RESTRICTED  
  
WT/TPR/S/398  
19 February 2020  
(20-1260) Page: 1/120 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
ZIMBABWE  
This report, prepared for the third Trade Policy Review of Zimbabwe, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing 
the World Trade Organization), sought clarification from Zimbabwe on its trade policies and 
practices.  
 
Any technical questions arising from this repo rt may be addressed to: Mr. Jacques Degbelo 
(tel.: 022 739 5583), Mr. Thomas Friedheim (tel.: 022 739 5083), and Ms. Catherine Hennis -Pierre 
(tel.: 022 739 5640).  
 
Document WT/TPR/G/ 398 contains the policy statement submitted by Zimbabwe.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Zimbabwe. This report was drafted in 
English.    WT/TPR/S/39 8 • Zimbabwe  
 
- 2 - 
 
  CONTENTS  
SUMMARY  ................................ ................................ ................................ ......................  7 
1   ECONOMIC ENVIRON MENT  ................................ ................................ ......................  10 
1.1   Main Features of the Economy  ................................ ................................ ...................  10 
1.2   Recent Economic Developments  ................................ ................................ .................  10 
1.2.1 Monetary and exchange rate policies  ................................ ................................ ..........  14 
1.2.2    Fiscal policy  ................................ ................................ ................................ ..........  17 
1.2.3    Balance of payments  ................................ ................................ ..............................  20 
1.3   Developments in Trade and Investment  ................................ ................................ ...... 20 
1.3.1    Trends and patterns in merchandise and services trade ................................ ..............  20 
1.3.2    Trends and patterns in FDI  ................................ ................................ .....................  23 
2   TRADE AND INVEST MENT REGIMES ................................ ................................ .........  24 
2.1   General Framework  ................................ ................................ ................................ .. 24 
2.2   Trade Policy Formulation and Objectives  ................................ ................................ ...... 26 
2.2.1    Main institutions in charge of trade policy  ................................ ................................ . 26 
2.2.2    Objectives of trade policy ................................ ................................ ........................  27 
2.3   Trade Agreements and Arrangements  ................................ ................................ .........  28 
2.3.1    WTO ................................ ................................ ................................ ....................  28 
2.3.2    Regional and p referential agreements  ................................ ................................ ...... 31 
 COMESA  ................................ ................................ ................................ ............  31 
 SADC  ................................ ................................ ................................ ................  32 
 The COMESA -EAC-SADC Tripartite negotiations  ................................ ......................  32 
 AfCFTA  ................................ ................................ ................................ ..............  33 
2.3.3    Relations with the European Union  ................................ ................................ ...........  34 
2.3.4    Other agreements and arrangements  ................................ ................................ ....... 34 
2.4   Investment Regime  ................................ ................................ ................................ .. 34 
2.4.1    Overview  ................................ ................................ ................................ ..............  34 
2.4.2    Foreign investment procedures  ................................ ................................ ................  36 
2.4.3    International investment agreements  ................................ ................................ ....... 37 
3   TRADE POLICIES A ND PRACTICES BY MEAS URE ................................ ......................  39 
3.1   Measures Directly Affecting Imports  ................................ ................................ ............  39 
3.1.1    Customs procedures, valuation, and requirements  ................................ .....................  39 
3.1.1.1    Procedures  ................................ ................................ ................................ .........  39 
3.1.1.2    Goods in transit  ................................ ................................ ................................ .. 42 
3.1.1.3    Customs valuation  ................................ ................................ ..............................  43 
3.1.2    Rules of origin  ................................ ................................ ................................ ....... 43 
3.1.3    Tariffs  ................................ ................................ ................................ ..................  44 
3.1.3.1    Applied MFN tariffs  ................................ ................................ ..............................  44 
3.1.3.2    WTO tariff bindings  ................................ ................................ .............................  47 
3.1.3.3    Tariff preferences  ................................ ................................ ................................  48  WT/TPR/S/39 8 • Zimbabwe  
 
- 3 - 
 
  3.1.4    Other duties and charges  ................................ ................................ ........................  49 
3.1.5    Internal taxes ................................ ................................ ................................ ........  50 
3.1.6    Duty concessions, suspensions, exemptions or rebates  ................................ ...............  51 
3.1.7    Import prohibitions, restrictions, and licensing  ................................ ..........................  54 
3.1.7.1    Import licensing, controls and oth er restrictions  ................................ ......................  54 
3.1.7.2    Import prohibitions  ................................ ................................ .............................  57 
3.1.8    Anti-dumping, countervailing, and safeguard measures  ................................ ..............  58 
3.2   Measures Directly Affecting Exports  ................................ ................................ ............  58 
3.2.1 Customs procedures and documentation requirements  ................................ .................  58 
3.2.2    Taxes, charges, and levies  ................................ ................................ ......................  59 
3.2.3    Prohibitions, quantitative restrictions, controls, and licensing  ................................ ...... 60 
3.2.3.1    Export licensing  ................................ ................................ ................................ .. 60 
3.2.3. 2   Export prohibitions  ................................ ................................ ..............................  61 
3.2.4    Tax and other export incentives  ................................ ................................ ...............  61 
3.2.5    Export finance, insurance, and guarantees  ................................ ................................  62 
3.3   Measures Affecting Production and Trade  ................................ ................................ ..... 63 
3.3.1    Incentives  ................................ ................................ ................................ .............  63 
3.3.2    Standards and other technical requirements  ................................ .............................  63 
3.3.3    Sanitary and phytosanitary (SPS) requirements  ................................ .........................  66 
3.3.4    Competition policy and price controls  ................................ ................................ ....... 70 
3.3.5    State trading, state -owned enterprises, and privatization  ................................ ...........  72 
3.3.6    Government procurement  ................................ ................................ .......................  73 
3.3.7    Intellectual property rights (IPRs)  ................................ ................................ ............  75 
4   TRADE POLICIES B Y SECTOR  ................................ ................................ ...................  78 
4.1   Agriculture, Forestry, and Fisheries  ................................ ................................ .............  78 
4.1.1    Overview  ................................ ................................ ................................ ..............  78 
4.1.2    Agricultural policy framework  ................................ ................................ ..................  80 
4.1.3    Market access  ................................ ................................ ................................ ....... 81 
4.1.4    Domestic support ................................ ................................ ................................ ... 81 
4.1.4.1 General services  ................................ ................................ ................................ ... 82 
4.1.4.2    Input subsidies  ................................ ................................ ................................ ... 82 
4.1.4.3    Grain procurement  ................................ ................................ ..............................  83 
4.1.5    Export measures  ................................ ................................ ................................ ... 84 
4.1.6    Forestry  ................................ ................................ ................................ ................  84 
4.2   Mining and  Energy  ................................ ................................ ................................ .... 86 
4.2.1    Mining  ................................ ................................ ................................ ..................  86 
4.2.1.1    Mining policy  ................................ ................................ ................................ ...... 87 
4.2.1.2    Gold ................................ ................................ ................................ ..................  89 
4.2.1.3    Diamonds  ................................ ................................ ................................ ..........  90 
4.2.2    Electr icity ................................ ................................ ................................ .............  91  WT/TPR/S/39 8 • Zimbabwe  
 
- 4 - 
 
  4.2.3    Petroleum products  ................................ ................................ ................................  93 
4.3   Manufacturing  ................................ ................................ ................................ ..........  95 
4.3.1    Overview of policy developments  ................................ ................................ .............  96 
4.3.2    Trade policy in the manufacturing sector  ................................ ................................ .. 97 
4.4   Services  ................................ ................................ ................................ ..................  98 
4.4.1    Overview  ................................ ................................ ................................ ..............  98 
4.4.2    Construction services  ................................ ................................ .............................  98 
4.4.3    Wholesale distribution services  ................................ ................................ ................  99 
4.4.4    Tourism  ................................ ................................ ................................ ................  99 
4.4.5    Transport services  ................................ ................................ ...............................  101 
4.4.5.1    Air transport services  ................................ ................................ ........................  101 
4.4.5.2    Rail transport  ................................ ................................ ................................ ... 103 
4.4.5.3    Road transport  ................................ ................................ ................................ . 104 
4.4.6    Telecommunications and broadcasting  ................................ ................................ .... 104 
4.4.6.1    Market overview  ................................ ................................ ...............................  104 
4.4.6.2    Telecommunications regulation  ................................ ................................ ...........  106 
4.4.6.3    Postal and courier services  ................................ ................................ .................  107 
4.4.6.4    Broadcasting  ................................ ................................ ................................ .... 107 
4.4.7    Financial services  ................................ ................................ ................................ . 108 
4.4.7.1    Insurance and pension funds  ................................ ................................ ..............  108 
4.4.7.2    Banking services  ................................ ................................ ...............................  110 
4.4.7. 3   Securities regulation  ................................ ................................ ..........................  112 
4.4.8    Selected professional services  ................................ ................................ ...............  112 
4.4.8.1    Accountancy services  ................................ ................................ ........................  112 
4.4.8.2    Legal services  ................................ ................................ ................................ ... 113 
5   APPENDIX TABLES  ................................ ................................ ................................  115  
 
CHARTS  
 
Chart 1.1 Real GDP growth, 2010 -19 ................................ ................................ ..................  11 
Chart 1.2 Zimbabwe inflation, July 2018 -Sept 2019  ................................ .............................  12 
Chart 1.3 Exchange rate of the Zimbabwe dollar against the US dollar, 2019 ...........................  17 
Chart 1.4 Composition of merchandise trade, 2011 and 2018  ................................ ................  21 
Chart 1.5 Direction of merchandise trade, 2011 and 2018  ................................ .....................  22 
Chart 1.6 Trade in services by major services, 2011 and 2018 ................................ .............  223 
Chart 1.7 FDI, 2011 -18 ................................ ................................ ................................ .... 23 
Chart 2.1 E -learning activity and training through physical presence, 2010-18 ........................  30 
Chart 2.2 Participation in WTO TRTA activities, 2010 -18 ................................ .......................  30 
Chart 2.3 WTO TRTA activities by location, 2010 -18 ................................ .............................  31 
Chart 4.1 Evolution of manufacturing GDP  ................................ ................................ ..........  95 
Chart 4.2 Tourism, 2010 -19 ................................ ................................ ............................  100  WT/TPR/S/39 8 • Zimbabwe  
 
- 5 - 
 
  Chart 4.3 Sectors' contribution to NRZ business, 2019  ................................ ........................  103 
 
TABLES  
 
Table 1.1 Selected macroeconomic indicators, 2011 -18 ................................ ........................  12 
Table 1.2 Priority list for foreign currency payments, February 2019 ................................ ...... 15 
Table 1.3 Foreign exchange surrender thresholds, 2016, 2018 and 2019  ................................  15 
Table 1.4 Government financing by the RBZ, 2015 -18 ................................ ..........................  18 
Table 1.5 Government revenues and grants, 2010, 2015 and 2017  ................................ ........  18 
Table 1.6 Revenue foregone, 2017 -18 ................................ ................................ ................  19 
Table 2.1 Key trade -related laws and regulations, 2011 -19 ................................ ...................  25 
Table 2.2 Selected notifications to the WTO, 2012 -19 ................................ ...........................  28 
Table 2.3 Zimbabwe's participation in preferential trade agreements, 2019  .............................  31 
Table 3.1 Notification status of TFA measures, September 2019  ................................ ............  39 
Table 3.2 Rules of origin under trade agreements, September 2019  ................................ ....... 44 
Table 3.3 Structure of appli ed MFN tariffs, 2011 and 2019  ................................ ....................  45 
Table 3.4 Applied MFN tariff summary, 2019  ................................ ................................ ....... 45 
Table 3.5 Examples of non ad valorem tariffs  ................................ ................................ ...... 47 
Table 3.6 Tariff lines where applied MFN rates exceed bound rates  ................................ .........  47 
Table 3.7 Preferential tariffs (average), 2019  ................................ ................................ ...... 48 
Table 3.8 Excise taxes, 2017 and 2019  ................................ ................................ ...............  50 
Table 3.9 Provisions for customs duty or VAT exemptions  ................................ .....................  51 
Table 3.10 Goods subject to import controls and/or licensing, November 2019  ........................  55 
Table 3.11 Selected import prohi bitions, in force, 2019  ................................ .........................  57 
Table 3.12 Selected products subject to export controls or licensing, 2019  ..............................  60 
Table 3.13 Export prohibitions and suspensions in force in 2019  ................................ ............  61 
Table 3.14 Special Economic Zones  ................................ ................................ ....................  62 
Table 3.15 Fee schedule of the Consi gnment Based Conformity Assessment Programme  ...........  65 
Table 3.16 Products subject to price controls, 2019  ................................ ..............................  71 
Table 3.17 State -owned enterprises  ................................ ................................ ...................  72 
Table 3.18 Financial thresholds for procurement contracts liable to scrutiny  ............................  74 
Table 3.19 Framework protecting IPRs, 2019  ................................ ................................ ....... 75 
Table 3.20 Applications for patents, trademarks, industrial designs and patent granted,
 2012-18 ................................ ................................ ................................ ........................  76 
Table 4.1 Agricultural production, 2016 -19 ................................ ................................ ..........  78 
Table 4.2 Maize production and imports  ................................ ................................ ..............  79 
Table 4.3 Budget of the Ministry of Lands, Agriculture and Rural Settlement, FY 2019  ..............  81 
Table 4.4 Guaranteed producer prices, 2019  ................................ ................................ ....... 83 
Table 4.5 Mining sector production , 2017 -19 ................................ ................................ ....... 86 
Table 4.6 Royalty rates, September 2019  ................................ ................................ ...........  88 
Table 4.7 ZPC's generation capacity, as at end -July 2019  ................................ .....................  92  WT/TPR/S/39 8 • Zimbabwe  
 
- 6 - 
 
  Table 4.8 Business environment affecting manufacturing companies, 2018  .............................  96 
Table 4.9 Tourism sector indicator s, 2010 -18 ................................ ................................ ...... 99 
Table 4.10 Traffic statistics for the main airports  ................................ ................................  101 
Table 4.11 Bilateral air services agreements signed/initiated since 2011  ...............................  102 
Table 4.12 Telecommunication sector, 2010 -18 ................................ ................................ . 104 
Table 4.13 Applied MFN tariffs on telecom an d computer equipment  ................................ ..... 107 
Table 4.14 Trend in insurance premiums written by largest companies, 2011 -18 ...................  108 
Table 4.15 Structure of the banking sector, 2005, 2010, 2016 -19 ................................ ........  110 
Table 4.16 Ownership structure of banking institutions, as at end of June 2019  .....................  110 
Table 4.17 Principal banking legislation, as at end of December 2018  ................................ ... 111 
 
BOXES  
 
Box 2.1 Constitutional developments  ................................ ................................ ..................  24 
Box 2.2 Sectors subject to the indigenizat ion rule (abolished in October 2018)  ........................  35 
Box 4.1 Mobile banking  ................................ ................................ ................................ ... 105 
 
