Leiden University Student Repository

Njau, Jonas (2024)

Navigating Political Risk: The Impact of Political Violence on LNG Investment Decisions in Tanzania

Master thesis | Political Science (MSc)

Foreign Direct Investment (FDI) is essential for the economic development of emerging markets. Despite its potential, the distribution of FDI globally remains uneven due to political risk. This thesis investigates the relationship between political risk and FDI, using Tanzania's impending Liquefied Natural Gas (LNG) venture as a case study. It assesses political violence risk, employing a qualitative approach to analyse prevailing literature and primary data from interviews with key stakeholders in a bid to identify what the obstacle to the economy transformative investment decision is. The research finds that while political violence is a genuine concern, other identifiable political risks take precedent and are attributable to the delay. These are notably risks of expropriation and transfer restrictions that require a legislative framework. Additionally, the paper offers primary data on the Tanzanian dimension of the Ansar al-Sunnah insurgency along the Swahili Coast, addressing a...Show moreForeign Direct Investment (FDI) is essential for the economic development of emerging markets. Despite its potential, the distribution of FDI globally remains uneven due to political risk. This thesis investigates the relationship between political risk and FDI, using Tanzania's impending Liquefied Natural Gas (LNG) venture as a case study. It assesses political violence risk, employing a qualitative approach to analyse prevailing literature and primary data from interviews with key stakeholders in a bid to identify what the obstacle to the economy transformative investment decision is. The research finds that while political violence is a genuine concern, other identifiable political risks take precedent and are attributable to the delay. These are notably risks of expropriation and transfer restrictions that require a legislative framework. Additionally, the paper offers primary data on the Tanzanian dimension of the Ansar al-Sunnah insurgency along the Swahili Coast, addressing a gap in the existing literature.Show less

Author

Njau, Jonas

Faculty

Faculty of Social & Behavioural Sciences

Specialisation

International Politics

Supervisors

Matthew DiGiuseppe

ECTS Credits

20

Language

en