ziic prospectus3.indd 1 7/7/2009 12:14 pm · zim 10 - tokwe mukosi dam construction ... imports...
TRANSCRIPT
![Page 1: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/1.jpg)
ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM
![Page 2: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/2.jpg)
This prospectus was compiled by KM Financial Solutions - your financial advisor
ZIIC Prospectus3.indd 2 7/7/2009 12:14 PM
![Page 3: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/3.jpg)
Zimbabwe Investor’s Prospectus
2
ContentsGlossary of TermsForeword by the Minister of Economic Planing and Investment PromotionCountry OverviewEconomic OverviewSectoral Review
• Manufacturing • Agriculture• Mining• Tourism• Energy• Financial Services• Natural Resources & Environment• Information Communication Technology • Infrastructure Development
Summary of Sector Investment OpportunitiesMarket AccessEditorial from The Development Bank of Southern AfricaAppendices
1 - Licensing Requirement - Procedures For Foreign Investors2 - Immigration Requirements3 - Exchange Control Regulations4 - Fiscal Guide 2009 courtesy of KPMG (Zimbabwe)5 - Mining Incentives, Royalties, Rentals and Taxation6 - Summary of Top Ten Available Projects
Strategic ProjectsZim 01 - Zimbabwe Power CorporationZim 02 - Hwange CollieryZim 03 - National Railways of ZimbabweZim 04 - Air Zimbabwe P/LZim 05 - TelOne Zim 06 - Grain Marketing BoardZim 07 - Broadband Connectivity by Africom Continental (Pvt) LtdZim 08 - Coal Bed Methane Production In ZimbabweZim 09- Beitbridge Chirundu Toll RoadZim 10 - Tokwe Mukosi Dam Construction
Important Contacts in ZimbabweContacts – Diplomatic Missions Abroad
34569101112131415161718192125
282829303537
383940414245464849505153
ZIIC Prospectus3.indd 2 7/7/2009 12:14 PM
![Page 4: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/4.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
3
ACP African, Caribbean and Pacific Group of States
AEC African Economic Community
CAAZ Civil Aviation Authority of Zimbabwe
CEMAC Communauté Économique et Monétaire de l’Afrique Centrale
COMESA Common Market of East and Southern Africa
CSC Cold Storage Company
EAC East Africa Community
ECCAS Economic Community of Central African
States
ECOWAS Economic Community of West African States
ELCC External Loans Coordination Committee
FCA Foreign Currency Accounts
FTA Free Trade Area
FTZ Free Trade Zone
GAFTA Greater Arab Free Trade Area
GATT General Agreement on Tariffs and Trade
GCR Global Credit Rating
GDP Gross Domestic Product
ICT Information, Communication and Technology
IGAD Intergovernmental Authority on Development
NBFIS Non – Banking Financial Institutions
NRZ National Railways of Zimbabwe
PGM Platinum Group Minerals
PPP Public Private Partnership
RBZ Reserve Bank of Zimbabwe
SA or RSA South Africa
SACU Southern African Customs Union
SADC Southern African Development Community
SADC Southern Africa Development Community
STERP Short Term Economic Recovery Programme
UEMOA West African Economic and Monetary Union
UK United Kingdom
UMA Arab Maghreb Union
US$ United States Dollar, currency of the USA
USA United States of America
WTO World Trade Organisation
ZAR South African Rand, the currency of the
Republic of South Africa
ZESA Zimbabwe Electricity Supply Authority
ZIA Zimbabwe Investment Authority
ZINWA Zimbabwe National Water Authority
ZISCO Zimbabwe Iron and Steel Company (Private) Limited
ZSE Zimbabwe Stock Exchange
Glossary Of Terms
ZIIC Prospectus3.indd 3 7/7/2009 12:14 PM
![Page 5: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/5.jpg)
Zimbabwe Investor’s Prospectus
4
It gives me great pleasure to present the
Investment Prospectus which contains
priority investment projects and other key
projects in both public and private sectors
of the economy. Zimbabwe is emerging
from a decade of economic decline which
resulted in deterioration of the standards of
living and increasing poverty levels. To that
end the Inclusive Government formu-
lated the Short Term Emergency Recovery Programme (STERP) in order
to stabilize the economy and address the social protection needs of the coun-
try. The recovery of the country is envisaged to come from the private sector
which should be the engine of growth with the Inclusive Government playing
a supportive role. Public private partnerships are also being regarded as key for
revamping the country’s key infrastructure especially in the area of electricity
generation, railways, coal, roads and steel.
The Inclusive Government is undertaking measures that will ensure an inves-
tor friendly environment and attract both foreign and domestic resources on
a sustainable basis. The economy is now operating under the multi-currency
system and more liberalization is underway to ensure that market forces fully
operate. The Inclusive Government is working to address all the impediments
to investment such as the issues of property rights, Bilateral Investment Promo-
tion and Protection Agreements, media freedom and the Indigenisation and
Empowerment Act.
Furthermore, the incentives structure for investors is being revamped and
strengthened so that they will become comparable to what is obtaining in
the region and beyond. The Zimbabwe Investment Authority (ZIA) is also
being restructured in order to make it a truly a “One Stop Shop” Investment
Centre.
The Zimbabwean economy currently offers the following unique and blend
of advantages to potential investors: a stable political environment as a result
of the inclusive government, commitment to operation of market forces as
highlighted in the STERP document, abundant natural resources especially
land, forests, minerals and water, availability of low cost labour which can be
easily trained and availability of a vibrant stock exchange as well as a developed
financial system.
Investment opportunities are in all key sectors of the economy namely agricul-
ture, manufacturing, tourism, mining and infrastructure. The restructuring of
public enterprises which is going to include privatization, commercialization
and restructuring also provides unique investment opportunities to both do-
mestic and foreign investors.
The priority and specific projects in the key sectors both private and public are
contained in this brochure. This brochure will be used by potential investors
who will be attending this years first ever Zimbabwe International Investment
Conference. Evidently, it will continue to be fruitfully utilized in investment
promotion activities beyond this important conference.
I would like to thank the team from my Ministry, The Zimbabwe Investment
Authority (ZIA) and our financial advisors KM Financial Solutions who
worked to put together this brochure. It is informative and provides the reader
with an array of investment opportunities. It is my pleasure to commend it to
you.
Together we can make Zimbabwe great. I thank you.
Foreword
ZIIC Prospectus3.indd 4 7/7/2009 12:14 PM
![Page 6: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/6.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
5
Total Area 399757 sq. kmLand Area 386670 sq. kmWater 4087 sq. kmPopulation 12.233 million (2006)Urbanisation 33.56%Literacy 97.00%Climate Subtropical climate. Rain season Nov-March Capital City HarareCommercial Language EnglishOther Languages Shona, NdebeleTime GMT + 2 HOURSCurrency Multicurrency (US$ and ZAR)GDP (Current Prices) US$5.54 billion (2006)Real GDP growth rate -4.4% (2006), 2.8% (estimate 2009)Exports US$1.718 billion (2006)Imports US$2.040 billion (2006)Principal Exports Tobacco, gold, ferro alloys, cottonPrincipal Imports Machinery and transport equipment, chemicals, petroleum productsMain export destination China, South Africa (“SA”), Germany, United Kingdom (“UK”), Japan, Netherlands, ItalyMain Imports Origins SA, Democratic Republic of Congo, Mozambique, Germany, UK, United States of America (“USA”), BotswanaNatural Resources Asbestos, gold, copper, nickel, tobacco, platinum, chromeMain Towns Bulawayo, Gweru, MutareClimate Subtropical: Summer 25-30 degrees celsius; Winter 13-20 degrees celsiusBusiness Hours Monday - Friday 8am - 4.30 pmSaturday 8.30 am – 1pmBanking Hours Monday - Friday 8am - 3pm Monday - Friday 8am - 5pm (Private banking) Saturday - Friday 8am - 11.30 am
Zimbabwe: Country OverviewTable 1: Statistics for Zimbabwe
Public Holidays 2009 1 January (New Year’s Day) 10 April (Good Friday) 12 April (Easter Saturday) 13 April( Easter Monday) 18 April (Independence Day) 1 May (Worker’s Day) 25 May (Africa Day) 11 August (Heroes’ Day) 12 August (Defence Forces Day) 22 December (Unity Day) 25 December (Christmas Day)
26 December (Boxing Day)
ZIIC Prospectus3.indd 5 7/7/2009 12:14 PM
![Page 7: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/7.jpg)
Zimbabwe Investor’s Prospectus
6
The Republic of Zimbabwe is an independent country in Southern
Africa, well endowed with mineral, agricultural and other resources,
which have created opportunities for the growth of resource-based industrial
activities. The inclusive government has crafted an Economic Revival
Framework outlined in a document referred to as Short Term Economic
Recovery Programme (“STERP”). This document articulates Zimbabwe’s
collective vision as the country progresses economically. The Zimbabwe
economy developed from 1950 to 2000 into a highly diversified market based
economy.
Contribution to Gross Domestic Product (“GDP”) by Sector in 2007
Agriculture, Manufacturing, Mining, Tourism and Distribution and
Finance and Insurance, among others, are the major economic sectors with a
contribution of more than 60% to GDP as shown by the table and pie chart
below. The following table and pie chart shows the contribution of the various
sectors in the economy to the GDP.
Table 2: Contribution to GDP
Sector Contribution to GDP (%)
Agriculture 16.1
Manufacturing 18.6
Tourism & Distribution 16.1
Transport and Communication 8
Finance and Insurance 7.2
Education 6.5
Mining 3.8
Construction 2.4
Water % Electricity 1.9
Other 19.4
Total 100
Source: RBZ – Mid Term Monetary Policy Statement 1 October 2007
Economic Overview
The profile of sectoral contribution in former years is a clear indication of
the potential for Zimbabwe to become a balanced developing economy
again. Manufacturing was prominent, this being predicated upon very
deliberate processes of forward integration from agriculture and mining.
Such integration is supported by a stock of infrastructure which includes
a comprehensive road and rail network, an ever increasing national
coverage of the electricity distribution network, international air links and a
telecommunication sector which need to be extensively refurbished. Further
growth potential comes from a sophisticated financial services sector, a
growing information technology sector and a tourism sector of unparalleled
potential. In essence, all fundamentals point to the next fastest growing
economy in Africa if not the world and we invite you to be part of this fiesta
of opportunities.
ZIIC Prospectus3.indd 6 7/7/2009 12:14 PM
![Page 8: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/8.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
7
The country has immense growth potential given a huge natural resource
base, highly educated and skilled workforce and access to regional markets.
The majority of the Zimbabwean labour force is educated to at least 4 years of
secondary school. Labour rates are very competitive in comparison with the
rest of the world, and due to a high unemployment rate, skilled, semi-skilled
and unskilled labour is readily available. The majority of the labour force is
English speaking.
Recently, the country discovered huge deposits of platinum and diamonds.
Platinum mining and processing will add to an already vibrant mining sector
which will become a major contributor to GDP. The country is endowed
with a wide range of mineral resources: gold, diamonds, nickel, iron ore, copper
and coal bed methane. Coal bed methane is the largest known reserve in Sub
Saharan Africa. At current extraction levels the country can continue mining
coal for the next 5 500 years (Southern African Development Community
(“SADC”) trade industry and Investment review -2007/2008).
Investment Climate
Over the last twenty years, the Zimbabwean government has enacted
laws which provide investors with a conducive business environment. This
is notwithstanding the last five years (2004-2009) when foreign currency
shortages caused businesses to rely on exports to fund their operations and
land reform caused some anxieties in the investment community. From
The following table shows the estimated inflation for various countries
including Zimbabwe.
Table 3: Inflation Figures as at June 2009
Country Latest Inflation (%)
Angola 12.9
Botswana 14
Namibia 12
Malawi 9.3
South Africa 13.6
United Kingdom 5.2
United States of America 4.9
Zimbabwe 3.5
Inflation used to be the main threat to a potentially vibrant economy and has
been well publicised in recent years with inflation reaching 231 million percent
as per last official estimate. This created a very difficult climate in which to do
business. However, currently Zimbabwe has the lowest rate of inflation in US$
terms.
The collective wisdom of the inclusive government now in place is
witnessed in the introduction of the multicurrency system credited with
reducing Zimbabwean inflation from the estimated 231 million percent in
December 2008 to 3.5% per annum as at 30 June 2009. This has happened
since the liberalisation of the exchange control regime and the use of multi-
currencies such are the United States Dollar (“US$”) and the South African
Rand (“ZAR”) to transact business in February 2009. The use of these hard
currencies has renewed the focus of business on producing value and getting
due reward for it. Some progressive trading concerns have offered twenty-four
hour service to take advantage of the improving business environment.
