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Is Negotiation a Threat to Zimbabwean Investment Deals? an Analysis of Essar and Green Fuel Investments

Received: 8 April 2013    Accepted:     Published: 10 June 2013
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Abstract

Purpose: The purpose of this paper is to provide an overview of the Negotiation structures in Zimbabwe, ad-dressing the extent to which negotiation mechanisms may have been a contributory factor to the recent negotiated govern-ment deals with Essar and Green Fuel Chisumbanje projects which have taken so long to take off than as anticipated. Design/Methodology/Approach: The study adopted a qualitative research design because it provided flexibility and afforded the researcher the opportunity to conduct an in-depth research. Case studies of Essar and Green Fuel investments were conducted. Findings: The findings suggest that there were no effective stakeholder consultations before the FDI deal with Essar was signed. It appears as though negotiators were in a hurry to sign the agreement before doing a thorough analysis. The case of Green Fuel, also demonstrated the absence of wider stakeholder consultation before the implementation of the project. There was evidence of lack of transparency on the part of negotiations. Research Limitations/Implications: The main limitation of the study lies with a lack of complex analysis undertaken to support the findings. Practical Implications: The findings from the study suggest that Government policy is never implemented Social Implications: Governments across the world pay lip service when it comes to implementing Government projects. As a result the public suffer due to poor service delivery. Originality/Value: The paper is original as it is the first attempt to discuss government negotiation deals that do not materialise according to the planned time frame.

Published in Journal of Investment and Management (Volume 2, Issue 3)
DOI 10.11648/j.jim.20130203.12
Page(s) 41-49
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Foreign Direct Investment, Negotiation, Public Policy, Projects

References
[1] Akingube O. (2008), Flow of Foreign Direct Investment to Hitherto Neglected Developing Countries, Discussion Paper, Helsinki.
[2] Akyut, D. and Ratha, D. (2008), South-South Foreign Direct Investment Flows: How Big Are They? Third World Net-work, Geneva.
[3] Abraham, T. (2009), Reviving an Old Dream of Afro-Asian Cooperation, Yale Global, New Delhi.
[4] Akinlo, A. E. (2008), Foreign Direct Investment and Eco-nomic Growth in Sub-Saharan Africa, International Review of Economics and Business.
[5] Anderson, K., Dimaranan, B., Francois, J., Hertel, T., Hoekman, B., and Martin, W. (2010), The Cost of Rich Country Protection to Developing Countries, Journal of African Economies 10.
[6] Aryeetey, E. and Udry, C. (2010), Saving in Sub-Saharan Africa, Harvard Center for International Development, Working Paper No. 38.
[7] Asiedu, E. (2008), Aggressive Trade Reform and Infrastruc-ture Development: A Solution to Africa’s Foreign Direct In-vestment Woes, Department of Economics, University of Kansas.
[8] Basu, A. and Srinivasan, K. (2008), Foreign Direct Invest-ment in Africa: Some Case Studies, International Monetary Fund Working Paper, WP/08/61.
[9] Bende-Nabenfe, A. (2005), Foreign Direct Investment De-terminants in Sub-Saharan Africa: A Cointegration Analysis, Economics Bulletin 6.
[10] Cox, A. (2004), Win-Win? Earlgate Press, UK.
[11] Hilltop, J.M. and Udall S. (2008), The Essence of Negotia-tion, Prentice Hall New Jersey.
[12] Kothari, C.R. (2004), Research Methods and Techniques, New Age Publishers, New Delhi.
[13] Marczyk, G., DeMatteo, D. and Festinger, D. (2005), Essen-tials of Research Design and Methodology, John Wiley and Sons, New Jersey.
[14] Moss, T., Ramachandran, V., and Shah, M. (2008), Is Afri-ca’s Skepticism of Foreign Capital Justified? Evidence from East African Firm Survey Data, Center for Global Devel-opment, Working Paper No. 41.
[15] Ritchie, J. and Lewis, J. (2003), Qualitative Research in Practice, A Guide for Social Sciences Students and Re-searches, Sage Publishing, New Delhi.
[16] Saunders, M., Levin, P., and Thornhill, A. (2009), Research Methods for Business Students, Fifth Edition, Prentice-Hall, London.
Cite This Article
  • APA Style

