The contribution of foreign direct investment on poverty reduction in Tanzania: the case of Dar es Salaam city

This study examined the contribution of FDI on poverty reduction in Tanzania by using Dar es Salaam city as case study. In this study, it has been shown that FDI plays an important role in promoting economic growth but the issue is how they are involved, The main objectives of this study were therefore, to investigate the role of FDI in poverty reduction in Tanzania by assessing the contribution of employment opportunity provided by FDI in poverty reduction. The study was conducted in Dar es Salaam city. In the course of collecting data; the researcher used survey method, secondary data where the time series of data were collected from 2000 – 2010 and the use of questionnaires. SPSS, STATA and EVIEW software were used for qualitative and quantitative data analysis.The findings indicated that FDI contributes to poverty reduction and there is direct involvement of foreign investors to poverty reduction schemes. The researcher recommends that the policymakers are required to coordinate policies affecting the FDI and poverty reduction in such a way that they will optimize the contribution of FDI to poverty reduction.