ZIIC Prospectus3.indd 7 7/7/2009 12:14 PM
![Page 9: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/9.jpg)
Zimbabwe Investor’s Prospectus
8
Exchange control regulations have been relaxed to allow for repatriation
of foreign funds invested and profits earned in Zimbabwe without any
restrictions. Immigration laws ensure that qualifying investors get to stay in
Zimbabwe and conduct their business freely. A highly sophisticated urban life
provides a home away from home for foreign investors with social amenities
which meet international standards. The opportunities of coming up with
a highly trained human resource base is well supported by a 97% literacy
rate, a very diversified and high density tertiary education sector and a host
of other ancillary technical training and research institutions. Zimbabwe
boasts of highly proficient human resources at all levels. Years of working in
a sophisticated economy has created an experienced, educated and highly
adaptable labour force. Evidence of this capability is demonstrated by the
millions of employable Zimbabweans doing very well in the diaspora
(the Zimbabwean population overseas). Above all, investors will find
Zimbabweans generally a friendly and welcoming people, simply because of
the traditions and norms of our society.
The country has extensive road and rail links on 1067mm gauge (54kg per
metre according to UICE Class B) to all major cities and neighbouring
countries, and there are 3 international airports in Harare, Bulawayo and
Victoria Falls. Zimbabwe is currently in the process of upgrading its electricity
generation and telecommunications sector in preparation of the anticipated
growth. Opportunities for investors within these sectors are outlined in sectoral
analysis. The Government has put in place investment and trade facilitation
institutions that exist to provide comprehensive direction to foreign investors
choosing to locate in Zimbabwe. The Zimbabwe Investment Authority
(“ZIA”), the Zimbabwe Tourism Authority (“ZTA”), and Zimtrade are all
one-stop shops designed to make any business person feel at home. These
institutions are the interface between government and the investing public.
Their functions and how to invest in Zimbabwe are described further in
Appendix 1.
Politics
Zimbabwe is a democratic state governed by the three arms of government
namely: The Executive, Legislature and the Judiciary. These arms are
independent of each other as enshrined in the doctrine of “rule of law” which
is at the core of democratic governance in the country. Zimbabwe has
held elections for parliamentarians every 5 years since 1980 when it attained
independence from Britain and Presidential elections every 6 six years from
1987. From 2008 both parliamentary and presidential elections will now be
held concurrently after every 5 years.
The signing of the Global Political Agreement on 15 September 2008, which
is centred on the power sharing deal over government ministries between the
country’s three political parties, ushered in a new political dispensation. The
Inclusive Government has unreservedly assured the nation and all potential
investors that the country will uphold property rights for all citizens and
investors coming into Zimbabwe. The Inclusive Government has fostered
a spirit of unity and cooperation among all stakeholders in the country.
The stabilizing effect of the inclusive government is evident in all facets of
Zimbabwean society. Nationwide consultations are currently underway for
preparation of a new constitution.
ZIIC Prospectus3.indd 8 7/7/2009 12:14 PM
![Page 10: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/10.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
9
Sectoral ReviewThe Zimbabwean economy is agricultural-based, with highly developed forward-inte-
gration links with the manufacturing sector. Mining, tourism and services sectors are also
important components of the country’s economy. Investment and trade opportunities
exist in all these sectors.
ZIIC Prospectus3.indd 9 7/7/2009 12:14 PM
![Page 11: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/11.jpg)
Zimbabwe Investor’s Prospectus
10
1. Manufacturing Sector
The manufacturing sector was the biggest contributor to GDP between
1980 and 1990 at 22% followed by agriculture at 14%. It is estimated that
agriculture accounts for up to 60% of manufacturing sector’s inputs. In turn,
estimates also show that up to 40% of manufacturing output is used as inputs
in mining and agriculture. However due to challenges relating to low capac-
ity utilisation, foreign currency shortages and rising inflation over the years the
manufacturing sector’s contribution to GDP has declined from 24% in 1991
to about 16% in 2007. The importance of the manufacturing sector is reflected
in the 76% domestic content of manufacturing inputs during the 1980s, with
imported inputs contributing only 24% to the sector at that time. However,
current estimates show that the manufacturing sector’s domestic content in-
puts is a maximum of 60% from agriculture and about 40% from the mining
sector.
According to section 184 of the STERP document, strategically targeted in-
dustries include companies in food processing, beverages, textile and ginning,
clothing and footwear, fertilizer, pharmaceuticals, motor industries, packaging,
paper printing and publishing, chemical and petroleum products, non-metal-
lic mineral products among others.
The Inclusive Government is working on raising capacity utilisation from un-
der 10% at the beginning of the year to around 60% by the end of the year 2009
through availing of funding to the sector.
ZIIC Prospectus3.indd 10 7/7/2009 12:14 PM
![Page 12: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/12.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
11
The Zimbabwean economy is anchored on agriculture. The sector
contributed 16.1% to the country’s GDP in 2007. It is estimated that
agriculture accounts for up to 60% of the manufacturing sector’s inputs. The
major crops in agriculture are cotton, tobacco, wheat, maize which is the staple
food, and cash crops such as vegetables and flowers within the horticultural
sector.
Traditionally, the agricultural sector contributes a third to the country’s foreign
exchange earnings, and accounts for about 15% of formal employment. The
sector is estimated to have contributed 14.3% to exports in 2006, down from
17.3% in 2005.
Ironically, the below potential performance of the agriculture sector over the
last few years owing to drought and other factors has contributed to the low
capacity utilisation in manufacturing.
Opportunities exist in contract farming, and joint ventures where a number of
local and international companies have facilitated a significant output for each
of the major export crops such as cotton, tobacco and other horticulture crops.
2. Agriculture
ZIIC Prospectus3.indd 11 7/7/2009 12:14 PM
![Page 13: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/13.jpg)
Zimbabwe Investor’s Prospectus
12
Mining accounts for 3.8% of GDP, about 4.5% of employment, and a third
of total foreign exchange earnings of the country based on the 2007 out
turn. Zimbabwe is endowed with a vast range of mineral resources. Exploitation
of all these resources is still in its infancy according to estimates of the reserves
available in the country (see table below). About 60% of Zimbabwe’s land surface
comprises ancient rocks renowned worldwide for hosting rich varieties of mineral
resources including gold, base metals (e.g.) Nickel, Copper, Zinc and Lead) and
industrial minerals (limestone, phosphates, clay, dolomites). In addition, the
country has vast resources of Platinum Group Minerals (“PGM”s). Zimbabwe
has the second largest platinum deposits in the world. The ancient Archaen
terrain is evident in a number of areas in Zimbabwe hosting Kimberlites, some
of which have diamonds such as the Murowa diamond deposit in Mberengwa.
More diamond sites have been discovered in Manicaland, which is in the eastern
part of Zimbabwe.
Mineral resources in Zimbabwe
Table 4: Minerals in Zimbabwe
Mineral Estimated Resources Current Annual Extraction RateGold 13 million tonnes 20 tonnesPlatinum 2.8 billion tonnes 2.4 million tonnesChromite (Great Dyke) 930 million tonnes 700 000 tonnesNickel 4.5 million tonnes 9 000 tonnesCoal 26 billion tonnes 4,8 million tonnesDiamond 16.5 million tonnes InfancyIron Ore 30 billion tonnes 300 000 tonnesCopper 5,2 million tonnes
Coal-bed Methane The largest known reserve in Sub Saharan Africa
Ref- Investment Opportunities in Zimbabwe, Government of Zimbabwe, 2006.
Opportunities exist in the exploitation of all the above. Mining makes a significant contribution to the inputs of manufacturing sector in Zimbabwe, coming only second to
Agriculture. The support services for mineral processing industries already exist in the country. The smelting sector in particular is relatively developed.
3. Mining
ZIIC Prospectus3.indd 12 7/7/2009 12:14 PM
![Page 14: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/14.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
13
Zimbabwe’s tourism sector continues to boom and is proving popular
among game hunters and people in pursuit of eco tourism. The
STERP document has therefore outlined the need to increase air traffic
frequency into the country, coupled with continued access to finance the
development of tourism infrastructure. According to the document, air
transport plays a critical role in tourism development which had gone down
to 7 foreign carriers serving the Zimbabwean destination due to restrictive
and protective air transport policies. The government has gone on to commit
to a rationalization process which should see the number of foreign carriers
landing in Zimbabwe going back to 1996 levels of 45 carriers. In tandem with
this growth will be an increase in international destinations to more than 100
potential markets.
The tourism sector contributed about 16.1% to GDP in 2007. Numerous
joint venture opportunities are available in the hotel and catering industry,
services and downstream related activities, conservancies and eco tourism.
Tourism Development Zones are being developed and offer a lot of good
investment opportunities.
4. Tourism
ZIIC Prospectus3.indd 13 7/7/2009 12:14 PM
![Page 15: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/15.jpg)
Zimbabwe Investor’s Prospectus
14
Zimbabwe is unable to meet its energy requirements from its current
generation capacity and needs to expand and upgrade its electricity
generation and transmission infrastructure against the background of the
SADC regional power deficit. Investment opportunities exist in the projects
outlined below as prioritized by the Government:
• Completion of stage 1 of the rehabilitation of Hwange Power Station
• The expansion and increase of generation capacity at Kariba South.
• Rehabilitation of the transmission and distribution infrastructure in Zimbabwe
• Provision of long term power supply agreement in respect of the country’s
power deficit.
Whilst the current demand is 2200 MW, the country has projects with the
potential to produce 9000 MW. Zimbabwe should be an exporter of power
in the foreseeable future.
5. Energy
ZIIC Prospectus3.indd 14 7/7/2009 12:14 PM
![Page 16: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/16.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
15
Zimbabwe banking industry is still arguably only second to South
Africa in terms of depth and skills in the region. The Reserve Bank of
Zimbabwe (“RBZ”) acts as the central bank. The interbank market consists of
the commercial and merchant banks, discount houses, finance houses, building
societies and the People’s Own savings Bank, a government owned institution.
Also forming part of the financial system are asset management companies,
pension funds, provident funds, corporate bodies and the Zimbabwe Stock
Exchange (“ZSE”). The government is the single largest borrower.
Table 5: Financial institutionsType of institution Number of institutions at 25 January 2009
Commercial banks 15
Merchant Banks 6
Building Societies 4
Finance Houses 0
Discount Houses 3
Asset Management companies 17
Microfinance companies 75
Source: RBZ MPS January 2009
The banking industry has suffered in recent years from the shortage of foreign
currency and the lack of viability for loans and advances in a hyperinflationary
environment. The number of banking institutions has declined from 43
in 2003 to 28 in 2009 not including asset management companies and
microfinance companies. Lines of credit are becoming available for businesses
with the increased ability of businesses to transact in foreign currency. Recovery
is expected in the medium to long term as the general economy improves.
Most banks would welcome the extension of further lines of credit for their
customers and strategic partnerships to recapitalise and expand operations.
The table below indicates the opportunity for investment in the banking
industry on the back of the minimum capital requirements set by the
RBZ. The banks have until 31 March 2010 to comply with the minimum
requirements in hard currency. We envisage a consolidation within the sector
as players seek to meet new capital requirements. This will make the sector very
attractive.
Table 6: Minimum capital requirements compliance
Commercial Banks 6,25 million 12,5 million
Merchant Banks 5,0 million 10 million
Building Societies 5,0 million 10 million
Finance Houses 3,75 million 7,5 million
Discount Houses 3,75 million 7,5 million
Asset Management Companies 1,25 million 2,5 million
Source: RBZ CIRCULAR TO BANKING INSTITUTIONS No. 04-009/
BSD: “Minimum Equity Capital implementation Plan”
International credit rating has been implemented through an internationally
accredited credit rating agency, Global Credit Rating (“GCR”). The central
bank is responsible for licensing and supervision of banking institutions
and Non – Banking Financial Institutions (“NBFIS”). The central bank is
answerable to the Minister of Finance, who has the power to give general
direction on all policy issues and determines the budget of the central bank.
6. Financial Services
Minimum Equity Capital Requirement (USD) as at
30 September 2009
Type of Institution Minimum Equity Capital Requirement (USD) as at
31 March 2010
ZIIC Prospectus3.indd 15 7/7/2009 12:14 PM
![Page 17: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/17.jpg)
Zimbabwe Investor’s Prospectus
16
Waste management in Zimbabwe is the responsibility of local
authorities. Over the years there has been accumulation of
unprocessed waste in the major cities such as Harare and Bulawayo. This is due
to financial constraints faced by the municipalities responsible for the respective
towns as well as the lack of technical capacity to process waste economically.
