Management Science 2021
Boosting Diaspora Remittances as a Key Source of Investment Capital: The Case of Zimbabwe
Abstract
Zimbabwe has generally been witnessing a significant decline of meaningful Foreign Direct Investment (FDI) inflows for some reason. The decline of FDI inflows has seen most developing countries, seeking other alternatives to attract foreign currency into their respective economies. In particular, the diaspora community has been receiving increasing attention from respective governments across the globe. Indeed, diaspora remittances have been increasing in recent times, proving to be a significant alternative source of foreign investment capital. It is, however, the contention of this paper that, in the case of Zimbabwe, diaspora remittances are not being fully exploited in terms of this resource's immense potential, as an alternative source of investment capital. In this regard, this paper sought to proffer ideas and/or suggestions on the steps that could be adopted by the Government of Zimbabwe to unlock the full potential of diaspora remittances as a source of the much-needed investment capital. The study adopted a multi-pronged research approach, largely utilizing qualitative designs to collect and analyze data through questionnaires and interviews. A purposive sample of 150 respondents was used. The results obtained confirm that the Zimbabwean economy is yet to realize full potential economic benefits (investments) from its citizens domiciled abroad. The study has thus proffered some recommendations that the Zimbabwe government could introduce to boost her diaspora’s contribution to national development. The recommendations include confidence (trust)-building measures to convince the diaspora community to invest back home; awareness campaigns to highlight existing investment opportunities, and pro-active engagement with the diaspora community, among others.
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