INVESTING IN ZIMBABWE PRESENTATION BY THE CONSUL GENERAL OF ZIMBABWE, MR ALFRED MUTIWAZUKA, ON INVESTMENT OPPORTUNITIES AND DOING BUSINESS IN ZIMBABWE. (THE HONG KONG GENERAL CHAMBER OF COMMERCE – 14 JUNE 2016)
Zimbabwe
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About Zimbabwe is Strategically Located at the Centre of Southern Africa with: • Total Area: 390 757 square kilometers • Land : 386 670 square kilometers • Water: 4 087 square kilometers • Border Countries: Namibia, Zambia Botswana, Mozambique, South Africa,
About Zimbabwe • • • Population: Capital City: Business Language: Climate: About 13 million Harare English 12 - 13°C in winter and 24 30°C in summer Rains: Begin in November and end in March GDP growth rate (2013 est. ) 5%
About Zimbabwe Currency: Multicurrency-US$, British Pound, South African Rand, Euro, Botswana Pula Inflation (2013 est. ): about 92% 5% Literacy rate:
Why Invest in Zimbabwe Highly skilled and literate workers; Centrally and strategically located in the Southern African Region; Regional gateway (North-South Corridor); Regional logistics hub supported by infrastructure such as railways, roads, power, telecoms;
Why Invest in Zimbabwe - cont’d Abundant natural resources; Diversified economy – manufacturing, services, agriculture, mining and tourism; Rejuvenated economy and an expanding domestic market; Use of multiple currencies thus minimizing exchange risks; and Access to major regional markets of SADC and COMESA.
Investment Opportunities Major investment opportunities are available in the following sectors: Mining Energy Infrastructure Development Manufacturing Agriculture Services: Tourism, Financial etc Increasing investment in these sectors is critical for achieving sustained economic growth and development
Trade in Minerals Mineral resources available for sale include Coal & Coke, Nickel, Diamonds, Gold, Granite, and other precious stones Mining is the fastest growing sector contributing over 40% of the Gross Domestic Product The Mineral Marketing Corporation of Zimbabwe (MMCZ) is the body Corporate established in terms of Section 3 of the Minerals Marketing Corporation Act: Chapter 21: 04 It is the sole marketing and selling agent for all minerals produced in Zimbabwe except for silver and gold
Mining The sector has immense opportunities for investment as the country is endowed with a vast range of mineral resources. Mineral resources include gold, diamonds, platinum group of metals, chrome, nickel copper zinc, lithium and industrial minerals (limestone, phosphates, clay, dolomites) among others. The Zimbabwe Mining Development Corporation (ZMDC) and Mineral Marketing Corporation of Zimbabwe (MMCZ) are State Owned Enterprises looking for partners to invest in old and new mines.
Mining Cont’d. 12 Zimbabwe has the second largest deposits of platinum in the world. Black granite, which is ranked as the best dimension (building stone) stone in the world. Coal, Coal-bed Methane and Kimberlites with potential to host diamonds.
Mining – cont’d Diamond mining is underway in Chiadzwa, Marange, Manicaland Province.
Mining Investment Opportunities Resuscitation mines: of existing Mhangura Copper Mine, Kamative Tin Mine, Elvington & Sabi Gold, Sandawana Emerald Mines, Sanyati Copper Mine Prospecting: Chimani Gold Special Grant, Gwayi-Lupane Coal Bed Methane Gas, New diamond mines
Mineral beneficiation/Value Addition Mineral beneficiation and value addition: diamond & black granite cutting and polishing; platinum refining; coal gasification; chrome smelting; and gold and platinum jewellery.
Energy 16 Zimbabwe invites Hong Kong companies and other international private sector companies to invest in the power sector as Independent Power Producers. Power projects include the Gokwe North Thermal Project, Gokwe North Transmission and Distribution project and Lupane Coal Bed Methane Gas exploitation. Refurbishment of Harare, Bulawayo and Munyati Power Stations
Energy– cont’d Establishment of mini-hydro power stations at designated dams; and Construction and commissioning of solar panels’ manufacturing plants. Investment opportunities also exist in the electricity infrastructure development covering transmission and distribution networks.
Transport The development of transport infrastructure such as roads, rail and air are critical to the growth of the economy. Transport infrastructure enhances socio-economic development through the movement of goods and people locally, regionally and internationally. As such Zimbabwe is strategically located to provide a gateway to markets within the SADC region.
