Reforms boost tourism sector

Has a rich cultural heritage, diverse wildlife and stunning natural landscapes, making it a prime destination for tourists.

AT the same time, the investment climate has improved in recent years. This has arisen due to reforms being implemented by the Government to attract foreign investment.

The Government policies that have contributed to an improvement in the investment climate of the tourism industry in the country include:

1. Tax breaks

The Government has implemented tax breaks as part of its investment incentives. These are designed to reduce the financial burden on investors and make it more appealing for them to pour money into tourism projects.

Tax breaks refer to exemptions or reductions in corporate income tax, value-added tax and customs duties on imported equipment and materials for tourism infrastructure development.

2.Visa-processing incentives

To attract investment in the tourism sector, the Government has also implemented streamlined visa-processing procedures for investors and tourists.

These include reduced visa fees for individuals seeking to invest in the tourism industry, and simplified visa application processes.

Government also offers fast-track processing of business visas, allowing investors to enter the country quickly and begin their operations. Visitors have access to online visa applications and a visa-on-arrival option. There are also reduced processing times for tourist visas.

3. Investment promotion and protection agreements (IPPAs)

Zimbabwe has signed investment promotion and protection agreements with several countries. These provide foreigners with legal protection and incentives to invest in the country.

The deals include provisions for fair treatment of investors (foreign or local); level playing field for investors in the tourism sector; and protection guarantees for investments, for example, against expropriation without fair compensation. They also have guarantees for the repatriation of profits and capital, and safeguards against arbitrary Government actions that may negatively impact investments.

The IPPAs also provide investors with recourse in the event of investment-related disputes, thereby enhancing their confidence in investing in the tourism sector in Zimbabwe.

There are also provisions aimed at promoting transparency and predictability in the regulatory environment for investments, thereby create a stable and favourable investment climate for tourism projects.

4. Dispute resolution mechanisms for investors in tourism

Investors in the tourism sector in Zimbabwe can utilise various dispute resolution mechanisms to address any issues that may arise. These mechanisms include:

◆ The Arbitration Act provides a framework for arbitration proceedings. The country is also a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. The convention provides international recognition and enforcement of arbitral awards.

Arbitration: Mediation:

Investors can also choose to engage in mediation, a voluntary and confidential process where a neutral third party helps the parties involved in a dispute to reach a mutually acceptable agreement. The Mediation Act governs the process.

Investors can resort to the judicial system to resolve disputes. Zimbabwe has a well-established court system that handles business-related disputes. It includes commercial courts. The Judiciary is independent, and investors can seek legal recourse through the courts if necessary.

Judicial system: Investment protection agreements:

Zimbabwe has in place bilateral investment treaties and other international investment agreements with various countries. These agreements often include provisions for the protection of foreign investments and mechanisms for resolving disputes between the host nation and the investor’s home country.

Consultation with Government agencies:

Investors can also engage directly with relevant Government agencies, including the Zimbabwe Investment and Development Agency, on any issues or concerns related to their investment in the tourism sector.

5. Special economic zones (SEZs)

The Government has established SEZs to attract foreign investment by offering tax incentives, streamlined regulations and improved infrastructure to support businesses operating within these zones. SEZs are designated areas within a country that are subject to unique economic regulations and incentives to attract investment and promote economic growth.

In Zimbabwe, SEZs have been established to create an enabling environment for investors in various sectors, including tourism. The SEZs in Zimbabwe include:

◆ The town, a popular tourist destination known for its stunning waterfalls and natural beauty, is a designated SEZ.

This designated SEZ is located in Harare.

This city is also a designated SEZ, with a focus on promoting investment in sectors such as tourism, manufacturing and agribusiness. Zimbabwe has also established the National Competitiveness Commission (NCC) to oversee implementation of SEZs and ensure they provide an attractive environment for investors.

The NCC works to streamline regulations, provide incentives and facilitate the establishment and operation of businesses within the SEZs.

◆

Victoria Falls: Sunway City: Bulawayo: Tourism Development Fund:

Government has established the fund to provide financial support for tourism-related projects.

Public-private partnerships (PPPs):

Government has shown commitment to promoting PPPs in various sectors, including tourism, which can provide opportunities for investors to collaborate with local authorities and businesses on projects.

Charles Mavhunga co-authored textbooks in business enterprising skills and is currently studying for a PhD in Management at Bindura University. He can be contacted at: charles.mavhunga@gmail.com, Cell: 0772989816.

Victoria Falls is a popular tourist destination known for its stunning waterfalls and natural beauty