Investment Decisions of Individual Households in Tanzania

The goal of this study is to examine the factors influencing individual household investment decisions in Tanzania. Data is collected from a total of one thousand six hundred individual households. Descriptive analysis is used to summarize the results with logistic regression applied to model the investment decision. The individual households' investment decisions are observed to be less influenced by the factors of return and risk. However, household characteristics such as house ownership, household size, age, gender, level of income and education significantly influence the investment decision. The role played by households' characteristics in investment decisions offers a suggestive direction that ought to be taken in implementing transformative policies.