The new inclusive Government of Zimbabwe is looking to transform the country into an investment mecca and private business is welcome. Zimvest, a private sector investment consultancy, is promoting a range of attractive Zimbabwean investment opportunities in different sectors.
Why Zimbabwe?
• Zimbabwe largely did not participate in the commodities boom of the last decade and therefore opportunities abound.
• It is located in close proximity to South Africa and has above average existing infrastructure making it an ideal candidate for growth and investment.
• The Government of Zimbabwe has introduced varied incentives to spur investment.
• Zimbabwe now operates on a free monetary system providing favorable conditions for investors.
Who is Zimvest?
• A
one-stop-shop for investing in Zimbabwe. Current clients include businesses and NGOs.
• A consultancy company which advises on investment opportunities and facilitates investment in all spheres of business in Zimbabwe.
• Zimvest has a number of investment and property investment opportunities on our books at present.
INVESTMENT OPPORTUNITIES
Coal – An opportunity exists for a mining house to develop a potentially lucrative coal mine and fund the construction of two power stations.
Lime – Long-term lease on a lime factory with significant growth and export opportunities.
Gold – Two gold mines under care and maintenance for sale or rehabilitation on a joint-venture basis (JV).
Other minerals – Manganese and chrome JV concessions.
Property – A number of commercial and industrial properties at significantly reduced market prices. Tourist properties in Kariba and Victoria Falls are available.
Businesses offered as a going concern – Zimvest has three businesses looking for equity partners:
1) A manufacturer of cutlery, hardware and other household goods. The company is also involved in presswork, plastic injection-moulding, chrome and nickel plating, fabrication and general engineering work.
2) An equity partner is sought for a shoemaking business. There is an available plant equipped with full basic shoemaking equipment and the machinery necessary to manufacture a full range of footwear products. It has a plant capacity of approx 11 000 pairs per month.
3) An opportunity exists to purchase a cooking oil factory. Its infrastructure includes a world-class multi-oilseed processing plant, a state-of-the-art oil refinery, a PET bottle plant, a fully automatic packaging plant for edible oil and its derivatives. It is the largest producer of cooking oil in Zimbabwe. The company also manufactures soybean meal, high protein cottonseed meal, cottonseed cake and hull pallets.
INCENTIVES FOR INVESTMENT
The Zimbabwe Government is offering a number of incentives to investors in the mining, construction and tourism industries.
Mining:
• Income tax on mining companies to be levied at a flat rate of 15 %.
• All capital expenditure incurred wholly and exclusively for mining operations shall be allowed as a deduction at the rate of 100%.
• Royalties on minerals are extremely low, but are non tax deductible and are charged on a gross fair market value.
• There is a 5% withholding tax on dividends for Zimbabwe Stock Exchange (ZSE) listed companies and 10% for all other companies.
• There shall be a duty exemption for customs duty, surtax and VAT on all capital
goods during the exploration phase of a mining project and for a period of up to five years from the date of grant of mining title, during the development phase thereof.
Tourism:
• Currently all tourist operators are allowed duty-free exemptions on vehicles imported for their operations.
• In addition, investors in areas designated as Tourism Development Zones (TDZ) enjoy 0% tax during the first five years of operation, thereafter 15% and 20% for the second and third five year periods.
• Full refund of duty on all capital expenditure for use in TDZs.
• Normal corporate tax is 30%.
General/Other:
• There are various other tax incentives; for example any commercial and industrial development in growth point areas attracts a flat 10% tax rate for the first five years.
• 100% repatriation of any original capital investment upon disinvestment.
• Goods and services can be paid for offshore.
