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Foreign Investing In Zimbabwe Essay

2157 words - 9 pages

The strength of a country’s economy relies on many characteristics including culture, geography, political environment, population, economic environment, economic freedom, and investment potential. Like every word works together to build a story, every characteristic helps to form either a stable or unstable economy. Zimbabwe is a country where instability can be viewed throughout all of these characteristics. The first characteristic under analysis is culture.
Zimbabwe is a very culturally diverse place both religiously and in its population. Of the estimated 11.65 million inhabitants, many different ethnic groups exist. The majority of people, 82%, are the Shona (the Shona are further ...view middle of the document...

Marriage is legal in two ways: customary in the form of polygamy and civil in the form of monogamy. Divorce is both rare and frowned upon (Lewis).
Zimbabwe has the sixth lowest life expectancy at 47.55 years (Lewis, 2012). The agricultural sector, which is responsible for more than 50% of the jobs in Zimbabwe, has been destroyed by government policies and has made Zimbabwe an importer of most of its food products (Akbani, 2012). Even then, humanitarian aid provided by the EU and United States has had to make large contributions to Zimbabwe with 68% of the population below the poverty line as reported in 2004 (Lewis, n.d.). Life in Zimbabwe can be perceived as difficult by any potential business partners. Foreign competitors, however, do have the opportunity for competition in providing Zimbabwe with food resources. The need for Zimbabwe to import food supply is due to the destruction of their agricultural structure. Agricultural success, or in this case failure, is largely based on the geography, which leads into the next topic.
Zimbabwe is a country located in the southern part of the African continent. It is bordered by Zambia, Mozambique, South Africa, and Botswana. Zimbabwe is moderately sized, and is slightly larger than the total area of Montana in the United States.
The climate of Zimbabwe is considered tropical, and has a long rainy season spanning from November to March (CIA, 2014). The terrain is almost entirely on a high plateau and consists of mountains to the east (CIA, 2014). Because of the large plateau and mountainous terrain, Zimbabwe is rich in ores and natural resources. The middle bi-section of Zimbabwe, running from north to south contains many precious minerals such as platinum, chromium and other ores (ISS, 2014). A mining operation could likely thrive in the country and many are already operating here. Though mining is a large business in Zimbabwe, so is agriculture. The central plateau of the country is mostly woodlands and temperate, making it an ideal farming location and this area represents the agricultural hub of the country where many successful commercial farms operate (ISS, 2014).
Zimbabwe's geography lends itself to an unstable economy, given its dependence on mining, a bad yield results in poor economic performance. Because of this, the economy is almost always in flux, one year it may show growth, and the next it may be set back.
Harare is the capital of Zimbabwe and the largest city in the country. Zimbabwe is largely rural and focuses almost entirely on mining and agriculture; the capital of Harare is the one exception and the major location to consider for a business venture beyond mining and agriculture. Harare is home to the University of Zimbabwe, the main place of higher learning within the country (Harare City, 2014). The city offers some tourism but the government is looking to encourage outside investment; and there are some merits to this. Harare has the infrastructure to link the entire country,...

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