Governance, gross capital formation and rural development: A PRISMA approach

Abstract

This systematic literature review (SLR) examines the nexus between gross capital formation (GCF), governance, and poverty reduction in Zimbabwe, employing the preferred reporting items for systematic reviews and meta-analyses (PRISMA) 2020 framework (Page et al., 2021; Maune & Matanda, 2022). Drawing on 42 peer-reviewed journal articles, policy reports, and empirical studies published between 2000 and 2025, the review synthesises evidence on how investment dynamics and institutional quality jointly influence poverty outcomes (Kaufmann et al., 2010; Makuyana & Odhiambo, 2014). The findings reveal that although GCF has significant potential to stimulate economic growth and alleviate poverty, its effectiveness in Zimbabwe is substantially constrained by governance deficiencies, including corruption, weak institutional capacity, policy inconsistency, and persistent macroeconomic instability. Governance emerges as a critical mediating mechanism through which capital formation affects socio-economic development. Periods of improved governance and macroeconomic stability are associated with enhanced investment inflows and measurable poverty reduction, while institutional deterioration undermines investor confidence and weakens the distributive impact of GCF. The review concludes that capital accumulation alone cannot achieve sustainable poverty reduction without complementary governance reforms that strengthen transparency, accountability, and policy credibility. These findings provide policy-relevant insights for integrated development strategies that simultaneously promote pro-poor investment and institutional strengthening.