Contribution of Economic Diplomacy on Promotion of Large Scale Manufacturing Industries in Zanzibar: The Case Study Selected Ministry of Trade and Industrial Development.

Saleh, Amina R. (2025) Contribution of Economic Diplomacy on Promotion of Large Scale Manufacturing Industries in Zanzibar: The Case Study Selected Ministry of Trade and Industrial Development. Masters thesis, The Open University of Tanzania.

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Abstract

This study analyzed the contribution of economic diplomacy on promotion of largescale manufacturing industries in Zanzibar. Research design adopted is both deductive and inductive and it adopted an explanatory Sequential research design. Data collection techniques used were Semi structured interview and Document Reviews for qualitative data and questionnaires for quantitative data. The total sample size involved was 162 personnel of different cadre including foreign and local investors, ministry officers, and officers of ZIPA, ambassadors and personnel of similar sort. The study revealed that foreign direct investment, free market economy and the Tanzania foreign policy of 2001 have positive and significant influence on promotion of large scale manufacturing industries in Zanzibar. It is recommended by the study to take a balanced approach to effectively promote large scale manufacturing businesses in Zanzibar by combining strategic investments with economic diplomacy. While strategic investments concentrate on focused funding for vital infrastructure, technology, and skills development, economic diplomacy uses diplomatic contacts to draw in international investments and foster advantageous trade conditions. This integrated strategy is essential for attaining sustainable economic development since it guarantees the long-term viability of industry while also accelerating its growth. According to the study, the best ways to maximize the benefits of economic diplomacy are to improve policy incentives such as tax breaks and subsidies to draw in investors improve regulatory frameworks to simplify procedures and lower administrative barriers, and promote international cooperation to obtain access to new markets, technologies, and knowledge.

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