Factors Affecting Fdi Inflow in Tanzania

Tanzania is a developing nation located in East Africa in the African Great Lakes region. Despite its low per capita income, Tanzania has established a significant growth rate in the last several years. There are several reasons Dr. Bronner’s Magic Soap should invest in the country due to projected economic development, future urbanization, intriguing cities to invest, and a serious need for the product.

Foreign direct investment FDI is an investment of a company from one country to another whereby assets are acquired, operations are set up and joint ventures with local firms are made (Financial Times , n.d.). FDI is a risky and more expensive method of venturing globally as compared to licensing and exporting, however it does not stop companies from doing so due to its many advantages. FDI is one of the key drivers in speeding up the development and economic growth in Malaysia. Sound macroeconomic management, presence of a well-functioning financial system and sustained economic growth has made Malaysia an attractive country for FDI. Moreover, FDI plays a crucial role in Malaysia economy as it generates economic growth by increasing capital formation through the expansion of production capacity.

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"It argues that the development impasse is due primarily to the inefficiencies of central planning with its presumed inflexible stance against market forces". It is clear that the economic crisis in Tanzania makes the government seeking a solution to fund its development and recurrent budgets. After the World Bank interference to fund it. It is clear that the aids, which is offered, is less than its need and that cause a loss according to the financial planning. So the main problem was pretending to reform the

The pension schemes in Tanzania mainland are the National Social Security Fund (NSSF), Public Sector Pension Fund (PSPF), Parastatal Pension Fund (PPF), Local Authorities Pension Fund (LAPF) and the Government Employees Pension Fund (GEPF).

"I had several reasons to take a position during this project at the start and to continue investment throughout later investment rounds. i actually believe this service and that i am 100% certain that everybody United Nations agency encompasses a tight schedule and values their time can have the benefit of exploitation Allset. and also the main reason, of course, is that I trust the team behind this project. These individuals believe what they are doing. They extremely live for this project and have one goal and one goal solely — to create lives of their shoppers easier and additional

As the newly appointed economic minister of the newly formed nation it would be essential for me to establish a

FDI allows the home country to invest into the host country to produce, advertise, and distribute products, in order to upsurge their market share and provides a long-term investment and enhancement. (Moosa, 2002)

These are national or regional financial institution designed to provide medium- and long-term capital for productive investment, often accompanied by technical assistance, in poor countries.

The objective of this policy is to develop and invest in the developed area in order to boost the economy. This programme is to encourage development of the capital market by focusing in infrastructure in order to increase efficiency, boost economy and increase the competitiveness in the capital market. Therefore, in 2012 market development was achieved and many new products and services were launched to give investors more opportunities, more benefits and are able to attract more new retail investors. Therefore, this policy manage to overcome the number of retail participants from year 2000 to 2012 which is much little compare to year 2014. Take for example, the investment in palm oil grew by 46% in year 2014 compared to year 2013 which is only by

The MEs in Tanzania are characterized by very low productivity and lack of capital accumulation; most are self-employed and located at home due to lack of designated work premises and not linked to modern sector (larger enterprise) because of people’s ignorance of regulations. This means that they do not go through business formalities (which the state imposes) such as registration, keeping accounts and even paying taxes. Another reason is use of traditional and inefficient technologies in production.

Tanzania’s notable economic expansion in recent years has been facilitated by open market policies related to global commerce. The financial sector and the investment framework are relatively well developed for the region. However, these strengths are offset by weak socioeconomic indicators, structurally large current account and budgetdeficits, and rising debt levels.

This IMF project was to help 16 countries in sub-Saharan Africa that produce and deal in diamonds, gold, and precious minerals to strengthen their defenses against money laundering, smuggling, and terrorist financing.

In Indian context, the importance of FDI was realized way back in 1948 when emphasis was given on creating domestic base. However, since access to finance was quite limited, the attitude towards FDI was receptive (Kumar, 2004). Since then there was a debate over the necessity of FDI and Government of India in the 1980s cautiously went on deregulation of industries. However, after the adoption of liberal investment policy under economic reforms in 1991 resulted in attraction of more FDI inflow to the country. In recent times, FDI inflow to India increased by 17.1 percent in 2005, which is 5.8 percent of GDP of the country.

As stated in the Economic Policy Framework, 2004 -Creating our Future, Building our Nation 2004