APPENDIX TABLES  
 
Table A1.1 Balance of payments, 2011 -18 ................................ ................................ ........  115 
Table A1.2 Merchandise exports by group of products, 2011 -18 ................................ ...........  116 
Table A1.3 Merchandise imports by group of products, 2011 -18 ................................ ..........  117 
Table A1.4 Merchandise exports by destin ation, 2011 -18 ................................ ....................  118 
Table A1.5 Merchandise imports by origin, 2011 -18 ................................ ...........................  119 
Table A1.6 International transactions in services by sector, 2011 -18 ................................ .... 120 
   WT/TPR/S/39 8 • Zimbabwe  
 
- 7 - 
 
  SUMMARY  
1. Agriculture , mining  and tourism  are the main pillars of the Zimbabwean economy , which has 
succeeded in developing strong export industries in each of these sectors. Exports of agricultural 
commodities and minerals (led by gold, nickel, and  tobacco) account for  nearly 90 % of total 
merchandise exports. While manufacturing has been in decline since the last TPR, Zimbabwe 
retains a relatively large and diversified manufacturing base. Services contribute about 66% to 
GDP, led by wholesale and retail trade, education services , and tourism .  
2. The country in 2019 was still struggling to stabi lize its economy, following a long spell of 
governance problems and international isolation. Economic reforms, including the adoption  of a 
multiple -currency regime in 2009 with the US dollar as the principal currency, had contributed to 
its economic recove ry with double -digit GDP growth  rates and had ended hyper -inflation. However, 
in a difficult socio -economic context, Zimbabwe then adopted FDI restrictions  in 2012 under the 
Indigeni zation and Economic Empowerment Act . In consequence, f oreign  investment ha s been 
subdued  and the economy has resumed a modest growth performance since 2013 until 2016, 
hampered by foreign exchange shortages. GDP growth recovered slightly in 2017 and 2018 . 
3. Under the  multiple currency system  introduced in 2009 , Zimbabwe formally ceased to have 
a domestic currency. However, in 2014, the Reserve Bank of Zimbabwe (RBZ) started to credit 
account holders with electronic money balances, termed "Real  Time Gross Settlement" (RTGS), 
using for accounting purposes an exchange rate of one -to-one between the RTGS dollar and the 
US dolla r. Most domestic transactions and salary payments were carried out with the RTGS 
electronic currency. However, due to increased fiscal deficits financed by the RBZ, the RTGS 
balances were not backed up by enough f oreign currency earnings to maintain parity, leading to 
high parallel market premiums for the US dollar.  
4. In November 2017, Zimbabwe witnessed the departure of the President in power since its 
independence in 1980. The new Government inherited an economy characterized by large fiscal 
deficits, rising inflation, shortages of basic goods  (including fuel and electricity), and critically low 
international reserves . Zimbabwe's per -capita income was about USD 1,500 in 2018 ; the e conom y 
was forecast to contract strongly in 2019 ( by up to 6%  according to the authorities), due to, 
inter alia, fiscal consolidation and the impact of Cyclone Idai.  
5. The new Government implemented various reforms, including the elimination in December 
2017 of the 49% foreign ow nership cap for most sectors. The remaining restrictions in the diamond 
and platinum sectors  were removed in March 2019. The one -to-one RGTS$/USD exchange rate 
was eventually abandoned in February 2019, and Zimbabweans consequently witnessed a major 
loss o f value of their electronic currency balances in US dollar terms. On 24 June 2019, Zimbabwe  
abolished the multi -currency system and re -introduced the Zimbabwe dollar as sole legal tender .  
6. During the review period, Zimbabwe's exchange rate policy with an a rtificially overvalued 
electronic currency has perhaps been the most important source of distortion to its international 
trade in goods and services. Indeed, in order to deal with its chronic foreign exchange shortages, 
Zimbabwe put in place a priority lis t for imports and other foreign currency payments, and 
introduced mandatory forex surrender for exporters. The policy involved taking a share of foreign 
exchange earnings from private f oreign currency accounts and replacing them with electronic RTGS 
dollar s. The forex surrender scheme became, effectively, a substantial tax on exporters as RTGS$ 
receipts from exports lost their value in US dollar terms. Imports were also distorted; those who 
had access to foreign currency at the official one -to-one RTGS$/USD  rate benefitted from cheap 
imports, which greatly increased the demand for fuel and consumer goods.  
7. Furthermore, to save foreign currency, the forex control measures were implemented 
alongside import -restrictive measures. As a result of all the trade res trictions imposed by Zimbabwe 
over recent years, the importance of trade for its economy has significantly declined: its ratio of 
trade in goods and services to GDP has dropped from 89.5% in 2011 to about 50% in 2017.  
8. Merchandise imports declined sharply between 2011 (USD 8.6 billion) and 2018 
(USD  6.3 billion), reflecting the slowdown in economic growth, as well as the restrictive trade and 
foreign currency measures. Nonetheless, imports of goods continue to significantly outstrip exports. 
Zimbabwe source s most of its imported goods from South Africa; imports of fuel are mainly from  WT/TPR/S/39 8 • Zimbabwe  
 
- 8 - 
 
  Singapore. Merchandise e xports  have recovered significantly in recent years, reaching USD 4 billion 
in 2018. They are destined mainly to South Africa, followed by the United Ar ab Emirates. 
Zimbabwe's export performance closely mirrors the cyclical developments in the mining sector, 
which staged a recovery following a sharp downturn in 2013 -15. M anufactur ing exports dropped 
from USD 740 million in 2011 to USD 470 million in 2018 , on the account of liquidity constraints 
and the high cost of imported raw materials, and power shortage s. Tobacco  is the number 
one agricultural commodity for Zimbabwe (21% of total exports in 2018). Zimbabwe is a 
net-importer of services, although the de ficit has narrowed due to a decline in services imports . 
Remittances (8% of GDP  in 2018) play an important role in supporting the people and sustaining 
the economy.  
9. In the period under Review, Zimbabwe has participated in the negotiations on the African 
Continental Free Trade Agreement , and the COMESA –EAC–SADC Tripartite Free Trade Area . An 
early harvest of the latter is a web-based facility allowing stakeholders to report and monitor trade 
barriers , which has helped to resolv e over 70 cases involving measures by Zimbabwe. Zimbabwe 
has also since 2012 implemented the Interim Economic Partnership Agreement between the EU  
and the Eastern and Southern Africa group . 
10. Zimbabwe ratified the WTO Trade Facilitation Agreement (TFA) in Oc tober 2018 . It has 
notified all its TFA commitments to the WTO, as well as its technical assistance needs for category  C 
measures. Zimbabwe would  benefit from the simplif ication  of its customs documentation 
requirements, as up to 15 paper documents may be required. Given its geographical location, 
Zimbabwe plays a critical role in the facilitation of regional transit traffic ; yet d espite  harmonized 
transit provisions within  COMESA and SADC , most member countries , including Zimbabwe, run  
their own national t ransit systems .  
11. Zimbabwe's simple average applied MFN tariff increased from 15.4% at the time of its last 
Review in 2011 to 15.8% in 2019. A quarter of all tariff lines are bound. The applied rates exceed  
the corresponding bound levels  (in some cases by a s much as 60  percentage points) on 61 tariff 
lines; another 64 lines carry non -ad valorem  rates that could potentially exceed their ad valorem  
bindings if the  import prices of the products concerned were to fall. Moreover, a  surtax is levied at 
the rate of 25% on imports of numerous products from all countries including COMESA and SADC 
members.   
12. Zimbabwe continues to maintain a multitude of statutory instruments (over 150 in 2019) 
that provid e for exemptions, suspensions or rebates of customs duties, excise duties, VAT or surtax. 
The high number of tariff exemption schemes is an indicator that some of Zimbabwe 's MFN tariff 
rates may be  too high, and thereby negatively affect the competitiveness of industries that rely on 
imported capital goods and inputs . 
13. A system of n on-automatic import licensing remains in place for  import substitution 
purposes . The system has change d frequently  and conditions to obtain licences appear to be  
opaque . Further more, licences issued to importers are often dependent on other permits or 
authorizations from other agencies; this multiple -layered system combines non -automatic 
licensing, quantitative restrictions and SPS requirements for agricultural products.  
14. Pre-shipment inspection requirements were phased -out in 1998. However, in 2015 
Zimbabwe made trading across borders more difficult by introducing a mandatory pre -shipment 
conformity assessment programme, which was notified to the TBT Committee. The scheme covers 
a range of products (12% of tariff lines at HS 8 -digit level), subject to the payment of high and 
complex ad valorem fees. Zimbabwe provided five SPS notifications related to food safety. Overall, 
its legal framework for SPS measures requires modernization.  
15. Zimbabwe's non -automatic licensi ng regime for exports covers a wide range of products, 
including most agricultural commodities. As in the case of import licensing, compulsory export 
licences are intended to ensure that enough quantities of produce are available domestically. Export 
taxes  are in place on several minerals, with lower rates for transformed products.  
16. State -owned enterprises play a major role in the economy, including in manufacturing, 
mining, utilities, and telecoms. For 2017 , the Auditor General of Zimbabwe reported a worsen ing 
of the losses by the SOEs (some 107 of them in 2019) due to a continued lack of appropriate  WT/TPR/S/39 8 • Zimbabwe  
 
- 9 - 
 
  governance. Several of these SOEs, such as the Grain Marketing Board and the Minerals Marketing 
Corporation of Zimbabwe (MMCZ), are engaged in international tra de. 
17. Zimbabwe has recently modernized its government procurement regime: The Public 
Procurement and Disposal of Public Assets Act came into force in  January  2018; it contains 
domestic preference provisions. The new Procurement Regulatory Authority of Zimbab we (PRAZ) 
oversees public procurement and has started for the first time to compile procurement data. In 
2018, public procurement amounted to USD 1.5 billion, or 10% of GDP.  
18. Zimbabwe's intellectual property rights regime is administered by the Department of Deeds, 
Companies and Intellectual Property under the Ministry in charge of Justice. The Zimbabwe 
Intellectual Property Office (ZIPO) oversees the registration of trademarks, patents, geographical 
indications, integrated circuit layout designs and indust rial designs. Zimbabwe also has a plant 
breeder's rights legislation; however, the country is not a member of UPOV. Zimbabwe has yet to 
accept the Protocol amending the TRIPS Agreement to provide additional flexibilities to grant 
special compulsory licence s for exports of medicines.   
19. Agriculture is the main source of subsistence for most of the population. The sector's 
performance has varied substantially due to drought and other natural disasters, as witnessed by 
Cyclone Idai which hit Mozambique and Zimbabwe in March  2019. As a result, Zimbabweans remain 
highly food -insecure, with millions of people in need of food aid over the recent years. Maize is the 
key food security crop  and therefore at the centre of Zimbabwe's agricultural policy. A range of 
policies are in place, essentially to control maize supplies , trade  and prices. In response  to the 
2019 drought, the Government introduced a single -buyer regime whereby all marketed maize 
production must be channelled through the Grain Marketing Board ( GMB) . Other measures include 
temporary import and export bans depending on the domestic supply situation, an input subsidy 
scheme called "Command Agriculture", price support, and consumer subsidies. The GMB 
administer s the Strategic Grain Reserve  and acts as buyer of last resort for all grains  and cotton.  
Applied MFN tariffs on agricultural products (WTO definition) averaged 25.1% in 2019.  
20. Zimbabwe is endowed with more than 40 mineral and metal resources, including gold, 
platinum group metals, diamonds, nickel , coal, and chromite. A "beneficiation" policy to encourage 
local downstream processing is enforced through export taxes on "un -beneficiated" platinum group 
metals, diamonds and lithium. Exports are controlled by two state -owned marketing monopolies 
(MMCZ and Fidelity Printers and Refiners).  
21. Zimbabwe's electricity sector is in a state of prolonged crisis, as reflected by chronic power 
cuts, lagging investment, and a drain on the public finances caused by the national power utility. 
Fuel imports have also  been affected by a reduced availability of foreign currency, resulting in 
chronic fuel shortages . Zimbabwe's fuel import regime would benefit from market -based reforms, 
transparency, and strong competition policy enforcement.  
22. Zimbabwe's manufacturing policy  has been largely inward looking, relying on import 
substitution policies made effective through tariffs on final products and exemptions on inputs, as 
well as discretionary import licensing and a newly adopted local content strategy.   
23. Zimbabwe has a long  insurance tradition and is host to some of the world's oldest 
multinational insurance companies, such as Old Mutual. The m ain national insurance groups have 
close ties  with Zimbabwe's main commercial banks  as several  financial conglomerates have 
insurance  or banking subsidiaries.  
24. Zimbabwe is one of the few countries where the State still has substantial ownership in 
mobile telecom operators. International communications are among the most expensive in Africa, 
suggesting that the sector's reform could be o f considerable benefit to the economy. One of the 
main drivers of telecom services in Zimbabwe has been mobile banking,  an alternative to cash for 
making payments. Zimbabwe saw a surge in mobile money transactions in 2018, as the foreign 
exchange shortage escalated into a cash crisis . 
25. Tourism is Zimbabwe's flagship industry benefiting from the country's beauty and wildlife, 
and well -trained workforce. Tourism also benefits from more competition among air transport 
companies  following the opening of the Zimb abwean skies.    WT/TPR/S/39 8 • Zimbabwe  
 
