The implication of national investment promotion policy on transport infrastructures development and investment in Tanzania: A case of Moshi urban

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 study recommends fund mobilization and strengthening of managerial skills and capacity of local contractors.