The resultant scenario has triggered major health related problems such as
the recent cholera outbreak. The major municipalities are currently operating
at about 40% of refuse collection and disposal capacity and practically 0% in
terms of processing. This provides an opportunity for investors to offer services
and technology transfer to local authorities in Zimbabwe.
7. Natural Resources & Environmental Management
ZIIC Prospectus3.indd 16 7/7/2009 12:14 PM
![Page 18: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/18.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
17
The advent of the information super highway and its pervasive
penetration into all facets of contemporary industry and commerce is
mirrored in Zimbabwe’s small but growing Information, Communication
and Technology sector (“ICT”). Use of computers and its backbone
infrastructure such as the fiber optic networks are currently confined to
a portion of the cities and are virtually non existent in the rural areas. The
sector is well supported by ICT training available from all Universities and
technical colleges in the country. A number of private sector colleges offer
internationally accredited courses and the sum total of all these efforts has been
the availability of a significant pool of ICT professionals. Opportunities lie in
the provision of equipment and other technology based services such as the
internet, call centres and data processing opportunities.
In its July 2006 issue, THE AFRICA REPORT noted that South Africa
aside, in sub-Saharan Africa the number of people on the internet per 1000,
is less than 10. This compares to 81 in South Africa and around 150 in other
developing countries. With only about 2 people connected per 1,000, progress
on the Zimbabwean ICT industry is still in its infancy and the potential for
growth offers great opportunities for players in the industry.
Empirical evidence has shown that infrastructure like telecommunications,
including computer hardware, software and internet, electricity and transport
facilities on one hand, and intellectual capital, institutions, interaction, incentives
and integrity systems on the other, collectively constitute the necessary
foundation and driver conditions for the development and use of ICTs.
This, in turn, raises the innovation, competitiveness, productivity and wealth
accumulation capacity of nations.
8. Information Communication Technology
By harnessing the potential of ICTs, developing and developed countries alike,
are now able to emerge with better solutions to vital and long standing issues
such as poverty reduction, wealth creation, equity, as well as social justice. It
is imperative that Zimbabwe exploits the potential of ICTs as an enabler of
national development.
Opportunities therefore exist in tooling the support infrastructure of the ICT
sector as well as taking advantage of Zimbabwe’s human resources.
ZIIC Prospectus3.indd 17 7/7/2009 12:14 PM
![Page 19: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/19.jpg)
Zimbabwe Investor’s Prospectus
18
Even though Zimbabwe has a relatively good density in terms of infra-
structure, the Government is actively pursuing the rehabilitation and/
or expansion of all infrastructure in preparation of the coming economic
growth. In line with section 370 of the STERP document(see text on at-
tached DVD) which states that, “The framework for recapitalization of such
entities as the Cold Storage Company (“CSC”), Zimbabwe Electricity Sup-
ply Authority (“ZESA”), Civil Aviation Authority of Zimbabwe (“CAAZ”),
Zimbabwe National Water Authority (“ZINWA”), National Railways of
Zimbabwe (“NRZ”), Tel One, Net One is being developed. This will also
encompass companies in which the government has significant shareholding
such as Hwange Colliery Limited, SMM Holdings (Private) Limited and
the Zimbabwe Iron and Steel Company (Private) Limited (“ZISCO”). The
commercialization and privatization of some of the government entities offers
significant investment opportunities.
There are massive opportunities within the sector including dam and road
construction, provision of urban housing on the back of at least 500 to a mil-
lion hectares of fresh urban land provided by the state, power generation, and
telecommunication infrastructure among other opportunities.
The Inclusive Government has a vision of providing “well functioning effi-
cient, available, affordable, improved infrastructure and services to support the
economy”.
9. Infrastructure Development
ZIIC Prospectus3.indd 18 7/7/2009 12:14 PM
![Page 20: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/20.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
19
Summary of Sector Opportunities
Sector
Manufacturing
Mining
Tourism
Environmental Management
Sub Sector
Agro-Processing
Textiles
Clothing & Footwear
Chemicals
Wood & Furniture
Metal & metal products
Technology
Infrastructure and Development
Tourism services
Investment Opportunities
Zimbabwe as an agro-based economy provides abundant opportunities for
investment in value addition in the agriculture sector, for instance, meat processing,
fish processing, food processing, fruit juice manufacturing, horticulture and
floriculture, processing of cotton lint, cigarette manufacturing sugar milling and
timber processing.
Cotton ginning, spinning, weaving, finishing textiles and knitting products
Making wearing apparels and footwear
Fertilisers, insecticides, pesticides, paints, varnishes, soaps, detergents, inks, glues,
polishes, pharmaceuticals, industrial chemicals, petroleum products, rubber and
plastic products
Saw milling, wooden products, furniture and fixtures
Machinery and equipment, radio and communication equipment
Information processing, computer assembly, solar technology and consumer
electronics
Prospecting and mining of various minerals including gold, coal, diamond, granite
and platinum (of which Zimbabwe has the second largest reserves in the world
after South Africa) Opportunities also exist in the beneficiation of the minerals e.g.
cutting and polishing of diamonds, jewellery manufacturing and tile manufactur-
ing from black granite. Quarrying and mineral exploration
Construction of hotels and lodges in designated tourism zones
Running and operating tourist facilities e.g. in the South Eastern part of the
country
Waste management
ZIIC Prospectus3.indd 19 7/7/2009 12:14 PM
![Page 21: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/21.jpg)
Zimbabwe Investor’s Prospectus
20
Primary production of food and other cash crops, Primary horticulture, game,
wild life ranching, livestock, Poultry farming, fishing and fish farming
Medium priced residential accommodation,
Commercial and industrial buildings (industrial parks, factory shells & office
accommodation)
Development of Toll roads, building and upgrading of airports, construction of
dams and bridges, The government of Zimbabwe also invites the private sector
into joint ventures in the Public Private Partnerships (“PPP”s), while investors can
also participate in Build Operate and Transfer (“BOT”) and Build Own Operate
and Transfer (“BOOT”) investment structures. BOT & BOOT structures
qualify for tax concessions as shown under the incentives section.
Road haulage, tourist transport, car hire and taxis.
Construction and upgrading of telecommunication facilities. Again PPPs,
BOT, BOOT are welcome.
Building of power generation & transmission facilities. PPPs, BOT, BOOT are
welcome.
Primary Agriculture
Construction of Buildings
Public Infrastructure
Transport
Agriculture
Infrastructure Development
ICT
Energy
Summary of Sector Opportunities
ZIIC Prospectus3.indd 20 7/7/2009 12:14 PM
![Page 22: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/22.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
21
Zimbabwe had an estimated population of twelve million in 2006.
Zimbabwe’ s market potential is defined by its strategic geographic
location, right at the epicentre of East, Central and Southern Africa. Its
location as well as participation in regional integration initiatives has
transformed the country into a springboard to a market estimated at two
trillion United States dollars through membership of the proposed African
Free Trade Zone. Zimbabwe is South Africa’s biggest trading partner and a
supplier of manufactured goods to its northern neighbours. Intra regional
airlinks into most of the Southern African Development Community and
Common Market of Eastern and Southern Africa (“COMESA”) countries
also ensure that trade is continuously strengthened between Zimbabwe and
its fellow regional members.
Further attributes:
• 36 hour trucking delivery to at least 10 countries with a population of 170
million people.
• Direct flights to no less than 10 destinations in the region and the rest of the
world. Further destinations are accessed through Johannesburg in South
Africa which is only 90 minutes away from Harare.
• Rail links to all fourteen SADC countries and linked to East Africa
through the TAZARA rail line.
Market Access Below are descriptions of the blocs to which Zimbabwe belongs which it
offers as markets for potential investors.
Southern Africa Development Community
In 2008, the SADC agreed to establish a free trade zone with the East African
Community (“EAC”) and the COMESA including all members of each
of the organizations. Since 2000, the region began the formation of the
SADC free trade area (“FTA”) with the participation of the Southern African
Customs Union (“SACU”) countries (South Africa, Botswana, Lesotho,
Namibia, and Swaziland). Next to join were Mauritius, Zimbabwe, and
Madagascar. In 2008 Malawi, Mozambique, Tanzania, and Zambia joined
bringing the total number of SADC FTA members to 12. Angola, DRC
and Seychelles are not yet participating. On Wednesday October 22, 2008,
SADC joined with the COMESA and the EAC to form the African Free
Trade Zone (“AFTZ”). The leaders of the three trading blocs agreed to create
a single free trade zone, the AFTZ, consisting of 26 countries with a GDP of
an estimated $624bn (£382.9bn). It is hoped the AFTZ agreement will ease
access to markets within the zone and end problems arising from the fact that
several of the member countries belong to multiple groups. Analysts believe
that the AFTZ agreement will help intra-regional trade and boost growth.
ZIIC Prospectus3.indd 21 7/7/2009 12:14 PM
![Page 23: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/23.jpg)
Zimbabwe Investor’s Prospectus
22
Comparison With Other Regional BlocsAfrican Economic Community
Pillars regional blocs (REC) Area (km²) Population GDP (PPP) ($US) Member States in millions per capita
AEC 29,910,442 853,520,010 2,053,706 2,406 53
ECOWAS 5,112,903 251,646,263 342,519 1,361 15
ECCAS 6,667,421 121,245,958 175,928 1,451 11
SADC 9,882,959 233,944,179 737,335 3,152 15
EAC 1,817,945 124,858,568 104,239 1,065 5
COMESA 12,873,957 406,102,471 735,599 1,811 20
IGAD 5,233,604 187,969,775 225,049 1,197 7
WesternSahara 1 266,000 273,008 ? ? N/A 2
Other African Blocs Area (km²) Population GDP (PPP) ($US) Member States in millions per capita
CEMAC 3 3,020,142 34,970,529 85,136 2,435 6
SACU 3 2,693,418 51,055,878 541,433 10,605 5
UEMOA 3 3,505,375 80,865,222 101,640 1,257 8
UMA 4 5,782,140 84,185,073 491,276 5,836 5
GAFTA 5 5,876,960 166,259,603 635,450 3,822 5
1 The Sahrawi Arab Democratic Republic (SADR) is a signatory to the AEC, but not participating in any bloc yet
2 Majority under military occupation by Morocco; some territory administered by the SADR
3 Economic bloc inside a pillar REC
4 Proposed for pillar REC, but objecting participation
5 Non-African members of GAFTA are excluded from figures
smallest value among the blocs compared largest value among the blocs compared During 2004. Source: CIA World Factbook 2005, IMF WEO Database
ZIIC Prospectus3.indd 22 7/7/2009 12:14 PM
![Page 24: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/24.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
23
Common Market of East and Southern Africa (COMESA)
COMESA is a preferential trading area with nineteen member states
stretching from Libya to Zimbabwe. COMESA was formed in December
1994, replacing a Preferential Trade Area which had existed since 1981. Nine
of the member states formed a free trade area in 2000 (Djibouti, Egypt, Kenya,
Madagascar, Malawi, Mauritius, Sudan, Zambia and Zimbabwe), with
Rwanda and Burundi joining the FTA in 2004 and the Comoros and Libya
in 2006.
COMESA is one of the pillars of the African Economic Community.
In 2008, COMESA agreed to an expanded FTZ including members of two
other African trade blocs, the EAC and the SADC.
(Source:Wikipedia)
World Trade Organization
The World Trade Organization (WTO) is an international organization
designed by its founders to supervise and liberalize international trade. The
organization officially commenced on 1 January 1995, under the Marrakesh
Agreement, succeeding the 1947 General Agreement on Tariffs and Trade
(“GATT”). The WTO deals with regulation of trade between participating
countries; it provides a framework for negotiating and formalising trade
agreements, and a dispute resolution process aimed at enforcing participants’
adherence to WTO agreements which are signed by representatives of
member governments and ratified by their parliaments.[4][5] Most of the
issues that the WTO focuses on derive from previous trade negotiations,
especially from the Uruguay Round (1986-1994). The organization is
currently endeavouring to persist with a trade negotiation called the Doha
Development Agenda (or Doha Round), which was launched in 2001
to enhance equitable participation of poorer countries which represent a
majority of the world’s population. However, the negotiation has been dogged
by “disagreement between exporters of agricultural bulk commodities and
countries with large numbers of subsistence farmers on the precise terms
of a ‘special safeguard measure’ to protect farmers from surges in imports. At
this time, the future of the Doha Round is uncertain.”[6] The WTO has
153 members,[7] representing more than 95% of total world trade[8] and 30
observers, most seeking membership. The WTO is governed by a ministerial
conference, meeting every two years; a general council, which implements the
conference’s policy decisions and is responsible for day-to-day administration;
and a director-general, who is appointed by the ministerial conference. The
WTO’s headquarters is at the Centre William Rappard, Geneva, Switzerland.
