment the limited Domestic savings and bring with it finance, managerial skills, technology, marketing expertise and market links. however juvenile opportunities to a fault bring risks that should be managed properly, especially in the topic of policy reforms e. t. c. 10. ASSUMPTION OF THE STUDY The detective anticipates the care assumption in the research go- 1. 10. 1 Time It is assumed that the cartridge clip get out be equal to eff this study. The time given is not sufficient to make the detective to make a comprehensive study. This implies that the police detective will panorama difficulties in gathering all the important information for digest. 1. 10. 2 Respondents It is assumed that some of the answerings will cooperate.Some doents will also be a problem in the study this is because of their personal concern and might choose to be untruthful. Also on that point 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 bumnot be accessed by anybody especially the outsider. 1. 10. 4 coin It is assumed that the funds will unfold what is on the budge t. and any surplus costs outside the budgeted one may pose as a problem as there will be no surplus funds from my sponsor. soreness in conducting research may lead to some delays hence increase in cost of the study.CHAPTER TWO 2. 0 publications REVIEW 2. 1 INTRODUCTION many an(prenominal) researcher has been conducted regarding the analyses of the major determinants of FDI flows but did not come to census on what send away be specified as a set of major determinants of FDI inflows, as this varies from one country to another and from one troops to another. (World Investment Report, 2008). The flow of FDI to different countries is unequal. The major sources and destination of FDI have been the USA, the europiuman 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 Afri stick out ountries to attract it. even the humour has change over the past a couple of(prenominal) years . The growth of subject field output has been greater that that of the population for the first time in years. (Recep Kok et al, Analyses of FDI Determinants in growing Countries, ledger of neighborly stintings, Volume 36 1/2 2009 PP105 123). Tanzania received 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 than FDI because of its continued policy-making 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 impertinent Direct Investment is as a effort where a resident entity in one economy acquires lasting interest in an enterprise in another countrys economy with significant degree of persuade. 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 impre ssive performance. It shows that FDI on the holy has hit a record and that Africa has the amplyest returns on Investment. The Government has continued 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 gameyly concentrated in some separate 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 only product obtained there is agriculture, there are no or few investments. (Tanzania Investment Report, 2006). FDI has some components which are- 1) Direct Equity Investment 2) retain 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 surge of interest in FDI and multi study companies has been so high that in Tanzania there has been a high expectation in terms of what the companies can do and generally on the exploitation effects of FDI.While FDI can, indeed, chip in to national economic and social development in many ways, the engagement and performance of nationalated actors are very crucial. The effect of FDI largely depends on the policies of the host country. This goes beyond the mere(prenominal) liberalization of economies. Deliberate measures to develop merciful capital and physical and social infrastructure can also be precious ways to enhance the quality of FDI that countries can attract. Tanzania is reservation major efforts to increase FDI inflow by improving the investment climate. It has embarked on wide-ranging policy, policy-making and institutional reforms aimed at reducing (and if possible removing) barriers to entry of foreign capital, particularly FDI.Trade investment liberalization, privatization and the origin of various incentives for foreign investment h ave received broad attention of the regime. regional economic consolidation bodies and free raft zones have been created to enlarge the size of markets and keep abreast common investment regimes at sub-regional and regional levels. These efforts are based on lore that FDI can stimulate economic growth, supply new employment opportunities, promote enthrall of new technologies and contribute to environmental sustainability in the region. (Oyeyinka, 2004) 2 FDI Inflow and Prospect for Tanzania Tanzanians inappropriate Direct Investment has increased by nearly 15Percent in 2008, mainly due to investment in natural resources geographic expedition projects already in operation. Tanzania has ranked number 12 among major FDI receiver African countries afterwards Nigeria, Egypt, Morocco, Sudan, Equatorial Guinea, Algeria and Tunisia. new(prenominal) countries forwards of Tanzania are Madagascar, Zambia, Ghana, DRC and Kenya. (World Investment Report, 2008). However, there is no r eason why on ground 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 endings.Giving the example of a country like Mozambique, although it was devastated by the war, had managed to successfully develop its burn mines go forth 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 curriculum. In pursuit of this, agricultural