- 10 - 
 
  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
Zimbabwe is facing deep macroeconomic imbalances and structural rigidities1, following a 
long spell of governance problems and international isolation. The economic crisis has led to long 
bank queues and shortages of fuel, electricity and many essential goods, as well as accelerating 
inflation . Effort to stabilize the economy are underway but reforms are reported to be hampered 
by vested interests by these governance issues and by corruptio n. 
Zimbabwe has a population of nearly 15 million, with a per capita income of about USD 1,500 
(Table  1.1). The country is highly vulnerable to droughts and other natural disasters, as witnessed 
by Cyclone Idai which hit Mozambique and Zimbabwe in March  2019. Together with past failed 
agricultural policies, this left millions of people in need of food aid in recent years. Remittances 
(8% of gross domestic product ( GDP) in 2018) play an important role in supporting the people and 
sustaining the economy. Econ omic mismanagement has given rise to a large informal economy, 
estimated by the International Monetary Fund (IMF) at around 60% of GDP. Standards of living 
have fallen since the last Trade Policy Review (TPR), and Zimbabwe ranks 156th out of 189 on the 
United Nations Development Programme (UNDP) Human Development Index .2 The economic crisis 
is jeopardizing Zimbabwe's otherwise high levels of literacy (over eight years of schooling on 
average) and health standards (life expectancy of 62  years).  
Agricultur e, mining  and turism  are the main pillars of the economy: the GDP share of 
agriculture was around 9% over recent years, while the share of mining was 6.4% in 2017. Exports 
of agricultural commodities and minerals (led by gold, nickel, and tobacco) contribute  nearly 90 % 
to total merchandise exports. While manufacturing has been in decline since the last TPR, 
Zimbabwe retains a relatively large and diversified manufacturing base (12.3% of GDP in 2017). 
Services contribute about 66% to GDP, led by wholesale and retail trade, tourism and education 
services. Tourism was the economy's bright spot until 2018.3 State -owned enterprises play a major 
role in the economy, including in manufacturing, mining, utilities, and telecoms.  
Zimbabwe's trade regime is characterize d by heavy  trade  regulation, with licensing and 
permits of all descriptions. As a result of all the trade restrictions imposed by Zimbabwe over recent 
years, the importance of trade for its economy has significantly declined: its ratio of trade in goods 
and services to GDP has dropped from 89.5% in 2011 to about 50% in 2017. Overall, Zimbabwe 
stands to benefit from trade liberalization and market -oriented reforms. Moreover, the Customs 
Tariff could be reviewed on social grounds. In this regard, Zimbabwe's i mport duty on mosquito 
nets, to protect against malaria and other diseases, stands out: it is the highest tariff in 
Sub-Saharan Africa, with an ad valorem  equivalent of nearly 200%.4  
1.2  Recent Economic Developments  
Following the adopt ion of the US dollar as the principal currency in 2009 to end 
hyper -inflation , and efforts towards political compromise, the Zimbabwean economy recovered , 
with double -digit growth rates from a deep recession (Chart 1.1). However, between  2013 and 
2016, persistent structural challenges led to modest GDP growth. Economic performance since 
2013 was also hampered by lost competitiveness due to  the dollar appreciation vis-à-vis the 
currencies of Zimbabwe's trading partners and, increasingly, by foreign exchan ge shortages. While 
the homegrown economic problems are numerous, the performance of the economy also suffered 
from severe  drought s, weaker international commodity prices, and lower remittances.  
1.6.  In November 2017, Zimbabwe witnessed the departure of the Pr esident in power since its 
independence in 1980; this was followed by general elections on 30 July 2018 (Section 2.1). The 
 
1 IMF, Zimbabwe: Staff -Monitored Program – Press Release and Staff Report. Viewed at: 
https://www.imf.org/en/Publication s/CR/Issues/2019/05/31/Zimbabwe -Staff-Monitored -Program -Press -
Release -and-Staff-Report -46952 . 
2 UNDP, Human Development Indices and Indicators, 2018 Statistical Update. Viewed at: 
http://hdr.undp.org/sites/default/files/2018_human_development_statistical_update.pdf . 
3 Tourism receipts amounted to approximately 7.2% of GDP in 2018.  
4 40% plus USD 5 per kg. Viewed at: https://www.wto.org/english/res_e/reser_e/ersd201714_e.pdf .  WT/TPR/S/39 8 • Zimbabwe  
 
- 11 - 
 
  new Government inherited an economy characterized by large fiscal deficits, rising inflation, 
shortages of basic goods , and criticall y low international reserves .  
Chart 1.1 Real GDP growth , 2010 -19 
(% change at 2012 prices)  
 
Note:  Projections for 2018 (IMF) and 2019 (the authorities).  
Source:  Zimbabwe National Statistics Agency; and IMF Country Report No. 19/144 (May 2019).  
Against the background of a worsening fiscal and currency crisis, the Government launched 
the Transitional Stabilisation P rogramme  (for the period October 2018 to December 2020), in order 
to restore macroeconomic stability and address structural issues. The 400 -page Programme 
comprises an agenda for tackling the fiscal deficit; currency reform; reform of the public service 
and public procurement; reform and privatization of state -owned enterprises and  parastatals; and 
a series of sectoral reforms (Section  4).5 Importantly, the Government undertook to stop central 
bank financing of the fiscal deficit (see below).  
Despite  macroeconomic imbalances, foreign exchange shortages, low international reserves, 
and an uncertain economic outlook, certain sectors continued to grow well in 2017 -18. Real GDP 
increased by 3.4% in 2018, driven by double -digit growth in agriculture (up by 10%), thanks to a 
good harvest . 
However, the dire economic situation for most of th e population continued in 2019, as 
witnessed by long queues at petrol stations, daily 18 -hours electricity cuts, and shortages of many 
essential goods, including medicines.  High inflation and currency depreciation (see below) eroded 
people's purchasing pow er. Having been kept under control until 2017, inflation has been 
accelerat ing since then (Table 1.1 and Chart 1.2). On 12 January 2019, the Government announced 
a drastic price increase for petrol and diesel (through a fivefold increase of excise taxes), causing 
social unrest. In March, Cyclone Idai hit Zimbabwe, affecting an estimated 250,000 people, and 
aggravating drought -related food insecurity. About five million people needed food assistance, 
according to the World Food Programme. The e conom y is fore cast by the authorities to contract 
strongly in 2019 ( by up to 6% ), due, inter alia , to fiscal consolidation and the impact of Cyclone 
Idai (Chart 1.1).  
 
5 Veritas, Transitional Stabilisation Programme Oct 2018 -2020. Viewed at: 
http://www.veritaszim.net/node/3307 . 
19.7%
14.2%16.7%
2.0% 2.4%1.8%0.8%4.7%
3.4%
-6.0%
-10%-5%0%5%10%15%20%25%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Chart 1.[zmb] Real GDP growth 
Zimbabwe National Statistics Agency; IMF Country Report No. 19/144 (May 2019); and information 
provided by the authorities.Source:(%age change at 2012 prices)
Note: Projections for 2018 (IMF) and 2019 (the authorities). WT/TPR/S/39 8 • Zimbabwe  
 
- 12 - 
 
  Chart 1.2 Zimbabwe inflation, July 2018 -Sept 2019  
 
Note:  Estimates for August and September 2019 . 
Source:  WTO Secretariat estimates, based on data from the Zimbabwe National Statistics Agency.  
1.10.   In May 2019, the IMF approved a Staff -Monitored Program (SMP) for Zimbabwe, running 
until early 2020. The Program is designed to provide technical assistance, but no loans, in support 
of the reform agenda under the Transitional Stabilisation Programme . Under the terms of the SMP, 
Zimbabwe undertook to implement "a  large fiscal adjustment, the elimination of ce ntral bank 
financing of the fiscal deficit, and adoption of reforms to allow the effective functioning of 
market - based foreign exchange and debt markets. Structural reforms include steps to reform and 
privatize state -owned enterprises, enhance governance including in procurement and revenue 
administration, and to improve the business environment. The SMP also includes important 
safeguards to protect the country's most vulnerable people".6 However, the IMF notes "that there 
are also significant implementati on risks of the monetary and exchange rate reforms, as well as 
addressing governance and corruption weaknesses, which could adversely impact the attainment 
of SMP objectives."7 
Table 1.1 Selected macroeconomic  indicators , 2011 -18  
  2011  2012  2013  2014  2015  2016  2017  2018  
Nominal GDP (USD 
million)a 14,101.9  17,114.8  19,091.0  19,495.5  19,963.1  20,548.7  22,040.9  23,113.0  
Real GDP (% change at 
2012 prices)a 14.2 16.7 2.0 2.4 1.8 0.8 4.7 3.4 
Per capita GDP  
(at current prices)  1,131.8  1,310.4  1,428.0  1,428.0  1,431.7  1,440.8  1,510.8  1,554.6  
Per capita GDP  
(at constant 2012 
prices)  1,177.4  1,310.4  1,305.7  1,309.0  1,304.5  1,284.9  1,315.3  .. 
Trade (goods and 
services)  
(% of GDP)  89.5 74.2 58.7 54.7 56.7 51.2 50.0  .. 
Population (million)  12.5 13.1 13.4 13.7 13.9 14.3 14.6 14.9 
Remittance inflows  
(compensation of 
employees and personal 
transfers)  
(USD million ) 1,919.5  2,113.6  1,890.3  1,904.0  2,046.6  1,856.0  1,729.9  1,729.9  
Remittances (% of GDP ) 13.6 12.3 9.9 9.8 10.3 9.0 7.8 7.5 
GDP by economic activity (% of GDP at current factor cost)  
Agriculture, hunting , 
fishing and forestry  9.9 9.1 8.0 9.8 9.3 8.8 9.3 .. 
Mining and quarrying  8.1 7.1 7.0 6.6 6.1 6.6 6.4 .. 
 
6 Viewed at: https://www.imf.org/en/Publications/CR/Issues/2019/05/31/Zimbabwe -Staff-Monitored -
Program -Press -Release-and-Staff-Report -46952 . 
7 Transparency International places Zimbabwe close to the bottom (163rd out of 183 countries) of its 
corruption perception index, with little improvement since 2011.  
4.3% 5.4%31.0%56.9%66.8%97.9%250.0%354.0%
0%50%100%150%200%250%300%350%400%Jul-2018Aug-2018Sep-2018Oct-2018Nov-2018Dec-2018Jan-2019Feb-2019Mar-2019Apr-2019May-2019Jun-2019Jul-2019Aug-2019Sep-2019Chart 1.[zmb] Zimbabwe inflation, July 2018 -September 2019
Zimbabwe National Statistical Agency; and information provided by the authorities. Source:Annual percentage chagne
Note: The figure was interpolated due to no data available in August 2019. WT/TPR/S/39 8 • Zimbabwe  
 
- 13 - 
 
    2011  2012  2013  2014  2015  2016  2017  2018  
Manufacturing  10.4 15.9 14.5 14.1 13.4 12.9 12.3 .. 
Electricity, gas, steam 
and air conditioning 
supply  3.5 3.0 2.7 3.1 3.0 2.5 2.4 .. 
Water supply; sewerage, 
waste management and 
remediation activities  0.3 0.3 0.2 0.2 0.2 0.2 0.2 .. 
Construction  2.3 2.5 2.4 2.4 2.4 2.4 2.5 .. 
Services, of which:  65.4 62.1 65.2 63.8 65.5 66.6 66.9 .. 
Wholesale and retail 
trade; repair of motor 
vehicles and 
motorcycles  17.3 16.3 17.3 17.0 17.2 18.5 18.8 .. 
Transportation and 
storage  4.9 4.1 3.6 3.7 3.8 3.7 3.7 .. 
Accommodation and 
food service activities  4.1 3.9 4.1 4.0 4.0 3.9 4.0 .. 
Information and  
communication  10.6 4.9 8.1 7.9 8.0 7.6 7.7 .. 
Financial and insurance 
activities  5.9 7.5 7.7 5.4 5.5 5.9 5.7 .. 
Real estate activities  1.6 2.0 2.0 2.2 2.4 2.3 2.2 .. 
Public administration 
and defence; 
compulsory social 
security  7.3 8.4 7.7 8.3 8.4 8.7 8.3 .. 
Education  7.6 8.8 9.0 9.6 10.3 10.2 10.8 .. 
Human health and social 
work activities  1.7 1.9 1.9 2.0 2.2 2.3 2.3 .. 
Government fiscal operation (% of GDP)  
Revenue including 
grants  20.7 20.4 19.6 19.1 18.7 17.0 19.9 22.9 
Total expenditure and 
net lending  21.6 21.0 20.9 20.1 19.7 22.9 27.4 35.3 
Overall balance 
including grants  -0.9 -0.5 -1.3 -1.0 -0.9 -5.9 -7.6 -12.4 
Public debt (USD million, unless otherwise indicated, end of period)  
Consolidated public 
sector debt  8,096  8,565  8,642  10,236  10,253  11,991  15,109  18,718  
% of GDP  57.4 50.0 45.3 52.5 51.4 58.4 68.6 81.0 
Public and publicly 
guaranteed external 
debt  8,096  8,290  8,267  8,560  8,015  7,958  8,113  9,106  
% of GDP  57.4 48.4 43.3 43.9 40.1 38.7 36.8 39.4 
of which: arrears  4,234  4,501  4,749  5,261  4,958  5,036  5,393  5,876  
% of GDP  30.0 26.3 24.9 27.0 24.8 24.5 24.5 25.4 
Prices and exchange rates  
Real Time Gross 
Settlement  (RTGS )/USD 
(end of period)b 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 
Real effective exchange 
rate (REER) (February 
2009=100)  
Appreciation ( -)/ 
Depreciation (+)  -11.3 -5.9 -16.6 -14.2 -36.6 -1.2 11.8 26.6 
Annual inflation  
(period average) %  3.5 3.7 1.6 -0.2 -2.4 -1.6 0.9 10.6 
Annual inflation  
(end of period) %  4.9 2.9 0.3 -0.8 -2.5 -0.9 3.5 42.1 
Foreign direct investment (FDI) (in USD million, unless otherwise indicated)  
FDI flows in Zimbabwe  387.0  399.5  400.0  544.8  421.0  371.8  349.4  744.6  
% of GDP  2.7 2.3 2.1 2.8 2.1 1.8 1.6 3.2 
FDI stock in Zimbabwe  2,201.5  2,601.0  3,001.0  3,545.8  3,966.8  4,338.6  4,688.0  5,432.6  
% of GDP  15.6 15.2 15.7 18.2 19.9 21.1 21.3 23.5 
.. Not available.  
a Preliminary data for 2018.  
b Officially the RTGS was pegged at 1:1 to the US  dollar,  before the introduction of the interbank 
foreign exchange rate market in February 20 19. 
Source:  Reserve Bank of Zimbabwe, Statistics . Viewed at : 
https://www.rbz.co.zw/index.php/research/markets ; UNCTAD Stat. Viewed at: 
https://unctadstat.unctad.org/wds/ReportFolders/reportFolders.aspx?sCS_ChosenLang=en ; World 
Bank Migration and Remittances Data . Viewed at 
https://www.worldbank.org/en/topic/migrationremittancesdiasporaissues/brief/migration -
remittances -data; and IMF Country Report No.19/144, May 2019.   WT/TPR/S/39 8 • Zimbabwe  
 