(Source:Wikipedia)
African, Caribbean and Pacific Group of States
The African, Caribbean and Pacific Group of States (“ACP”) is a group of
countries (currently 79: 48 African, 16 Caribbean and 15 Pacific), created
by the Georgetown Agreement in 1975. The group’s main objectives are
sustainable development and poverty reduction within its member states, as
well as their greater integration into the world’s economy. All of the member
states, except Cuba, are signatories of the Cotonou Agreement with the
European Union.
The Cotonou Agreement (signed in Cotonou, Benin in June 2000) is the
successor to the Lomé Conventions. One of the major differences from
the Lomé Convention is that the partnership is extended to new actors such
as civil society, private sector, trade unions and local authorities. These will be
involved in consultations and planning of national development strategies,
provided with access to financial resources and involved in the implementation
of programmes.
Many small island developing states are ACP states; the fourth Lomé
Convention was revised in 1995 in Mauritius and gives special attention to
island countries in this agreement
ZIIC Prospectus3.indd 23 7/7/2009 12:14 PM
![Page 25: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/25.jpg)
Zimbabwe Investor’s Prospectus
24
Land Tenure System
Land is classified according to its designated use and its geographical location.
The extent to which one is able to hold rights over the land is also determined
by the above mentioned zoning system.
Industrial land
This is mainly found in towns and designated growth points and rural service
centre. Any investor intending to acquire such land can approach the relevant
local authority such as a town council or rural district council in their area of
interest. Alternatively they can contact real estate agents who sell on behalf
of owner of such land. In certain cases direct negotiation with the owner
can take place. Investors are allowed to hold title upon fulfilling the purchase
requirements for such land.
Commercial land
This is mainly found in towns and designated growth points and rural service
centres. Acquisition of such land is similar to that of industrial land. Investors
are allowed to hold title over this land upon fulfilling all purchase requirements
of the seller.
Agricultural land
This is mainly reserved for locals. In very exceptional cases specific requests
can be submitted to the government through the Ministry of Land and
Land Redistribution. The government prioritises local ownership of such
land and foreign investors can get access to the land through contract farming
arrangements with local farmers. This land is accessed through a system of
leases issued by the Governemnt.
Social Amenities Hospitals
Zimbabwe’s health sector is split into two. The government health delivery
system is based on a hierarchy which begins with the local clinics which refer
to district hospitals who in turn refer to national heath institutions such as the
Parirenyantwa and Harare Hospital in Harare. There is Mpilo and UBH in
the country’s second largest city of Bulawayo.
The government health delivery system is complimented by a vibrant private
hospital sector where the Avenues Clinic, West End Hospital and St Annes
Hospital are prominent in Harare. The Mater Dei Hospital is also prominent
in Bulawayo. Combined the above facilities do offer a very intensive health care
system. More sophisticated procedures are referred to South Africa, which is
only ninety minutes away by air.
Schools
The Zimbabwe education system is similar to the British system. Students go
through seven years of Primary school, four to six years of secondary school
and then a minimum of three years in the Universities or technical colleges.
Zimbabwe has the most extensive primary and secondary education system
on the African continent which accounts for the 97% literacy rates. The public
education system is also complimented by a number of private schools who
offer world class facilities.
Sporting FacilitiesZimbabwe’s main sporting disciplines are soccer, cricket, rugby, tennis , golf and
athletics. Swimming is a growing sports due to the exploits of Kirsty Coventry
who has won two gold metals at the Olympics already.
Sporting enthusiasts will find a wide choice of sports clubs in most major
towns which offer very good facilities.
ZIIC Prospectus3.indd 24 7/7/2009 12:14 PM
![Page 26: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/26.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
25
There is no doubting the business
potential that exists in Zimbabwe in
spite of the economic decline witnessed
over the past decade. The problems
in Zimbabwe, and the challenges the
Zimbabwe Government faces, are
well known. The issue at hand – an issue
that has broader regional implications
given Zimbabwe’s location in the SADC region and its relative comparative
advantages – is how does Zimbabwe prepare itself, how does it engage with
the international community, and how much is the Government prepared to
do to catalyse the economic recovery in Zimbabwe?
The All-Inclusive Government of Zimbabwe that took control of the State
in February 2009 – and that was ushered in through the SADC-mediated
Global Political Agreement (GPA) between the major political parties in
Zimbabwe – has found itself with the unenviable task of reversing over a
decade of social and economic deterioration of the majority of Zimbabweans.
The conditions are dire, but there is no doubt that this Government has hit the
ground running, amidst, of course, several teething problems.
Zimbabwe has many obstacles to overcome before it can hope of reclaiming
its once envious position as the breadbasket of Africa, but after years of
economic decline and an inflation rate that had spiralled out of control, the
country is now taking its first steps towards that goal. In spite of what has been
called Zimbabwe’s ‘lost decade’ the country has strong foundations on which
to base a recovery plan including excellent – albeit neglected - infrastructure
and agricultural land. The Development Bank of Southern Africa (DBSA)
has been at the forefront in engaging with various sectors in Zimbabwe, and
we shall continue to do so!
The DBSA provides a mix of financial and non-financial products and services
to a range of private and public sector clients and partners on the continent.
The DBSA also actively participates in key regional and international policy
dialogues, playing an advocacy and thought leadership role in development
finance matters.
The DBSA has a unique opportunity to contribute meaningfully and
strategically in Zimbabwe. Indeed, there are some good commercially
viable investment opportunities in both the public and the private sectors
that are waiting to be seized. The five roles of the DBSA as financier, partner,
integrator, advisor, and implementer are essential for economic recovery in
Zimbabwe, and may prove to be the critical factor in demonstrating to a
generally sceptical international community that Zimbabwe – supported
by its regional neighbours – is ready to do business. Unlike the majority of
the international community that have adopted a “wait and see” strategy, the
DBSA is taking the bull by the horns with a number of promising transactions
under consideration.
The SADC has acknowledged that the region should pave the way and
mobilise financial assistance to kick-start the process of normalizing the country.
There is no doubt that the unity government will have to take full responsibility
for policy decisions aimed at stabilising and rebuilding the economy. Thus far,
the country has taken some steps that should convey a positive message to the
international community. The Unity Government remains the best prospect
for a sustainable economic turnaround. Given the low base from which the
economy is clearly coming, and the inherent comparative advantages of the
economy, double-digit economic growth could be achieved comfortably
over a sustained period of time, provided external funding is sourced and the
right macroeconomic policies continue to be put in place.
Key catalyst for recovery remains external funding – both in terms in direct
budget and balance of payments support, as well as in project and trade finance.
Thus far the reaction from Western donors has been lukewarm. The DBSA
stands ready and committed to growth and development in the Zimbabwe
economy, and it is our firm belief that a resurging Zimbabwe economy will rub
off on the rest of the Southern African region in a positive way.
Sam Muradzikwa, Chief Economist, DBSA International
DBSA - Keen to partner Zimbabwe towards economic recovery
ZIIC Prospectus3.indd 25 7/7/2009 12:14 PM
![Page 27: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/27.jpg)
Zimbabwe Investor’s Prospectus
26
APPENDICES
ZIIC Prospectus3.indd 26 7/7/2009 12:14 PM
![Page 28: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/28.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
27
Curiousabout
Zimbabwe?
Promoting Investment for Economic Development
P.O.BOX 5950, Harare, Zimbabwe, Tel:+2634757931-6, +2634759911-5, +2634780140-5, Fax:+2634773843
email: [email protected] URL: www.zia.co.zw
ZIIC Prospectus3.indd 27 7/7/2009 12:15 PM
![Page 29: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/29.jpg)
Zimbabwe Investor’s Prospectus
28
Appendix 1Licensing Requirement - Procedures For Foreign Investors
Process of company registration
All companies in Zimbabwe have to be registered by the Registrar of
Companies under the Companies Act or the Private Business Corporation
Act. Upon successful registration, the company obtains a Certificate of
Incorporation. Only the locals are allowed to operate under the Corporate
Act as private businesses such as sole trader.
The process of company registration involves the submission of an application
form CR12 to the Chief Registrar of companies. This form enables the Chief
Registrar to conduct a name search at a fee within 14 days and cause company
name reservation from the options submitted. The applicant then submits
a Memorandum and Articles of Association in the name of the reserved
company. Incorporation of the Company follows. This may take up to three
weeks.
Process of Investment Project Approval and Registration
All new foreign investment into Zimbabwe requires an Investment License
issued by the ZIA upon successful approval of a project proposal submitted
to the Authority. A completed application form (ZIA 1) acts as the project
proposal. The application forms can be collected from the ZIA offices or
down loaded from the ZIA website (www.zia.co.zw)
Licence Fee structure
A processing fee of US$500 non-refundable shall be paid on submission of the
application and US$2500 shall be paid when the license is issued.
Appendix 2Immigration Requirements
Residence, Visa/Work Permits Requirements
Visas are not required for certain listed countries available from the Department
of Immigration and in other cases; visas may be applied for in advance of arrival
from the Zimbabwe Embassy and Trade Missions. Investors who:
• Invest not less than US$1 million in a project approved by the ZIA will
qualify for permanent residence on application.
• Invest at least US$300 000 in a sole business venture in a project approved by
ZIA will qualify for a 3 year residence permit at the end of which permanent
residence may be granted.
• Invest US$100 000 in a joint venture, approved by the ZIA, with a
Zimbabwean citizen will qualify for a 3 year residence permit at the end of
which permanent residence may be granted.
Any foreigner wishing to take up employment in Zimbabwe must first be
in possession of a valid work permit. Immigration regulations permit, local
companies to employ foreigners under temporary work permits. Such
permits are issued by the Department of Immigration, at their discretion, upon
application by the company, which should provide proof that the requisite skill
cannot be sourced locally. The foreigner will only be permitted to work within
the capacity for which that specific permit was issued. Spouses and minors
may reside in Zimbabwe provided that they do not take up employment.
ZIIC Prospectus3.indd 28 7/7/2009 12:15 PM
![Page 30: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/30.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
29
Exchange Control Regulations
Foreign investment into existing and new companies requires RBZ approval.
Exchange control is administered through the RBZ which implements the
government policies concerning foreign exchange. Exchange control is guid-
ed by The Exchange Control Act [Chapter 22:05] and directives are issued by
the RBZ.
Exchange control approval for repatriation of dividends, payment of for-
eign loans (interest and principal) and payment of foreign suppliers may be
obtained through a Zimbabwean commercial or merchant bank that is an
Authorised Foreign Exchange Dealer (“Authorised Dealer”). The banks liaise
with the RBZ on the investor’s behalf
Foreign capital inflows
Foreign investors and visitors may bring an unlimited amount of foreign cur-
rency into the country. Foreign investors may bring equity into the country
in the form of cash or machinery and equipment. Foreign investors are not
permitted to capitalize, as part of equity; raw materials, technical and licensing
fees and other services.
Repatriation of Investment
The Zimbabwean Government guarantees the repatriation of 100% of the
original capital investment in the case of disinvestment if the foreign currency
is available in the business for that purpose. Up to 100% of dividends from net
after tax profit may also be remitted. Investors who become permanent resi-
dents may not remit their dividends without prior approval of the RBZ.
Foreign Currency Accounts (FCAs)
Since the Zimbabwean dollar is not in use at the present time, it is essential that
an FCA is used. Corporate and individual FCAs may be opened with local
commercial banks. Export proceeds are eligible for credit to a corporate FCA.
In the past there was a requirement to sell a proportion of the foreign currency
to the RBZ (15-45%) at the rate prescribed by the government but this is no
longer necessary.
Borrowing
• Local: no restrictions on local borrowing for working capital
• Foreign: all companies operating in Zimbabwe are free to borrow offshore
provided such loans are transacted through an authorised dealer. All external
loans require External Loans Coordination Committee (“ELCC”) approval
• Foreign currency financing of capital inwards investment projects can only
be undertaken using funds injected from outside of Zimbabwe, or by utilising
retained foreign currency earnings.