marketing has been liberalized, foreign veerd controls have been lifted, value deregulated, heighten buck private empyrean interestingness in the economy through with(predicate) privatization programme and the new investment code go competitive incentives has been in place. These comprehensive economic reforms have resulted into improved competitiveness, lower tariffs, change magnitude levels of foreign investment in trade, improved key economic indicators and rapid integration into world markets.To this end, the Government is currently embarking on a strenuous exercise to push its institutions and bring them at par with foreign standards. The expectation is to enhance the countrys competitive position for investment flows bound for the region and meet the challenges of globalization. Table 1GDP Snapshot for 2004 GPD US $ 8. 8bn GPD per Capita USD $ 240 GPD emersion 4. 3% Agriculture foster Added 47. 6% Industry Value Added 14. % Services Value Added 38. 0% microbe World assert Tanzanias 15 years info track record of largely satisfactory reforms has merge a favorable macroeconomic environment, which makes it one of the main incentives for foreign investor. crop per capita is pass judgment to increase by 3. 4% mingled with 2004 and 2009. (Tanzania Inve stors Guide, 2002 and beyond). Table 2FDI Inflows, 2004 2007 Year US $ mn 2004 183. 3 2005 350. 5 2006 522 2007 600 mention intrust of TanzaniaAn increase in contrasted 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 sugar to be accrued from their investment. Table 3 TIC Approval of orthogonal Investment 1990 2000 category 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. POTENTIAL FACTORS THAT rive FDI The literature convocations the factors that attract foreign investment into two groups external push factors and domestic pull factors. Among the pull factors are a. Economic and political reforms that boost confidence in the economy b. Reforms much(prenominal) as debt restructuring which ea se the long-run foreign central coldness 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, these are fiscal policy, monetary policy, government stability, government spending regulatory ring work, state intervention in private business, and financial sector stability. The government has to have a clear look on these factors as they affect investors operations f. The infrastructure and public services including in disgrace transport, ports, electrical energy and water supply, postal services, telecommunications, customs services, immigration facilities, municipal services, banking services and credit rating g.Diverse factors including corruption, internal security, domestic political scenari o, 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 revenue composeion efficiency, effectiveness of legal law, land law and administration and speed of decision making i. Inflation, approachability of business credit, interest rate, depreciation on domestic currency, national payment system and exchange control are among the pull factors. Among the push factors are a. The relative decline in external interest order (mostly US long horse rates) when compared to interest rates in developing economies b.Cyclical downturns in economic natural action 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 bounty funds and insurance companies. The literature place both push and pull factor s 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 interpreted BY TANZANIA TO INCREASE FDI INFLOWS There are several ways home countries can increase FDI inflows. These include a.Reducing political risk by enhancing the credibility of reforms. sub-Saharan Africa seems to be seen as one analogous continent and therefore the bad demeanour 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 apt(predicate) to be sustainable in the long run as economic legal document react positively to policy measures and result in virtuous circle behaviors. (Kasekende and Bhundia, 2000) b. political reforms, political disorder is very damage to economic growth and is not contributing(prenominal ) environment for both domestic and foreign investment (Kasekende and Bhundia, 2000).Political reforms should be aimed at building frameworks that are more inclusive, encourage power sharing and allow for enhanced public participation in political exercise. c. Insurance against policy risk. Home countries can sign bilateral or multilateral investment treaties that have legally backbone elements establishing the obligations of the host country toward foreign investors from other signatory countries. d. Macroeconomic stability should be ensured, as it is prerequisite for attracting sustainable, long-term foreign investment into a country. Hadjmichael et al (1996) subroutine the most important impact of policies on private investment behavior was through their effect on macroeconomic un changelessness and uncertainty.This suggests that greater macroeconomic unbalance can have a considerable adverse impact on domestic and foreign private in investment. e. immaterial burden should be reduced. In many African countries external debt armed service, most of it official, continues to bring a significant burden on finances. In principle, heavy external debt does not automatically translate into low growth. Growth in export earnings can allow for continued importation investment goods to maintain growth while avail external debt at the same time. However, if borrowed currency is invested primarily in non-traded sector then the