Public Policy Making in Zimbabwe
For the past ten years, Zimbabwe has been riddled with economic stagnation as well as being the subject of political instability, thus that been the reason why many companies and countries have turned a blind eye as concerns investing. Once known as the bread basket of Africa, Zimbabwe has the ability to rise up again especially with the internationally accepted new government of Unity were the two major political parties, ZANU PF and MDC have come together to work as one for the betterment of the country and to fulfil the needs of the people.
There has been little to no investment in Zimbabwe as many pulled out during the past decade. Foreign investment is when a company invests financially in a country abroad, whether in the form of portfolio investments which include shares, stock and bonds, or in the form of direct investment where locally based operations are owned and controlled by the foreign investing corporation. Such investments are controlled by laws known as International trade laws. International Trade law includes the appropriate rules and customs for handling trade between countries or between private companies across country borders. Most countries are part of a body that has made an agreement for trading internationally. Zimbabwe is part of several including UNICTRAL (United Nations Commission on International Trade Law), BIPPA (the Bilateral Investment Promotion and Protection Agreement) and COMESA (the common Market for Eastern and Southern Africa). Zimbabwe’s local body, governing foreign investment is the Zimbabwe Investment Authority with approval necessary from the Reserve Bank of Zimbabwe and Registrar of companies. The extract below shows the depths to which the Zimbabwean economy had fallen.
Foreign Direct Investment Statistics
52. Zimbabwe Net Investment Flows 1998-2007 (US$ million) |1998 |1999 |2000 |2001 |2002 |2003 |2004 |2005 |2006 |2007 | |Direct Investment |436 |50 |16 |0 |23 |4 |9 |103 |40 |69 | |Portfolio
There has been little to no investment in Zimbabwe as many pulled out during the past decade. Foreign investment is when a company invests financially in a country abroad, whether in the form of portfolio investments which include shares, stock and bonds, or in the form of direct investment where locally based operations are owned and controlled by the foreign investing corporation. Such investments are controlled by laws known as International trade laws. International Trade law includes the appropriate rules and customs for handling trade between countries or between private companies across country borders. Most countries are part of a body that has made an agreement for trading internationally. Zimbabwe is part of several including UNICTRAL (United Nations Commission on International Trade Law), BIPPA (the Bilateral Investment Promotion and Protection Agreement) and COMESA (the common Market for Eastern and Southern Africa). Zimbabwe’s local body, governing foreign investment is the Zimbabwe Investment Authority with approval necessary from the Reserve Bank of Zimbabwe and Registrar of companies. The extract below shows the depths to which the Zimbabwean economy had fallen.
Foreign Direct Investment Statistics
52. Zimbabwe Net Investment Flows 1998-2007 (US$ million) |1998 |1999 |2000 |2001 |2002 |2003 |2004 |2005 |2006 |2007 | |Direct Investment |436 |50 |16 |0 |23 |4 |9 |103 |40 |69 | |Portfolio
References: ▪ http://allafrica.com/stories/200909180530.html ▪ http://www.allbusiness.com/trade-development/trade-development- ▪ NationsEncyclopedia.com ▪ www.zimtrade.co.zw ▪ www.zia.co.zw ▪ http://www.state.gov/e/eeb/rls/othr/ics/2009/117167 ▪ www.hg.org/trade.html ▪ en.wikipedia.org/wiki/United_Nations_Commision_on_International_Trade_Law