Country Profile
Zimbabwe is a land-linked country in Southern Africa covering an area of about 390,760 sq km. Zambia lies to the northwest with the Zambezi River and Victoria Falls forming the border. Mozambique lies to the northeast, sharing a border characterised by the picturesque Eastern Highlands Mountain range. Botswana lies to the southwest and South Africa to the south, with the Limpopo River separating the two countries.
The country has a population of 16.859 million people with the capital city being Harare. Zimbabwe has 16 official languages and the main languages are English, Ndebele and Shona. Zimbabwe is divided into 10 geographical Provinces, with each offering its own unique economic opportunities.
Economic Overview
Real GDP growth remained high at 6.5% in 2022 driven by a continued growth in agricultural production. Mineral exporters benefited from rising high global prices and together with tourism contributed to overall economic growth.
Legal and Political Overview
Zimbabwe is a multi-party democratic system of government with separation of powers between the three arms of Government namely: the Legislature, Executive and Judiciary. The President is the Head of the executive, Head of State, Head of Government, and Commander-in-Chief of the Defense Forces.
The President and Members of Parliament are directly elected by the people while Cabinet Ministers are appointed by the president from elected and nominated Members of Parliament.
The judiciary comprises the Constitutional Court, Supreme Court, High Court, Labour Court, Administrative Court, magistrate courts, customary law courts, and other courts established under acts of parliament. The Supreme Court is the highest court and final court of appeal in Zimbabwe and is headed by the Chief Justice.
General Information
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Capital |
Harare |
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Area |
390,760 sq km |
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Main Languages |
English, Ndebele and Shona |
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Population |
16.859 million (2024) (World meter) |
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Currency |
Zimbabwean Dollar |
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GDP (current US$) |
27.27billion (2022) World bank) |
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GDP per capita (current US$) |
1676.8 (2022) (World bank) |
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GDP growth (annual %) |
6.5 (2022) World bank) |
Why Invest in Zimbabwe?
a) Favourable Investment Landscape
Zimbabwe Investment and Development Agency Act has clear provisions on non-discriminatory business climate, repatriation of funds, ownership and other critical factors that protect investors. The Act also establishes the One Stop Investment Services Centre (OSISC) which gives investors a seamless registration and license application process.
b) Availability of Incentives
An array of fiscal incentives that investors can enjoy has been put in place by the government. These include tax holidays, corporate tax, duty free importation of raw materials, intermediate products, equipment, and machinery. Companies operating under Special Economic Zones (SEZs) are entitled to a host of fiscal concessions provided for mainly in the Income Tax (Chapter 23:06) and Finance Act (23:04).
c) Regional hub
Zimbabwe is a key hub within the road and rail corridor in the SADC region. The country has a vast road and rail network connecting it to its neighbours. It is also strategically positioned to link with the whole SADC region.
d) Diverse Mineral Resources
Zimbabwe has a huge and highly diversified mineral resource base dominated by two prominent geological features namely the famous Great Dyke and the ancient Greenstone Belts, also known as Gold Belts. The Great Dyke is a layered igneous complex extending north-south for about 550 km. The Great Dyke plays host to the world’s largest high grade chromite resource base. Zimbabwe has the world’s second largest resource of platinum group of metals as well as significant reserves of gold, lithium, copper and nickel.
e) Dynamic skilled workforce
Zimbabwe has a pool of talented, educated, and trainable diverse workforce. Public and Private owned universities, polytechnics, vocational training centres and other tertiary institutions are churning out industry-ready graduates who are eager to take up roles in various sectors of the economy.
f) Strong Air and Road Access
The world’s best airlines have daily flights that link the world to Zimbabwe and vice versa. Zimbabwe's strong road network makes it easy for investors to access projects that are located outside urban areas.
g) Favourable climatic conditions
Zimbabwe enjoys a lovely, temperate climate. The central highveld plateau has temperatures up to 28°C/82°F. The country can be divided into six different regions of agricultural potential, with the amount of rainfall constituting the determining factor in land use.
h) Peace and stability
Investments are secure as there is low crime rate and Zimbabweans are peace loving people. Investing in Zimbabwe is Investing in stability.
i) Business ready environment
Zimbabwe’s pro-business policies, ready built infrastructure, strong supply chains and reliable human capital makes it the perfect destination for investors.
Zimbabwe Investment and Development Agency (ZIDA)
ZIDA is an investment agency responsible for promoting and facilitation of both local and foreign investments in the country. It operates a One Stop Investment Services Centre (OSISC), which provides investment services ranging from investment analysis, company registration, tax registration and clearance, licencing, connecting to all necessary utilities, investment promotions, public relations and aftercare services.