- 14 - 
 
  1.2.1 Monetary  and exchange rate policies  
1.11.   Following a severe foreign exchange crisis and hyper -inflation in 2008, the 
Reserve  Bank of  Zimbabwe (RBZ) discontinued the use of the Zimbabwean dollar in 2009 , and 
adopted a multi -currency regime , with the US dollar as  the principal currency and unit of account.8 
Under this regime, the  South  African rand, the British pound, the euro, and the Botswana pula 
became legal tender s, together with the US dollar. In February 2014, the Australian dollar, the 
Chinese yuan, the In dian rupee, and the Japanese yen were added to the list.   
1.12.   Under the  multiple currency system, Zimbabwe formally ceased to have a domestic currency. 
However, in 2014, the RBZ started to credit account holders with electronic money balances, 
termed Real  Time Gross Settlement (RTGS), using, for purposes of accounting , an exchange rate 
of one -to-one between the RTGS and the US dollar.  Most domestic transactions we re carried out 
with the RTGS electronic currency.  At this point, the RTGS dollar  became de facto  a domestic 
currency.  
1.13.   While the Reserve Bank lost its monetary policy autonomy after 2009, it managed, through 
moral suasion, to influence interest rates. It ne gotiated with banks to bring down interest rates, in 
order to stimulate economic activity,  from as high as 35% per annum in 2009 to 6% -12% by 2018. 
However, due to Zimbabwe's international isolation and poor business environment, FDI was 
subdued. At the sa me time, the country continued to rely heavily on imported goods (given the 
overvalued exchange rate at the official exchange rate), while export performance was sluggish. 
As a result, the country continued to experience foreign currency shortages, resulti ng in the 
emergence of a parallel market for foreign currency.   
1.14.   The foreign exchange shortage escalated into a cash crisis , with long queues outside bank s, 
and limited cash availability at many ATMs. In 2015, a limit was imposed on withdrawals in 
US dollar s at USD 10,000 per day, later reduced to USD 5,000 per day. By 2019, it was no longer 
possible to withdraw US dollars . In October 2019, the RBZ announced that it would inject cash into 
the economy to ease the cash shortages. Furthermore, it actively promo ted mobile banking, and 
most consumer purchases are made with mobile money transfers (Section 4.4.6.1 ). 
1.15.   In October 2016, the RBZ introduced an export incentive , payable in "Bond Notes" , to 
promote export growth (see Section 3.2.4), and to deal with the sho rtage of US  dollars  notes . The 
RBZ started issuing 2 -dollar and 5 -dollar denominated Bond Notes, officially exchangeable at a par 
with the  US dollar  (until 20 February 2019). Bond Notes were granted legal tender in all 
transactions  and, together with Bond Coins (introduced in 2014), are still in circulation today.  
1.16.   However, the foreign currency situation continued to deteriorate – mainly owing to loose 
fiscal policy (see below) – leading to high parallel market premiums. In response, the RBZ 
introduced poli cies to ration the use of foreign currency, including a foreign exchange priority list 
and forex surrender requirements. These were implemented alongside trade measures designed to 
save foreign currency by restricting imports, notably through discretionary  import licensing  
(Section  3.1.7).  
1.17.   From May 2016, local banks were entrusted to allocate foreign exchange according to a 
foreign exchange priority list, to direct the allocation of forex to exporters, import substitution 
industries, and strategic imports.9 Initially, the list had four categories of priority (high, medium, 
low and non -priority); it was last revised in February 2019 (Table 1.2). At present, foreign currency 
requirements for imports of essential commodities , including fuel, cooking oi l, electricity, 
medicines , and chemicals, are made through RBZ letters of credit facilities and/or by the Foreign 
Exchange Allocations Committee .10 In November 2019, these measures were still in place, but 
there was no foreign currency to allocate.  
 
8 Reserve Bank of Zimbabwe, Monetary Policy Statement, January 2009 . Viewed at: 
https://rbz.co.zw/documents/mps/mpsjan2009.pdf . 
9 RBZ, Exchange Control Directive RR86/2016 . Viewed at:  
http://www.veritaszim.net/sites/veritas_d/files/Reserve%20Bank%20of%20Zimbabwe%20Exchange%20C on
trol%20Operational%20Guidelines%20 -%20ECOGAD%208 -
16%20and%20Exchange%20Control%20Directive%20RR%2086.pdf . 
10 RBZ, Monetary Policy Statement , February 2019.   WT/TPR/S/39 8 • Zimbabwe  
 
- 15 - 
 
  Table 1.2 Priority list for foreign currency payments, February 2019 G  
Category  Foreign currency payments  
Category One  
70% - Net exporters who import raw  materials or machinery to help them to produce and generate 
more exports;  
- Non-exporting importers of raw materials and machinery for local production (value 
addition) as a direct substitution for imports o f essential finished goods;  
- Imports of critical and strategic goods , such as basic foodstuffs and fuel, health  products  
and agro -chemicals , if these goods are not available locally (to be funded through L etters 
of Credits and allocations from the Allocation Committee) ; 
- Repayments of offshore loans procured to fund productive activities;  
- Payments for services not available in Zimbabwe;  
- Foreign investment ( capital disinvestments, profits and dividends) ; 
- Remittance s of rental income from properties owned by non -resident Zimbabweans and 
foreign investors that acqu ired the property using funds originating offshore and transferred 
through normal banking channels ; 
- Remittance s of pension income of non-resident Zimbabweans who formally emigrated from 
Zimbabwe ; 
- Importation of packaging material not available in Zimba bwe; 
- University and college fees ; 
- Mining consumables , such as speciali zed steel rods ; and 
- Goods and services not locally available for tourism operators . 
Category Two  
30% - Capital remittances from the disposal of local property ; 
- Capital remittances from cross-border investments ; 
- Funding of offshore credit cards ; 
- Importation of trinkets, low local -content consumer goods and/or goods readily available in 
Zimbabwe including non -commercial vehicles, maheu, bottled water, tomatoes,  vegetables , 
etc; 
- Payments for services available in Zimbabwe ; and  
- Donations.  
Source:  Exchange Control Directive RU 28/2019 of 22 February 2019.  
1.18.   Foreign exchange surrender requirements  were first introduced in 2016, and were last 
revised in February 2019 (Table 1 .3). Manufacturing enterprises, for instance, currently retain 80% 
of their export proceeds in foreign currency, but for a short period of time only (30 days, 
see below), while 20% of the receipts are immediately surrender ed to the RBZ. The policy involves 
taking foreign exchange earnings from private  foreign currency accounts  (FCAs)  and replacing them 
at a rate of one -to-one (until 19 February 2019) with electronic money (RTGS) balances.  
Table 1.3 Foreign exchange surrender thresholds, 2016, 2018 and 2019  
 2016  2018  2019  
Category of exporter  Share of foreign currency receipts retained by exporter (%)  
Manufacturing  100 100 80 
Large -scale gold producers  50 30 55 
Small -scale gold producers  50 30 55 
All other minerals  50 100 50 
Tobacco and cotton merchants' offshore 
loans for input schemes11  20 20 80 
Tobacco and cotton offshore loans for the 
purchase of crops  20 20 0 
Tobacco and cotton growers    50 
Agriculture and horticulture  100 100 80 
Transport and other services  100 100 80 
Source:  RBZ, Exchange Control Directive RR:101/2016 , and Exchange Control Directive to Authori sed 
Dealers , RU28/2019 , 22 February 2019 . Viewed at : 
https://www.rbz.co.zw/documents/publications/circulars/exchange -control -directive -ru-28-of-
2019.pdf . 
1.19.   The foreign currency surrende r regime requires exporters to utilize their retained export 
receipts in Nostro FCAs within 30 days from the date of receipt; all unutilized balances are sold by 
the RBZ in the interbank market. Large -scale tobacco growers (with more than 2 hectares) have 
180 days to use their foreign currency proceeds. Exporters that are subject to t he short 30 -day 
 
11 When tobacco and cotton merchants draw down on the input finance facilities, 20% of the 
draw-down  is transferred to the RBZ Nostro account, and the RBZ transfers the equivalent amount to 
authorized dealers in the local currency.   WT/TPR/S/39 8 • Zimbabwe  
 
- 16 - 
 
  forex retention thus face additional costs of currency conversion and exchange rate risk, where 
production and related financial commitments are seasonal.  
1.20.   Over time, as the RTGS receipts from exports lost their value in US dollar terms, Zimbabwe's 
forex surrender effectively became a hefty tax on exporters. Their ability to cover import 
requirements was compromised, thereby constraining production. The forex surr ender scheme also 
distorted imports. Those who had access to foreign currency at the official one -to-one RTGS$/USD 
rate benefitted from artificially cheap imports, which greatly increased the demand for fuel and 
consumer goods, as well as inviting illicit transactions.  
1.21.   On 20 February 2019, the RBZ officially recognized the RTGS dollar as the de facto  domestic 
currency, and established an interbank market for foreign exchange on a willing -buyer willing -seller 
basis.12 This step effectively put an end to the artificial parity between RTGS dollars and US dollars, 
although the multiple currency system was maintained. The exchange of RTGS balances, including 
Bond Notes and mobile electronic money balances, were done at the prevailing market exchange 
rate through banks and bureaux de change. All entities, including the Government and individuals, 
were directed to use the RTGS dollar for the purposes of pricing goods and services, recording 
debts, accounting, and settlement of domestic transactions.13 Zimbabweans con sequently 
witnessed a major loss of value of their RTGS balances in US dollar terms, eroding people's 
purchasing power. However, the floating of the RTGS dollar eased the exchange rate burden for 
exporters, as export proceeds were credited at the prevailin g market exchange rate. However, 
compulsory forex surrender and rationing remain in place.  
1.22.   However, the official interbank foreign exchange market was not functioning properly, since 
there was little trust and trade in the RTGS dollar on the official mark et. At end -February 2019 at 
the time of floating, t he RTGS dollar started being traded at RTGS$ 2.50 per US dollar. It  
depreciated to about RTGS$  8.84 per US dollar by mid-July 2019 (Chart 1.3 ) and RTGS$ 16.00 by 
October 2019.  
1.23.   On 24 June 2019, the Governme nt abolished the multi -currency system , and re -introduced 
the Zimbabwe dollar as sole legal tender (Statutory Instrument 142 of 2019).14 RTGS  dollars, Bond 
Notes, and Bond Coins were converted at a par into (new) Zimbabwe dollars. To support the 
transition to the Zimbabwe dollar, the RBZ increased the supply of foreign currency into the 
interbank foreign currency market , by announcing that at least 50% of the surrender portion of 
foreign currency would be sold to the interbank market. This was supplemented b y Reserve Bank 
Letters of Credit worth USD 330 million for imports of essential commodities (including fuel, cooking 
oil, and wheat).  
1.24.   The RBZ also guaranteed the exchange rate, at par, of foreign currency "legacy debts" 
(debts  incurred by private companies  in foreign currencies at an expected 1:1  exchange rate 
between RTGS dollar s and US dollar s). Up to US D 1.2 billion of private debt could potentially be 
presented to the RBZ , according to the authorities.  
1.25.   Since 24 June 2019, foreign currencies hav e, in principle, been banned in domestic 
transactions by residents, but there are multiple exceptions. First, certain customs duties continue 
to be payable in foreign currency (see below). Second, transactions in foreign currencies from 
Nostro FCAs continu e to be permitted. Third, the payment of all tourism -related services, and 
international airlines services is permitted in foreign currency.  
1.26.   The RBZ put in place measures to establish confidence in the new domestic currency , and 
achieve low and stable inf lation. The surge of inflation in June 2019 was, according to the 
authorities, mainly attributable to money supply growth emanating from high fiscal deficits 
experienced since 2013 (Chart 1.3).  The RBZ thus adopted a monetary targeting framework , aimed 
at reducing money supply growth to 8 %-10% by end -2019. It increased the overnight interest rate 
 
12 RBZ, Monetary Policy Statement, Establishment of an Inter -Bank Foreign Exchange Market to 
Restore Competitiveness . Viewed at: http://veritaszim.net/node/3427 . 
13 The Export Incentive Scheme was discontinued with effect from 21 February 2019.  
14 Reserve Bank of Zimbabwe (Legal Tender) Regulations, Statutory Instrument 142 of 2019.  
Viewed at: 
http://www.veritaszim.net/sites/veritas_d/files/S.%20I.%20142%20of%202019%20Reserve%20Bank%20of
%20Zim%20%28Legal%20Tender%29%20Regulations%2C%202019%20 -1.pdf.  WT/TPR/S/39 8 • Zimbabwe  
 
- 17 - 
 
  for banks from 50% to 70% with effect from September  2019, to discourage borrowing for 
speculative reasons such as buying foreign currency. In addition, a 5% reser ve requirement for 
banks was introduced in 2018 , as a way of mopping  up excess liquidity in the economy. To 
complement these efforts, the Government embarked on fiscal consolidation , and has committed 
to limit recourse to central bank borrowing to 5% of the previous year 's total fiscal revenue  (even 
though  a 20% borrowing rate remains in the RBZ's statutes). However, the IMF noted, in 
September 2019, that "a recent expansionary monetary stance" had been a factor in the fast 
depreciation of the Zimbabwe doll ar.15  
1.27.   Following the re -introduction of the Zimbabwe dollar, the spread between the exchange 
rates on the parallel market and the interbank market narrowed (Chart 1. 3). However, the shortage  
of bank notes and coins , as evidenced by long queues at the ATMs o f most banks, continue d 
unabated and led to price distortions and arbitrage opportunities, depending on which type of 
payment was used (electronic money, Bond Notes, or US dollars). The authorities acknowledge d 
that "failure to get cash is undermining the confidence in the local currency as well as forcing 
economic agents to resort to illegal transactions in foreign currency and to selling at a premium".16  
Chart 1.3 Exchange rate of the Zimbabwe dollar against the US dollar, 2019  
(ZML/USD)  
 
Source:  Information provided by the authorities.  
1.2.2   Fiscal policy  
1.28.   Zimbabwe began posting massive budget deficits from 2016 onwards (Table 1.1). By 2018, 
the fiscal deficit reached 12.4%  of GDP, despite fiscal tightening when the new Government 
assumed office. One of the main drivers of the budget deficit was the support to agriculture.17 The 
Government acknowledged that the support for maize , with a guaranteed price of USD  390/ton ne 
(more than twice as high as world market prices) and the Command Agriculture (input  subsidy) 
scheme were becoming unsustainable  (Section 4 .1).18 However, support for agriculture was 
significantly increased in 2019 (see below).   
1.29.   Zimbabwe's budget deficits were financed essentially by a policy of money printing. The 
funds were borrowed from the RBZ outside the budget (by issuing Treasury Bills) and  through 
overdraft facilities with the RBZ. Table 1.4 shows a net increase of RBZ claims on the central 
 
15 IMF, IMF Staff Concludes Visit for the Article IV Consultation and Discussion s on the First Review of 
the Staff -Monitored Program to Zimbabwe. Viewed at: 
https://www.imf.org/en/New s/Articles/2019/09/26/pr19355 -zimbabwe -imf-staff-concludes -visit-art-consult -
discuss -1st-rev-staff-mon-program . 
16 RBZ, 2019 Mid -Term Monetary Policy Statement , pg. 11.  
17 "Expenditure on agriculture, which reached USD 1.1 billion as at August 2018, against an annual 
Budget target of USD 401 million, has been one of the major drivers of the budget deficit." Budget Speech 
para. 246. 
18 Transitional Stabilisation P rogramme , para. 820. 
024681012141618202225-Feb04-Mar11-Mar18-Mar25-Mar01-Apr08-Apr15-Apr22-Apr29-Apr06-May13-May20-May27-May03-Jun10-Jun17-Jun24-Jun01-Jul08-Jul15-Jul22-Jul29-Jul05-Aug12-Aug19-Aug26-Aug02-Sep09-Sep16-Sep23-Sep30-Sep07-OctInterbank exchange rate Parallel market exchange rateChart 1.[zmb] Exchange rate of the RTGS dollar against the US dollar, 2019
Source: Information provided by the authorities.(ZML/USD) WT/TPR/S/39 8 • Zimbabwe  
 
