4.3 Reliability Test and Analysis
4.4.6 Competitiveness and Differentiating Indicators
The study sought to investigate perceptions of the competitiveness of Brand Zimbabwe, using a myriad of factors including physical infrastructure, macroeconomic environment, health, education, and product and service market efficiency. Respondents were essentially asked to express their views on the competitiveness of Zimbabwe based on identified competitive and differentiating indicators. The findings of this investigation are shown in Table 8. As seen in the table, generally, most respondents disagreed with some of the competitive indicators for the country, as shown by higher percentages under Likert scale 2 indicating disagreement as compared to other Likert Scale categories. Close to 55% of the respondents disagreed that financial market efficiency is a competitive factor for Zimbabwe, while about 50% and 51%
of the respondents disagreed that macroeconomic environment and factor prices respectively are competitive factors for Zimbabwe when it comes to nation branding.
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Table 8: Competitiveness and Differentiating Indicators
Source: Survey Results
Education was singled out as a very competitive indicator for brand Zimbabwe, with close to 52% of the respondents rating it strongly. The geographical location of the country had cumulative affirmative score of 74.8%, followed by education with a score of 72.6% and skills and labour market with 58.6%. The rest of the identified competitive factors namely:
political environment, macroeconomic environment, product and market efficiencies, currency stability, facilities and services, cost doing business and technology were perceived to be adversely affecting the country’s ranking.
Competitiveness and Differentiating Indicator
Strongly Disagree Disagree Uncertain Agree
Strongly Agree
1 2 3 4 5
Public Institutions 20.7 47.8 10.8 16.9 3.9
Physical Infrastructure 22.3 44.1 14.5 17.2 1.9
Macroeconomic Environment 24.5 49.5 18 6.2 1.9
Health 21.8 48.7 13.7 13.4 2.4
Education 5.4 10.5 11.6 51.6 21
Product & Service Market Efficiency 12.6 44.9 18.5 20.1 3.5 Labour Skills & Market Efficiency 5.6 22.3 13.4 40.3 18.3
Financial Market Efficiency 14.2 54.6 17.2 10.8 3.2
New Technology Adoption 10.5 44.6 21 20.7 3.2
Market Size 7.5 34.4 27.7 25.8 4.6
Facilities & Services 14.2 46.8 19.1 17.5 2.4
Factor Prices 15.3 50.5 19.1 12.9 2.2
Natural Resources / Factor Endowment 3.0 9.7 12.4 43 32
Cost of Doing Business 34.7 39.8 11.6 10.5 3.5
Political Stability 34.9 38.2 10.2 12.4 4.3
Stable Currency 36.6 28.0 14.2 15.3 5.9
Geographical Location 2.2 7.3 15.9 42.5 32.3
134 4.4.7 Global Risk Factors Facing Zimbabwe
An analysis was done in the context of Brand Zimbabwe, of what are perceived to be global risk factors. The risk factors were classified as social, economic, environmental (ecological), geo-political and technological. The research findings are shown in Figure 16 to Figure 18 and Table 9.
4.4.7.1 Social Factors
The social factors examined were the ageing population, failure of urban planning, food crises, large-scale involuntary migration, and profound social instability. The list also included such factors as the spread of infectious diseases, water crises, increasing national sentiment, poverty, and crime. The respondents were asked to indicate whether they strongly disagreed, disagreed, were unsure, agreed, or strongly agreed as to whether the elements identified were risk factors affecting Zimbabwe. Refer to figure 15 below.
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12,4 2,7
3,5 1,6
5,1 9,7 6,2 5,4 3,2
11,6
37,6 10,8
16,7 10,2
15,3
34,9 15,9
10,8 14,5
36,6
14,5 11,3
18,8 17,5
18 20,2 11,6
25 11,3
16,9
29
47,6 45,7 41,1
46 24,7
49,7 46,2
50,8 25,3
6,5
27,7 15,3
29,6 15,6
10,2 16,7 12,6
20,2 9,7
0 10 20 30 40 50 60
Ageing population Failure of urban planning Food crises Large-scale involuntary migration Profound social instability Spread of infectious diseases Water crises Increasing national sentiment Poverty Crime
% of Respondents
Perceived Social Risk
5 Strongly Agree 4 Agree 3 Uncertain 2 Disagree 1 Strongly Disagree
Fig 15. Perceived Social Risks Facing Zimbabwe Source: Survey Results
The social factors affecting Zimbabwe as an international source market, a destination for tourism, investment and residence are shown in Figure 15. Overall, the respondents agreed that most of the social risk factors identified affect the country as a source market, tourism, investment and residence destination. The most significant social risk factors affecting the country based on cumulative affirmative perception are failure of urban planning (75.4%), poverty (71%), large-scale involuntary migration (70.7%), water crises (66.4%), social
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instability ((61.6%), food crises (61%) and growing national sentiment (58.8%) respectively.
The least threatening social risk factors were related to the spread of infectious diseases (34.9%), crime (35%) and followed by ageing population (35.5%). The statistics in Figure 16 indicate multiple significant social risk drivers affecting the nation brand, which certainly constitute a cause for concern, since they scare off tourists and investors alike and affect the country of origin effect of the country’s exports.
