Factors influencing investments by African Tanzania’s: a case Study Parastatals’ Privatization Process in Tanzania

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University of Dar es Salaam
The study reviews factors that influence investment by Tanzanians of African origin in the privatization process of parastatals in Tanzania It collected views from owners or Chief Executive Officers of the privatized firms, institutions with functions related to the process, as well as a selected random sample of individuals other than those working in the privatized firms. According to the study, some of the factors that hinder Tanzanians from investing were mainly inability to access resources from financial institutions, low level of income, the inherited culture of socialism, lack of entrepreneurial skills, and lack of business networks. Other factors were lack of credit worthiness, corruption in government institutions, Tanzanians risk adverse behaviour, lack of trust in business dealings, unwillingness to work hard, poor infrastructure, as well as government's attitude towards her own people in relation to foreigners. Remedial actions suggested are the review of banks' borrowing conditions and creation of awareness on Banks' operations among Tanzania ns of African origin. Top leaders should feel responsible and accountable to their own people on whatever they do. Deliberate efforts are needed to encourage saving habits amongst Tanzanians. Collective Investment Schemes are also suggested to be one of the solutions despite the fact that there is none in Tanzania currently. The PSRC needs to be more open to the public and hence reduction of red tapes to eliminate chances of 'corruption'. Tanzanians need to build a habit of searching for information. The peace and harmony that Tanzania is experiencing may be threatened if the majority of the population prove to have no future or continue to be impoverished. The government should look for the modality of effectively assisting the poor including the retrenched staff from the privatized firms to enable them invest the money given to them upon their compulsory retirement
Available in printed form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HG 4028.C4T34A4)
Investments, Parastataks' privatization, Tanzania
Akarrow, A.A (2002) Factors influencing investments by African Tanzania’s: a case Study Parastatals’ Privatization Process in Tanzania.Master dissertation, University of Dar es Salaam, Dar es Salaam.