• S. Bakari Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya
  • S. O. Mokaya Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya
Keywords: Transformational leadership, individualized consideration, inspirational motivation, intellectual stimulation, investment promotion.


Developing countries, which are characterized with rapid increase in population, unemployment, democratization process and competition in the global market associated with low investments have found it difficult to meet the needs and expectations of a vast number of majorities. With increasing investment demands in developing countries specifically Tanzania in its different development sectors such as mining, agriculture and industry, effective leadership is an incremental component in achieving the desired objectives. The purpose of the study was to assess the effect of transformational leadership on promoting investment in Tanzania. Case study design was used in executing the study covering a stratified sample of 72 respondents drawn from a target population of 129. Data was collected using questionnaires and interviews. Both descriptive and inferential statistical tools were used to analyze data. The descriptive statistical tools that were used included frequencies, percentages, and mean while inferential statistics involved correlation analysis. The study achieved a response of 76.39%. The results show that there is a significant positive correlation between idealized influence and promotion of investment with a correlation coefficient of 0.278 (p=0.01). The results also indicate there was a strong positive correlation (0.352) between inspirational motivation and promotion of investments. Correlation analysis also established a moderate positive correlation (0.346) between intellectual stimulation and promotion of investments. There was a positive correlation (0.437) between individualized influence and promotion of investments. Generally, the level of promotion of investment was high and this was a result of transformational leadership among other reasons. The study recommends that there is need for the managers of TIC to continue displaying a sense of power and confidence as well as emphasizes the importance of having a collective sense of mission to sustain the level at which the investments are being promoted.