Appendix 3
ZIIC Prospectus3.indd 29 7/7/2009 12:15 PM
![Page 31: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/31.jpg)
Zimbabwe Investor’s Prospectus
30
Fiscal Guide 2009 courtesy of KPMG (Zimbabwe)
Income TaxBusiness Income
Tax is levied on a source or deemed source basis. Residents are taxed on
domestic-source income and certain types of foreign income. Non-residents
are usually taxed on Zimbabwe-source income and are subject to a range of
withholding taxes, some of which may be reduced in terms of a double tax
treaty negotiated with the country of the recipient.
RatesResident Companies
Corporation tax:
General Rate 30% + 3% AIDS Levy
Mining Companies 15%
Manufacturing Companies In Growth Point Areas 10%
Manufacturing Companies Which Export At Least 50% Of Output 20%
EPZ enterprises (after 5th year of operations) 15%
Capital Gains Tax 20%
Dividends Distributed By Local Company Exempt
Foreign Dividends 20%
Interest 20%*
Royalties are Taxed as ordinary income
Resident Individuals
Individual tax 0% - 37.5%**
AIDS levy on individual income tax 3% of tax
Capital gains 2 0%
Dividends 15%* or 20%*
Interest from financial institution 20%*
Royalties and fees Taxed as ordinary income
Directors Fees (non-executive directors) Treated as business
income, subject to 20%
advance withholding tax
(WHT)
Commissions 20%*
Non-Residents
Corporation tax As for residents
Individual income tax As for residents
Surcharge on individual income tax As for residents
Capital gains tax As for residents
Dividends 15%* or 20%*
Interest from financial institution 10%*
Royalties 20%*
Fees (whether remitted or not) 20%*
Remittances of allocable expenditure 20%*
* Tax withheld at source
** Individual’s Income Tax Table (w.e.f. 1.02.09)
Income Band (US$) Tax Rate (%)
Up To - 1 650 0%
1 651 - 5 500 20%
5 501 - 11 000 25%
11 001 - 16 500 30%
16 501 - 33 000 35%
Over - 33 000 37.5%
Appendix 4
ZIIC Prospectus3.indd 30 7/7/2009 12:15 PM
![Page 32: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/32.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
31
Capital Gains Tax
Capital gains on “specified assets” are taxed in terms of the Capital Gains
Tax Act 1981. Broadly speaking, specified assets are defined as immovable
property and marketable securities. To avoid double taxation, transactions
which are subject to income tax are excluded from the scope of the Capital
Gains Tax Act. In determining a capital gain, deductions from sale proceeds
include:
• Expenditure on the acquisition or construction of a specified asset excluding
expenditure in respect of which an income tax deduction is allowable
• Expenditure on additions, alterations, or improvements to a specified asset
Direct selling expenses
• An allowance of 2.5% per annum of the cost of acquisition and construction
and subsequent additions, alterations and improvements from the date such
costs were incurred to date of sale
Transfer Pricing and Thin Capitalisation
The Act includes a specific anti-avoidance provision dealing with specified
assets which are purchased at inflated prices or sold at less than fair market price.
The Commissioner of Taxes has the power to substitute the fair market price
in such instances. Deduction of interest on borrowings is restricted to the
interest on the portion of debt up to the point where the debt equity ratio is
3:1. The excess interest would be classified as a dividend and subjected to the
dividend withholding tax of 20%.
Inheritances and Donations
Estate duty is levied on the worldwide estate of every deceased person who
was ordinarily resident in Zimbabwe at the time of his death. Foreign assets
acquired prior to 1 January 1967 and any such assets acquired prior to the
deceased becoming ordinarily resident in Zimbabwe are excluded. The rate of
duty varies from 0.02% - 5% of the dutiable estate. There is a tax free threshold of
US$50 000 before duty can be levied. No donations or gift tax is levied.
Transaction Taxes
The standard rate of Value Added Tax is 15% of the value of goods and services
supplied or imported. Certain goods are zero rated and these are listed in the
schedules to the statute.
Stamp and Transfer Duty
Stamp Duty is levied on a number of instruments specified in the Stamp Duties
Act (Cap.23:09). The rate of duty varies according to the nature of the instrument
involved and the value of the matter to which it relates. Transfer duty is levied at a rate
of 6% of the value of the realised value of property transferred. Property is defined as
any land in Zimbabwe including buildings and improvements thereon.
ZIIC Prospectus3.indd 31 7/7/2009 12:15 PM
![Page 33: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/33.jpg)
Zimbabwe Investor’s Prospectus
32
Other TaxesTax Basis RateInformal Traders of rental amount payable 10%*Small-scale miners of purchase price of precious metal or stones 5%**Operators of taxicabs (Quarterly tax) – seating capacity 8 - 14 persons1 US$150 - seating capacity 15 - 24 persons US$200 – seating capacity 25 - 36 persons US$400 – seating capacity 37 or more persons US$650Driving schools (Quarterly tax) – class 4 training US$500 – class 1 & 2 US$600 Haulage trucks (Quarterly tax) – more than 10 tones but less than 20 tones US$1 000 - including trailers US$2 500 – 20 tones or more US$2 500Hair salons (Quarterly) - on income US$1 500 Tobacco levy Purchase price of tobacco on auction floor 1.5%
* Collected by the Lessor.
** Collected by the registered agent.
Double Tax Treaties and Reduced Rates
Country Dividends Qualifying Companies Interest Royalties Technical Fees Bulgaria 10% 10% 10% 10%Canada 10% 15% 10% 10%France 10% 10% 10% 10%Germany 10% 10% 7.5% 7.5%Mauritius 10% 10% 15% n/aThe Netherlands 10% 10% 10% n/aNorway 15% 10% 10% 10%Poland 15% 10% 10% 10%South Africa n/a n/a (1) n/aSweden 15% 10% 10% 10%
United Kingdom 5% 10% 10% 10%
1 Exempt from tax in Zimbabwe if taxable in the contracting state.
n/a No specific withholding provisions; standard rate therefore applies.
Treaties with Democratic Republic of Congo, Iran, Malaysia, Seychelles, Serbia and Montenegro have been signed but are not yet in force. Treaties with Namibia and South
Africa are under negotiation.
ZIIC Prospectus3.indd 32 7/7/2009 12:15 PM
![Page 34: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/34.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
33
Customs Duties
With effect from 1 February 2009, all customs and excise duties became payable in foreign currency. There is now a seven day credit facility for the payment of customs duties. This
allows importers to bring in goods and pay duty later (within seven days). Traveller’s rebate is now US$300 per calendar month but there are restrictions as to the quantities that
qualify for personal goods. Excess quantities are treated as commercial goods and subject to the relevant customs duties.
The maximum rates of duty have been revised as per the table below.
Product Previous rates of customs duty Current rates of customs duty
Raw materials 0% - 25% 0% - 15%
Intermediate goods 10% - 25% 10% - 15%
Finished goods
Clothing & textiles 40% -60% + US$10/kg 40% + US$5/kg
Clothing & textiles (school uniforms) 60% + US$10/kg 25%
Footwear 40% + US$5 per pair – 60% 40% + US$5 per pair
Electrical goods 60% 40%
Alcohol & alcoholic beverages 60% 40%
Cigarettes & tobacco 60% + US$5/1000 40% + US$5/1000
Motor vehicles 40% - 80% 25% - 60%
Handbags and other articles of leather, plastic or textile material 60% + US$5/kg 40% + US$5/kg
Fruit and vegetables 40% 25%
Investment Information
In general, the attitude towards foreign investment is positive. Whilst there are
no sectors or regions reserved for nationals to the exclusion of foreigners, the
government considers it a priority that Zimbabweans should have adequate
opportunities to participate in the economy. Majority foreign participation
is permitted in high priority projects and applications for 100% foreign
ownership will be considered on a case by case basis.
Investment Incentives
All holders of investment certificates are eligible for the general incentives
under the Act as well as the following special incentives:
• Rural enterprises and farming – generous capital and investment allowances
on capital expenditure, concessional tax rate of 15% and exemption from tax
for the first five years on dividends received from farming
• Licensed to operate a bonded factory
• Self-employment or residence permit plus work permits for up to five
expatriates if an investor invests at least US$250,000 and employs at least 10
people.
• Repatriation of dividends and profits, principal and interest of any foreign
loan, management fees, royalties and net proceeds of sale or liquidation of the
business.
• Licensed as an economic development zone or export processing zone.
Exemption from customs duties, sales duties and VAT on all machinery and
equipment.
ZIIC Prospectus3.indd 33 7/7/2009 12:15 PM
![Page 35: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/35.jpg)
Zimbabwe Investor’s Prospectus
34
Exchange Control
Exchange control is administered by the Reserve Bank of Zimbabwe. Whilst
few restrictions are imposed on imports, remittance of capital, dividends,
royalties, and expatriate earnings, all require prior approval. Companies may
remit 100% of after-tax profits but no remittances are permitted from retained
income and any remittances should be made within 12 months of the date of
the balance sheet. Approval is required for the purchase of all unlisted securities
by foreigners and a maximum of 40% of any listed counters may be foreign-
held.
Annual Budget Announcement
The Minister of Finance generally announces the annual Budget and Taxation
Proposals in October each year for the tax year commencing on 1 January
thereafter. This year the budget was presented on 29 January 2009 and revised
on 16 February 2009 before promulgation on 23 April 2009.
Bilateral Trade and Agreements
Membership – WTO, ACP-EU Partnership Agreement, SADC,
COMESA, Organisation of Copper Producing and Exporting Countries
(CIPEC). Trade Agreements entered into with Botswana, Mozambique,
Romania, Bulgaria Iraq and Tanzania. Investment treaties entered into with
Malaysia, Portugal, UK, Germany, China, Switzerland, Yugoslavia, Denmark,
Netherlands, Sweden, India, Indonesia, Jamaica, Italy, Iran, Egypt and Czech
Republic. Zimbabwe is a signatory to the 1965 World Bank Convention on
Settlement of Disputes between States and nationals of other States (ICSID).
Economic Statistics
Prime Interest Rate (April 2009) Libor rate plus 5% pa
Inflation (31 May 2009) -1,1%
Travel Information
Visa Requirements Visas are generally required for travel into Zimbabwe (check with your local embassy)
Flights Daily flights into Harare from South Africa and regular flights from international and regional hubs.
Inoculations Standard requirements
Key contacts
Michael de Beer
Tax Partner - KPMG
Telephone: +263 4 302 600
Email: [email protected]
Terry Matavire
Senior Partner - KPMG
Telephone: +263 4 302 600
Email: [email protected]
Steve Matoushaya
Director - Tax Advisory Services
Telephone: +263 303 700
Email: [email protected]
ZIIC Prospectus3.indd 34 7/7/2009 12:15 PM
![Page 36: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/36.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
35
Appendix 5
Mining Incentives
Royalties, Rentals and Taxation
Royalty which is not deductible for income tax purposes, shall be calculated
as a percentage of the gross fair market value of minerals produced and sold as
follows:
Precious stones 10%
Precious metals 3%
Base metals 2%
Industrial minerals 2%
Coal bed methane gas 2%
Coal 1%
• Surface rentals, which are not deductible for income tax purposes, shall be
charged at different rates/levels, during the prospecting/exploration phase
and the development/mining phase of mining project, and will be levied
according to a published table of the rates of surface rents.
• Income tax on mining operations shall be levied at a flat rate of 15%. All
capital expenditure (exploration, development and operating) incurred
wholly and exclusively for mining operations will be allowed as a deduction at
the rate of 100%.
• Mining companies shall continue to enjoy indefinite carry forward of their
tax losses.
• A 5% withholding tax on dividends for both residents and non-residents
for companies listed on the Zimbabwe Stock Exchange (ZSE) shall be levied.
All other companies are levied at a rate of 10%
• In addition, a 5% withholding tax on interest for both residents and non-
residents shall be levied.
Allowable deductions
Separate mines (operating under separate mining titles) shall, as a general rule,
be ring fenced.
• However, upon application to the appropriate authorities, combinations
could be entertained for exploration that has been relinquished by a mining
company.
• In exceptional situations where a combination of mining operations of a
similar nature, for a limited period, will avert a mine closure, accounts could be
combined for tax purposes.
• General and Administrative Costs (G& A) incurred at a Head Office or
by a Parent Company shall be limited to a maximum of 0.75% of allowable
deductions (as defined in the Income Tax legislation) during pre-production
phase of the project and, a maximum of 1% of gross income for that year in the
production phase of the project.
• Allowable as deduction shall be interest paid on borrowing of a debt to
equity ratio of up to a maximum of 3 to 1, and any payments in excess of this
figure shall be treated and taxed as a dividend.
• Loans and any other form of financial accommodation from an affiliated
company or any financial institutions shall be at Arm’s Length Interest Rates..
