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The Implication of National Investment Promotion Policy on Transport Infrastructures Development and Investment in Tanzania

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The Implication of National Investment Promotion Policy on Transport Infrastructures Development and Investment in Tanzania THE IMPLICATION OF NATIONAL INVESTMENT PROMOTION POLICY ON TRANSPORT INFRASTRUCTURES DEVELOPMENT AND INVESTMENT IN TANZANIA: A CASE OF MOSHI URBAN By Leonard Lazaro Ndossy A Dissertation Submitted to the Institute of Development Studies in Partial Fulfillment of the Requirements for award of Masters of Science in Development Policy (MSc DP) degree of Mzumbe University 2014 CERTIFICATION We, the undersigned, certify that we have read and hereby recommend for acceptance by the Mzumbe University a dissertation entitled, The Implication of National Investment Promotion Policy on Transport Infrastructures Development and Investment in Tanzania: A case of Moshi Urban in partial fulfillment of the requirements for the award of the degree of Master of Science in Development Policy (MSc- DP)of Mzumbe University. _______________________________ Major Supervisor ______________________________ Internal Examiner Accepted for the Board of IDS ______________________________________________________________ DIRECTOR, INSTITUTE OF DEVELOPMENT STUDIES i DECLARATION I, Leonard L. Ndossy declare that this dissertation is my own original work and that it has not been presented and will not be presented to any other University for a similar or any other degree award. Signature……………………………… Date ………………………………. ii COPYRIGHT © This dissertation is a copyright material protected under the Berne Convention, the Copyright Act 1999 and other international and national enactments, on that behalf of intellectual property. It may not be reproduced by any means in full or in any part, except for short extracts in fair dealings, for research or for private study, critical scholarly review or discourse with an acknowledgement, and without written permission of Mzumbe University, on behalf of the author. iii ACKNOWLEDGEMENTS [ First and foremost much thanks are to the almighty God for his love, guidance, protection and care that have taken me through this particular program. Without him nothing could have been done and managed. Special gratitude and sincere thanks are due to my supervisor Mr. Yona Matekere of the Institute of Development Studies (IDS) of Mzumbe University for his guidance and constant support throughout the study period. I would also like to express my sincere gratitude to the IDS Staff members of Mzumbe University including Dr. Ashatu Kijaji and Dr. Lulu Genda, my Class Representatives for Msc-DP (Edward Mbembela and Shufaa Hamis) and my fellow students from MSc – Development Policy like Mr. Joshua S. Kimaro, Mr. Eliutha Kidenya, Miss Nelusigwe Mwakigonja, Harold Kayoza, Happyness Masatu, to mention some for their cooperation and encouragement. My sincere gratitude also goes to my beloved parents Mr Lazaro E. Ndossy and Mrs Monica L. Ndossy, my brothers Livingstone L. Ndossy, Lawrence L. Ndossy and Erick L. Ndossy, my young sisters Lucyana L. Ndossy, Tumaini L. Ndossy and Oliva L. Ndossy for their support during my study period. Furthermore, my sincere graditude and appreciation are to my lovely wife Salma Solomon Masanja and my beloved sons Henry L. Ndossy and PrayGod L. Ndossy for their endless love, tolerance and motivations during my study. In a special way much thanks should go to the Kilimanjaro Regional Administrative Secretary, Moshi Municipal Director, Human Resource Officer for SUMATRA in Moshi Urban, and Zonal Manager for TIC- Northern Zone whose in their capacity granted me permission to undergo my study in their areas of jurisdiction. I will be unfair if I don’t say thank to all respondents for their enriching responses. iv DEDICATION This dissertation is dedicated to my lovely wife Salma, my beloved sons Hendry and Pray God, my beloved parents and my lovely young sisters Luciana L. Ndossy, Tumaini L. Ndossy and Oliva L. Ndossy. v LIST OF ACRONYMS AND ABBREVIATIONS ADF African Development Foundation CLKNET Country Level Knowledge Network ESRF Economic and Social Research Foundation FDI Foreign Direct Investment GDP Gross Domestic Product IDA International Development Association IIAs International Investment Agreements IISD International Institute for Sustainable Development JNIA Julius Nyerere International Airport KNCU Kilimanjaro Natives Cooperative Union LGTP Local Government Transport Programme MMC Moshi Municipal Council NAO National Audit Office NHC National Housing Corporation OECD Organization for Economic Cooperation and Development OEF Oxford Economic Forecasting STAP Short Term Action Plan SUMATRA Surface and Marine Transport Regulatory Authorities TAA Tanzania Airports Authority TANROAD Tanzania National Road Agency TAZAMA Tanzania Zambia Oil Pipeline TAZARA Tanzania Zambia Railway Authority