    Michael Musanzikwa. (2013). Is Negotiation a Threat to Zimbabwean Investment Deals? an Analysis of Essar and Green Fuel Investments. Journal of Investment and Management, 2(3), 41-49. https://doi.org/10.11648/j.jim.20130203.12

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    ACS Style

    Michael Musanzikwa. Is Negotiation a Threat to Zimbabwean Investment Deals? an Analysis of Essar and Green Fuel Investments. J. Invest. Manag. 2013, 2(3), 41-49. doi: 10.11648/j.jim.20130203.12

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    AMA Style

    Michael Musanzikwa. Is Negotiation a Threat to Zimbabwean Investment Deals? an Analysis of Essar and Green Fuel Investments. J Invest Manag. 2013;2(3):41-49. doi: 10.11648/j.jim.20130203.12

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  • @article{10.11648/j.jim.20130203.12,
      author = {Michael Musanzikwa},
      title = {Is Negotiation a Threat to Zimbabwean Investment Deals? an Analysis of Essar and Green Fuel Investments},
      journal = {Journal of Investment and Management},
      volume = {2},
      number = {3},
      pages = {41-49},
      doi = {10.11648/j.jim.20130203.12},
      url = {https://doi.org/10.11648/j.jim.20130203.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20130203.12},
      abstract = {Purpose: The purpose of this paper is to provide an overview of the Negotiation structures in Zimbabwe, ad-dressing the extent to which negotiation mechanisms may have been a contributory factor to the recent negotiated govern-ment deals with Essar and Green Fuel Chisumbanje projects which have taken so long to take off than as anticipated. Design/Methodology/Approach: The study adopted a qualitative research design because it provided flexibility and afforded the researcher the opportunity to conduct an in-depth research. Case studies of Essar and Green Fuel investments were conducted. Findings: The findings suggest that there were no effective stakeholder consultations before the FDI deal with Essar was signed. It appears as though negotiators were in a hurry to sign the agreement before doing a thorough analysis. The case of Green Fuel, also demonstrated the absence of wider stakeholder consultation before the implementation of the project. There was evidence of lack of transparency on the part of negotiations. Research Limitations/Implications: The main limitation of the study lies with a lack of complex analysis undertaken to support the findings. Practical Implications: The findings from the study suggest that Government policy is never implemented Social Implications: Governments across the world pay lip service when it comes to implementing Government projects. As a result the public suffer due to poor service delivery. Originality/Value: The paper is original as it is the first attempt to discuss government negotiation deals that do not materialise according to the planned time frame.},
     year = {2013}
    }
    

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    T1  - Is Negotiation a Threat to Zimbabwean Investment Deals? an Analysis of Essar and Green Fuel Investments
    AU  - Michael Musanzikwa
    Y1  - 2013/06/10
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    DO  - 10.11648/j.jim.20130203.12
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    JF  - Journal of Investment and Management
    JO  - Journal of Investment and Management
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    UR  - https://doi.org/10.11648/j.jim.20130203.12
    AB  - Purpose: The purpose of this paper is to provide an overview of the Negotiation structures in Zimbabwe, ad-dressing the extent to which negotiation mechanisms may have been a contributory factor to the recent negotiated govern-ment deals with Essar and Green Fuel Chisumbanje projects which have taken so long to take off than as anticipated. Design/Methodology/Approach: The study adopted a qualitative research design because it provided flexibility and afforded the researcher the opportunity to conduct an in-depth research. Case studies of Essar and Green Fuel investments were conducted. Findings: The findings suggest that there were no effective stakeholder consultations before the FDI deal with Essar was signed. It appears as though negotiators were in a hurry to sign the agreement before doing a thorough analysis. The case of Green Fuel, also demonstrated the absence of wider stakeholder consultation before the implementation of the project. There was evidence of lack of transparency on the part of negotiations. Research Limitations/Implications: The main limitation of the study lies with a lack of complex analysis undertaken to support the findings. Practical Implications: The findings from the study suggest that Government policy is never implemented Social Implications: Governments across the world pay lip service when it comes to implementing Government projects. As a result the public suffer due to poor service delivery. Originality/Value: The paper is original as it is the first attempt to discuss government negotiation deals that do not materialise according to the planned time frame.
    VL  - 2
    IS  - 3
    ER  - 

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Author Information
  • Lecturer at Chinhoyi University in the Department of Supply Chain Management

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