Assessing the implementation of economic diplomacy in promoting investment in the manufacturing sector in Tanzania

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University of Dar es Salaam
This study is about economic diplomacy and how it promotes investment in the manufacturing sector in Tanzania. The government has been emphasizing the promotion of the manufacturing sector as one of the main development agenda through its policies and development plans, which are given execution power by a number of national laws. In 2004 Tanzania adopted a New Foreign Policy on economic diplomacy with the major objective of promoting the manufacturing sector by attracting inward investments. Since then, a number of diplomatic, legal and economic attempts have been done in promoting the manufacturing sector. This study investigated the extent to which economic diplomacy has promoted investments in the manufacturing sector. The study focused on Tanzania’s manufacturing sector as a case study to allow an in-depth investigation on to what extent the investment has been achieved through economic diplomacy. Data were collected through qualitative methods which include interviews and documentary reviews. However, the efforts to promote the sector have not yield the desired outcome. Findings from the study have shown that there is low level of investment in the manufacturing sector in Tanzania , partly due to minimal budget allocation by the government in implementing economic diplomacy; multiple and contradictory legal framework and the dominance of Non-Tariff Barriers (NTBs) especially bureaucratic administrative procedures and weak supportive sectors for manufacturing. The study provides two recommendations. The first recommendation is that Tanzania should refine its legal framework by merging similar investment laws and amend the contradicting legislations. Secondly, in order to have efficient institutions for promoting investment in the manufacturing sector, duplicated and overlapped duties should be entrusted to only one specific institution. Finally, the study recommended that future research should investigate the contribution of economic diplomacy in other similar crucial sectors of Tanzania’s economy such as mining, fuel and gas or tourism, for comparative analysis.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HF1480.25.T34H377)
International trade, International investment, Tanzania
Hassan, C (2020) Assessing the implementation of economic diplomacy in promoting investment in the manufacturing sector in Tanzania, Master dissertation, University of Dar es Salaam, Dar es Salaam.