- 18 - 
 
  Government, from USD 4 to 7 billion in 2017 -18, which set in motion money creation , excess 
demand for foreign currency, and accelerating inflation.  
Table 1.4 Government financing by the RBZ, 2015 -18 
(RTGS$ million)  
 2015  2016  2017  2018  
RBZ 
Net foreign assets  -639 -574 -1,126  -1,758  
Net domestic assets  1,203  2,047  3,794  5,016  
Net credit to financial corporations  70 -149 -406 -2,246  
Claims on central Government  1,350  2,338  3,986  7,025  
of which: government securities  214 566 1,479  2,062  
of which: loans (incl. overdraft)  1,136  1,771  2,507  4,962  
Other items, net  -217 -142 214 237 
Monetary base  563 1,473  2,668  3,258  
 (Annual % change)  
Monetary base  21.4 161.5  81.2 22.1 
Source:  RBZ.  
1.30.   In the multi -currency era, the national budget was denominated in US dollars, and taxes 
were payable  in US dollars . In November 2018, the Zimbabwe Revenue Authority (ZIMRA) ordered 
that customs duties, excise taxes, and value added tax (VAT)  on certain imported consumer goods 
(certain food items, alcoholic beverages, tobacco products, and vehicles) were to be paid in foreign 
currencies (Statutory Instrument (S.I.) 252A of 2018). In response to concerns by the 
manufacturing industry that some of the designated goods were critical raw materials, 
S.I. 252A/2018 was amended through S .I. 170/2019 to exclude goods such as fresh cheese, 
groundnuts, and mixtures of fruit juice concentrates from the list. According the authorities, this is 
implemented in the form of a tariff quota, whereby the S .I. lapses once when the allocated 
quantities are exhausted.  
1.31.   Income taxes are the main source of government revenues (36% in 2017), followed by the 
combined import taxes in terms of customs duties, and excise duties and VAT on imports 
(Table  1.5). Revenue collections from excise tax (mainly fuel import -related) and VAT on domestic 
goods  increased substantially following improvements in collection methods ; the Government 
introduced withholding tax on VAT compelling small businesses to comply (Section 3.1.5) . Support 
from development partners is outside the budget, and is estimated at abou t USD 600 million  in 
2019.  
Table 1.5 Government revenues and grants, 2010, 2015 and 2017  
  2010  2015  2017  
  USD million  % of total  USD million  % of total  USD million  % of total  
Total revenue including 
ZIMRA grants  2,339.1  100.0  3,737.1  100.0  3,870.0  100.0  
Tax revenue  2,214.6  94.7 3,548.1  94.9 3,627.8  93.7 
   Tax on income and  
profits  852.1  36.4 1,395.5  37.3 1,416.7  36.6 
   Customs duties  339.9  14.5 344.9  9.2 295.1  7.6 
   Excise duties, of 
which:  165.1  7.1 714.2  19.1 675.9  17.5 
         Beer 41.9 1.8 63.1 1.7 47.1 1.2 
         Wines and spirits  12.0 0.5 18.6 0.5 17.1 0.4 
        Tobacco  11.5 0.5 25.3 0.7 22.9 0.6 
        Fuels 91.0 3.9 560.6  15.0 531.4  13.7 
   VAT 830.0  35.5 985.2  26.4 1,075.3  27.8 
       Domestic goods  459.3  19.6 815.3  21.8 883.6  22.8 
       Imported goods 
and services  370.7  15.8 452.9  12.1 387.9  10.0 
       Withholding tax  0.0 0.0 .. .. 24.9 0.6 
       Refunds  0.0 0.0 -283.1  -7.6 -221.1  -5.7 
   Other indirect taxes  27.5 1.2 108.2  2.9 164.7  4.3 
Non-tax revenue  124.5  5.3 189.0  5.1 242.2  6.3 
Source : Ministry of Finance and Economic Development , 2019 Mid -Term Fiscal Policy Review and 
Supplementary Budget . Viewed at: http://www.zimtreasury.gov.zw/index.php/resources/2019 -
budget .  WT/TPR/S/39 8 • Zimbabwe  
 
- 19 - 
 
  1.32.   Zimbabwe grants exemptions from import taxes (customs duties, excise duties, and surtax) 
within the framework of its  preferential trade agreements , and pursuant to over 150 statutory 
exemption codes (Section 3.1.6). The annual revenue foregone is compiled and published by ZIMRA 
in a transparent manner. As Table 1. 6 shows, Zimbabwe incurs substantial revenue foregone 
(USD 769 million in 2018), over half of which was attributable to preferential access under trade 
agreements (USD 414 million).  
Table 1.6 Revenue foregone, 2017 -18 
(USD '000 ) 
 Total revenue foregone 2017  Total revenue foregone 2018  
C.i.f. value  1,987,076  2,585,033  
Total revenue foregone, of which:   697,019   768,717  
   Customs duty   544,300   560,962  
   VAT  143,434   196,864  
   Surtax   9,285   10,891  
Revenue foregone under preferential 
trade agreements, of which:   465,074   413,912  
   SDC (South Africa under the SADC)   229,927   220,840  
   CSA (COMESA)   47,632   38,854  
   TAG (other trade agreements)   104,844   66,138  
   RSA (South Africa bilateral)   21,640   13,723  
   SADC except South Africa   57,388   69,048  
   MZA (Mozambique)   2,922   3,558  
   EPA (EU)   721   1,751  
Source:  ZIMRA, 2018 Annual Revenue Foregone Report.  
1.33.   Zimbabwe's subsidies were estimated by the IMF at 8% of GDP in 2017, most of which were 
allocated for agricultural support (Section 4.1) and state -owned enterprises. Thus, Air Zimbabwe, 
Zimbabwe Electricity Supply Authority Holdings (ZESA), and Agribank, amongst others, were 
recapi talized within the 2019 Budget. Also, fuel was subsidized by the Government (Section 4.2.2).  
1.34.   The 2019 national budget was premised on commitments to consolidate the budget and to 
eliminate monetization of the deficit. However, the original budget was revis ed in July 2019, mainly 
to react to the drought and provide additional funds for agricultural support and strategic reserve 
imports (Section 4.1), and for repair of infrastructure following Cyclone Idai. However, the 
Government still expects to reduce the budget deficit to 4% of GDP in 2019. In the first quarter of 
2019, Zimbabwe recorded a fiscal surplus, as a result of higher -than-expected revenues.  
1.35.   The following are key revenue measures, decided as part of the 2019 national budget:  
• first introduced in O ctober 201819, the Intermediated Money Transfer Tax  is currently 
levied at 2%, with a tax -free threshold of ZWL 20 and a cap of ZWL  15,000 for 
transactions exceeding ZWL 750,000. The tax is expected to raise USD 600 million in 
2019. It is mainly levied on e lectronic money transfers , including mobile money 
transfers, between informal operators. It is paid by the transferor to ZIMRA via a 
financial institution or a provider of mobile banking services;  
• additional i mport duty rebates/exemptions (Section 3.1.6) were granted to 
manufacturers;  
• excise taxes rates were increased (Section 3.1.5 and Section 4.2.2); and  
• tax deductibility of mining royalties was introduced (Section 4.2.1).  
1.36.   As a result of uncontrolled domestic borrowing and central bank financing of the budget 
deficit, Zimbabwe's consolidated public debt increased to 81.0% of GDP by end -2018, up from 
68.6% in 2017 (Table 1.1).20 Over 60% of the public debt was external debt (U SD 9. 1 billion), a 
 
19 S.I. 2018 -205 of October 2018. Viewed at: http://veritaszim.net/node/3252 . 
20 In addition to public debt, Zimbabwe has a contingent liability in terms of compensation payments 
to farmers expropriated during the former government era, estimated at USD 2.4 to USD 10 .0 billion , 
according  to the IMF.   WT/TPR/S/39 8 • Zimbabwe  
 
- 20 - 
 
  large part being arrears (USD 5.9 billion) (Table 1.1) , which has largely cut Zimbabwe off from 
international capital markets (see below). The clearance of external debt arrears vis-à-vis the 
international financial institutions was a necessary condition for improving access to foreign 
finance. Zimbabwe has limited access to the international capital markets also due to sanctions  by 
some countries .21 
1.2.3   Balance of payments  
1.37.   Zimbabwe has been running persistent current account deficits (Table A 1.1). The deficit 
increased to 6.1% of GDP in 2018 (up from 1.3% in 2017), driven by surging imports owing to 
unrestrained fiscal and monetary policies. Foreign currency reserves dwindled to just 0.5 months  
of imports by end -2018 (Table A1.1). The RBZ expe cts the current account deficit to decline in 
2019. Indeed, Zimbabwe posted a current account surplus  in the first quarter of 2019, reflecting a 
moderate increase in exports and lower imports due to foreign exchange shortages and austerity 
measures.  
1.38.   In the  Zimbabwean dollarized economy, exports were key to providing liquidity and 
stimulating economic activity. However, for most of the period under review (2011 -19), the 
country's export performance was weak, partly for reasons of declining international comm odity 
prices and lost competitiveness, as the US dollar strengthened vis-à-vis regional currencies. The 
real effective exchange rate (REER) appreciated between 2011 and 2016 (Table 1.1). With the 
stronger US  dollar, r emittances  also declined  as a source of  finance in the economy (USD 1.9 billion 
in 2018 , Table  1.1).22 The diaspora remittances from workers in South Africa ( about one  third of 
the total) decreased with the depreciating South African rand.  
1.39.   In the multi -currency system, th e loss of competitiveness could only have been reversed  
through internal devaluation , i.e. through relative gains in efficiency in production or through 
measures to reduce the cost of production , such as cutting wages . Zimbabwe's policies, however, 
created  a bias against the productive sector and export competitiveness. As noted above, exporters 
were implicitly taxed, owing to, inter alia , forex surrender requirements combined with an artificial, 
overvalued exchange rate (1:1 RTGS$ per US  dollar).  
1.40.   The curr ent account deficit was financed primarily by FDI and private sector offshore loans. 
According to the authorities, external loans below USD 20 million require registration by an 
authorized dealer, while those above USD 20 million are subject to RBZ exchang e control approval.  
1.41.   In some years, Zimbabwe's balance of payments featured relatively large "net errors and 
omissions", ranging up to 12% of GDP (2011). These statistical discrepancies are likely to reflect 
capital flight and illicit transactions, among ot her reasons.23 
1.3  Developments in Trade and Investment  
1.3.1   Trends and patterns in merchandise and services trade  
1.42.   Imports of goods continue to significantly outstrip exports (Chart 1. 4). However, 
merchandise e xports  recovered significantly in recent years, reachin g USD 4 billion in 2018  
(Table  A1.2) . Zimbabwe's export performance closely mirrors the cyclical trends in the mining 
sector, which staged a recovery following a sharp downturn in 2013 -15. Mining exports contributed 
close to 60% to export earnings in 2018,  with gold accounting for 28.3% . Manufactur ing exports 
plummeted by 45% from USD 739.5 million in 2011 to USD 470.4 million in 2018 , on account of 
liquidity constraints , the high cost of imported raw materials, and power shortage s. Exports of 
 
21 See for example US Department of the Treasury Office of Foreign Assets Control, (OFAC), Zimbabwe 
Sanctions Program . Viewed at: https://www.treasury.gov/resource -
center/sanctions/Programs/Documents/zimb.pdf . 
22 RBZ, Monetary Policy Statement , February 2019, pg. 30.  
23 In 2018, the former President of Zimbabwe revealed that, in the period 2009 -16, "over 15 billion 
dollars’ worth of diamond revenues could not be accounted for, at a time when the country was experiencing 
severe liquidity challenges and economic contraction ". Viewed at: https://cy4ad5.c2.acecdn.net/wp -
content/uploads/2018/06/diamond -revenue.pdf .  WT/TPR/S/39 8 • Zimbabwe  
 
- 21 - 
 
  tobacco , whic h is the number one agricultural commodity for Zimbabwe, increased by  15%, while 
other agricultural exports  declined.  
Chart 1.4 Composition of merchandise trade, 2011 and 2018  
 
Source:  WTO Secretariat's calculations, based on United Nations Statistics Division ( UNSD ), Comtrade 
database (SITC Rev.3).  
1.43.   Dominated by fuels, chemicals, food products and transport equipment, merchandise  
imports (except fuel) declined sharply since 2011, reflecting the slowdown in economic growth, as 
well as the foreign currency control measures put in place in 2016 and the restrictive trade 
measures (Table A1.3). Zimbabwe sources most of its imports from  South Africa, and its imports 
of fuel from Singapore.  
Chart 1.[ZMB] Composition of merchandise trade, 2011 and 2018
2011 2018
Exports, including re -exports (f.o.b.)
Manufactures
21.1%
Manuf.
11.7%Consumer 
goods 
2.4%
Iron & steel
6.2%Agriculture  
29.0%
Mining
31.1%Other manuf. 
3.0%
Other 
mining
2.2%Tobacco
20.9%Gold 
(non-monetary) 
28.3%
Cotton 1.7%
Other agriculture
6.4%
Ores and other minerals 
28.9%
Total:   USD 3,512.9 million Total:  USD 4,037.2 million
Imports (c.i.f.)
Other mining
2.1%Chemicals 31.8%Electrical 
machines
5.0%
Food 15.0%
Iron and steel 
1.9%Other 0.5% 
Other mining
0.7%Chemicals 
18.8%Electrical 
machines
4.5%
Food 11.7%
Iron and steel 
2.8%Other 
0.6% 
Agri-
culture
12.2%
Mining
30.4%Manufactures
56.8%
Fuels
29.7%Non-electrical 
machinery 
8.4%
Other semi -
manufactures
7.1%Transport
equipment
10.2%Other manufactures
5.1%
Other 
agri.
0.5%
Total:   USD 8,599.3 million Total:   USD 6,258.9 millionConsumer 
goods
12.1%
Non-electrical 
machinery 6.5%Iron & steel
3.4%
Agriculture  
33.3%
Agri-
culture
15.4%Ores and 
other minerals
32.9%Other manufactures
5.6%
Tobacco
18.2%
Mining
16.7%Other manufactures
4.2%Transport
equipment
12.6%
Manufactures
67.3%
Fuels
14.6%Other semi -
manufactures
5.4%
Other agri.
0.4%Gold 
(non-monetary) 
8.8%
Cotton 
7.3%
Other agriculture
7.8%Other 
mining
4.0%
Source:  WTO Secretariat's calculations, based on UNSD, Comtrade database (SITC Rev.3).Mining
36.8% WT/TPR/S/39 8 • Zimbabwe  
 
