Promotion of foreign direct investment in Africa: Lessons from experiences

Abstract

This document examines Zimbabwe's efforts to promote Foreign Direct Investment (FDI) amidst economic challenges. It outlines historical policy shifts from socialism to market-oriented reforms, highlighting benefits of FDI such as job creation, technology transfer, and economic growth. The report identifies key determinants for attracting FDI, including political stability, infrastructure, and investment incentives. It also discusses Zimbabwe's investment policy measures, sectoral opportunities, and persistent challenges like budget deficits, bureaucratic inefficiencies, and competition from other regions. Recommendations include reducing the budget deficit, accelerating privatization, and improving the investment climate to attract more FDI.