Doing Business In Zimbabwe
Guidelines, Regulations, Incentives
BY
WISDOM MUTERO
Out line of The Presentation
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Zimbabwe Country Profile
The Role of Zimbabwe Investment Authority
Investment Approval Process
Taxation
Investment Incentives
Why Invest in Zimbabwe
Key Projects for Investment
Zimbabwe profile
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Population: +/- 12 million
Annual population Growth:
…………1.1%
Literacy Level…….90%
Shares its borders with,
Botswana, Zambia,
Mozambique, Namibia, SA
Friendly and Sporting Nation
whose main spoken
Languages are English,
Shona and Ndebele
Zimbabwe’s Foreign Trade
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Major Export Products
Agricultural products
( Tobacco, Sugar, Beef, Cotton)
Minerals
(Platinum, Nickel, Gold, Black
granite & diamonds)
Manufactured products
(Cotton lint, Ferro-alloys, Iron &
Steel, Textiles)
Main Export Destinations Germany, South Africa, Japan ,
China, USA
Major Import Products
- Fuels, Chemicals, Machinery,
Rubber and Electrical products
Main Import Sources
 - Germany, South Africa,
China, USA
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Key Priority Areas of Investment
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Agriculture
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Tourism
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Mining
Manufacturing
The Role of Zimbabwe Investment
Authority
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ZIA is a statutory body established by the ZIA Act No. 4 of 2006
with the mandate to promote, facilitate and coordinate
investment in Zimbabwe.
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ZIA is the first port of call for investors in Zimbabwe.
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It is a one-stop-shop for all investment information and
facilitation
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Investors are facilitated to obtain all the necessary permits,
licences and all authorisations required to establish their
businesses in the country.
ZIA’S ONE STOP SHOP
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ZIA is being transformed in to a OSS.
All investment licences to be processed at ZIA
investment regulatory bodies to be housed at ZIA
Targeted Institutions –Zimra, Min of Mines, Reg of
Comp, Immigration Authorities, Local Authorities and
other Gvt depts.
Seeks to reduce time taken to set up business .
Project Approval Process
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ZIA Investment License
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All new foreign investment into Zimbabwe requires
an investment license issued by ZIA in terms of the
ZIA Act.
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Applicants submit project proposal in form ZIA 1
which can be obtained from ZIA offices or
downloaded from ZIA website (www.zia.co.zw).
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Company registration documents are to be
submitted together with the application.
Immigration Requirements
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Visas:
Visitors from some countries are required to obtain visas in
advance of travel from the Zimbabwe Embassies in the
respective countries. Others can obtain their visas at the port of
entry whilst some countries do not require visas to travel to
Zimbabwe.
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Details of countries’ categories can be obtained from
Immigration Department, the respective embassies or from ZIA.
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Residence Permits:
Licensed investors qualify to obtain residence permits upon
fulfilling the requirements which include a minimum investment
threshold of US$100 000 per investor
Local Authority Licenses
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Local Authorities issues business licenses.
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Land can be purchased from the Local Authority or private land
owners.
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For construction of factory premises Companies need licensing
by the respective local authorities.
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Before constructing a new building the plan has to be approved
by the local authority
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The plan is also sent to other utility providers for consideration
Utilities-Service Providers
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Telecommunications: Telone, Powertel and
3 mobile operators offer telecommunication
services.
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Electricity Connection: ZESA Holdings.
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Water Connections: Local Authorities
Registration under the different
tax heads with ZIMRA
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Companies operating in Zimbabwe are required to pay their
taxes to government through Zimbabwe Revenue Authority
(ZIMRA)
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Companies need to acquire a business partner (BP) number
and register for Pay as You Earn (PAYE) by completing REV1
Form
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Companies meeting an annual threshold of US$60 000
turnover qualify to register for VAT by completing VAT 1 Form.
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Registration is done once the Company commences operations
and for foreign owned companies this will be post ZIA approval
Mining entities
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Mining claims obtained from the Ministry of Mines and Mining
Development.
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Exploration entities are required to obtain an Exclusive Prospecting
Order (EPO) from the same Ministry.
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All mining entities are required to carry out an Environmental Impact
Assessment of their project submitted to the Environmental
Management Agency (EMA)
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Export of minerals with the exception of gold and platinum is done
through the Minerals Marketing Corporation of Zimbabwe (MMCZ)
Tourism Entities
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Operators in the tourism sector are required to register with the
Zimbabwe Tourism Authority (ZTA) after licensing by ZIA to be
registered as an operator in the sector.