With regards to interest rate that the Director General of the Zimbabwe
Revenue Authority considers to be in excess of the market rate, that part of
payment, which exceeds the market rate, shall be disallowed as deduction and
the amount of interest so disallowed shall be treated and taxed as a dividend.
FCAs, Customs & Minerals Export
There shall be exemption from Customs Duty, Import Tax and Surtax and
refund of VAT on all capital goods, during the exploration phase of a mining
project and, for a period of up to a maximum of 5 years from the date of grant
of mining title, during the development phase of a mining project.
Mining companies shall be granted the right to market their minerals directly,
in accordance with the provisions of the Minerals Marketing Corporation
ZIIC Prospectus3.indd 35 7/7/2009 12:15 PM
![Page 37: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/37.jpg)
Zimbabwe Investor’s Prospectus
36
of Zimbabwe Act, and subject to adequate monitoring arrangements and
reporting obligations on the part of the mining company.
Capital Allowances
Asset Category Special Initial Allowance % of
Cost
Mining equipment 100
The taxpayer may elect to use either the “Special Initial Allowance” (SIA)
for assets acquired by him, or Wear & Tear”. Where the SIA is elected, 25%
accelerated wear and tear (on a straight-line basis) is allowed for the following
3 years.
Losses
Mining companies, may carry forward losses indefinitely, other companies in
other sectors may be carry forward for a maximum
Tourism Sector Incentives
This is a rapidly growing sector of the economy, providing a large proportion
of the economy and a large proportion of the country’s foreign exchange
earnings. The major tourist centers include Victoria Falls, Hwange National
Park, Kariba, Great Zimbabwe, and the Eastern Highlands. The sector has nine
designated zones for special promotion identified as Tourist Development
Zones that await investor exploitation with special incentives attached to them.
The TDZs are currently as follows:
• Beitbridge/ Shashe/ Limpopo and surroundings
• Gonarezhou (GLTP)/ Chiredzi and surroundings
• Great Zimbabwe National Monument/ Lake Mutirikwi and
surroundings. Investors in areas designated as Tourism Development Zones
(TDZ) will enjoy the following incentives.
• Taxable income –
First five years of operation 0%
Second five years of operation 15%
Third five years of operation 20%
Thereafter normal corporate tax rates apply of 30%
• Duty Refund of duty on capital goods imported for use in the
tourist development zone
Preferential Zones
Growth Point Areas: to encourage commercial and industrial development
in selected parts of the country, the Minister of Finance may prescribe an area
as a Growth Point Area. Commercial and industrial operations carried out in
approved growth point areas are granted additional allowances and qualify for
more favorable rates of tax for the first five years, as follows:
(a) Manufacturing company 10%
(b) Any taxpayer providing roads, bridges,
sanitation, water reticulation 15%
N/B: There after normal tax rates of 30% apply.
Other Special Rates
Approved BOT 1st 5 years 0%
2nd 5years 15%
3rd 5years 20%
Thereafter 30%
ZIIC Prospectus3.indd 36 7/7/2009 12:15 PM
![Page 38: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/38.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
37
Appendix 6: Summary of key Project Profiles
Code
Zim 01
Zim 02
Zim 03
Zim 04
Zim 05
Zim 06
Zim 07
Zim 08
Zim 09
Zim 10
Promoter
Zimbabwe Power Corporation
Hwange Colliery
National Railways of Zimbabwe
Air Zimbabwe P/L
TelOne
Grain Marketing Board
IDBZ and Africom Continental P/L
African Associated Mines
Small Enterprises Development Company
IDC
Project To Be Undertaken
• Spruce up existing plant, i.e. carry out refurbishment
• Expansion of Hwange Power Station by 2X300MW , transmission
lines and coal mining
• Expansion of Kariba Power Station by 2X150MW
Recapitalisation of Hwange Colliery Operations
Refurbishment of Equipment
Aircraft Fleet Renewal & Hanger Fire Protection System
Telecommunications Network Upgrade & Capacity Expansion Project
comprising 3 Lots, which are:
• Lot 1 : Optical Fibre National Transmission Backbone
• Lot 2 : Soft Switching/IP Nodes
• Lot 3 : Access Networks
The project will deliver 1,600,000 wireless voice lines, 64,000 fixed lines, 2,000
Data (Frame Relay Ports). It will also provide extra transmission capacity for other
licensed operators as well as an MPLS platform for broadband rollout as well a
centralised Network Management System.
Contract Farming
This is a national priority project as the route is a strategic component of the
envisaged National Transmission Backbone. The project not only has immense
commercial value, but also significant development impacts hence its national
priority status.
Chrysotile fibre mining. Funding is required to restart production from the current
care & maintenance status of the two mines. Positive nett cash inflows (cashflow
statement) of nearly USD2m are envisioned from 2011, rising to nearly USD15m
by end of 2012. Payback period of 4 yrs for a USD60m loan
Lending of short-term loans to 200 SMEs into value adding projects. The sectors
are food processing, garment making especially school uniforms, metal fabrication,
and carpentry
Diamond Exploration, mining and processing
Value of Investment Sought
US$900,000,000
US$160,000,000
BOT
Us$750,000,000
US$278,000,000
US$13,500,000
US$60,000,000
US$2,000,000
US$200,000,000
*For the full list of available projects please refer to the Interactive DVD
ZIIC Prospectus3.indd 37 7/7/2009 12:15 PM
![Page 39: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/39.jpg)
Zimbabwe Investor’s Prospectus
38
PROJECT CODE
PROMOTING INSTITUTION
OWNERSHIP STRUCTURE
Implementing Vehicle
COMPANY PROFILE
TYPE OF PROJECT REQUIRING FUNDING
VALUE OF PROJECT
PROJECT LOCATION
PARTNERSHIP PROPOSAL
PROMOTER’S CONTRIBUTION
(Immediately Available)
CAPITAL REQUIRED (State whether equity, loan, etc)
IMPLEMENTATION TIMETABLE
(State of readiness of promoter)
PROJECT DOCUMENTATION AVAILABLE
(available for potential partners to view during conference)
PROMOTER’S REPRESENTATIVE
FINANCIAL ADVISORS
BANKERS
POSTAL ADDRESS
EMAIL ADDRESS
CONTACT TELEPHONE NUMBER
Zim 01
Zimbabwe Power Corporation
Government
Statutory Body
Power Generation
Expansion of Hwange Thermal and Kariba South Power Stations. Additional
opportunities in Mini-Hydro Plants.
US$ 900,000,000.00
Hwange & Kariba
Joint Venture
CASH TBA
ASSETS - value TBA
OTHER (eg mining or hunting concession)
CASH US$900,000,000.00
ASSETS - value
Technical Expertise √
OTHER
Immediate – within three months √
Medium Term – three to twelve months
Long Term – Over twelve months
Full feasibility study √
Preliminary feasibility study
Project concept only
Other
Engineer Rafamoyo
Tba
Tba
Electricity Centre, 25 Samora Machel Ave, Harare
+ 263 -4 -774508/35
Zimbabwe Power Corporation – Power Generation
ZIIC Prospectus3.indd 38 7/7/2009 12:15 PM
![Page 40: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/40.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
39
PROJECT CODE
PROMOTING INSTITUTION
OWNERSHIP STRUCTURE
IMPLEMENTING VEHICLE
COMPANY PROFILE
TYPE OF PROJECT REQUIRING FUNDING
VALUE OF PROJECT
PROJECT LOCATION
PARTNERSHIP PROPOSAL
PROMOTER’S CONTRIBUTION
(immediately available)
CAPITAL REQUIRED
(State whether equity, loan, etc)
IMPLEMENTATION TIMETABLE
(State of readiness of promoter)
PROJECT DOCUMENTATION AVAILABLE (available for potential
partners to view during conference)
PROMOTER’S REPRESENTATIVE
FINANCIAL ADVISORS
BANKERS
POSTAL ADDRESS
EMAIL ADDRESS
CONTACT TELEPHONE NUMBER
Zim 02
Hwange Colliery
Government
Statutory Body
Produces coal and coke
The project involves recapitalisation of Hwange Colliery Operations
US$ 160,000,000.00
Hwange
Joint Venture/ Lines Of Credit
CASH
ASSETS - value
OTHER (eg mining or hunting concession)
CASH
LOAN
ASSETS - value
Technical Expertise
OTHER
Immediate – within three months √
Medium Term – three to twelve months
Long Term – Over twelve months
Full feasibility study
Preliminary feasibility study
Project concept only
Other
Mr F Moyo (Managing Director) Hwange Colliery
17 Nelson Mandela Ave, 7Th Floor Coal House, P.O Box 2870, Harare
+263-81-23101/7
Recapitalisation Of Hwange Colliery
ZIIC Prospectus3.indd 39 7/7/2009 12:15 PM
![Page 41: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/41.jpg)
Zimbabwe Investor’s Prospectus
40
National Railways Of Zimbabwe (NRZ) Expansion And Refurbishment Project
PROJECT CODE
BRIEF INTRODUCTION
SHAREHOLDING STRUCTURE
TYPE OF INVESTMENT PARTICIPATION
BENEFIT ANALYSIS
USAGE OF PRODUCTS
MARKET OF THE PRODUCTS
PROJECT ENVIRONMENT
PROJECT PROGRESS
ENTERPRISE POTENTIAL
FINANCING REQUIREMENTS (Millions US$)
CONTACT PERSON
ENTERPRISE ADDRESS
CONTACT DETAILS
Zim 03
The NRZ’s mandate is to provide affordable and efficient rail transport to major towns,
commercial and rural areas of Zimbabwe. The project is to upgrade the railway system as
it plays a major role in industrial, mining and agricultural development. The rail network
has a design capacity of 18 million tonnes and this tonnage was achieved in 1985. The
entity has been operating between 30-50% capacity due to inadequate rehabilitation and
maintenance of equipment and infrastructure.
NRZ is a parastatal 100% owned by Government of Zimbabwe.
BOT
When the project is completed it will facilitate the transportation of goods for various
purposes in the mining, agricultural and manufacturing sector. The project will enhance
export of transport services within the region and generate foreign currency for the
nation and the company.
Transportation of raw materials, minerals and manufactured goods locally and regionally.
Zimbabwe is now becoming a gateway for traffic within the region especially for
Zambia, Malawi, DRC, Tanzania e.t.c. There has been an increase in the demand for
transport services within the region. Zimbabwe is centrally located for the ease of
facilitation of trade with the SADC region.
NRZ has a wide railway network which cuts across the whole nation which makes it a
lucrative investment.
Feasibility study completed and project is awaiting funding for immediate
implementation.
The project involves the upgrading of the railway system as it plays a major role in mining,
manufacturing and agricultural development.
274
MR. M.T KARAKADZAI (GENERAL MANAGER)
P.O. BOX 596, BULAWAYO
+263 9 363518, +263 9 363 365,+263 9 363 685
+263 9 363 257
ZIIC Prospectus3.indd 40 7/7/2009 12:15 PM
![Page 42: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/42.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
41
Air Zimbabwe Holdings-Recapitalisation Of The Airliner
PROJECT CODE
PROMOTING INSTITUTION
OWNERSHIP STRUCTURE
IMPLEMENTING VEHICLE
COMPANY PROFILE/INSTITUTION
TYPE OF PROJECT REQUIRING FUNDING
VALUE OF PROJECT
PROJECT LOCATION
PARTNERSHIP PROPOSAL
PROMOTER’S CONTRIBUTION (Immediately Available)
CAPITAL REQUIRED (State whether equity, loan, etc)
IMPLEMENTING TIMETABLE – (State of readiness of promoter)
PROJECT DOCUMENTATION AVAILABLE
PROMOTER’S REPRESENTATIVE
FINANCIAL ADVISORS
BANKERS
POSTAL ADDRESS
EMAIL ADDRESS
CONTACT TELEPHONE NUMBER
Zim 04
Air Zimbabwe Holdings
Government
Statutory Body
Aircraft Fleet Renewal & Hanger Fire Protection System
USD750 Million
Harare Airport
60/40% Shareholding Private Sector/Government
CASH
ASSETS – VALUE
USD750 Million
OTHER (e.g mining or hunting concession)
Immediate – within three months
Hanger Fire System
Medium Term – three to twelve months
Long Term – Over twelve months
Fleet Renewal
Full feasibility study
Preliminary feasibility study available
Project concept only
Other
Ernest & Young
CBZ
Box AP1,Harare
+263-4-4575111
ZIIC Prospectus3.indd 41 7/7/2009 12:15 PM
![Page 43: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/43.jpg)
Zimbabwe Investor’s Prospectus
42
PROJECT CODE
PROMOTING INSTITUTION
OWNERSHIP STRUCTURE
IMPLEMENTING VEHICLE
COMPANY PROFILE/INSTITUTIONAL PROFILE
TYPE OF PROJECT REQUIRING FUNDING
VALUE OF PROJECT
Zim 05
TelOne, Zimbabwe
Government
Private Limited Company
TelOne is one of three successor companies of the Posts and
Telecommunications Corporation of Zimbabwe (PTC). The other two are
NetOne and Zimpost. TelOne is licensed to provide Voice, Data and Internet
services – effectively all the 3 play services . TelOne is totally owned by the
Zimbabwe Government. TelOne’s Executive Management comprises of the
Managing Director, 3 Executive Directors (ie Finance & Admin, Commercial
and Technical Director ), reporting to the Board appointed by the Minister of
Information and Communication Technology (ICT)
Telecommunications Network Upgrade & Capacity Expansion Project
comprising 3 Lots, which are;
• Lot 1 : Optical Fibre National Transmission Backbone
• Lot 2 : Soft Switching/IP Nodes
• Lot 3 : Access Networks
Turnkey planning, procurement, installation & commissioning of switching,
transmission, data and access equipment for the provision of voice, data services
and Internet countrywide. The project will deliver 1,600,000 wireless voice
lines, 64,000 fixed lines, 2,000 Data (Frame Relay Ports). It will also provide extra
transmission capacity for other licensed operators as well as an MPLS platform for
broadband rollout as well a centralised Network Management System.
