Unlocking the Employment Potential of Foreign Direct Investment and Challenges in Local Workforce Integration in Tanzania: A Case Study of Kibaha District

Abstract

This study determined the contribution of FDI in creating employment opportunities in Kibaha district, Coast Region -Tanzania. Both probability and non-probability sampling were used to obtain 84 respondents for survey and 8 key informants for in-depth interviews. Quantitative data were analyzed through SPSS whereas qualitative data were analyzed through content analysis. Findings indicate that FDI play a great contribution or significant role in creating employment opportunities in Tanzania. From the findings, 58.3% of respondents shows that FDI provides employment on a large scale; 33.3% shows that FDI contributes employment on an average or moderate scale, and the remaining 8.4% shows it contributes on a small scale. Furthermore, the results elucidate various type of employment opportunities offered by FDI which are direct and indirect involvement. Under direct employments there were permanent base contract (50%); casual labor (25%) and temporary basis/seasonal employment (25%). Indirect employment was also mode of employment on FDI where by cover those citizens who were employed by respective FDIs as a result of their presence near the area. Includes motorcyclists who transport first-category workers and employees, as well as food service providers. Several challenges that hinder FDI in employing Local citizens namely were also determined which were; Language barriers; lack of enough skilled labor; lack of trust among local employees and job dropout without prior information from the employee. As the study has been acknowledged that FDI have critical significant contribution on creating employments opportunity in Tanzania.

The number of youths who are not employed in both government and local private sectors can be employed in FDI firms Therefore, a need for encouraging private sectors especial FDI to invest in the country is very important. Good environment for attracting FDI in the country is highly needed.