- 22 - 
 
  1.44.   South Africa is Zimbabwe's main trading partner by far (Chart 1.5).  South Africa's dominant 
position also reflects goods that are trans -shipped from South Africa to landlocked Zimbabwe.  
Zimbabwe import s mostly cereals, machinery and fuel from South Africa, and exports tobacco and 
precious stones and metals, among others, to it. Trade with COMESA partners remains small 
(Tables A1.4 and A1.5). E xports to the United Arab Emirates increased strongly in 2018 , mainly 
gold, making it the second -largest  destination for exports  (Table A1.4) . Merchandise imports from 
Singapore amounted to USD 1,355.8 million in 2018, mainly on account of fuel imports.  
Chart 1.5 Direct ion of merchandise trade, 2011 and 2018  
 
Source:  WTO Secretariat's calculations, based on UNSD, Comtrade database.  
1.45.   Zimbabwe remains a net importer of services (Chart 1.6 and Table A1.6), although the gap 
has narrowed  due to a decline in services imports. In 2018, the country was running a considerably 
Chart 1.[zmb] Direction of merchandise trade, 2011 and 2018
2011 2018
Exports, including re -exports (f.o.b.)
Africa 
64.6%China
0.9%
Other 14.9%
EU-28
1.5%
South Africa
51.5%Mozambique
9.7%Zambia
1.6%Other 
Africa
1.8%United Arab 
Emirates
18.1%
Total:   USD 3,512.1 million Total:  USD 4,037.2 million
Imports (c.i.f.)
India 2.0%
United States
6.9%Other Asia 2.1%Singapore 0.4%
Africa 
66.6%
EU-28
5.0%United Arab 
Emirates 
0.8%
Japan 0.5%
Asia 
9.2%
Other 11.4%China 
4.3%
Mauritius 1.4%Zambia 2.5%
South Africa 
56.2%Other 
Africa 
4.5%Mozambique 2.0%
India 
2.7%
United 
States
0.8%Other Asia
2.8%Japan 
3.4%
Africa 
50.0%
EU-28
8.0%Asia 
36.3%
Other 3.0%China
5.7%
South Africa 
39.3%Other Africa 3.0%
Mauritius 2.9%Zambia 2.8%Mozambique 2.0%United Arab 
Emirates 
2.0%Singapore 21.7%
Total:   USD 8,599.3 million Total:   USD 6,258.9 millionMozambique
3.7%
China
5.3%
WTO Secretariat's calculations, based on UNSD, Comtrade database.Africa 
76.9%EU-28
6.3%Zambia
2.4%
United Arab 
Emirates
5.9%
South Africa
67.2%Other 
Africa
3.6%
Other 5.5%
Source:   WT/TPR/S/39 8 • Zimbabwe  
 
- 23 - 
 
  lower deficit in transport services, and it had sharply reduced its imports of p rofessional and 
management consulting services .  
Chart 1.6 Trade in services by major services, 2011 and 2018  
(USD million)  
 
Source:  Information provided by the authorities.  
1.3.2   Trends and patterns in FDI  
1.46.   Zimbabwe remained a net importer of capital during the period under review (Table  A1.1). 
However, due to an increasingly unattractive investment climate and international sanctions, 
inward FDI flows remained subdued, while outward flows and stocks were negligible. In 2018, the 
country experienced a sudden increase in inward FDI f lows, from USD 349 million (2017) to 
USD 745 million ( Chart 1. 7). This reflects, in part, the amendment of the Indigenization and 
Empowerment Act in early 2018, and the political transition to a new leadership that expressed  its 
intention to protect foreig n investment and improve the business environment.  No data are 
available regarding foreign investment by sector. In terms of FDI approvals, a considerable 
improvement was realized in 2018, particularly in the energy, mining, and services sectors.  
Chart 1.7 Foreign direct investment , 2011 -18 
(USD billion)  
 
Source:  UNCTAD Stat. Viewed at: 
https://unctadstat.unctad.org/wds/ReportFolders/reportFolders.aspx?sCS_ChosenLang=en .  
100 214 56 44 152 182 34 61 1,024
398445 
74 228 
247 122 
306 
02004006008001,0001,2001,4001,6001,8002,000
2011 2018Transport
Professional and management consulting services
Travel
OtherChart 1.[Zimbabwe] Trade in services by major services
(USD million)
Source: Information provided by the authorities.ExportsExportsImports
Imports
20112018
0.4 0.4 0.40.50.4 0.4 0.30.72.22.63.03.54.04.34.75.4
0.01.02.03.04.05.06.0
2011 2012 2013 2014 2015 2016 2017 2018FDI flows FDI stockChart 1.[zmb] Foreign Direct Investment in Zimbabwe, 2011 -18
(USD billion )
Source: UNCTAD Stat. Viewed at: https://unctadstat.unctad.org/wds/ReportFolders/reportFolders.aspx?sCS_ChosenLang=en.  WT/TPR/S/39 8 • Zimbabwe  
 
- 24 - 
 
  2  TRADE AND INVESTMENT  REGIMES  
2.1  General Framework  
Zimbabwe has a long hi story as a trading nation , dating back to the Monomotapa Empire and 
Great  Zimbabwe . However , its socio -political situation  over the last two decades has negatively 
affected its economic activities. S ince its last Trade Policy Review (TPR) in 2011, the majo r change 
has been the end of reign of the President in power since the independence of the country in 1980. 
A new Constitution (Box 2. 1) was approved  in a referendum in 2013, and presidential elections  were 
held in July 2018 .  
Box 2.1 Constitutional developments  
Since Zimbabwe's independence  in 1980 , the "Lancaster House" Constitution  of 1979  has been amended 
several times. In 2013a, the presidential mandate was constitutionally limited to a maximum of two five -year 
terms. Under the Constitution, t he President is the Head of State and Head of Government, elected directly 
by universal suffrage (Article 91) . The presidential elections take place  at the same time  as the election s of 
Parliament. Presidential candidates must nominate two persons to stand for election jointly as Vice -Presidents.   
Under the Constitution, t he executive branch is composed of  the President , the two Vice-Presidents, and 
the Cabinet  of Ministers . The post s of Prime Minister and Deputy Prime  Minister w ere abolished by the 2013 
amendment  to the Constitution . The President appoints and chairs the Cabinet, from which originates most 
legislation. Ministers and Deputy Ministers forming the Cabinet must be  appointed from among Senators or 
Members of the National Assembly, except for five who may be appointed from outside Parliament  for their 
professional skills and compet ence. Next presidential and legislative elections are due in 2023. 
Parliament consists of the Senate and the National Assembly. The National Assembly has 270  members, 
210 of whom are directly elected; under the new 2013 Constitution , 60 seats are reserved for 6 women from 
each of the 10 provinces. The Senate is composed of 80 Senators, 6 from each of the 10 provinces, 
16 traditional chiefs, the President and Deputy President of the National Council of Chiefs, and 2 persons 
elected to represent people with d isabilities (Article 120). Presidential assent is required to enact legislation, 
which is voted by Parliament. The President is empowered to dissolve Parliament, provided that , in doing so , 
s/he does not preclude the operation of other constitutional provi sions. In the event of a vote of no -confidence 
in the Government being passed by Parliament, the President mus t dissolve Parliament within 14  days.  
a Zimbabwe's Constitution of 2013 . Viewed at: 
https://www.constituteproject.org/constitution/Zimbabwe_2013.pdf . 
Source:  Constitution of Zimbabwe, and information provided by the authorities.  
The Constitution ( Section  64) en shrines liberty of commerce and industry: every person has 
the right to choose and carry out any profession, trade or occupation, although their practice may 
be regulated by law. Certain provisions on agriculture in the Constitution reflect the objective t o 
achieve an equitable land sharing  (Section  3). Section  72 provides that agricultural land may be 
compulsorily acquired by the State without compensation. Under t he Constitution , an act of 
Parliament must provide for every concession of mineral and other rights to ensure transparency, 
honesty, cost -effectiveness and competitiveness ( Section  315).  
Bills of laws and  other acts of Parliament  are generally initiated at ministry level, and then sent 
to Cabinet. The Ministry of Justice then drafts a bill, which goes to Parliament for approval. A gazetted 
text is then published by Parliament. Under an act of Parliament, statutory instruments (S.I. s) can 
take the form of by-laws and regulations , such as decrees, orders, circulars or notes.  The hierarchy 
of legislation is as follows: treaties/ international  agreements, the Constitution, laws, regulations, 
and by -laws. However, Section 327 of the Constitution states that an international treaty which has 
been concluded or executed by the President or under his/he r authority does not bind Zimbabwe 
until it has been approved by Parliament; and does not form part of the law of Zimbabwe unless it 
has been incorporated into the law through an act of Parliament.  
The free, exhaustive and up -to-date Veritas Zimbabwe websi te (http://www.veritaszim.net/ ) 
contains legislation  passed by Parliament.  This greatly facilitates access to  trade-related legislation 
and regulations (Table 2.1) .   WT/TPR/S/39 8 • Zimbabwe  
 
- 25 - 
 
  Table 2.1 Key trade -related laws and regulations, 2011 -19  
Section of 
report  Legislation  
2.1 The Constitution  
2.4 Zimbabwe Investment Authority Act (Chapter 14: 30) 
2.4.1 Joint Ventures Act  (Chapter 22:22, S.I . 6/2015)  
2.4 Indigenisation and Economic Empowerment Act (Chapter 14:33)  
3.1 Revenue Authority Act  (Chapter 23:11)  
3.1.7 Control of Goods Act (Chapter 14:05), Control of Goods (Import and Export) (Commerce) 
Regulations  
3.1.8, 3.3.4  Competition Act (Chapter 14:28)  
3 (2) Customs and Excise Act (Chapter 23:02)  
3.2 Trade Development Surcharge Act (Chapter 14:22)  
3.3 Export Credit Reinsurance Act (Chapter 14:06 ) 
3.3 Special Economic Zones Regulation, 2018  
3.3.2 Conformity -based assessment  
3.3.3 Food and Food Standards (Import and Export) Regulations (S.I. 8 of 2015)  
 S.I. 121 of 2019 – Plant Pests and Disease (Importation) (Amendment) Regulations, 2019  
 Pesticide Regulations of 2012  
 Veterinary Diagnostic Testing Laboratories ( S.I. 89 of 2017)  
3.3.6 Public Procurement and Disposal of Public Assets Act ( Chapter 22:23)  2018 
3.3.7 Geographical Indications Regulations, 2016 ( S.I. 70 of 2016)  
 Agriculture Marketing Authority (Grain, Oilseed and Products) By -laws, 2013 (S.I. 140 of 
2013)  
4.1.4.2  Agricultural Marketing Authority Act (S.I. 79 of 2017)  
4.2 Mines and Minerals Act (Chapter 21:05)  
4.2.1 Electricity Act (Chapter 13:19)  
4.2.2  Petroleum Act (Chapter 13:22) and Petroleum Products Pricing Regulations, 2018  
4.4.5.1  Air Services Act  ([Chapter13:01 ), Carriage by Air Act  (Chapter13:04 ), the Civil Aviation 
Act (Chapter13:16 ) (of 1998)  
4.4.5.2  Railways Act (Chapter 13:09 ), as amended in 1997  
4.4.5.3  Motor Road Transportation Act (Chapter 13:1 5) 
4.4.6 National Payments Act ( Chapter 24:23)  
4.4.6.2  
 Subscriber Registration Regulations, 2014  
VSAT Regulations, 2015  
Postal and Telecommunications Quality of Service Regulations, 2016  
Postal and Telecommunications Infrastructure Sharing Regulations, 2016  
4.4.6 Broadcasting Services Act (Chapter 12:06) of 2006  
4.4.7.1  S.I. 95 of 2017 Insurance (Amendment) Regulations, 2017  
4.4.7.2  
 Banking Act (Chapter 24:20 ) 
Building Societies Act (Chapter 24:02 ) 
Reserve Bank of Zimbabwe Act (Chapter 22:15)  
4.4.7.3  Securities Act 2004 ( Chapter 24:25)  
4.4.8 Chartered Accountants Act  (Chapter 27:02)  
4.4.8 Legal Practitioners Act (Chapter 27:07)  
Legal practitioners (Designated legal Qualifications) Notice, 2016  
Source:  Information provided by the authorities.  
As noted, t reaties and i nternational agreements they do not become part of domestic law 
unless specifically incorporated by an act of Parliament, although the Constitution provides for 
exceptions allowing the President  to enter into binding international agreements. For  example, the 
President is given p ower under the Customs and Excise Act to make regulations to give effect to any 
international agreement; the Act specifies that  in that case  the international agreement and its  WT/TPR/S/39 8 • Zimbabwe  
 
- 26 - 
 
  regulations shall prevail , even if they are  inconsistent with any other law, in cluding the Customs and 
Excise Act , provided enabling legislation is enacted .  
Zimbabwe's highest court is the Constitutional Court, followed by the Supreme Court, which is 
headed by a Chief Justice that is appointed by the President.1 The other Supreme Court judges are 
also appointed by the President, after consultation with the Judicial Service Commission. 
Immediately below the Supreme Court is the High Court, whose judges are also appointed by the 
President. Below the High Court are the magistrates' courts, whose officers are appointed by the 
Chief Justice. Zimbabwe has an Administrative Court, which deals with administrative disputes, 
including those of a commercial nature; a Labour  Court, which deals with industrial disputes; and a 
Small Claims Court, which has jurisdiction over small civil claims (not exceeding USD 250).  
There appears to be a lack of enforc ement  of legislation and compl iance with rules and 
regulations , which cuts across both public and private sector entities.2 In 2018, the passing of  the 
Corporate Governance Act3 recogniz ed that public entities have been underperforming and are 
associated with corruption, high salaries and bad corporate governance at the expense of service 
delivery ; this is particularly serious amon g the numerous  state enterprises and parastatals 
(Section   3.3.4). Development partners have therefore focused donor assistance on public sector 
reform and privati zation. The objective of the ongoing Public Financial Management Enhancement 
Programme, funde d under the Zimbabwe Reconstruction Fund with the help of the World Bank and 
other financial partners, is to improve internal controls and the internal audit of public companies to 
ensure compliance with the laws, rules and regulations , and contribute to effective service delivery 
outcomes. In 2018 , the Government was in the process of setting up an independent internal audit 
function at the national level , to assist the Office of the Auditor General.4  
Partly as a result, Zimbabwe conti nues to fare poorly in the World Bank's Doing Business 
comparison . At the time of the last TPR in 2011, Zimbabwe ranked 157th out of 183 countries across 
all aspects of doing business. In the Doing Business 2019 report, Zimbabwe ranked 155th out of 
190 countries , and 157th for trading across border5 The most problematic areas include Starting a 
Business, where the time needed to obtain a business licence places Zimbabwe in 176th position . 
Reforms are also apparently needed for the faster issuance of constru ction permits ( also 
176th position)  despite the new "one-stop platform " for investment (Section 2.4) . In contrast, the 
Getting Credit indicator improved following the creation of a credit registry (Section 4.4.7) and the 
expansion of its coverage, which ma de consumer and commercial credit information available to 
banks and financial institutions; hence , the ranking stands at a favourable 85th position in 2019. 
Finally, Zimbabwe ranks only in  168th position with respect to the Enforcing Contracts indicator, even 
though judg ements rendered at the appellate and Supreme Court level s in commercial cases are 
available online.  
2.2  Trade Policy Formulation and Objectives  
Main institutions in charge of trade policy  
The Ministry of Foreign Affairs and International Trade (MFAIT) is in charge of international 
trade. It also oversees foreign investment . Its main functions are to promote, maintain and develop 
mutually advantageous trade and trade relations with foreign c ountries and businesses. T he Ministry 
of Industry and Commerce (MIC) is in charge of internal trade, and has many prerogatives that 
pertain to international trade. It implements the country's industrial policy; implements policies to 
 
