Assessment of the Contribution of Foreign Direct Investment on Creating Employment Opportunities in Tanzania. A case Study Kibaha District.

Akitanda, Philoteo Raymond (2023) Assessment of the Contribution of Foreign Direct Investment on Creating Employment Opportunities in Tanzania. A case Study Kibaha District. Masters thesis, The Open University of Tanzania.

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Abstract

The main objective of the study was to assess the contribution of FDI to creating employment opportunities in Tanzania by taking Kibaha district as a case study. The study employed both a qualitative and quantitative approach. A sample size of 84 respondents from the total population was used. Data collection methods included questionnaires, in-depth interviews, observation, and documentary review. Quantitative data was presented by tables and graphs related to Microsoft Excel and analyzed descriptively, for qualitative data content analysis was used. The findings revealed that FDI contributes to the creation of jobs on a large scale for local citizens in Tanzania. There is a positive relationship between the availability of FDI and the creation of jobs in the Kibaha district. The findings revealed that about 58% of the respondents said FDI provides employment opportunities in large quantity or on a large scale. Also, the study found that in Kibaha district, there were many FDI firms that invested in home appliance industries, building material industries, vehicle and motorcycle spare parts, as well as construction. Furthermore, the findings also show that despite the presence of different laws in the country, like the Employment Regulation Act of 2015, local citizens are not given priority for employment opportunities in FDI in Tanzania. Moreover, the study revealed that among the challenges that hinder FDI from employing local citizens in Tanzania are the following: language and communication barriers, lack of skilled labor, unfaithfulness of local communities, the tendency to drop out of a job without notice, laziness, low payment, selective hiring and cultural differences. Key words: Foreign Direct Investment, employment opportunities,

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