Possible Risks to Chinese Enterprises in Tanzania: The Construction Industry Experience

Abstract

This paper assesses the risks challenging Multinational Companies in Tanzania, focusing on the Chinese construction companies as an example. The paper incorporated a substantial literature review that determined a number of critical challenges that influence the company’s ability to complete a project within time and under budget. The nature, strength and weakness, opportunities and risks within the Tanzania Construction industry were reviewed. The economy, the policies, business environment, resources and infrastructures of Tanzania were also assessed.

The main risks factors to Chinese International Construction companies identified in Tanzania including microeconomic and financial risks; fluctuating currency exchange rates, governance and administration, operational risks which include issues such as power supply problems, and corruption, strategic risks and cultural risks.

Keywords: Risk factors, Chines Construction Companies, Tanzania