Investment Incentives
Government incentives to foreign investors depend on the form of investment, the sector, and whether the GOZ awards the investment national project status. For investment in industrial parks and tourism development zones, investors are exempt from paying tax for the first five years, after which they will pay tax at the rate of 25 percent.
Investors in the mining sector who export 50 percent of output benefit from a reduced corporation tax of 20 percent and duty is payable on goods plus 15% VAT, while losses are carried forward indefinitely for mining operations. Manufacturers who export enjoy preferential rates of Income Tax as follows:
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Exports of 30-40% - 20%
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Exports of 41-50% - 17.5%
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Export of 51% and above – 15%
In addition to these incentives, investments with national project status such as those in the renewable energy sector are allowed to borrow on local capital markets where they enjoy incentives including tax exemption on interest.
The Government of Zimbabwe encourages investment in renewable energy by reducing rates of duty on importation of solar equipment including batteries and panels.
Special Economic Zones (SEZ) Benefits
The ZIDA Act, Income Tax Act, Finance Act and Customs and Excise (SEZ) (Rebate) Regulations, 2017 provides incentives to investors licensed under the special economic zones (SEZ). These incentives include:
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A special initial allowance of 50 percent of cost from first year and 25 percent in the subsequent two years;
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Exemption from non-residents withholding tax on fees for services not locally available;
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Exemption from non-residents’ tax on royalties;
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Specialized expatriate staff will be taxed at a flat rate of 15%;
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Zero rated corporate income tax for the first 5 years;
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Exemption from non-residents withholding tax on dividends;
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100% customs duty rebate on all imported raw materials, equipment and machinery;
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Exemption from the requirement to obtain import and export permits.
Although there are no discriminatory import or export policies affecting foreign firms, the government’s approval criteria heavily favour export-oriented projects. Import duties and related taxes range as high as 110 percent.
Incentives Available for Public Private Partnership Under BOOT and BOT Arrangements.
Tax holiday for first 5 years;
Corporate Income Tax of 15% during the second five years; thereafter a standard corporate income tax rate of 25% applies.
Investment Opportunities
a) Mining
The country is endowed with over sixty minerals including gold, Platinum Group Metals (PGMs), diamonds, coal, gemstones, granite, manganese, chrome, lithium, iron ore, copper, nickel, cobalt, limestone, coal-bed methane (CBM) and rare earth minerals.
Opportunities lie in:
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b) Tourism
Tourism in Zimbabwe is anchored on abundant natural resources such as wildlife and scenery. Zimbabwe is endowed with vast tourist attractions ranging from natural to man-made historical sites. These include the Majestic Victoria Falls, Mana Pools National Park (both UNESCO World Heritage Sites); Lake Kariba; Great Zimbabwe Medieval Place; the scenic beauty of the Eastern Highlands; Matopos (a Cultural World Heritage Site) and the pristine habitats and wildlife (Great Limpopo Trans frontier park, Hwange National Park, Malilangwe Wildlife Reserve).
Investment opportunities lie in establishment of:
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c) Energy
The major key enabler in realising sustained economic growth is electricity supply. In order to achieve the objective of powering the economy towards sustained economic growth, the existing generation capacity will be optimally utilised through upgrading, rehabilitation and maintenance. Although the installed capacity is 2 300 MW, the actual power generation capacity is about 1400 MW against a peak demand of about 1700MW, and winter peak maximum demand of about 2200MW thus, creating a shortfall of about 1000 MW during peak periods. Overall dependency on hydro power amidst effects of climatic change is exerting more burden on current electricity supply. The reliance on power imports on the backdrop of regional shortages is also not sustainable.
Opportunities lie in:
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Increasing power supply to 3467 MW by the year 2025;
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Enhancing the transmission and distribution network by 2025;
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Renewable energy production.
d) Infrastructure, ICT & the Digital Economy
Focus on addressing the country’s infrastructure gap remains central for sustaining growth and delivering adequate public services in the context of an evolving global landscape. Government has maintained momentum on infrastructure projects implementation by mobilising requisite resources from both domestic and external sources. Priority opportunities entail:
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e) Agribusiness
The agriculture sector has potential to drive economic growth and sustainable development. Key to unlocking the potential is resolving the security of tenure on the land and creating conducive conditions for bankability of agricultural projects.
