Foreign Direct Investment Inflows into Zimbabwe

Abstract

The authors sought to explore factors that influenced foreign direct investment (FDI) in Zimbabwe between 1990 and 2014. In spite of Zimbabwe being one of the richest countries, with respect to mineral endowment in the Southern African Development Community (SADC) region there was a paradox of less FDI attracted into the country. We include the investment policy stability (IPS) variable that has been ignored in the current literature; yet, the investment centre policies in any given developing country influence FDI inflows. The authors used Ordinary Least Square regression analysis technique to estimate an investment equation for Zimbabwe using Time-Series annual data obtained from the UNCTAD and World Bank database. The results suggest that investment policy stability; trade openness of the country; inflation rate and growth in real domestic product have a significant influence on the FDI inflows into the country. In conclusion, the results suggest that investment policy stability played an important role in attracting FDI into the country. Also, the results are expected to give a useful insight to policymakers that are responsible for attracting FDI inflows into Zimbabwe and other developing countries.

An Analysis of Nation Brand Attractiveness: Evidence from Brand Zimbabwe

“…They were positive that the poor foreign direct investment (FDI) performance by the country was a direct consequence of how the nation brand was perceived by foreign investors. Zimbabwe attracted low FDI compared to her regional counterparts over time which signals a positive relationship between nation brand image and FDI performance consistent with (Sikwila, 2015) and (Kalamova & Konrad, 2010). Nations naturally have to compete for the scarce foreign direct investment which heightens the need for nations to craft strategies to attract a reasonable share of global FDI.…”

“…Nation Branding Pressure: A country's image greatly influences and impacts on a nation's ability to promote its exports, visitation and attraction of global investments (Kapferer, 2008). Researchers have observed that low level of FDI inflows to Zimbabwe has been explained in the context of an underlying negative image faced by the country as an investment destination (Sikwila, 2015). Countries inexorably jostle for the limited FDI hence the need for nations to craft strategies to salvage a reasonable share of the global resources.…”

Revisiting nation branding: An infrastructure financing perspective in Zimbabwe

“…The standpoint of this study was on understanding how public infrastructure financing perspectives might help build an attractive nation brand for Zimbabwe. Sikwila (2015) also agreed that Foreign Direct Investment (FDI) flows into the country continue to be throttled by the country's negative image, hence a need for nation branding ascendancy.…”

Nation Branding Strategy for Zimbabwe: Towards an Integrated Nation Branding Framework

“…The international image and reputation of a country significantly influences and affects a nations" global prospects (Kapferer, 2008). Researchers on Zimbabwe have observed that low level of Foreign Direct Investment (FDI) flows into the country continues to be explained in the context of an underlying negative image faced by the country (Sikwila, 2015). Countries relentlessly jostle for the limited foreign direct investment hence the need for nations to craft strategies to salvage a reasonable share of the global resources.…”