International Finance
Abstract:
The assignment requires one to select one major economic sector in Tanzania and
• Evaluate the FDI’S flow and
• the importance of FDI’s in that sector during the past 4 years.
• Identify the likely impairing factors to FDI’s in that sector.
• Recommend what the government should do to attract more FDI’S
Method
After selecting the one major economic sector which is Agricultural sector, data were requested which will provide the end results of this assignment. Table of Contents
1. Introduction: Tanzania’s Economy 4
2. Evaluation of Tanzania’s FDI’s flow 5
3. Importance of FDI in Agriculture in the past 4 years 7
• Capital: 7
• Technology: 8
• Market Access: 8
4. Factors Impairing FDI’s in Tanzania 8
• Poor Infrastructure 8
• Capacity 8
• Bureaucracy 8
• Corruption 9
• Seasonality 9
• Access to finance 9
• Regulatory framework 9
5. Recommendation to attract more FDI’s 10
6. Conclusion 10
References. 12
1. Introduction: Tanzania’s Economy
Tanzania is one of the world's poorest economies in terms of per capita income, with GDP growth of average 7% per year between 2000 and 2008 on strong gold production and tourism. However, the economy heavily depends on agriculture, which accounts for more than one-fourth of GDP, provides 85% of exports, and employs about 60% of the work force.
Tanzania also depends on the World Bank, the IMF, and bilateral donors to provide funds to rehabilitate Tanzania's aging economic infrastructure, including rail and port infrastructure that are important trade links for inland countries.
With the recent banking reforms that have helped increase private-sector growth and investment, and the government has increased spending on agriculture to 7% of its budget. Continued donor assistance and solid macroeconomic policies supported a positive growth rate, despite the world recession. Also, in 2008, Tanzania received the world's largest Millennium Challenge Compact grant,
The assignment requires one to select one major economic sector in Tanzania and
• Evaluate the FDI’S flow and
• the importance of FDI’s in that sector during the past 4 years.
• Identify the likely impairing factors to FDI’s in that sector.
• Recommend what the government should do to attract more FDI’S
Method
After selecting the one major economic sector which is Agricultural sector, data were requested which will provide the end results of this assignment. Table of Contents
1. Introduction: Tanzania’s Economy 4
2. Evaluation of Tanzania’s FDI’s flow 5
3. Importance of FDI in Agriculture in the past 4 years 7
• Capital: 7
• Technology: 8
• Market Access: 8
4. Factors Impairing FDI’s in Tanzania 8
• Poor Infrastructure 8
• Capacity 8
• Bureaucracy 8
• Corruption 9
• Seasonality 9
• Access to finance 9
• Regulatory framework 9
5. Recommendation to attract more FDI’s 10
6. Conclusion 10
References. 12
1. Introduction: Tanzania’s Economy
Tanzania is one of the world's poorest economies in terms of per capita income, with GDP growth of average 7% per year between 2000 and 2008 on strong gold production and tourism. However, the economy heavily depends on agriculture, which accounts for more than one-fourth of GDP, provides 85% of exports, and employs about 60% of the work force.
Tanzania also depends on the World Bank, the IMF, and bilateral donors to provide funds to rehabilitate Tanzania's aging economic infrastructure, including rail and port infrastructure that are important trade links for inland countries.
With the recent banking reforms that have helped increase private-sector growth and investment, and the government has increased spending on agriculture to 7% of its budget. Continued donor assistance and solid macroeconomic policies supported a positive growth rate, despite the world recession. Also, in 2008, Tanzania received the world's largest Millennium Challenge Compact grant,