Opportunities lie in:
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Development of Agro-industrial park focusing on high tech farming, horticulture, cannabis and industrial hemp;
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Production of blueberries;
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Rose production;
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Provision of agricultural financing.
f) PPPs Investment Opportunities
The implementation of PPPs in Zimbabwe is governed/ regulated by the Zimbabwe Investment and Development Agency Act.
Opportunities lie in development of:
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g) Designated Zones opportunities
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Masuwe SEZ Opportunities
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Construction of convention centres;
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Construction of hotel accommodation;
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Medical tourism;
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Financial services hub;
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Shopping centres and tourist activities.
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Harare - Sunway City Opportunities
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Information and telecommunications;
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Industrial Park;
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Manufacturing hub;
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Logistics;
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Medical Park.
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Bulawayo Opportunities
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Engineering;
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Leather and textile;
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Mineral’s beneficiation;
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Agro-processing;
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Manufacturing;
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Power generation;
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Heavy and light industries;
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Logistics.
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Beitbridge Opportunities
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Logistics hub;
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Bonded warehouses;
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Solar power generation;
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Manufacturing;
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Mineral’s beneficiation;
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Agro-processing.
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Mutare – Fernhill Opportunities
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Manufacturing;
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Precious minerals beneficiation;
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Agro-processing.
Starting a Business
Forms of Company
There are two types of companies that can be registered in Zimbabwe, the Public limited company or the Private limited company (PLC). Trade name registration is only for registered companies that want to use a different name for trading.
Company Registration Process
a) Business/Company Name Reservation
To register your business in Zimbabwe, an applicant is required to submit a list of 1 -5 names of choice online on cipz.pfms.gov.zw. The names provided are subjected to approval by the registrar of companies to check for availability.
b) Submit Application for Company Registration (Private company)
Requirements
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CR 5 Business and email address
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CR 6 List of Directors and the secretary
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Memorandum and Articles of Association
These documents are submitted in duplicate to the registrar of companies to facilitate the registration process.
Fees
The registration fee for a private limited company is $65 and the Public limited goes for $200 (basic registration).
Other Registrations
a) Tax registration
Upon formation, a company must register at the regional Zimbabwe Revenue Authority Office. This is done online through http://efiling.zimra.co.zw. The documents to be submitted are as follows:
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An application form (REV 1);
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Certificate of incorporation;
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CR14/CR6;
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Memorandum and Articles of Association;
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National Identity documents, proof of residence and bank statements of at least two directors;
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Letter of appointing the company’s public officer.
The company will be issued a Business Partner Number (BPN) which acts as the registration number.
b) Bank Account
Another critical step in registering a business is opening a bank account where business transactions will occur. While opening up a bank account, legal company documents are a requirement, depository fee and bank advice note and a tax clearance certificate which the Zimbabwe Revenue Authority gives. Additionally, the date for closing financial accounts or the financial year is very key and has to be indicated.
c) Registration with Manpower Development Fund
Employers must register with, and contribute 1% of their wage bill to, the state-run Manpower Development Fund. The fund allows employers to recover expenses when employees complete training. This takes 1 day and is free of charge.
Taxation
Businesses in Zimbabwe are required to comply with the following taxes.
a) Value Added Tax (VAT)
VAT is levied on every taxable supply by a registered person. A taxable supply means any supply of goods or services in the course or furtherance of a taxable activity. A taxable activity means any activity that is carried on continuously or regularly in Zimbabwe that involves the supply of goods or services for consideration.
VAT is a transaction tax, and the implications will vary for different transactions. Some transactions are taxed at a rate of 15% (effective 1 January 2023; previously 14.5%) or 0%, while other transactions are exempt from VAT. Input tax deductions may be claimed, subject to certain provisions. The registration threshold for VAT has been reduced to an annual turnover of USD40,000 or the ZWL equivalent (reduced from USD60,000).
b) Corporate Tax
Zimbabwe presently operates on a source-based tax system. This means that income from a source within, or deemed to be within Zimbabwe is subject to tax in Zimbabwe unless a specific exemption is available. As of 1 January 2020, the effective corporate income tax (CIT) rate for companies (other than mining companies with special mining leases but including branches) is reduced to 24.72% (previously 25.75%).
c) Withholding Tax
Withholding tax (WHT) is applicable where dividends and royalties or similar payments are declared or distributed to non-Zimbabwean residents (and Zimbabwean residents in some instances).