1 Judicial Service Commission. Viewed at: https://www.jsc .org.zw . 
2 World Bank, Assessment of the Zimbabwe Public Finance Management System for Investment Lending 
Projects . Viewed at: http://documents.worldbank.org/curated/en/540041468190159922/pdf/102796 -WP-
P151918 -Box394840B -OUO-9-Zimbabwe -Use-of-Country -Systems -Report -June-29-2015.pdf ; and 
Transparency International, Zimbabwe. Viewed at: https://www.transparency.org/country/ZWE . 
3 Public Entities Corporate Governance Act. Viewed at: 
http://www.veritaszim.net/sites/veritas_d/files/PUBLIC%20ENTITIES%20CORPORATE%20GOVERNANCE%20A
CT_0.pdf . 
4 Office of the Auditor General. Vi ewed at http://www.auditorgeneral.gov.zw . 
5 World Bank, Doing Business . Viewed at: 
http://www.doingbusiness.org/en/dat a/exploreeconomies/zimbabwe#DB_tab . The total time it takes to export 
a container is at close to eight days, while the time it takes to import a container , at close to 10 days, remains 
very high , at twice the Sub -Saharan average.   
  WT/TPR/S/39 8 • Zimbabwe  
 
- 27 - 
 
  promote entrepreneursh ip; promotes consumer protection; and oversees the operations of 
parastatals under its jurisdiction. The National Trade Development and Promotion Organi zation of 
Zimbabwe  (ZimTrade)  is a parastatal that operates under the MFAIT as the export promotion agen cy. 
It maintains a Internet customer support service that answers users'  questions.6  
The Ministry of Finance and Economic Development (MFED) has a key role in trade policy 
through, inter alia , fiscal policy and public procurement. Zimbabwe's tariff policy  modifications 
(Section  3.1) are generally carried out under the Customs and Excise Act , but the MFED also has 
the authority to change statutory rates. In both cases , however, changes require parliamentary 
approval.  
The Competition and Tariffs Commission  (CTC) , through the M IC, advises the M FED on tariff 
matters . It is a statutory body established under the Competition  Act in 2001, as a merger of the 
former Industry and Trade Competition Commission and the former Tariff Commission. The CTC 
therefore has th e twin mandates of implementing Zimbabwe's competition policy and executi ng its 
tariff policy, with the primary objective of enforcing the Competition Act (Section 3. 3.4). 
The CTC is mandated to review tariff rates of imported products , in order to promote the 
development and competitiveness of local industry. R eviews can be self -initiated.  On request by 
local industries, it undertakes investigations into tariff incidence , with a view to aiding the  local 
industries  through temporary tari ff increases of two to three years, renewable. The CTC may 
recommend to the MIC the increase  of the import duty on finished products , in order to protect local 
industries from foreign  competition; in contrast, it may recommend lower customs duties on raw 
materials and intermediate products , to promote the competitiveness of local industry. It may also 
recommend suspensions, drawbacks, company -specific rebates, and refunds of duty, generally on 
request.  
In the private sector, t he Confederation  of Zimbabwe I ndustries (CZI) exist s since 1923.7 It 
is an independent, self -financed, legally constituted organi zation that represents and serves the 
interests of its members in a n array of matters affecting their viability and competitiveness.  
The Zimbabwe National Ch amber of Commerce is a private sector organization , established 
in 1894 , to develop  and promot e trade,  and to lobby for its members and the local business 
community.8 It is a non-profit , membership -based business association with a mandate to equip 
busines s with development opportunities.  
The private sector is also represented  in Parliament's Industry and Commerce Committee , 
together with stakeholders from the trade -related  ministries and from parastatal organizations. 
National positions on trade matters and trade negotiations are developed after consultations with 
stakeholders. The Committee also undertakes information dissemination sessions whenever 
bilateral, regional, and international negotiations are launched.  
Objectives of trade policy  
In 2019, the  Government published  a new National Trade Policy, the Zimbabwe Industrial 
Development Policy (2019 -23), and the National Export Strategy. The new Trade Policy recognizes 
that Zimbabwe 's past strateg y has largely been inward -looking , to safeguard local ind ustry from 
unfair import competition ; and that the country's trade potential has not been fully tapped to enable 
it to meaningfully gain from trade . It specifically recognizes trade as an engine for economic growth 
and development.9 Moreover, the new indus trial policy indicates that "m easures will be instituted 
where necessary with the objective to support industries and steer them towards producing for the 
export market in addition to providing import -substitution".10  
Over the 2011 -18 period, the Customs a nd Excise Act was frequently amended (16 times, on 
average twice a year) which makes the + trade regime less predictability. Amendments are generally 
 
6 ZimTrade, Ministry of Industry and Commerce.  Viewed at: 
http://www.tradezimbabwe.com/priviledged -partners/moic . 
7 Confederation of Zimbabwe Industries. Viewed at: https://www.czi.co.zw/ . 
8 Zimbabwe National Chamber of Commerce. Viewed at: https://zncc.co.zw/ . 
9 Government of Zimbabwe (2019), N ational Trade Policy 2019 -23. 
10 Government of Zimbabwe (2019), Zimbabwe National Industrial Policy 2019 -23.  WT/TPR/S/39 8 • Zimbabwe  
 
- 28 - 
 
  implemented to enhance tariff protection, while exemptions and suspensions of otherwise payable 
duties and charges are also granted, on an ad hoc basis and on request (Section 3.1). The import 
licensing policy was also modified several times (Section 3.1.7), first to protect domestic industries  
and then to relax previously imposed restrictions.  
2.3  Trade Agreement s and Arrangements  
WTO  
Zimbabwe is an original  WTO Member, having been a GATT contracting party. It ratified the 
WTO Agreement on 5 March 1995. Under Zimbabwean law, the WTO Agreement has the same status 
as all other treaties to which it is a signatory . According to the authorities , the WTO Agreement has 
not been domesticated into Zimbabwean law through  the passing of enabling legislation . Zimbabwe 
has not subsequently signed any plurilateral agreement s or any of the protocols and agreements 
concluded under the WTO, except for the Protocol of Amendment to insert the Agreement on Trade 
Facilitation (TFA) into Annex 1A of the WTO  Agreement , adopted in October 2018. The TFA was 
ratified in November 2018 but  had not been domesticated as of November 2019.   
Zimbabwe made 52 notifications to the WTO during the 2012-19 period  (Table 2.2).  
Table 2.2 Selected notifications to the WTO, 2012 -19 
WTO 
agreement  Description  of 
requirement  Most recent notifications  Comment  
Agreement on Agriculture    
Table ES:1   G/AG/N/ZWE/6 , 8/9/2015  No export subsidies in 2000 -14 
Table ES:2   G/AG/N/ZWE/7, 9/9/2015  Total exports in 2001 -03 and 
2011-14  
Table ES:1  Export subsidy 
commitments  G/AG/N/ZWE/8, 26/10/2017  No export subsidies in 2015 or 
2016 
Table ES:2   G/AG/N/ZWE/9, 27/10/2017  Total exports in 2015 and 2016  
Table ES:1   G/AG/N/ZWE/10, 9/10/2018  No export subsidies in 2017  
Table ES:2   G/AG/N/ZWE/11, 9/10/2018  Total exports in 2017  
Agreement on Import Licensing    
Article 7.3  Import and export 
licensing system  G/LIC/N/3/ZWE/4, 31/10/2014  Replies to questionnaire  
Article 7.3   G/LIC/N/3/ZWE/4/Rev.1, 
11/11/2014  Revised replies to questionnaire  
Agreement on Subsidies and Countervailing Measures   
Article 25.11   
 
 
 
 
 
 
Countervailing 
duty actions  G/SCM/N/203 /Add.1/Rev.2 , 
26/07/2012  
G/SCM/N/212 /Add.1 /Rev.2 , 
26/07/2012  
G/SCM/N/219 /Add.1 /Rev.2 , 
26/07/2012  
G/SCM/N/228 /Add.1 /Rev.2 , 
26/07/2012  
G/SCM/N/235 /Add.1 /Rev.2 , 
12/10/2012  
G/SCM/N/298 /Add.1/Rev.1, 
25/10/2016  
G/SCM/N/305 /Rev.1, 21/10/2016  
G/SCM/N/313 /Add.1, 21/06/2017  
G/SCM/N/321 /Add.1, 23/10/2017  
G/SCM/N/328 /Add.1, 20/04/2018  No actions taken  
Committee on Regional Trade Agreements   
  Notification of 
provisional 
application of the 
agreement  WT/REG307/N/1/Add.1  Interim Economic Partnership 
Agreement (EPA) with European 
Union, Madagascar and Mauritius  
   WT/REG307/N/1   WT/TPR/S/39 8 • Zimbabwe  
 
- 29 - 
 
  WTO 
agreement  Description  of 
requirement  Most recent notifications  Comment  
Understanding on Interpretation of GATT Article XVII   
Article 16.4  Anti-dumping 
actions  G/ADP/N/188 /Add.1 /Rev.2 , 
01/08/2012  
G/ADP/N/195 /Add.1 /Rev. 2 , 
27/07/2012  
G/ADP/N/202 /Add.1 /Rev.2 , 
26/07/2012  
G/ADP/N/209 /Add.1 /Rev.2 , 
25/07/2012  
G/ADP/N/216 /Add.1 /Rev.2 , 
25/07/2012  
G/ADP/N/223 Add. 1 Rev. 2 , 
12/10/2012  
G/ADP/N/280 /Add.1/Rev.1, 
25/10/2016  
G/ADP/N/286 /Add.1, 20/10/2016  
G/ADP/N/294 /Add.1, 21/04/2017  
G/ADP/N/300 /Add.1, 23/10/2017  
G/ADP/N/308 /Add.1, 20/04/2018  No actions taken  
Agreement on Rules of Origin    
Article 5  Non-preferential 
rules of origin  G/RO/N/80, 8/7/2012  Non-preferential rules of origin  
Agreement on the Application of Sanitary and Phytosanitary 
(SPS) Measures   
Article 7 and 
Annex B   G/SPS/N/ZWE/6, 30/8/2016  Food standard  
Article 7 and 
Annex B   G/SPS/N/ZWE/5, 30/8/2016  Food standard  
Article 7 and 
Annex B  Proposed SPS 
regulations  G/SPS/N/ZWE/4, 18/4/2013  Standard for mineral water  
Article 7 and 
Annex B   G/SPS/N/ZWE/3, 17/4/2013  Food standard  
Article 7 and 
Annex B   G/SPS/N/ZWE/2, 17/4/2013  Food standard  
Agreement on Technical Barriers to Trade   
Article 10.6   G/TBT/N/ZWE/1, 4/4/2016  Name of local government 
involved  
TFA  
Articles 15 
and 16 of the 
TFA Notification of 
category A 
commitments  WT/PCTF/N/ZWE/1, 27/10/2016   
 Notification of 
category B and C 
commitments  G/TFA/N/ZWE/1 , 16/9/2019   
Source:  WTO documents.  
Zimbabwe has been reviewed  three times  by the Trade Policy Review Mecanism, in 199 4, 
2011 and 2020 . Like m ost developing countries, has been a recipient of WTO trade -related technical 
assistance (T RTA) since the establishment of the WTO in 1995. Between 2010 and 2018, 
591 Zimbabwe nationals participated in a total of 273 activities, an average of over 60  participants 
per year in 30 activities. As Chart 2. 1 shows, the number of Zimbabwean participants went through 
a trough in 2010 -14 (apart from one national seminar on the WTO reference centre in 2011), and 
started to increase from 2015 onwards, initially thanks  to the expansion of e -learning courses. In 
2018, the total number of participants (107) was over thrice that of 2014 (32); and the total number 
of participants in activities through physical presence (face -to-face, as opposed to e -learning) 
increased.   WT/TPR/S/39 8 • Zimbabwe  
 
- 30 - 
 
  Chart 2.1 E-learning activity and training through physical presence , 2010 -18 
(Number of participants)  
 
Source:  WTO Secretariat.  
Three topics for TRTA stand out during the period: activities of a general nature covering  most 
WTO topics accounted for most of the activities (Chart 2. 2), followed by services, and sanitary and 
phytosanitary (SPS) measures .  
Chart 2.2 Participation in WTO TRTA activities, 2010 -18 
 
Source:  WTO Secretariat.   
There ha ve been very few national activities (Chart 2. 3), despite their advantage in terms of 
the number of national beneficiaries who can be reached during one single activity. While 
Zimbabwean officials attended 53  Geneva -based activities, and 74  regional activities, during the 
nine years , there were only three national seminars, one on the reference centre, one on SPS issues 
and one on services.  Areas where  Zimbabwe could  benefit from WTO  technical assistance include 
363227
4142249 49 501393
21
39 1828211857
020406080100120140
2010 2011 2012 2013 2014 2015 2016 2017 2018Chart 2. [Zimbabwe] E -learning activity
Source: WTO Secretariat.(Number of participants)
Total participants 2010 -18: 591
of which: E -learning taken by 283 participants (47.9% of total participants)
E-learning
Training through physical presence
0%5%10%15%20%25%30%35%Chart 2. [Zimbabwe] Zimbabwe's participation in WTO TRTA activities, 2010 -18
Source: WTO Secretariat.Share of total participants (Total: 591) WT/TPR/S/39 8 • Zimbabwe  
 
- 31 - 
 
  agriculture and SPS issues, import and export licensing and procedures, trade taxation, and other 
regulatory topics such as technical barriers to trade (TBT) issues.  
Chart 2.3 WTO  TRTA activities by location, 2010 -18 
 
