ZIDA to double down to drive investments
THE Zimbabwe Investment and Development Agency (ZIDA) says it will continue to foster strong partnerships with key stakeholders to promote investment processes and ease of doing business.
ZIDA is the Government’s investment promotion agency, responsible for promoting and facilitating domestic and foreign investment in the country.
In addition to various partnerships, ZIDA last December entered into a collaboration with the Zimbabwe Revenue Authority (Zimra) to enhance the ease of doing business and facilitate domestic and foreign investments in Zimbabwe.
Zimra is the Government’s revenue collection arm, mandated to assess and collect revenue, facilitate trade and enforce the payment of taxes, levies, royalties, and duties for the country.
ZIDA chief executive officer, Mr Tafadzwa Chinamo, said in the agency’s fourth quarter 2023 investments report that two collaboration agreements were signed with Nedbank and Ecobank.
“These collaborations will play a vital role in promoting Zimbabwe as an attractive investment destination and facilitating both foreign and domestic direct investments,” he said.
He said that the tax agency remained committed to driving investments and fostering growth and embracing innovation and technology will be central to success in the future.
“We recognise the importance of sustainable developments through responsible investments, hence a renewed emphasis on attracting socially responsible investors in line with regional and global trends,” said Mr Chinamo.
In terms of the collaboration agreement with Nedbank, the partnership is aimed at promoting investment opportunities in Zimbabwe and facilitating domestic direct investments.
“Through the collaboration, parties will endeavour to ease doing business in Zimbabwe for investors and prospective investors,” reads the report.
During the period under review, the agency negotiated a Memorandum of Understanding (MOU) with Ecobank Zimbabwe aimed at promoting Zimbabwe as an attractive investment destination and facilitating both foreign and domestic direct investments.
Investment experts believe expediting investments will result in increased investments in the country’s various sectors.
They argue that investments play a key role in injecting fresh capital and new projects that will have a positive bearing on the economy.
According to Mr Chinamo, Zimbabwe is participating in the negotiations between the European Union (EU) and the Eastern and Southern Africa Group of Five (ESA5—Comoros, Madagascar, Mauritius, the Seychelles, and Zimbabwe) on the deepening of the interim Economic Partnership Agreement.
Mr Chinamo said ZIDA is responsible for advising on the Chapter on Trade in Services, Investment Liberalisation and Digital Trade.
“During the fourth quarter, the agency participated in intersessions that were held virtually to discuss issues on investment liberalisation and digital trade. The intersessions are a forerunner for the 13th Round of Negotiations to be held in March 2024, where negotiations are anticipated to be concluded,” he said.
Meanwhile, Mr Chinamo said the major highlight of the quarter under review was the promulgation of the Special Economic Zones and General Investments Regulations on November 14, 2024. The Special Economic Zones Regulations, SI 226 of 2023, provide for the application procedure for Special Economic Zones, and the General Investments Regulations, SI 227 of 2023, provide for the licencing procedure for general investment licences.
“Many thanks to the Attorney General’s Office and the Ministry of Finance, Economic Development, and Investment Promotion for facilitation of the processes.
“In Special Economic Zones, it is upon us to make it clear what they mean, but the main issue is tax incentives, and we hope this is the beginning of good things ahead,” he said.
Mr Chinamo noted that during the quarter, the agency recorded significant progress through increased inquiries and follow-through on its mining matchmaking platform, which gave the agency impetus to launch the second phase of the matchmaking platform initiative.
In the partnership with ZIMRA, the parties agreed to collaborate on three main areas: ease of doing business, investor-related services and integration of electronic systems.
ZIDA shall be providing ZIMRA with information on registered investors, including but not limited to details of any expatriate employees of the investors and details of local partners, if any.
On the ease of doing business, the parties shall undertake discussion on the implications of the fiscal policies that affect investors licensed under the ZIDA Act and collaborate on possible strategies to address such implications and enhance the ease of doing business for investors whenever such may be required.
In terms of investor-related services, the parties shall collaborate and exchange information on investor-related services, including queries on taxation and tax registration services for companies and the tax treatment of expatriate employees. The integration of electronic systems will ensure collaboration on ease of doing business through the integration of the parties’ electronic systems (E-Systems) to be identified to ensure real-time logging in of investor information and processing of issues that affect the promotion, protection and facilitation of investments in the country.