What you need to know as a first time investor
This article is a general guidance on what it would take for one to invest in Zimbabwe. Zimbabwean investors now have a tailor made protection by the law with regards to their investments.
Starting off
The first port of call would be for the investor to set up a vehicle of investment which maybe in the form of a private company, partnership, purpose vehicle or a foreign company.
If an investor chooses a foreign company it is best the company is located where there is a double taxation agreement with Zimbabwe.
In setting up an investment vehicle, the investor should ensure compliance with other applicable Zimbabwean laws e.g. Environmental Management Agency(EMA), Zimbabwe Revenue Authority (ZIMRA), National Social Security Authority (NSSA), Reserve Bank of Zimbabwe (RBZ).
Operating Licence
To operate, an investor needs to obtain an investment licence to activate the protection of the law otherwise the investor will not enjoy the protection accorded by the law.
Finances
An investor need not be worried about the preservation of its investment because there is no restriction on the transfer of its investments funds from Zimbabwe to a place of its choice. An investor can transfer funds in and out of Zimbabwe in a freely convertible currency subject to payment of the lawful taxes.
There is a guarantee against expropriation in that the law prohibits nationalisation or expropriation of an investment, be it a foreign or domestic investment.
Staffing
Investors are also allowed to bring senior expatriate staff as employees.
After the exodus of the indigenization programme which negatively impacted the attitude of investors towards Zimbabwe, the government made an effort to create an investor friendly environment through promulgation of the Zimbabwe Investment and Development Agency Act whose purpose is to protect investors by ensuring that there is no discrimination against or unfair treatment of investors.