Road, Rail and Air Transport Under BOT, BOOT or PPPs, interested companies are free to invest in the following projects: § Road dualisation of the major roads & rehabilitation of local authority roads; § Procurement of road construction equipment; § NRZ procurement of new locomotives /wagons; § 3 G expansion and 4 G network development; and § Supplying AZ with additional aircraft, aircraft spares , IT systems, among other requirements.
Manufacturing • Zimbabwe has a well developed manufacturing sector which has been under performing due to financial challenges arising from sanctions. • The sector involves production of industrial intermediate and capital goods, consumer goods and value addition of primary products from agriculture and mining.
Manufacturing –cont’d Major sub-sectors available for investment include: • Textiles: Cotton ginning, spinning, weaving, finishing textiles and knitting products • Clothing & Footwear: Apparels and footwear • Chemicals: Fertilisers, insecticides, pests, paints, varnishes, soaps, detergents, inks, glues, polishes, pharmaceuticals, industrial chemicals, petroleum products, rubber and plastic products
Manufacturing cont’d • Wood & Furniture: Saw milling, wooden products, furniture and fixtures • Metal & Metal products: Machinery and equipment, radio and communication equipment • Information Communication Technology: Information processing, computer assembly, solar technology and consumer electronics
Manufacturing –cont’d A state owned company is looking for a vehicle manufacturing company to partner with so that the company can supply it with completely knocked down kits of vehicles so that they are assembled in Zimbabwe. This company has more than 30 years experience is vehicle assembly.
Agriculture There are Investment Opportunities in Value addition in the Agricultural sector such as in the following areas: Multi-fruit juice manufacturing - guava, pineapples; export of horticulture and floriculture; and sugar milling mango,
Agriculture– other opportunities cont’d Irrigation resuscitation and development; Financing of the tobacco, soya beans, cotton crops; Joint ventures with Agricultural and Rural Development Authority (ARDA) to recapitalise farms; implement integrated agricultural systems and mechanising the operations.
Real Estate Development Victoria Falls has been declared a Development Zone. Investors are invited to consider putting up five star hotels, casino, shopping centre, golf course residential accommodation and office buildings.
R Real Estate Development – cont’d Victoria Falls will be turned into a financial and holiday centre thus infrastructure to support the centre is required. Bulawayo is also looking for a five star hotel and they the city is offering the investor free land for a five star hotel plus a shopping centre. Development of an Integrated Industrial Park (residential and commercial and infrastructure on 1400 hectares of prime land).
Tourism Zimbabwe is a destination of unrivalled tourism attractions. In August 2013 Zimbabwe co-hosted with Zambia the UN World Tourism Assembly in Victoria Falls. After this event it is expected that tourism will increase in Zimbabwe. The Victoria Falls airport is being extended to prepare for increased activity in the resort town.
Major Tourist Attractions 29 • Victoria Falls Great Zimbabwe • National Parks Mana Pools Gonarezhou National Park • • Eastern Highlands • Matopos • Kariba Dam • Chinhoyi Caves • Hwange National Park Kariba Dam Great Zimbabwe
Investment Opportunities in the tourism sector Trans-frontier Conservation Areas/Parks (e. g. Great Limpopo Trans-frontier Park) Tourism Development Zones (areas with high tourism potential where investors enjoy various tax incentives) Hunting safaris and tour operations (a rich and varied game species including the Big Five ) Urban Areas (accommodation, restaurants, transport and touring services and conference facilities) Eco-tourism (conservation of the environment, partnerships with the local communities. )
Investment incentives 100% remittance after tax profits and dividends; Rebate of duty on equipment and machinery imported for a project granted National Project Status; Repatriation of 100% of initial capital investment; Duty free importation of raw materials used in the manufacture, processing of goods for export (Inward Processing Rebate Scheme)
Investment Incentives – cont’d Taxable income of a company that exports 50% of their output is taxed a reduced rate of 20%; and Unlimited amount of foreign currency brought into Zimbabwe.
Investment Incentives- cont’d q Tax Holidays for Built Operate Transfer and Built Operate Own Transfer Projects and Public Private Partnerships • • • First Five Years Next Five Years Thereafter 0% 15% 25%
Guidelines for Investing in Zimbabwe All companies in Zimbabwe have to be registered with the Registrar of Companies under the Companies Act. Upon registration, the company obtains a Certificate of Incorporation. All new foreign investment require an investment licence issued by the Zimbabwe Investment Authority (ZIA) approval of the project proposal.