4.4.7.2 Economic Factors
An examination was conducted of economic factors, which include commodity prices, energy price shocks, failure of financial systems, inadequate critical infrastructure, fiscal crises, unemployment or underemployment and currency volatility. The findings on these factors are shown in Figure 16.
4,3 4,6 2,7
4 1,9 2,2 3,5
10,2 15,6 8,3
11,8 8,1 6,7
10,8
11 16,1
16,7 17,5 15,3 10,2
20,7
59,1 49,7 43,4
46 48,7 44,4 36,8
15,3 14
26,9 20,7
26,1
36,6 28,2
0 10 20 30 40 50 60 70
Higher commodity prices Energy price shocks Failure of financial systems Failure/shortfall of critical infrastructure Fiscal crises Structural unemployment or underemployment Currency volatility
% of Respondents
Perceived Economic Risk
5 Strongly Agree 4 Agree 3 Uncertain 2 Disagree 1 Strongly Disagree
Figure 16. Perceived Economic Risks Facing Zimbabwe Source: Survey Results
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The statistics show that the identified economic risk factors represent a significant challenge for Brand Zimbabwe. The risk with the greatest impact on the country was the incidence of structural unemployment and underemployment, which had a cumulative affirmative score of 81%, followed by fiscal crises (74.8%), higher commodity prices (74.4%), failure of financial systems (70.2), failure of critical support infrastructure (66.7%), currency volatility, and lastly price shocks that are induced by energy problems.
4.4.7.3 Environmental and Ecological Factors
An examination was also carried out, for Brand Zimbabwe, of the ecological and physical environmental risks affecting Zimbabwe. The ecological factors examined were extreme weather conditions, adaptation to climatic changes, biodiversity loss and collapse of the natural ecosystem. The findings relating to these aspects are shown in Figure 17 below.
17,7
40,6
20,2
16,4
5,1 13,7
28 27,2
25,5
5,6 12,9
22 20,7
34,9
9,4
0 5 10 15 20 25 30 35 40 45
1 Strongly Disagree
2 Disagree 3 Uncertain 4 Agree 5 Strongly Agree
% of Respondents
Perception Regarding the Risk Extreme weather events (e.g. floods etc.) Failure of climate-change adaptation Biodiversity loss and ecosystem collapse
Figure 17. Perceived Environmental Risks facing Zimbabwe Source: Survey Results
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Most of the respondents (about 41%) disagreed that extreme weather events like floods are a risk factor for branding a nation as an international destination. Approximately 35% of the respondents agreed that biodiversity loss and the collapse of the natural ecosystem are risk factors affecting Zimbabwe. The results suggest, however, that Zimbabwe faces insignificant risk relating to extreme weather conditions.
4.4.7.4 Geo-Political Factors
The research also assessed geo-political factors relating to Brand Zimbabwe. The factors examined were inter alia the failure of national governance (corruption, and organised crime), the failure in the rule of law and property rights and large-scale terrorist attacks. The other factors were state collapse or crisis (civil conflict, military coup, and failed states), and the breakdown of information infrastructure. The findings on these aspects are contained in Table 9 below.
Table 9: Geo-political and Technological Risk Factors affecting Zimbabwe Aspect
Zimbabwe faces Exposure to:
1 Strongly Disagree 2 Disagree 3 Uncertain 4 Agree 5 Strongly Agree
Geo-political factors Failure of national governance (e.g.
corruption, organized crime, etc.) 6.2 11 6.7 31.5 44.6 Failure in rule of law and property rights 6.7 13.7 11 40.3 28.2 Large-scale terrorist attacks 45.4 28.5 9.4 9.9 6.7 State collapse or crisis (e.g. civil conflict,
military coup, failed states, etc.) 23.4 37.6 17.2 12.9 8.9
Technological factors Breakdown of information infrastructure 16.4 34.1 22.6 18.3 8.6
Large-scale cyber attacks 20.2 38.7 22.6 11.6 7 Massive incident of data fraud / theft 14.2 39.5 19.9 15.3 11 Abuse of technologies (e.g. printing, piracy
etc.)
8.3 15.1 14 37.6 24.7 Source: Survey Results
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The failure of national governance (e.g. corruption, organized crime, etc.) was cited as a major risk factor affecting Brand Zimbabwe. About 45% of the respondents strongly agreed, with a cumulative affirmative score of 76%, perceiving the issue to be a significant risky area.
The failure in rule of law and property rights was also observed as a geo-political risk factor affecting the nation brand, with 69% of the respondents acknowledging the threat.
4.4.7.5 Technological Factors
An analysis was undertaken, for Brand Zimbabwe, of the technological environment. The respondents were required to express their perception of the country in relation to large-scale cyber-attacks, incident of data fraud or theft, abuse of technologies (social media abuse and piracy) and breakdown of information infrastructure. The findings are contained in Table 10 above. The results suggest that Zimbabwe faced less risk of large-scale terrorist attacks, state collapse or crisis, large-scale cyber-attacks and high incidence of data fraud. The statistics indicate that there are significant risk drivers affecting the nation brand, which is certainly a cause for concern. The incidence of data fraud or theft was considered by close to 40% of the respondents to be a minor technological risk factor affecting the nation. The abuse of technologies through printing and piracy was a greater technological risk factor affecting the nation, with a cumulative affirmative score of 62%.