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

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.