- February 21, 2018
- Posted by: leon
- Category: Investment
Zimbabwe through New Economic Order has introduced policies which attracts foreign and local investment. Introduction of the Zimbabwe One Stop Investment Center will ease the way of doing business because the foreign investors will be able to register their services under one roof. In year 2018 the government is guaranteeing security of investment done in Zimbabwe.
From the beginning of 2018, all sectors besides diamond and platinum mining sectors will allow foreigner investors to own 100% shareholding in Zimbabwean registered companies in sectors which include manufacturing, farming, retail, financial services etc. The government of Zimbabwe has relaxed the famous Indeginisation Law which scared away many investors ever since the law was gazetted causing a total collapse of industry and shortages of cash in local banks.
Presenting the 2018 National Budget, The Minister said only the diamond and platinum mining sectors will be affected by the requirement to have at least 51 percent local ownership. Government is, through the Finance Bill being submitted to this August House for the 2018 financial year, amending the Indigenisation and Empowerment Act, to bring the following into effect from April 2018:
- Diamonds and platinum are the only sub-sectors designated as ‘extractive.’
- Accordingly, the proposed Amendments will confine the 51/49 Indigenisation threshold to only the two minerals, namely diamonds and platinum, in the extractive sector.
- The 51/49 threshold will not apply to the rest of the extractive sector, nor will it apply to the other sectors of the economy, which will be open to any investor regardless of nationality,”said Hon. Chinamasa.
Consultancy companies in Zimbabwe have taken advantage of technology to attract investment to Zimbabwe through the modern ways by enabling foreign investors to register formally their businesses in the country and comply with all the laws and regulations required some without even visiting the country.
Foreign investors will only need to establish a temporary residential address upon company registration and this can be made easy when getting assistance of consultant companies in Zimbabwe.
After registering a company there is need to register with:
- National Social Security Authority (NSSA)
- Zimbabwe Investment Authority (ZIA) for foreigners.
- Zimbabwe Revenue Authority (ZIMRA) within 30 days.
- National Employment Council (NEC)
The foreign directors need to also obtain an Investors License Permit which will be easily obtained at Zimbabwe Immigration Authorities.