Assessment of the quality of business environment and investment climate in Tanzania

11 Feb 2015

The evaluation of investor?s satisfaction is a primary goal for any country that would like to utilize its business and investment potentials. Keeping investors satisfied and delighted is even more important for the Tanzanian economic development, given that many sectors which are now attractive for investment and resources are not yet well utilized. Developing a measure of business environment and investment quality is an important precursor for attracting and retaining investors and hence ensuring the survival of businesses and investments in the country. BUSINVQUAL has been proposed a generic measure of business environment and investment climate qualities that may be applicable to measure the level of investors? satisfaction. The purpose of this study is to find out if the business environment and investment climate in Tanzania have reached the quality of investors? expectations. A self-completion questionnaire was developed from the BUSINVQUAL instrument and distributed to 32 investment companies registered under Tanzania Investment Centre (TIC). From the gap analysis carried out between perceived business-investment climate and expected businessinvestment climate, results suggested that the level of quality of business-investment climate in Tanzania has not reached the level of expectations of the investors. It is thus recommended that the Tanzanian government should improve the quality of all dimensions of business environment and improve on the investment climate.