Title:
IMPACT OF DEMOGRAPHIC FACTORS ON THE INVESTMENT DECISIONS OF ARTISAN GOLD MINERS IN RURAL ZIMBABWE: CASE OF UMZINGWANE DISTRICT

Authors:
*Valentine Zimusi,Givemore Moyo and Linnet Zimusi, Zimbabwe

Abstract:
The study sought to evaluate the impact of demographic factors on investment decisions of artisan gold miners in rural Zimbabwe using Umzingwane district as a case study. A case study research design was adopted. Purposive sampling technique was used. A total of 320 questionnaires were distributed to artisan miners with operations in Umzingwane district in Zimbabwe. The study found that the majority of artisan gold miners attended secondary education and they were literate. The study revealed that artisan gold miners mainly invested their monies in livestock, household assets, bought and developed housing stands in growth points or urban areas. The study revealed that artisan gold miners lack knowledge on many investment avenues such as financial securities. The study indicated that the majority of artisan gold miners have no alternative employment besides mining and they get an average monthly income of US$100 or less. The study through Chi Square test revealed that there was a relationship between number of years in mining and investment among artisan gold miners. The independent variables namely peer pressure, lack of knowledge in investment, age of an artisan miner and number of dependents were found to be not statistically significant at 5% significance level to explain investment decisions of artisan gold miners. Among those variables which were statistically significant at 5% significant level, substance use and number of girlfriends and boyfriends had negative impact on investment by artisan gold miners. The study revealed that training and education on investment, income and number of years in mining were statistically significant at 5% significance level and had a positive impact on investment by artisan gold miners. The study recommended that there should be guidance and counselling of artisan gold miners so that they shun substance use and prostitution ( many girlfriends or boyfriends ) in order to put their money in proper use and investment .It was also recommended that artisan gold miners should be encouraged to diversify their income sources by opening businesses and that the Government of Zimbabwe , financial institutions , Non-Governmental Organisation (NGOs ) and other development partners should educate artisan miners on investment so that they gain knowledge and understanding of investment assets and platforms.