(Million)
Lot 1 US$ 98.0
Lot 2 US$ 90.0
Lot 3 US$ 90.0
Total US$ 278.0
TelOne Zimbabwe - Network Upgrade
ZIIC Prospectus3.indd 42 7/7/2009 12:15 PM
![Page 44: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/44.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
43
PROJECT LOCATION
PARTNERSHIP PROPOSAL
PROMOTER’S CONTRIBUTION (IMMEDIATELY AVAILABLE)
CAPITAL REQUIRED (State whether equity, loan, etc)
Lot 1 : Optical Fibre National Transmission Backbone
Harare-Mutare-Forbes Border Post Link
Harare-Kwekwe-Gweru-Masvingo-Beit Bridge Link
Beit Bridge-Bulawayo-Victoria Falls Link
Gweru-Bulawayo-Plum tree-Botswana
Harare-Mrewa-Mutoko-Malawi
Mutare-Juliasdale-Nyanga
Hwange-Binga-Gokwe-Kwekwe
Lot 2 : Soft Switching/IP Nodes
Harare
Bulawayo
Gweru
Mutare
Masvingo
Lot 3 : Access Networks
Harare
Bulawayo
Gweru
Mutare
Masvingo
Rascom
Loan
Public Private Partnerships (PPP)
CASH
Nil
ASSETS - value
(To be determined)
OTHER (eg mining or hunting concession)
CASH USD 278.0 Million
ASSETS - value (To be determined)
Technical Expertise Yes
TelOne Zimbabwe - Network Upgrade
ZIIC Prospectus3.indd 43 7/7/2009 12:15 PM
![Page 45: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/45.jpg)
Zimbabwe Investor’s Prospectus
44
IMPLEMENTATION TIMETABLE – (State of readiness of promoter)
PROJECT DOCUMENTATION AVAILABLE (available for potential
partners to view during conference)
PROMOTER’S REPRESENTATIVE
FINANCIAL ADVISORS
BANKERS
POSTAL ADDRESS
EMAIL ADDRESS
CONTACT TELEPHONE NUMBER
OTHER
Immediate – within three months √
Medium Term – three to twelve months √
Long Term – Over twelve months √
Full feasibility study
Preliminary feasibility study
Project concept only √
Other
Managing Director – Mr Hampton Mhlanga
CBZ
Stanbic Bank & Standard Chartered Bank
TelOne, Runhare House, 107 Kwame Nkrumah Ave, P O Box CY 331,
Causeway, Harare, Zimbabwe
+263-4-798111
TelOne Zimbabwe - Network Upgrade
ZIIC Prospectus3.indd 44 7/7/2009 12:15 PM
![Page 46: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/46.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
45
PROJECT CODE
PROMOTING INSTITUTION
OWNERSHIP STRUCTURE
IMPLEMENTING VEHICLE
COMPANY PROFILE/INSTITUTIONAL PROFILE
TYPE OF PROJECT REQUIRING FUNDING
VALUE OF PROJECT
PROJECT LOCATION
PARTNERSHIP PROPOSAL
PROMOTER’S CONTRIBUTION (Immediately Available)
CAPITAL REQUIRED (State whether equity, loan, etc.)
IMPLEMENTATION TIMETABLE – (State of readiness of promoter)
PROJECT DOCUMENTATION AVAILABLE (available for potential
partners to view during conference)
PROMOTER’S REPRESENTATIVE
FINANCIAL ADVISORS
BANKERS
POSTAL ADDRESS
EMAIL ADDRESS
CONTACT TELEPHONE NUMBER
Zim 06
Grain Marketing Board
Government
Statutory Body
The Grain Marketing Board (GMB) is a parastatal that is involved in the business
of agricultural grain trading, storage, processing and logistics. The company
is wholly owned by the Government of Zimbabwe and is run by a Board of
Directors appointed by Government.
Contract Farming
US$13,500,000.00
Manicaland, Midlands, Mashonaland East, Mashonaland West and
Mashonaland Central
Loan
CASH
ASSETS – Value √
OTHER (eg. Mining or hunting concession)
CASH
Loan
ASSETS- Value
Technical Expertise
OTHER
Immediate – within three months
Medium Term – three to twelve months √
Long Term – Over twelve months
Full feasibility study
Preliminary feasibility Study
Project concept only √
Other
Mr. A Mandizha – General Manager
179-187 S.Machel, Eastlea, Harare, Zimbabwe
[email protected], [email protected],
+263 4 701870-95 or +263 4 791525
Grain Marketing Board - Contract Farming
ZIIC Prospectus3.indd 45 7/7/2009 12:15 PM
![Page 47: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/47.jpg)
Zimbabwe Investor’s Prospectus
46
Broadband Connectivity by Africom Continental (Pvt) Ltd
PROJECT CODE
PROMOTING INSTITUTION
OWNERSHIP STRUCTURE
IMPLEMENTING VEHICLE
COMPANY PROFILE/INSTITUTIONAL PROFILE
Zim 07
IDBZ and Africom Continental (Pvt) Ltd
Private
Africom Continental (Private) Limited is a Special Purpose Vehicle (SPV) company
formed by Africom (Private) Limited, the IDBZ, and NSSA to spearhead the
development of an optic fibre telecommunications link between the cities of Harare
and Mutare.
Shareholding Structure
The shareholding structure for Africom Continental is as follows:
Shareholder % Shareholding
Africom (Private) Limited 50%
IDBZ 30%
NSSA 20%
Total 100%
Directorship
Africom Continental (Pvt) Ltd board was formally constituted on 18 May 2007 and is
composed of the following members:
K. Kashangura Representing Africom (Private) Ltd
N. Nyagura Representing Africom (Private) Ltd
A. Machimbirike Representing IDBZ
W. Mubaiwa Representing IDBZ
B. Chidyagwai Representing NSSA
B. Musvaire Representing NSSA
ZIIC Prospectus3.indd 46 7/7/2009 12:15 PM
![Page 48: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/48.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
47
Management Structure
Africom (Pvt) Limited was appointed to manage implementation of the
project. This was premised on the fact that the Africom (Private) Limited
team has successfully implemented a similar project before; the Makwiro /
Zimplats project over 80 km, using techniques similar to those to be employed
on the Harare/Mutare project. The civil works for this particular project were
handled internally using the flexible firm concept with locals being employed
for some of the labour intensive tasks. Africom’s Chief Executive Officer, Mr
K Kashangura, is the Entrepreneur of the Year 2009.
The Project
The project is currently under implementation with trenching now approach-
ing Macheke (approximately 50% of the route) and is behind schedule due to
cost overruns associated with the previous hyper inflationary environment.
The promoters seek to raise additional funding to complete the project. This
may possibly entail changing the project procurement model in order to com-
plete the project within three months of securing funding. This is a national
priority project as the route is a strategic component of the envisaged National
Transmission Backbone. The project not only has immense commercial val-
ue, but also significant development impacts hence its national priority status.
COMPANY PROFILE/INSTITUTIONAL PROFILE (ctd)
Broadband Connectivity by Africom Continental (Pvt) Ltd
ZIIC Prospectus3.indd 47 7/7/2009 12:15 PM
![Page 49: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/49.jpg)
Zimbabwe Investor’s Prospectus
48
Coal Bed Methane Production In Zimbabwe
PROJECT CODEPROMOTING INSTITUTIONOWNERSHIP STRUCTUREImplementing VehicleCOMPANY PROFILE/INSTITUTIONAL PROFILETYPE OF PROJECT REQUIRING FUNDING
VALUE OF PROJECT
PROJECT LOCATION
PARTNERSHIP PROPOSAL
PROMOTER’S CONTRIBUTION (Immediately Available)
CAPITAL REQUIRED (State whether equity, loan, etc)
IMPLEMENTATION TIMETABLE – (State of readiness of promoter)
PROJECT DOCUMENTATION AVAILABLE (available for potential partners to view during conference)
PROMOTER’S REPRESENTATIVEFINANCIAL ADVISORSBANKERSPOSTAL ADDRESS
EMAIL ADDRESSCONTACT TELEPHONE NUMBER
Zim 08Reserve Bank Of ZimbabweGovernment Statutory Body Gas ProductionThe project involves partnership in exploration, mining and establisjing processing plants .US$ 250,000,000.00
Lupane and low veld.
Joint venture/ lines of credit
Cash --Assets - Value -Other (Eg Mining Or Hunting Concession) Cash LoanAssets - Value -Technical Expertise -Other -
Immediate – within three months √Medium Term – three to twelve months Long Term – Over twelve months Full feasibility study Preliminary feasibility study Project concept only
Mr Thankful Musukutwa- -Precious minerals& provincial research division, rbzRESERVE BANK OF ZIMBABWEP.O BOX 1283, HARARE
[email protected]+263-4-703000
ZIIC Prospectus3.indd 48 7/7/2009 12:15 PM
![Page 50: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/50.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
49
PROJECT CODE
PROMOTING INSTITUTION
OWNERSHIP STRUCTURE
Implementing Vehicle
COMPANY PROFILE/INSTITUTIONAL PROFILE
TYPE OF PROJECT REQUIRING FUNDING
VALUE OF PROJECT
PROJECT LOCATION
PARTNERSHIP PROPOSAL
PROMOTER’S CONTRIBUTION (Immediately Available)
CAPITAL REQUIRED (State whether equity, loan, etc)
POSTAL ADDRESS
CONTACT TELEPHONE NUMBER
Beitbridge Chirundu Toll Road
Zim 09
Ministry of Transport and Infrastructure Development
Government Statutory Body Gas Production
The project involves the construction of the Beitbridge Chirundu Toll road
Estimated at US$ 1 billion
Lupane and low veld.
BOOT or other PPP framework
- Government is looking for a partner to implement the project on a BOOt or other PPP framework. Kaguvi Building, Cnr Central Avenue, Fourth Street, Harare
+263-4-252396
ZIIC Prospectus3.indd 49 7/7/2009 12:15 PM
![Page 51: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/51.jpg)
Zimbabwe Investor’s Prospectus
50
PROJECT CODE
OWNERSHIP STRUCTURE
IMPLEMENTING VEHICLE
COMPANY PROFILE/INSTITUTIONAL PROFILE
TYPE OF INVESTMNET PARTICIPATION
BENEFIT ANALYSIS
USAGE OF PRODUCTS
MARKET OF THE PRODUCTS
PROJECT ENVIRONMENT
FINANCIAL REQUIREMENTS
(MILLIONS USD)
Zim 10
Government
Statutory Body
Tokwe Mukosi Dam is situated about 75 km South of Masvingo City,
Zimbabwe’s oldest city. The dam is within the vicinity of the sugar estates of
Zimbabwe.
Built Operate and Transfer (BOT)
The dam construction and irrigation development could boost sugar and citrus
production in the country for exports. The project is expected to boost the
country’s electricity generation capacity. The surrounding irrigation projects and
the potential receipts from electricity generation will guarantee increased returns
to the investor.
Water from the dam is expected to irrigate 25,000 hectares of land under
sugarcane, citrus and horticultural crops. The dam will also have capacity to
generate hydro-electricity.
There is ready market in the surrounding farms and electricity generated will also
be utilised in the country and for exports purposes.
