China Agricultural Foreign Direct Investment in Tanzania: Macro Trend and Micro Response from Tanzanian Perspective

Abstract

The study examines the engagement of China’s foreign direct investment (FDI) in agriculture towards development in Tanzania between 1999 - 2011. Both qualitative and quantitative data were collected from two  hundred respondents purposively sampled from ten institutions. The data were summarized using frequencies and percentages while binary logistic regression and time series analyses were used to examine the contribution of agriculture based on Chinese FDI in development to Tanzania. The findings showed that the general contribution of Chinese FDI to Tanzania was still low but development projects were boosting development in the
country. The challenges to the effectiveness of the FDI were inadequate of consistent power, poor road and rail network, particularly feeder roads where investors may acquire for investment purposes. We recommend that both Tanzanian and Chinese governments should ensure that their partnership remain in win-win situation.

Key words: Chinese foreign investment, Agriculture, Development, Tanzania.