The Role Of Foreign Direct Investment In Changing People’s Livelihood: A Case Of Vodacom In Karatu District, Tanzania

ABSTRACT

This study is about the role of Foreign Direct Investments in changing people’s livelihood: A case of Vodacom in Karatu District, Tanzania. The study was undertaken in Karatu District, Arusha Region, especially in Karatu town, Qurus, and Ganako wards, where one village was chosen from each ward. The study has involved a sample of 143 respondents comprising those who were interviewed and those who filled questionnaires. This sample was derived by applying purposive and simple random sampling methods. The methods were used to collect information on the the role of Foreign Direct Investments in changing people’s livelihood, particularly Vodacom mobile communication. Indeed, the study objective was to analyse the role of Foreign Direct Investments in changing people’s livelihood, particularly Vodacom mobile communication services. The SPSS vsersion16 software package was used for data analysis. The findings in this study revealed that the majority of respondents use Vodacom mobile communication or have access to it (81%); those even who do not have the mobile phones use the technology as the main means of communication. Vodacom mobile phone as voice or message is used mainly for social relations and for economic-business motives, especially M-Pesa. Ninety one (91%) of respondents acknowledged the technology to have enhanced their livelihood positively. The study revealed that many people are not aware of the different services they could access from their cell phones other than SMS, receiving and making calls. The Government should make deliberate efforts to minimize the cost of operating a mobile phone, including regulating the cross network expenses, by inter-alia encouraging the sharing of the available infrastructure among mobile phone providers.