The factors hindering FDI inflow to Tanzania the case of agricultural sector.

Tanzanian agriculture is dominated by smallholder farmers cultivating an average of 0.5 hectares to 2 hectares. The stocks of FDI are skewed in favour of mining (39 percent), manufacturing (22 percent), and tourism (13%). Therefore, this study was directed towards analyzing the factors hindering FDI flow to Tanzania’s agricultural sector. The study made of literature review, secondary and primary data to draw its analysis. The study found that there is low rate of inflow of Foreign Direct Investment in agricultural sector, low rate of return on agricultural investment, poor infrastructures facilities such as roads, power supply, water supply, communication systems, corruption among government officials and other institutions that have authority to register new investors, bureaucracy on the procedures on registering new investors, and poor or unreliable agricultural policies imposed by the government of Tanzania are the major constraints that hinders FDI in agricultural sector. The study concluded that low rate of return on agricultural investment and poor infrastructures facilities are the major constraints that hinders foreign direct investment in agricultural. The government should revise and improve its policy on agricultural sector so that it that it can attract FDI inflow. Markets for agricultural products as well as infrastructures facilities should be improved in order to increase the rate of return and therefore to attract FDI.