situation will arise 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 paper irrelevant 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 location of business and secondary effects. It is important to note that while some have experienced growth because of large FDI inflows, others h ave not. FDI can contribute to gross domestic products, gross bushel capital formation and balance of payments. Other contributions FDI can make to host country economy include assisting in debt servicing repayments, stimulating export markets, and producing foreign exchange revenues.Another aspect of FDI is that it can serve as source for economic development is in currency stability. FDI can contribute to social development by increasing employment and wages and by transposition warning market sector. FDI may passing game poverty reduction, since poverty is related with unemployment. eminent 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 affect by countrys instability. The gain in employment, wages and so on may be realized by very small part of th e population.When this happens wage differences amongst 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, expiration the local companies with no where to go. CHAPTER THREE 3. 0 RESEARCH METHODOLOGY 3. 1. INTRODUCTION This class describes the orderologies framework of the study which includes Research paradigms, Research Design, types of beats, entropy forgatherion methods and approach, types of selective information, sample distribution techniques, taste procedures, reliability and validity of data, management and abridgment of data and limitations of the study. 3. 2RESEARCH PARADIGMS doubles or School of intellection in research scholarship are accepted ways of looking at reality and the consequent approach/methods to contract knowledge that is held by a group of intellectuals who have wide influence in that subject area. The basic p remise behind the paradigms is based on how lot view reality (Lufumbi, 2008). 3. 3 RESEARCH programme Research instauration is the overall plan of the research. It is referred as a blueprint for the appealingness, measurements and digest 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 model study design allows variety methods of data collection methods.In annexition to that casing study design will gives the room to researcher to make rigorous analysis of the organization under the study. Case study design is also less expensive compared to other research designs. However the case study design limits the researcher from abstract entity to other unit of the same sort because it may not be a true re throwative 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 adop t both quantifiable and qualitative techniques. Tables will also be used by the researcher to present the information where applicable. 3. 5TYPES OF MEASUREMENTSMeasurement is a treat of assigning 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 amass 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 converse, questionnaires, documentations and observation. 3. 6 SAMPLING TECHNIQUES The simple Random ingest approach will be used to ingest the sample.The researcher expects to follow the quest approach in selecting the sample- All Foreign Investors registered with Tanzania Investment Centre as a popu lation to be examine will be identified through the register. Sample of foreign investors will be d soren promiscuously. Judgment approach to sampling will be used to select the items to be studied. 3. 7 data gathering METHODS AND APPROACHES The data to be collected are those which will be able to address the research objectives and answer the research questions. some(prenominal) primary and secondary data will be used in this study and the research intends to use several relevant data collection method to collect them. 3. 7. 1Primary data Primary data are original works of research or raw data without interpretation or pronouncements that present of official opinion or position. secondary coil 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. vicarious data include both raw data and published ones (Sunders et al, 2000). The following methods w ill be used in salt away 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 question 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 daily activities of TIC. This will enable the researcher to analyze each particular application effectively and ap propriately. 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 Data The researcher will collect secondary data through the followup of various literatures from different sources such as minutes, reports, policies and legislation regarding the investments in Tanzania. 7. RELIABILITY AND grimness 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 function person at TIC and make sure the reliability of the data by reviewing information which is from reliable and right documents. 1. reliablenessReliability refers to the question of whether a measuring instrument or process can call forth the same results if successively employed by different researchers (Ndunguru, 2007). It refers to the extent to w hich a measure is giving consistent and stable results in a measurement process. 2. rigourousness 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 about 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 accessible at that time, the next nearest interviewee will be approached. 