Dividends
Dividends declared by a Zimbabwean company to a non-resident holding company will be subject to non-resident shareholders tax (NRST), a WHT. NRST is payable at a rate of 15% unless treaty relief is available. Dividends from companies listed on the Zimbabwe Stock Exchange have a rate of 10% and 5% for companies listed on the Victoria Falls Stock Exchange. WHT is due on the 10th day of the following month.
Interest
WHT of 15%, calculated on the gross amount of interest, is payable on interest accruing to any person resident in Zimbabwe. This applies to interest arising from a registered banking institution or unit trust scheme. The tax withheld is a final tax, and the financial institution is responsible to withhold the tax.
Immigration Procedures
The Department of Immigration Zimbabwe administers the Immigration Act on behalf of the Minister with a mandate to facilitate entry and exit of travellers and issuing permits which accord status to immigrants among other functions.
Visa
Every citizen of a foreign country who wishes to visit Zimbabwe must first obtain a visa through the Evisa portal Citizens of countries that have visa abolition agreements with Zimbabwe are exempt from this rule. Investors can check whether their country is exempted from visa requirement through this link: https://www.evisa.gov.zw/regime
Types of Visa
Holiday Visa
This is issued to foreigners entering Zimbabwe temporarily for tourism, sightseeing, to visit family and friends or other private purposes.
Requirements
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For visitors hosted by a citizen/resident include:
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Host invitation letter;
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Proof of residence;
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Residential status of host e.g., identity card copies or residence permits;
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Application letter.
Business Visa
This is issued to foreigners travelling to Zimbabwe for business related purposes such as consultancy or to offer services. It may be granted for a period of 30 (thirty) days and is non-renewable.
Requirements
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Transit Visa
This is issued to visitors travelling to another country who will have a brief layover in Zimbabwe when the only reason for entering Zimbabwe is to transit. It is non-renewable.
Requirements
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Passport photo;
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Passport scan of biodata page;
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Proof of residence of host (where applicable);
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Reason of visit to country of destination (and proof where applicable).
Visa Application Process
Applications for Visa are done online through the e-Visa platform where applicants are able to apply, pay and obtain the e-Visa. Payments are effected through 3D Secure MasterCard/Visa Card.
The visa approval process takes 7 days.
Work Permits
Short-term Work Permit
A short-term work permit is designed for foreign nationals intending to work or conduct business-related activities for periods exceeding 30 days and up to 12 months. A short-term work permit is valid for a maximum period of a year and is non-renewable.
Requirements
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Long Term Work Permit
A long-term work permit is designed for foreign workers intending to work in Zimbabwe for a period that exceeds 12 months up to 5 years. The long-term work permit is issued with an initial period of 12 months and is renewable in-country up to a maximum cumulative stay of five (5) years.
Requirements
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Investor Residence Permit
An investor’s residence permit is designed for companies or foreign nationals who wish to invest in a Zimbabwean business or start-up an investment project. The investor’s residence permit is granted for a maximum of 12 months and renewable in-country.
Requirements
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Useful Contacts
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Zimbabwe Investment & Development Agency Cnr Jason Moyo & Sam Nujoma St. ZB Life Towers, 1st Floor Harare, Zimbabwe Phone: +263 8688002639 – 42 Phone: +263 8677009135 Phone: +263 242 757933 Phone: +263 242 780142 - 3 Email: info@zidainvest.com Website: https://zidainvest.com/ |
Central Africa House Ground Floor Cnr Jason Moyo & Leopold Takawira Bulawayo, Zimbabwe Phone: +263 292 265243 Phone: +263 292 265345 Email: info@zidainvest.com |
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Zimbabwe Revenue Authority Phone(s): (0242)758 891-5, 790 813, 790 814 Address: ZB Centre Cnr Nkwame Nkrumah Ave/ First Street P O Box 4360 Harare Contact Centre Details: Toll free 585, 086 8800 7614, Email contactcentre@zimra.co.zw Region: Harare |
Department of Immigration Cnr. Herbert Chitepo / Leopold Takawira Harare Zimbabwe +263 242 791911 +263716801142 |
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Ministry of Industry and Commerce Head Office 13th Floor Mkwati Building, Cnr Simon V. Muzenda and Livingstone Avenue, Harare Mail: mic@mic.gov.zw Call: +263 (0242) 707540 |
Zimbabwe Manpower Development Fund 18572 off Mother Patrick Ave Rotten Row, Harare P. Bag CY7739 Causeway Harare 0242 780 451-5/ 758 057 / 0772 136 776/9 /0712 431 303/5 |