TITLE:
A Review of the Impact of Reforms on Investment in Tanzania’s Power Sector
AUTHORS:
James Andilile, Saganga Mussa Kapaya
KEYWORDS:
Investment, Capacity Growth, Electricity Connectivity, Reforms
JOURNAL NAME:
Open Journal of Business and Management,
Vol.9 No.6,
November
8,
2021
ABSTRACT: This study investigates the impact of reforms
on investment in Tanzania’s power sector. The data from 1989 to 2020 were
collected and analyzed using the Autoregressive Distributed Lag Model (ARDL) and paired-sample t-tests. It was determined that, as a result of government
sponsorship, capacity growth and electricity connectivity as a measure
of investment had increased modestly after reforms. The results appear to contradict laissez-faire
and privatization theories, which attributed the increase primarily to private
investment. The liberalization law,
competition, and commercialization as the reform policies were found to
be statistically significant and positively affecting investment. Thus,
regardless of ownership form, we recommend that the government prioritize these
reform policies for improved investment in the sector. Second, to bridge the infrastructure deficit and ensure long-term secure
supply, both the public and private sectors should be encouraged to make
investments. The value of these findings extends beyond Tanzania to other
countries that are struggling to formulate or reformulate their reform programs
as it suggests that if prudently managed the public sector can as well improve
investment.