The dam project site is situated about 75 km South of Masvingo City. The site
of the project is easily accessible by road and covered by mobile communications
network.
36
Tokwe Mukosi Dam Construction
ZIIC Prospectus3.indd 50 7/7/2009 12:15 PM
![Page 52: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/52.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
51
Important Contacts In ZimbabweOffice of the President and CabinetMunhumutapa Building
Samora Machel Avenue, Harare
Tel: +263 4 707989
Office of the Prime Minister P. Bag 7700, Causeway, Harare
Website: www.zimbabweprimeminister.org
The GovernorReserve Bank of Zimbabwe
80 Samora Machel Avenue, P. O. Box 1283, Harare
Tel: +263 4 251871 or 703096
Email: [email protected]
Ministry of AgricultureNgungunyana Building
1 Borrowdale Road, Harare
Tel: +263 4 701304
Ministry of Industry and Commerce13th Floor Mukwati Building
Livingstone Avenue, Harare
Tel: +263 723996
Ministry of Environment11th Floor Kaguvi Building
Between 4th & 5th Street, Harare
Tel: +263 4 701683, 701691-92, 730174
Fax: +263 4 252673, 252559
Zimbabwe Investment AuthorityInvestment House
109 Rotten Row, Harare
Tel: +263 4 757931-6, 780140-6
Fax: +263 4 759917
Email: [email protected]
Website: www.zia.co.zw
Confederation of Zimbabwe Industries (CZI)31 Josiah Chinamano Avenue
Harare, Tel: +263 4 251494-9, 252421
Chamber of MinesStewart House
4 Central Avenue, Harare
Tel: +263 4 702841-5, 707992
Zimbabwe Electricity Regulatory Commission14th Floor Century Towers
45 Samora Machel Avenue, P. O. Box CY 2585, Causeway, Harare
Tel: +263 4 780010, 253461
Fax: +263 4 250596
Immigration DepartmentLinquenda House
Nelson Mandela Avenue, P Bag 7717, Causeway, Harare
Tel: 263 4 752977
Ministry of FinanceNew Govt. Complex
Samora Machel Avenue / 4th Street, Harare
Tel: +263 4 738603, 727472
Ministry of Economic Planning and Investment PromotionNew Govt Complex
Samora Machel Avenue /4th Street, Harare
Tel: +263 4 738603, 727472
Ministry of Mines and Mining Development7th Floor, Zimre Centre
Kwame Nkrumah Avenue, Harare
Tel: +263 4 750884, 798775
ZIIC Prospectus3.indd 51 7/7/2009 12:15 PM
![Page 53: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/53.jpg)
Zimbabwe Investor’s Prospectus
52
Ministry of Energy and Power DevelopmentGround Floor Chaminuka Building
Cnr 4th Street / Central Avenue, Harare
Tel: +263 4 791760-9, 733095/9
Fax: +263 4 727 524, 703326
Ministry of Foreign Affairs Munhumutapa Building
Samora Machel Avenue, Harare
Tel: +263 4 705420, 727044
ZIMTRADEPremium Close
Mt Pleasant Business Park
Mt Pleasant, Harare
Tel: +263 4 369330-50
Website: www.zimtrade.co.zw
Zimbabwe National Chamber of Commerce (ZNCC)Malawi House
42 Harare Street, Harare
Tel: +263 4 749737, 749816, 749335
Zimbabwe Tourism AuthorityTourism House
55 Samora Machel Avenue, P. O. Box CY286, Causeway
Harare
Tel: +263 4 780663-67
Fax: +263 4 758826/8
Email: [email protected]
Website: www.zimbabwetourism.co.zw
Zimbabwe Stock Exchange (ZSE)4th Floor
101 Kwame Nkrumah Avenue, Harare
Tel: +263 4 736861, 795255
Email: [email protected]
Website: www.zse.co.zw
Minerals Marketing Corporation of Zimbabwe90 Mutare Road
Msasa, P. O. Box 2628, Harare
Tel: +263 4 487200/4, 486945/8
Fax: +263 4 487137/8
Email: [email protected]
Website: www.mmcz.co.zw
KM Financial SolutionsBlock 3, Arundel Office Park, Mnt Pleasant, Harare, Zimbabwe
Tel: +263 4 338333 - 5 Mobile: +263 11 360706, 0912 789876
Email: [email protected]
Website: www.kmfs.co.zw
ZIIC Prospectus3.indd 52 7/7/2009 12:15 PM
![Page 54: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/54.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
53
Diplomatic Missions Abroad
Angola - LuandaAmbassador J. Manzou
Edificial Secil 11th Floor, 42 Avenue 4 De Fevereiro, Caixa Postal 428, Luanda
Cell: 244923522821
Dir: 244-222-310683
Off: 244-222-311528/310125
Pvt office: 244-222-441060
Tlx: 244-222-311528
Fax: 244-2311528/310013
E-mail: [email protected]
Australia – Canberra11 Culgao Circuit, O’ Malley, A.C.T 2606, Canberra
Tel: 61-2-62862251-81
Res: (062) 865931, 62862700
Fax: 61-2-62962281
E-mail: [email protected]
N.B: +7 hours ahead
Austria – ViennaAmbassador G.T Mutandiro
Strozzingasse 10-15, 1080 Vienna, Vienna
Tel: 43-1-4079236/7
Res: 43-1-9799500
Fax: 43-1-4079238
Email: [email protected]
Belgium – BrusselsAmbassador G. Punungwe
11-12 Josephine Charlotte Sq., 1200 Brussels, Brussels
Tel: 32-2-7625808
Res: 32-203542660
Fax: 32-27629605
E-mail: [email protected]
Botswana – GaboroneAmbassador T. Mandigora
Plot 8895, P. O. Box 1232, Gaborone
Cell: 267-71836488
Tel: 267-3914495
Fax: 267-3905863
Res: 267-312500
E-mail: [email protected]
Canada – OttawaAmbassador F. Chideya32 Somerset Street West Ottawa, Ontario, Canada
K2P OJ9
Tel: 001-613-2374388/9
Res: 001-613-7377567
Fax: 001-613-5638269
E-mail: [email protected], [email protected]
Website: www.zimbabweembassy.ca
China – BeijingAmbassador F. Shava
No. & Dong San Jie, San Lie Tun *, Beijing
Cell: 86-1391-0827-137
Tel: 86-10-653223665/65323665
Res: 86-1065325102
Fax: 86-1065325383/65323084
E-mail: [email protected]
Cuba – La HabanaAmbassador J. B. Maseko
Calle 3Y 10, Miramar, Havana
Tel: 53-7-242837
Res: 53-7-336565
Fax: 53-7-2042720
E-Mail: [email protected], [email protected]
ZIIC Prospectus3.indd 53 7/7/2009 12:15 PM
![Page 55: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/55.jpg)
Zimbabwe Investor’s Prospectus
54
Democratic Republic of Congo – KinshasaAmbassador J. Mayowe
No 4 Ave. Dela Justice, Ogedep Building, 2nd Floor East Wing, Gombe
Kinshasa
Tel: 243-8803557
Cell: 243-81333 0675
Fax: 24381-8803610
E-mail: [email protected]
Egypt – CairoAmbassador A.M. Ncube
40 Ghaza Street, Mohondessine, Cairo
Cell: 20-2-3030404
Tel: 20-2-3030404
Res: 20-2-3155060/3515668
Fax: 20-2-3059741
E-mail: [email protected]
Ethiopia Addis AbabaAmbassador Dr A.H Mtetwa
House No. 007, Higher 17, Kabele 19, P.O.Box 5624, Addis Ababa
Cell: 251-11-6613877/2
Tel: 251-11-6633787/6613877
Fax: 251-11-6613476
E-mail: [email protected]
France - ParisAmbassador D. Hamadziripi
5 Rue Lord Byron , 75008 Paris, Paris
Tel: 33-1-56881600
Res: 33-1-47950525/47951265
Fax: 33-1-56881609
E-mail: [email protected]
Germany BerlinKommandatenstrasse, 1010117, Berlin
Tel: 49-30-2062263
Fax: 49-30-20455062
E-mail: zimberlin@botschaft-zimbabwe.
Ghana - AccraAmbassador P. T. Musaka
PBM CT 88, Cantonments, Accra, Ghana
Cell: 233-244 314 353 – 2hrs
Tel: 233-21-780956/780958/325687
Res: 233-21-780 744
Fax: 23-21-780 959
E-mail: [email protected]
India – New DelhiAmbassador J Wutawunashe
23 Paschimi Marg, Vasanti Vihar, New Dehli 110057
Cell: 91-11-66154313
Tel: 91-11-26154313/14or 26140430/31
Res: 91-1125064604/25064430
Fax: 91-11-6884532
E-mail: [email protected]
Website: www.zimhcindia.com
Iran - TehranAmbassador N D Kitikiti
10 Malek Street, Shariati Avenue, Tehran
Tel: 98-21-202-7553
Fax: 98-11-6884532
E-mail: [email protected]
Italy - RomeAmbassador M. Muchada (Mrs)
Via Virgilio 8, 00193, Rome
Tel: 39-06-68308265 / 68308282
Res: 00-39-06-30889152
Fax: 39-06-68308324
E-mail: [email protected]
Japan - TokyoAmbassador S. Comerberbach
5-9-10 Shiroganedari, Minato-ku 108, Tokyo
Tel: 81-3-32800331/2
Res: 81-3-37242367
Fax: 81-3-32800466
E-mail: [email protected]
ZIIC Prospectus3.indd 54 7/7/2009 12:15 PM
![Page 56: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/56.jpg)
Zimbabwe Investors’ Prospectus
Zimbabwe Investor’s Prospectus
55
Kenya - NairobiAmbassador N. Nkomani
6th Floor, Minet ICD Builing, Mamloka Road, P.O.Box 30806, Nairobi
Cell: 254-7335-24641/254-7229-25871
Tel: 254-2-37442-052/746546/582537
Res: 254-2-582537/582957
Fax: 254-20-3748079
E-mail: [email protected]
KuwaitAmbassador M G Marongwe
Salwa Area 9, P.O.Box 36484, AI Raas 24755, Salmiya
Tel: 965-5651517/5620845
Fax: 956-5621491/5625283
Res: 965-5318716/19
E-mail: [email protected]
Malawi - LilongweAmbassador T.S. Dumbutshena
Plot 13/33, P.O.Box 30187, Lilongwe
Tel: 265-1-774413/774988/771508
Res: 265-1732230
Fax: 265-1-794441/772382
E-mail: [email protected]
Malaysia – Kuala LumpurAmbassador L.P.Tavaya
124 Jalan Sembilan, Taman Ampang Utama, Selangor Darul Ehsan,
Kuala Lumpur
Tel: 60-3-42516779/81
Fax: 60-3-42517252
E-mail: [email protected]
Mozambique - MaputoAmbassador A. Mutambara
Avenue Kenneth Kaunda 816/820, Caixa Postal 743, Maputo
Tel: 258-21-490404/490699
Res: 258-21-491187
Fax: 258-21-492237
Mozambique - BeiraConsul General M. Chadoka
617 Rua Francico Decharge, Almelda Ponde Gea, Beira
Tel: 258-23-327950
Res: 258-23-327942
Fax: 258-23-328942
Namibia WindhoekAmbassador C. Zindoga
Gamberg Building, Cnr Grim & Kaiser Street, P.O.Box 23056,
Windhoek 9000
Cell: 264-618112-21009
Tel: 264-61-226859/252599
Res: 264-61252599
Fax: 264-61226859
E-mail: [email protected]
Nigeria - AbujaAmbassador J. S. Mvundura
P.O.Box 8214, Wuse Abuja, Chacery, Abuja
Tel: 070-95-2484364/7
Fax: 070-95-2302497
E-mail: [email protected]
ZIIC Prospectus3.indd 55 7/7/2009 12:15 PM
![Page 57: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/57.jpg)
ZIIC Prospectus3.indd 56 7/7/2009 12:15 PM
![Page 58: ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM · Zim 10 - Tokwe Mukosi Dam Construction ... Imports US$2.040 billion (2006) Principal Exports Tobacco, gold, ferro alloys, cotton Principal](https://reader036.vdocument.in/reader036/viewer/2022071101/5fda6a1a2351f72a50265ff1/html5/thumbnails/58.jpg)
P70044 Dam Ad 275x210 paths 10/5/07 3:09 PM Page 1
Composite
C M Y CM MY CY CMY K
Designed by Forton Imageworks
ZIIC Prospectus3.indd 57 7/7/2009 12:15 PM