Transcript Zimbabwe - The Hong Kong General Chamber of Commerce

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
..
About Zimbabwe

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
underway
Marange,
Province.
mining
is
in Chiadzwa,
Manicaland
Mining Investment Opportunities
Resuscitation
mines:

of
existing
Mhangura Copper Mine, Kamative Tin

Mine, Elvington & Sabi Gold,
Sandawana Emerald Mines, Sanyati
Copper Mine
Prospecting:


Chimanimani 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;

3G expansion and 4G 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
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•
Victoria Falls
•
Great Zimbabwe
•
Mana Pools
•
Gonarezhou National Park
•
Eastern Highlands
•
Matopos
•
Kariba Dam
•
Chinhoyi Caves
•
Hwange National Park
National Parks
Kariba Dam
Victoria Falls
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

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:

US100 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






ZimTrade: trade development and promotion,
Marketing of Zimbabwe products and services
 International Trade Fairs
 Solo exhibitions
 Website promotions : www.zimtade.co.zw
ZimTrade Contacts
Tel: +263-4-369334-41
Fax: +263-4-369244
Email: [email protected]
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: [email protected]
 Website: www.zncc.co.zw
CONCLUSION:
WHY ZIMBABWE?
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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