Foreign Direct Investment in Zimbabwe and Botswana: The Elephant in the Room

Maktoba Omar, Mavis Gutu, Constantia Anastasiadou, Collins Osei

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

Purpose: In Sub-Saharan Africa, FDI performance is considerably different between Zimbabwe and its neighbouring countries. This chapter examines FDI determinants for Sub-Saharan Africa (SSA) with particular emphasis on the comparison between Zimbabwe and Botswana.Design/methodology/approach: Using secondary data analysis, the study examined why Botswana was attracting more FDI than Zimbabwe in the period 2002-2012.Findings: Botswana is attractive due to the stability of the political and legal environments, high human capital and governance that promotes technological adoption. In contrast, Zimbabwe’s political instability and the government’s unwillingness to address the challenges the country is facing impedes FDI attraction and retention.What is original/value of the chapter: The chapter is of value to policy makers, as they plan and implement policies and foreign investors, in understanding how different determinants impact on location attractiveness.Research limitations: The study was based on secondary data analysis. Finding comparable data outside the study period was challenging.Practical implications: Zimbabwe needs to address the impact of its policy formulation and implementation on brand image and FDI attraction.
Original languageEnglish
Title of host publicationManaging Knowledge and Innovation for Business Sustainability in Africa
Pages167-194
Number of pages28
DOIs
Publication statusPublished - 2017

Keywords

  • FDI
  • Zimbabwe
  • Botswana
  • Sub-Saharan
  • Africa
  • branding
  • image
  • spillovers

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    Omar, M., Gutu, M., Anastasiadou, C., & Osei, C. (2017). Foreign Direct Investment in Zimbabwe and Botswana: The Elephant in the Room. In Managing Knowledge and Innovation for Business Sustainability in Africa (pp. 167-194) https://doi.org/10.1007/978-3-319-41090-6_10