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The Zimbabwe Investment Development Agency (ZIDA) has come up with a One-Stop Investment Services Centre (OSISC) to streamline and simplify overall investment processes by local, diaspora, and foreign investors.
This came to the fore in a presentation by Bethani Marwa, the ZIDA Regional Manager for Bulawayo during an investment conference organised by the Zimbabwe Tourism Authority during the Sanganai/Hlanganani Travel Expo.
“The OSISC is meant to streamline and simplify the overall investment processes by local, diaspora, and foreign investors. It coordinates the issuance of sector-specific permits, licenses, and other authorisations from Government Ministries, Departments, and Agencies. It also avails available investment opportunities to both current and potential investors. One of its key functions is to facilitate the prompt processing of investment inquiries as well as monitoring and evaluation of investment projects,” Marwa said.
She alluded to a number of benefits to investing in Zimbabwe’s economic sectors as outlined below:
AGRICULTURE
Fertile land
- Over 32, 2 million hectares of potential agricultural land
- Excellent and diverse climate
Investment Opportunities
- Agriculture Financing
- Potential for greenfield agricultural projects in Tugwi Mukosi and Kanyemba areas.
- Government recently relaxed investor requirements in the field of medicinal cannabis.
Fiscal incentives
- VAT deferment on some capital equipment
- Income tax deduction on expenditure incurred on land developments
- Rebate on imported materials
- VAT zero rated for agricultural inputs
MINING
Rich soils
- Over 55 international tradable minerals
- Second highest deposits of platinum in the world
Major mineral deposits
- The Great Dyke belt (PGMs, chrome, gold etc.)
- Coal fields-Beitbridge-Gokwe-Hwange belt
- Alluvial and conglomerate Diamonds
- The Mashonaland Dolerite Dykes
- Significant Iron Ore, Lithium and Rare Earth deposits
Investment Opportunities
- Prospecting and exploration
- Mining and value addition (e.g. cutting and polishing)
- Potential to partner with ZMDC to resuscitate idle assets
- Greenfield projects available in base minerals and more recently CBM
MINING
Relatively developed transport network
- Road network of 88 133 km
- Rail network of 3 109 km
- 3 International airports and 18 smaller airports for domestic and regional
Modern electricity and telecommunications
- Mobile Penetration rate of 100.5%
- Internet Penetration rate of above 50%
- Installed power generation capacity of over 2 300 MW
- Potential to develop over 2 000 MW additional power
- Link to the Southern African Power Pool
Industrial infrastructure
- Agriculture infrastructure, Dams
- Industrial parks and factory shells
- Scope for modernisation and expansion
KNOWLEDGE ECONOMY
Digital Economy
- The government’s thrust is the achievement of an e-enabled economy where all sectors embrace ICT to improve efficiency in line with the global trends
Critical Objectives include:
- Increasing internet penetration rate from 59.1% in 2020 to 75.42% by 2025
- Achieve increased mobile penetration rate to 100% by 2025
TOURISM
Natural Endowment
- The Big 5
- National parks: 5 million hectares of land or 13% of Zimbabwe’s total land area
- 5 UNESCO World Heritage Sites, including Victoria Falls
Existing investment opportunities
- Hotel and Catering industry
- Services and other downstream related activities
- Safari and tour operations
- Opportunity for pioneering and groundbreaking investment in the recently designated Victoria Falls and Masuwe Special Economic Zone.
Eco-tourism
- Particularly high potential area yet to be fully realised
- Partnerships with local communities (CAMPFIRE)
MANUFACTURING
Resurgent Manufacturing Sector
- Zimbabwe currently on a reindustrialization drive
- Manufacturing set to increase contribution to GDP
Investment Opportunities
- Development of Agro and mineral based value chains
- Processing of agricultural produce
- Creation of regional manufacturing hubs taking advantage of Zimbabwe’s central location
Value Chain Opportunities
- Cotton
- Leather
- Steel
- Lithium processing to electric vehicle batteries
Investment Incentives – SEZ
| Outside SEZ | In SEZ | |
| Corporate Tax | 24.72% | 0% first 5 years
15% thereafter |
| Employees tax for expatriates and locals | As per annual tax table | Specialized expatriate staff will be taxed at a flat rate of 15%. |
| Customs duty on Capital equipment and raw materials | Generally rates of duty on capital equipment ranges from 0% to 15%. | 100% customs duty rebate on all imported raw materials, equipment and machinery |
| One Stop Investment Services Centre | Investor facilitation and after care services across all Government entities and agencies | Investor facilitation and after care services across all Government entities and agencies |
| Non-residents withholding tax on dividends | Non-residents withholding tax on dividends – 15% unlisted shares and 10% for listed shares | Exemption from Non-residents withholding tax on Dividends |
Investment Incentives
- Taxation of Income From Manufacturing Entities that export
- more than 30% or more of its output but less than 41%: 20%
- more than 41% or more of its output but less than 51%: 17.5%
- more than 51% or more of its output: 15%
- Fiscal incentives
- Rebate of Duty on Capital Equipment
- VAT deferment on some capital equipment
- Manufacturing: including spare parts required for the purpose of maintaining or refurbishing such plant, equipment or machinery
- Agriculture: including spare parts required for the purpose of maintaining or refurbishing such plant, equipment or machinery
- Income tax deduction on expenditure incurred on land developments
- Rebate on imported materials
- VAT zero rated for agricultural inputs