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Companies developing infrastructure such as hotels, lodges, guest
houses and lodges are required to get development permits from
respective Local Authorities.
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Operators offering transport services like car hire, boats, tour
operators are required to register with the Ministry of Transport and
Communication.
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Boat operators should also acquire seaworthiness certificates from the
Ministry of Transport.
Investment Incentives
TAXATION
 Corporate Tax Rate
 Value Added Tax
 Shareholders’ Tax on Dividends
25%
15%
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Listed Shares
1%
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Unlisted Shares
5%
Investment Incentives
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Mining Companies- Taxation
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Royalties shall be calculated as percentage of the gross fair
market value:
Precious stones
Base Metals
Precious Metals
Industrial Minerals
Coal Bed Methane Gas
Coal
10%
2%
4%
2%
2%
1%
Investment Incentives
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Other mining investment concessions
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A rebate on duty is granted on all capital goods imported for mining
development operations and during the exploration phase of a mining project.
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Operation of foreign currency accounts is permitted. Offshore Foreign Currency
Accounts shall be granted to major mining projects upon application to the
Reserve Bank of Zimbabwe.
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On disinvestment, 100% repatriation of invested capital is allowed.
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Investments of more than US$100 Million qualify for Special Mining Lease,
which allows investors to negotiate favourable concessions
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A special rate of VAT arises on the export of un beneficiated chrome of 20%.
Investment Incentives
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PPP- under the Public Private Partnerships
(PPPs) framework. Investors will negotiate
with the government for incentives.
Investment incentives
Industrial Park developers
 A tax rate of 0% will apply for the first five
years but only to
 those industrial park developers that
commenced operations prior to 1 January
2010.
Macro-economic reforms
undertaken
Exchange control
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Government has deregulated exchange control and has
delegated export
administration and payment authority to banks.
Off shore payments now possible without prior exchange control approval.
All income related transactions no longer require prior exchange control
approval.
Banking and Finance
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Limitless cash withdrawals.
Residents and corporate can now deposit up to
US$ 1 million without declaration of the source of the money.
Holders of FCAs can now safely hold foreign exchange in their accounts
indefinitely.
Why invest in Zimbabwe?
Key success Factors
Abundant Natural Resources.
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Zimbabwe has a wealth of exploitable resources including:-.
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Agricultural output, plantations, natural forests, offer a wide
range of resources to be exploited .
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A wide range of minerals under exploitation with discoveries of
new ones all the time also provides opportunities for
beneficiation and value addition of these minerals.
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Diverse wildlife in many parks and sanctuaries provide
opportunities for development of the tourism sector
Why invest in Zimbabwe?
Key success Factors
Access to Markets
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Zimbabwe is strategically located in the centre of the Southern African
region.
Giving Access to Regional and World markets , Zimbabwe is a
member of :
Regional organisations -Southern African Development Community
(SADC) [Over 190 million people]
Common Market for East and Southern Africa (COMESA) [A market of
over 400 million people]
International organisations ACP-EU Convention of Cotonou World
Trade Organisation (WTO)
Investor Protection and Security
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Zimbabwe is a signatory to the following treaties:
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Multilateral Investment Guarantee Agency (MIGA)
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Overseas Private Investment Corporation (OPIC)
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International Convention on Settlement of Investment Disputes (ICSID)
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New York Convention on the enforcement of Foreign Arbitral Awards
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United Nations Convention on International Trade Law (UNCITRAL).
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Several BIPPAs
Investor’s Prospectus: Key Project
Profiles
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Zimbabwe Power Company –Power Generation.
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Hwange Colliery –Coal mining recapitalisation.
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N R Z –Refurbishment of Equipment.
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Air Zimbabwe –Aircraft Fleet Renewal.
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Telone –Telecoms network upgrade .
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Grain Marketing Board –Contract farming.
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Local Authorities – water management and sewer reticulation systems
SEDCO –Short term loans to SMEs.
IDC –Diamond exploration, mining and processing.
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Conclusion
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Zimbabwe has embarked on an economic
turnaround drive aimed at resuscitating the
fortunes of the economy through Investment
promotion.
This is the time to invest taking advantage of
the vast investment opportunities available
Your participation will be greatly rewarded
Thank You