Investigating the Influence of Zanzibar Infrastructures on Investment Decision

Abstract ―​

The purpose of this study was to investigate the influence of Zanzibar infrastructures on investment decisions. This study used location theory which ought to be considered in launching a business and this made the study complete. The study was conducted across different districts in Zanzibar with a sample space of 352 respondents. The data were collected using a structured questionnaire and analyzed using SPSS. The results revealed that the relationship between a country’s infrastructure and investment decision was found to be reliable with Cronbach’s Alpha range between 0.85 to 0.87 which is above the required range. Although, the study was conducted among 352 businesspeople in Zanzibar, yet the sample was reliable as the KMO = 0.92 which is above the threshold (KMO ≥ 0.6) and BTS was significant with p ≤0.00. Following the hypothesis testing conducted using various regressions including multiple linear, stepwise and group-wise regressions, the evidence was not enough to reject the hypothesis of this study. It was therefore concluded that there is a relationship between country infrastructure and investment decisions. This study recommends the government through Zanzibar Water Authority improve the clean water infrastructure. Also, the business people should consider the benefits of other infrastructures for various business activities. Instead of focusing more on clean water business-related, they should also diversify to transportation and technology-related business.