THE Zimbabwe Investment and Development Agency (Zida) says it has entered into agreements with local and foreign trade facilitation bodies and business organisations to improve the country’s business environment.
The southern African nation has been lagging regional peers in attracting foreign direct investments owing to factors such as policy inconsistency, an unstable currency, multiple layers of taxation and dilapidated infrastructure.
To improve the ease of doing business, the government formed Zida, intended as a one-stop-shop to promote and facilitate both domestic and foreign investment in Zimbabwe.
Zimbabwe’s incentives to attract FDI include tax breaks for new investment by foreign and domestic companies, and making capital expenditures on new factories, machinery, and improvements fully tax deductible.
Tafadzwa Chinamo, Zida chief executive officer, says the agency seeks to improve investment inflows into the country by cutting red tape.
“In the second quarter, the agency facilitated the development of the Regulations for the Special Economic Zones and General Investments. The Base Minerals Export Control Amendment banned the export of unprocessed lithium to encourage beneficiation,” Chinamo said in a statement accompanying the organisation’s second-quarter report.
“The agency signed a tripartite MOU [memorandum of understanding] with Zimtrade and APIEX of Mozambique to enhance trade and investment between the two countries. Locally the agency managed to sign a collaboration agreement with the Confederation of Zimbabwean Industries to enable advocacy and information sharing with the private sector.
“The agency strives to promote and facilitate both local and foreign investment in the country, therefore, increasing Foreign Direct Investment (FDI) and Domestic Direct Investment (DDI). The mining sector attracted the most investment in Q2 2023 [second quarter], with 62 new licences issued and a projected investment value of US$202.7 million. The construction sector was the second-largest recipient of investment, with 6 new licences issued and a projected investment value of US$59.78 million. The services sector saw a significant increase in investment in Q2 2023, with 43 new licences issued and a projected investment value of US$41.94 million.”
During the quarter Zida also made progress in developing Regulations for the Special Economic Zones and General Investments, in line with section 46 of the Zimbabwe Investment and Development Act.
“The agency together with the minister of Finance and Economic Development presented the draft Regulations to the Cabinet Committee on Legislation in May 2023,” the agency said.
“The Cabinet Committee on Legislation recommended for the Regulations to be promulgated through the Attorney-General’s Office. The Agency also commenced work on the Public Private Partnerships (PPP) Guidelines to provide for the process flow for approving PPPs. A memorandum on the proposed amendment to the PPP approval process was submitted to the chairperson of the PPP committee for consideration.”— Staff Writer.