Significance of economic diplomacy in promoting foreign direct investment (fdi) in Tanzania :

Abstract

The study examined the significance of economic diplomacy in promoting Foreign Direct Investment (FDI) in Tanzania. It was conducted at Dodoma City, the Tanzania Capital City. The study used a mixed research approach and adopted a parallel convergent design. Purposive sampling and simple random technique were applied to select 25 respondents whereby 5 were Ministry Directors and 20 were Ministry Heads of Departments from Ministries involved in economic Diplomacy. The instruments of data collection were questionnaires and an interview guide. Quantitative data were analyzed using descriptive statistics and presented in form of tables. Qualitative data were subjected to thematic analysis and presented in form of tables and paraphrasing. Findings revealed that economic diplomacy is promoting Foreign Direct Investment mainly through; promoting the available transport and infrastructure, ensuring exchange rate stability, ensuring global market access and calm political environment. The study concluded that economic diplomacy plays a crucial role in making progress toward the growth of Tanzania’s economy and the attainment of sustainable development goals. The study recommended the Government to ensure the effective and meaningful engagement of Tanzania in regional economic integration through economic diplomacy.