Factors Influencing Investments in Tectona grandis and Pinus patula Tree Seeds Production in Tanzania
Abstract
Investments in Tectona grandis and Pinus patula seeds have had a significant role in the economic growth of the forest sector in the World. Investors not only provide capital but also facilitate access to international markets, management and organizational abilities, as well as advanced and efficient technologies. This study investigated the main factors influencing investments in tree seed production focusing mainly on Tectona grandis and Pinus patula seeds. The study assessed the factors that attract or discourage investors from investing in the production of Tectona grandis and Pinus patula seeds. A purposive sampling design was employed for selecting species and study sites. Data were collected using mixed techniques including Key Informants’ Interviews (KII), Focus Group Discussions (FGD), researcher’s direct observation and literature review. Both quantitative and qualitative data were collected and analyzed using various techniques. The collected data were analyzed using the SPSS (version 23.0) and Excel programs. In addition, descriptive statistics and multiple regression analysis were used to analyze the collected data. Findings indicate that the availability of market information and favourable government policies and regulations were among the factors attracting investors in the tree seeds production industry. On the other hand, unavailability of market information, unfavourable government policy and regulation, inadequate awareness of the tree seeds production value chain and the longtime nature of tree seeds investment were factors discouraging investors from engaging in the tree seeds industry. Further, factors influencing tree seed price setting include demand for seeds, quality of seeds and costs of production. Investors require a substantial amount of information that could guarantee safety and a favourable business environment to enable easy control of tree seed business risks and uncertainties. Tree seeds market and production value chain information should therefore be provided to investors through various media. In order to regulate and protect the tree seeds sector in the country, the Government policies and regulations pertaining to tree seeds should be enacted
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