TIC Tanzania Investment Centre TRA Tanzania Revenue Authority TRL Tanzania Railways Limited TSIP Transport Sector Investment Programme UNCTAD United Nations Conference on Trade and Development URT United Republic of Tanzania vi USITC United States International Trade Commission ABSTRACT This study intended to examine the performance of National Investment Promotion Policy in development of transport infrastructures and promotion of investments in Tanzania. The study was carried out at Moshi Urban as a case study. Specifically the study focused at documenting investment patterns and trends on improvement of transportation services; assessing the implication of transportation services on investments; revealing factors hindering transport infrastructures development and investment expansion and solicit views on possible solutions to mitigate the hindrances. The study adopted cross section research design, targeting small and large investors in Moshi Urban. A sample size of 100 respondents was drawn using purposive and random sampling techniques. Questionnaires, Interviews, Focus group discussion, and observation methods were employed to collect primary data whereby documentary review method was applied to collect secondary data. Qualitative and quantitative data were analyzed through contents analysis while quantitative data were analyzed with the help of the Statistical Package for Social Sciences (SPSS) software. Quantitative data were arranged in frequency distribution and percentages where comparisons were made to highlight characteristics and relationship of the variables. Study findings were presented in tables, figures, texts, charts and graphs. The study revealed that road infrastructures were improved through increased kilometers of roads in good and fair condition from 10.9 percent in 1997 to 92.38 percent in 2013 of all roads in the study area. Roads were a dominating mode of transport as reported by 67 (67%) respondents. Airport infrastructures were in fair condition while the railways route to Moshi was discontinued. Trends in transportation revealed improved registered transport companies from 12 in 1997 to 238 in 2013. Investment trends revealed improved registered investment projects from 106 worth 176.45 USD million in 2008 to 263 projects worth USD 320.95 million in 2012. Inadequate funds and management skills were reported to be the limiting factors. The vii study recommends fund mobilization and strengthening of managerial skills and capacity of local contractors. TABLE OF CONTENTS CERTIFICATION ............................................................................................................ i DECLARATION ............................................................................................................. ii COPYRIGHT..................................................................................................................iii ACKNOWLEDGEMENTS ............................................................................................ iv DEDICATION ................................................................................................................. v LIST OF ACRONYMS AND ABBREVIATIONS........................................................ vi ABSTRACT................................................................................................................... vii LIST OF TABLES ........................................................................................................xiii LIST OF FIGURES ....................................................................................................... xv CHAPTER ONE ............................................................................................................ 1 INTRODUCTION TO THE STUDY........................................................................... 1 1.1Overview..................................................................................................................... 1 1.2 Background to the Study Problem ............................................................................. 1 1.3 Statement of the Problem........................................................................................... 4 1.4 Study Objectives ........................................................................................................ 5 1.4.1 Main Objective........................................................................................................ 5 1.4.2 Specific Objectives.................................................................................................. 6 1.5 Research Questions .................................................................................................... 6 1.6 Significance of the Study ........................................................................................... 6 1.7 Scope of the Study ....................................................................................................
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