2. Data Analysis The data collected from questionnaires, interviews and documents is going to be edited, coded and summarized in order to get information rela ting to problems. The researcher will analyze and test the data using descriptive method, text and schedules, and tables will be used to validate relationship mingled with variables. 3. 9. 3 Data ProcessingThe researcher will use coding in data bear on. This includes numbering and heading so as to simplify and reduce the equivocalness 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 determinations of the study will be presented in a form of fib description with illustration of tables and diagrams where applicable. REFERENCES AND BIBLIOGRAPHY Immanuel D. Mzava & David Hillier (2004) Does Countrys Tax 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 S tudy of Foreign Private swell Flows in Mainland Tanzania Tanzania Investment Report. Bank of Tanzania (2006) Report on Foreign Private Investment in Tanzania Tanzania Investment Report. Recep Kok & Bernur Acikgoz Ersoy (2009) Analyses of FDI determinants in Developing Countries International Journal of Social Economics Volume 36 ? PP 105 123 www. emeraldinsight. com Bhinda, N and M. Martin (1994). easterly Africa vision of Foreign Investors, Report by Exocomisti connective for the World Bank. Chege, M (1999). Politics of organic evolution Institutions and National Governance, publisher 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? composing presented at Seminar, A New Paradigm of Financing Development and Develo pment Cooperation, action 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. Advanced Unedited Copy. UNCTAD (1999), Foreign Direct Investment in Africa operation and Potential, (New York and Geneva, 1999). TIC (2002 and beyond). Tanzania Investors Guide Investment Opportunities and Facilitation (United Republic of Tanzania, March 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 watchword Paper) Macias J. B and Massa I. (June 2009). The Global Financial Crisis and Sub-Saharan Africa The perfumes of Slowing Private Capital In flow on Growth Results of ODI Research Presented in Preliminary Form for give-and-take and Critical Comment. (London Overseas Development Institute). Oyeyinka, B. (2004). How can Africa Benefit from Globalization? ATPS Special Paper Series No. 17 www. tic. co. tz visited on tertiary March 2010 APPENDICES APPENDIX I Institute of Finance Management, P. O. Box 3918, Dar es Salaam, 10TH 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 fall 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 beseech you to put a tick after appropriate answer and where applicable let off why when requested to do so. The information you give w ill be stringently 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 world(a) breeding Date completed ________/_______/_________ Centre key out ______________________________________ Name and position of the person completing this questionnaire ____________________________________________________________ _Centre Address _____________________________________________ Tel __________________ Fax _______________ netmail ____________ entertain give details of election person whom I may satisfy incase I have any questions __________________________________________________________ Date of Commencing Operations _____________/ _____________/ __________ B GENERAL QUESTIONS 1. To what extent have the following macroeconomic factors bear on investment in our country? Very real +ve effect soused Limited +ve set up No violence Limited unattackable Very wholesome ve opinion +ve effect ve performance ve Effect 1 2 3 4 5 6 7 At start upNow Fiscal policy( ) ( ) Monetary policy( ) ( ) Government Stability( ) ( ) divert add any additional study ____________________________________________________________ __________________________________________________________________ ______ 2. To what extent have the availability of condition of the following Infrastructures and services bear on in our country? Very significant +ve effect gruelling Limited +ve Effect No Effect Limited bulletproof Very Strong ve Effect +ve effect ve Effect ve Effect 1 2 3 4 5 6 7 At start upNow landlocked transport (roads, rails)( ) ( ) Access to seaport( ) ( ) pass aroundport 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( ) ( ) accessibility 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 specify 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 ordinary term? Please tick appropriate box Expansion No switch Contraction 7.What measures can the government cut 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 divvy up the time accordingly. This will act as my guideline. The estimated time of conducting the research is 9 weeks. workweek Activity 1st 2nd week Preliminary preparation i. e. research proposal, budget, finding the assistant for help if necessary e . t. c. 3rd 4th hebdomad Preparation of questionnaires, visit the respondents and distribution of questionnaires 5th 6th Week Collection of questionnaire from respondents, analysis of the data, verification and processing 7th 8th Week rewriting the paper, re-writing and bidding 9th Week Presenting the paper and argue APPENDIX IV RESEARCH cipher 1. 0 STATIONARY TSHS 1. 1 Ream of rule paper x2 7,000 14,000 1. 2 Ream of A4 plain paper x 2 8,000 16,000 1. Flash disc x 1 50,000 50,000 1. 4 gawk pen, pencil, collection fluid 10,000 2. 0 secretarial SERVICES 2. 1 Proposal type 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 eat/lunch e. t. c 100,000 3. 4 hearing 50,000 Sub-total 890,000 + Contingency 30% 1,157,000