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Foreign Direct Investment in Zimbabwe and Botswana: the elephant in the room

Gutu, Mavis; Anastasiadou, Constantia; Omar, Maktoba; Osei, Collins


Maktoba Omar


Allam Ahmed


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.


Gutu, M., Anastasiadou, C., Omar, M., & Osei, C. (2017). Foreign Direct Investment in Zimbabwe and Botswana: the elephant in the room. In A. Ahmed (Ed.), Managing Knowledge and Innovation for Business Sustainability in Africa. Cham: Palgrave Macmillan.

Acceptance Date Nov 1, 2016
Publication Date Jan 30, 2017
Deposit Date Dec 8, 2016
Publicly Available Date Jan 28, 2019
Publisher Palgrave Macmillan
Series Title Palgrave Studies of Sustainable Business in Africa
Book Title Managing Knowledge and Innovation for Business Sustainability in Africa
Chapter Number 10
ISBN 9783319410890
Keywords Foreign Direct Investment, Zimbabwe, Botswana, Sub-Saharan, Africa, branding, image, spillovers,
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© The Author(s) 2017<br /> Open Access<br /> This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 2.5 International License (, which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.<br /> <br /> The images or other third party material in this chapter are included in the chapter's Creative Commons license, unless indicated otherwise in a credit line to the material. If material is not included in the chapter's Creative Commons license and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder.

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