Factors Affecting Fdi Inflow in Tanzania - 6173 Words

CHAPTER ONE 1 INTRODUCTION 1 HISTORICAL BACKGROUND OF TANZANIA INVESTMENT CENTRE (TIC) Tanzania Investment Centre (TIC) is the primary agency of the Government of Tanzania to coordinate, encourage, promote and facilitate investment in Tanzania and to advise the Government on investment related matters. TIC is a focal point for investors. It is the first point of call for the potential investors; it is a â€Å"one stop facilitative centre for all investors†, engaging in the business of marketing Tanzania as an investment destination. TIC was established in 1997 by the Tanzania Investment Act No.26 of 1997 to be â€Å"the primary agency of Government to coordinate, encourage, promote and facilitate investment in Tanzania and to advise the†¦show more content†¦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 same Tanzania attracted US $ 330.6 million. To ensure maximum benefit to the economy, potential factors affecting FDI flow should be researched periodically. (Tanzania Investment Report, BOT, 2006). A large proportion of the FDI flow into Tanzania has increased from 552 million US Dollars in 2006 to 600 million US Dollars in 2008, ranking the country among the top ten recipients in Africa. Given its dominance in financial globalization and the potential impact to the economies, FDI tend to pose various challenges to individual recipient countries. For example monitoring and evaluation of the inflows, maintaining macroeconomics stability, and undertaking institutional and policy reforms for the purpose or realizing optimal benefits from the inflows. These challenges obligates Tanzania to increase 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 national growth by enhancing an environment conductive for business and entrepreneurship growth hence attracting FDI inflows. 0. STATEMENT OF THE PROBLEM For the past twoShow MoreRelatedThe Trans Atlantic Slave Trade2824 Words   |  12 Pagescommon monetary control mechanism for foreign exchange in order to regulate inflation.2 A continent of more than 1 billion people (worldpopulationreview.com), the second largest and most populated continent in the world receives between 2-3 percent of FDI (Foreign Direct Investment) and between 2- 4 percent of World trade.3 Participation in trade is only to sell raw materials and purchase basic manufactured goods. Foreign aid and investment have not met the developmental challenges, one of which isRead MorePrimary Sector of Economy17717 Words   |  71 PagesKong 4.1% (2010) | Imports | $451  billion (2011 est.) | Import goods | crude oil, precious stones, machinery, fertilizer, iron and steel, chemicals | Main import partners | China 12.4%, UAE 6.5%, Saudi Arabia 5.8%, US 5.7%, Australia 4.5% (2010) | FDI stock | $19.42 billion (2010-11)[6] | Gross external debt | $267.1  billion (31 December 2011 est.) | Public finances | Public debt | 62.43% of GDP (2011 est.)[7] | Budget deficit | 4.8% of GDP (2010-11) | Revenues | $218.7  billion (2011 est.) |Read MoreUnited Arab of Emirates Country Notebook18844 Words   |  76 Pageseducation up to the tertiary level, social security, family allowances, subsided electricity and water, and housing for low-income groups. The UAE s healthcare sector is showing robust growth and is poised to attract more foreign direct investments (FDI) in the near future. The pharmaceutical market in Dubai alone is expanding, with the exports of pharmaceutical products reaching Dh84.4 million in 2007, compared with Dh56.4 million in 2005. The UAE Government’s health policies aim at providing aRead MoreUnited Arab of Emirates Country Notebook18844 Words   |  76 Pageseducation up to the tertiary level, social security, family allowances, subsided electricity and water, and housing for low-income groups. The UAEs healthcare sector is showing robust growth and is poised to attract more foreign direct investments (FDI) in the near future. The pharmaceutical market in Dubai alone is expanding, with the exports of pharmaceutical products reaching Dh84.4 million in 2007, compared with Dh56.4 million in 2005. The UAE Government’s health policies aim at providing a