Guidelines for Investing in Zimbabwe An foreigner wishing to take up employment in Zimbabwe must be in possession of a valid work permit issued by the Department of Immigration, upon application; and Immigration regulations allow local companies to employ foreigners under temporary work permits where there is proof that the requisite skills cannot be sourced locally.
Guidelines for Investing in Zimbabwe-ct’d Immigration Requirements/Work Permits There are no minimum and maximum investment thresholds but investors wishing to take up residence in Zimbabwe should invest at least: Ø Ø US 100 000 for a joint venture with a local investor; and Investors investing at least US$1 million qualify for automatic permanent residence.
Guidelines for Investing in Zimbabwe-cnt’d The country’s indigenisation and economic empowerment regulations require that each foreign owned company should be composed of at least fifty one percent Indigenous Zimbabwean shareholding. Investors are required to submit their indigenisation implementation plan within forty-five days from the date of commencement of business.
One Stop Shop Investment Centre One Stop Shop was established at the Investment Centre to: simplify and shorten procedures and guidelines for issuance of business approvals, permits and authorizations; and remove bottlenecks faced by investors in establishing running businesses and improve on quality of service delivery.
One Stop Shop Investment Centre-cd Key departments in One Stop Shop are: Zimbabwe Investment Authority (ZIA), Registrar of companies, Department of Immigration, Zimbabwe Revenue Authority, Ministry of Mines and Mining Development, and the Environmental Management Authority, among others.
Trade Promotion & Development Zimbabwe National Trade Policy -2012 -2016 Crafted to leverage the Industrial Development Policy 20122016 Takes into account the existing rules, regulations, agreements and treaties Zimbabwe is a signatory to bilateral, regional and multilateral trading arrangements (SADC, COMESA, ACP-EU partnership Agreements and WTO
National Trade Policy objectives To diversify the country’s export basket thereby increasing exports (comparative advantage), To promote value addition of raw materials in order to restore the manufacturing sector contribution of export earnings, To consolidate and expand existing export markets and explore new ones, To facilitate trade by reducing and/or reducing trade to barriers.
Major trading products Main Exports: Tobacco, Gold, diamonds, Ferro-alloys, cotton, sugars & sugars confectionary, Main Imports: Machinery, electrical & electric equipment, vehicles, chemicals & petroleum products, Main Export markets: South Africa, China, Democratic Republic of Congo, Zambia, Mozambique, Germany, UK, USA, Botswana, Main Sources of Imports: China, South Africa, Zambia, Germany, UK, USA, Japan, Netherlands, Italy.
Trade Incentives Exemptions of duties on selected imported inputs, Duty draw Back System for imported inputs used to manufacture goods for export, Full retention of export earnings by exporters,
Trade Promoting Institutions The Ministry of Industry & Commerce Houses the fully fledged Departments of Domestic, Regional and International Trade Contacts: Telephone: +263 -4 -700472/798425/702731 Fax: +263 -4 -705762/251488 Website: www. miit. gov. zw
Trade Promoting Institutions Zim. Trade: trade development and promotion, Marketing of Zimbabwe products and services International Trade Fairs Solo exhibitions Website promotions : www. zimtade. co. zw Zim. Trade Contacts Tel: +263 -4 -369334 -41 Fax: +263 -4 -369244 Email: info@zimtarde. co. zw
Supporting Institutions Zimbabwe National Statistical Agency (ZIMSTAT) Zimbabwe Revenue Authority (ZIMRA) Trade Measures Section in the Ministry of Industry and Commerce-national quality testing infrastructure, Standard Association of Zimbabwe (SAZ), Competition and Tariff Commission – competition policy & law, tariff analysis, trade remedies, Zimbabwe /Hong Kong Trade There is no trade agreement between Zimbabwe and Hong Kong, but this has not discouraged the importation and exportation of certain products into and from Hong Kong. Both Zimbabwe and Hong Kong business people have taken
Zimbabwe Chamber of (ZNCC) Commerce A non-profit making membership-driven organisation facilitate contact and access for members to local and international markets Contacts: Telephone: +263 -4 -2936818 Email: info@zncc. co. zw Website: www. zncc. co. zw
CONCLUSION: WHY ZIMBABWE? 48 Diversified Economy Undervalued Assets Highly Skilled and literate people Geography and platform for pan African growth Good basic Infrastructure Macro economic stability ( low inflation, high growth rates) Natural Resources Endowment Irreversible sociopolitical and economic reforms. Dollarization
SEE YOU IN ZIMBABWE THANK YOU
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