Foreign direct investment and the curse of property rights in Zimbabwe

Abstract

The study explores the relationship between property rights and foreign direct investment in Zimbabwe .It argues that the past violations of property rights and the weak property rights regime in Zimbabwe is one of the key determinants of FDI inflow. It focuses on the period from the year 2000 to 2019. Rampant property rights violations began in Zimbabwe in the year 2000.This happened during the government’s land reform program which saw thousands of white local and foreign farmers evicted from their farms without following due process. Thousands of farm workers were also displaced in the process. Historical imbalances of land distribution needed to be addressed. The need to redistribute land in Zimbabwe for inclusive and sustainable growth is not disputed. The state however violated the rights of the existing owners during the fast track land reform programme. The research explores the manner in which the government of Zimbabwe exercised its right to regulate. The research will look at the impact that this violation of property rights has had on investor sentiment .Laws that enabled expropriation without compensation and the ouster of the courts’ jurisdiction from hearing expropriation matters concerning agricultural land will be considered. The research will focus on land property rights in particular and property rights in general will also be considered. The weak property rights in Zimbabwe is what is referred to as a curse as the research argues without adequately secured property rights investor attraction will remain a challenge.