Source:  WTO Secretariat.  
Regional  and preferential  agreements  
Since its last TPR in 2011, Zimbabwe has participated in several trade negotiati ons, and has 
conclud ed new preferential trade agreements . The country was involved in the  negotiations on the 
launch of the COMESA -EAC-SADC Tripartite Free Trade Area  (TFTA) and the African Continental Free 
Trade Agreement (AfCFTA) ; and concluded and implements an Interim EPA with the E uropean Union, 
where Zimbabwe was in the Eastern and Southern Africa (ESA) negotiating group, a sub -group of 
COMESA member States (Table 2. 3). 
Table 2.3 Zimbabwe's participation in preferential trade agreements, 2019  
RTA name Entry into 
force  Coverage  GATT/WTO notification  
Year WTO provision  
European Union  – ESA States Interim EPA  2012 Goods  2012 GATT Art. XXIV  
SADC  2000 Goods  2004 GATT Art. XXIV  
COMESA   1994 Goods  1995 Enabling Clause  
Global System of Trade Preferences among 
Developing Countries (GSTP)  1989 Goods  1989 Enabling Clause  
Botswana –Zimbabwe Trade Agreement  1988 Goods  Not notified  
Namibia –Zimbabwe Trade Agreement  1993 Goods  Not notified  
Malawi –Zimbabwe Trade Agreement  1995 Goods  Not notified  
Mozambique –Zimbabwe Trade Agreement  2005 Goods  Not notified  
Source:  WTO Secretariat. Further information may be found in the WTO RTA Database . Viewed at:  
http://rtais.wto.org .  
2.3.2.1   COMESA  
Zimbabwe is a founding member of the COMESA, which replaced the Preferential Trade Area 
for ESA  in 1994. The COMESA Treaty entered into force in 1995.11 Zimbabwe grants duty -free and 
quota -free treatment with no exclusions, on a reciprocal basis, to imports originating from all free 
trade agreement (FTA) participating COMESA members, namely Burundi, Comoros, the Democratic 
 
11 COMESA Treaty . Viewed at: http://www.comesacompetiti on.org/wp -
content/uploads/2016/03/COMESA_Treaty.pdf . 
National , 3
Regional , 74
Global , 53E-learning , 119Chart 2. [Zimbabwe] WTO TRTA activities by location, 2010 -18
Source: WTO Secretariat. WT/TPR/S/39 8 • Zimbabwe  
 
- 32 - 
 
  Republic of the Congo, Djibouti, Egypt, Eswatini (formerly Swaziland, under derogation), Kenya, 
Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Uganda and Zambia. Eritrea, 
Ethiopia, Somalia and Tunisia have yet to implement the FTA. The COMESA Common External Tariff 
(CET) , launched in June 2009, was still not implemented in 2019.  
Zimbabwe signed and ratified the COMESA Fund Protocol, adopted in 2002. The Protocol 
comprises  two windows : the COMESA Adjustment Facility, to assist member States with adjustment s 
arising from  the implementation of COMESA integration programmes; and the COMESA 
Infrastructure Fund, whose priority programmes and projects are in the transport and 
communications sector. The windows are funded through contributions from member States and the 
European U nion. 
Zimbabwe  is also implementing several COMESA trade facilitation initiatives, including the 
COMESA Simplified Trade Regime (STR) with Zambia and Malawi, a mechanism that would help 
small -scale (mostly women) traders participate more effectively in the  Free Trade Area.  Recently, 
Zimbabwe and Zambia agreed on additional products to be added to the list of eligible products to 
be traded under the STR.  
The COMESA Yellow Card Scheme is a motor vehicle insurance that is valid in all participating 
countries; it provides a valid certificate of insurance in the COMESA region , making the scheme a 
regional third -party insurance scheme.  The Insurance Council of Zimbabwe is the 
government -designated body in charge of the scheme . Zimbabwe is also a party to the COMESA 
Trade in Services regulations, adopted in June 2009; and participates in several COMESA institutions, 
including the Regional Investment Authority, the Competition Commission, and the COMESA Court 
of Justice.12  
2.3.2.2   SADC  
Zimbabwe signed the SADC Trade Pro tocol and participat es in its Free  Trade Area, which was 
launched in August 2008.13 In February 2011, Zimbabwe obtained a derogation, pursuant to 
Article  3 (C) of the Protocol, from implementing the tariff phase -down for sensitive products 
(Category C products), such as textiles and clothing. The simple average preferential tariff is 2.7% 
on imports from South Africa, and 0.4% on imports from other SADC countries, with a maximum 
tariff of 25%  (Table 3. 7).  
The SADC's trade facilitation initiatives include ha rmonizing customs procedures and customs 
classifications; increasing customs cooperation; reducing costs by introducing a single, standardized 
document (Single Administrative Document) for customs clearance throughout the region; and 
establishing a one -stop border post between Zimbabwe and Zambia (Section 3. 1.1.2 ).  
2.3.2.3    The COMESA -EAC-SADC Tripartite negotiation s 
Issues of overlapping membership in trade agreements are addressed in the harmonization 
efforts underway among the COMESA, the EAC and the SADC. The ir Heads of State and Government s 
met on 10 June 2015 in Egypt , to launch the COMESA -EAC-SADC Tripartite Free Trade Area  (TFTA) . 
The total number of participating member States rose to 29, following  the expansion of the EAC to 
include South Sudan in April 2016 , and that of COMESA to include Somalia and Tunisia .14 Zimbabwe 
signed  the TFTA Agreement, which requires 14  ratifications in order to enter into force , and was in 
the process of ratifying it in November 2019 . In January 2019, four countries had both signed and 
ratified the Agreement: Kenya, Egypt, Uganda, and South Africa.   
Tariff concessions by member States under Annex I – on tariff liberalization  – were finalized 
and adopted; however, tariff s chedules to be appended to the Annex were still pending in November 
2019. The objective of the Agreement is the liberalization of all tariff lines  on originating products , 
 
12 Other institutions include: the COMESA Leather and Leather Products Institute; the Federation of 
Women in Business; the PTA Bank; the Re -insurance Bank; the COMESA Clearing House; the COMESA Regional 
Investment Agreement; and the Africa Trade Insurance Agency.  
13 Angola, the Democratic Republic of Congo, and the Seychelles have not yet ratified the protocol. For 
information on the tariff phase -out and other details, see WTO document WT/REG176/4, 12  March  2007.  
14 Tralac, SADC -EAC-COMESA Tripartite Free Trade Area Legal Texts and Policy Documents. Viewed at: 
https://www.tralac.org/resources/by -region/comesa -eac-sadc-tripartite -fta.html .  WT/TPR/S/39 8 • Zimbabwe  
 
- 33 - 
 
  with some exceptions. Between 60% and 80% of tariff lines, depending on the country,  are to 
become duty -free upon the entry into force of the Agreement . The remaining portion is to be phased 
out over a period of five to eight years.  
Non-tariff barriers are the main impediment to trade within the region, and each of the 
three  regional blocs has procedures in place for their reporting, monitoring and elimination  
(Section  3.3.2) . The TFTA provides for the harmonization of these procedures under a single 
mechanism, i.e. the Tripartite N on Tariff Barrier s Reporting, Resolving and M onitoring Mechanism. 
Through a web -based platform15, stakeholders from the three communities can report and monitor 
the resolution of trade barriers encountered in the conduct of their business. As at January 2019, 
this system had allowed for the resolution  of over 70 trade issues involving Zimbabwean operators 
or regulators (as complainants or as respondents). Negotiations on trade in services and other 
trade -related areas (competition policy, and intellectual property rights) start in 2019 . 
2.3.2.4   AfCFTA  
The AfCF TA is an ambitious initiative , aiming at a single continental market that would 
increase trade and integrate African markets, in line with the Abuja Treaty of 2000 establishing the  
African  Union. Negotiations were launched by the African Union's Decision o n Boosting  Intra-African 
Trade and Fast -Tracking the Continental Free Trade Area in 201216; they effectively started in 2016 , 
and were still ongoing in November 2019, even though  the AfC FTA officially entered into force in 
May 2019.  
Three legal instruments were presented for signature in March 2018, all of which were signed 
by Zimbabwe's Head of State: the Kigali Declaration for the Launch of the African Continental Free 
Trade Area17; the Agreement establishing the AfCFTA18; and a  separate Protocol on the Free 
Movement of P ersons, the Right of Residence and the Right of Establishment.19 These were ratified 
by Parliament in March 2019.  
The 70 -page AfCFTA  Agreement  contains a Preamble, seven pa rts and 30 articles , covering 
trade in goods  and services . Investment, intellectual property rights and competition policy  are still 
to be negotiated,  together with a Protocol on rules and procedures for dispute settlement with a 
dispute settlement body. T he Protocol on Trade in Goods provides for the gradual elimination of 
customs duties on originating20 products, with different phase -out schedules for three groups of 
countries: developing  countries;  least developed countries ( LDCs); and "G7" countries (consisting 
of Djibouti, Ethiopia, Madagascar, Malawi, Sudan, Zambia and Zimbabwe) :  
• the first category of products covers 90% of tariff lines to be phased out over 5 years 
for developing countries , and 10 years for LDCs. In November 2019, t he G7 was 
negotiati ng to eliminate tariffs over 15  years ;  
• the second category contains  "sensitive products " to be liberalized over 10 years for 
developing countries, and 13 years for LDCs and G7 countries ; and  
 
15 COMESA -EAC-SADC, The Mechanism for Reporting, Monitoring & Eliminating Non -Tariff Barriers. 
Viewed at: https://www.tradebarriers.org/about . 
16 African Union Decision of 2012, Document Assembly/AU/Dec.394(XVIII) . Viewed at 
https://au.int/sites/default/files/decisions/9649 -assembly_au_dec_391_ -_415_xviii_e.pdf . 
17 African Union, Kigali Declaration for the Launch of the African Continental Free Trade Area. Viewed at: 
https://www.tralac.org/documents/resources/african -union/1970 -kigali-declaration -for-the-launch -of-the-
afcfta -21-march -2018-1/file.html . 
18 Tralac, Agreement Establishing the African Continental Free Trade Area. Viewed at: 
https://www.tralac.org/documents/resources/african -union/1964 -agreement -establishing -the-afcfta -
consolidated -text-signed -21-march -2018-1/file.html . 
19 Tralac, Protocol to the Treaty Establishing the African Economic Community Relating to Free 
Movement of Persons, Right of Residence and Right of Establishment. Viewed at: 
https://www.tralac.org/documents/resources/african -union/1965 -protocol -to-the-abuja -treaty -free-movement -
of-persons -right-of-residence -and-establishment -adopted -29-january -2018/file.html . 
20 Annex 2 to the Agreement contains rules of origin. Viewed at: 
https://www.tralac.org/documents/resources/african -union/2163 -compiled -annexes -to-the-afcfta -agreement -
legally -scrubbed -version -signed -16-may-2018/file.html .  WT/TPR/S/39 8 • Zimbabwe  
 
- 34 - 
 
  • a third group of products will be exempt from  tariff elimination.  
As at November 2019, no tariff reductions had been implemented by Zimbabwe under this  
Agreement.  The Protocol on Trade in Services is to be aligned with the GATS , and contains a schedule 
of gradual and differentiated liberalization of certain priority services sectors: business services, 
financial services, transport services, tourism, com munication, education , and construction services. 
Countries' schedules of sector -specific market access commitments are yet to be negotiated.   
Relations with the European Union  
In the negotiations on an E PA with the E uropean Union, Zimbabwe is in the ESA n egotiating 
group, together with Madagascar, Mauritius and the Seychelles . Zimbabwe signed an Interim EPA 
with the E uropean Union in August 2009  (Table 2.3) . It has been provisionally applied by Zimbabwe 
and by the European Union since May 2012. N egotiation s for a final agreement are on going . The 
implementation period of the EU -ESA Interim EPA ends in 2022. The simple average applied tariff in 
2019 was 8.7%, compared with the 15.8% average MFN rate (Table 3.7).  
Other agreements and arrangements  
Zimbabwe has bilateral trade agreements with Botswana, Malawi, Namibia, and Mozambique; 
the agreement with South Africa was terminated in 20 November 2018 , in favour of the SADC 
Protocol on Trade.21 However, according to the authorities, bilateral agreements offer better 
preferential treatment and flexibility than the SADC. The authorities concur that, once a full -fledged 
customs union is in place for either COMESA or the SADC, the bilateral agreement s between its 
members would need to be reviewed for their relevance.  
Zimbabwe currently benefits from the Generalized System of Preferences (GSP) schemes of 
Australia; Canada; the Everything But Arms ( EBA) of the E uropean Union; Japan; the Republic of 
Korea; New Zealand; Norway; Sri Lanka; and Switzerland. Zimbabwe is not a beneficiary of the U.S. 
African Growth and Opportunity Act.22  
2.4  Investment  Regime  
Overview  
Foreign investment has been subdued  since 2011 (Section 1. 3.2), on account of the difficult 
socio-political context  and the numerous and frequently changing investment restrictions, as well as 
the numerous amendments to investment provisions . However , these restrictions have been lifted,  
as encouraging foreign investment is now a declared government priority . The Constitution 
guarantees , in principle , legal protection for all investors , irrespective of country of origin, including 
the right to private property , and, generally, prohibits expropriation without compensation .  
The Zimbabwe Investment Auth ority (ZIA) is the country's investment promotion body . It 
was incorporated in 2006 through the Z IA Act23, as a result of the merger of the former Export 
Processing Zone and the Zimbabwe Investment Centre. ZIA's objective is to attract local and foreign  
investment , and promote the transfer of skills and technology.   
Until 2018, the "indigenization" provisions, put in place in 201 2 under the Indigenisation and 
Economic Empowerment Act of 2010, required companies operating in Zimbabwe to provide an 
indigenization implementation plan for foreign -owned companies. This involved reducing foreign 
ownership to a maximum of 49% of shares o r interests, in every business with a net assets value of 
USD 500,000 or more.  Furthermore, 14 designated  sectors were entirely "reserved against foreign 
 
21 Tralac, Termination of the South Africa -Zimbabwe Trade Agreement: What next?.  Viewed at: 
https://www.tralac.org/publications/article/13524 -termination -of-the-south -africa -zimbabwe -trade -agreement -
what-next.html . 
22 AGOA, US to consider Zimbabwe's eligibility for AGOA this year. Viewed at: 
https://agoa.info/news/article/15362 -us-to-consider -zimbabwe -s-eligibility -for-agoa-this-year.html . 
23 Zimbabwe Investment Authority Act. Viewed  at: 
http://veritaszim.net/sites/veritas_d/files/Zimbabwe%20Investment%20Authority%20Act%20as%20at%201.1
.2019.pdf . ZIA. Viewed at: https://www.investzim.com .  WT/TPR/S/39 8 • Zimbabwe  
 
- 35 - 
 
  investment in favour of indigenous Zimbabweans" (Box 2.2).24 When the indigenization law was 
introduced , companies had to transition from one shareholding structure to another, over an 
unspecified period. Most of them were still  trying to find partners when the Act was repeal ed.  
Box 2.2 Sectors subject to the in digenization rule (abolished in October 2018)  
0% foreign ownership : 
1. Agriculture: primary production  of food and cash crops (removed in March 2018) ; 
2. Transportation: passenger  buses,  taxi and car hire services ; 
3. Retail and wholesale trade ; 
4. Barber  shops, hairdressing  and beauty  salons ; 
5. Employment  agencies ; 
6. Estate agencies ; 
7. Valet services ; 
8. Grain milling ; 
9. Bakeries ; 
10. Tobacco grading  and packaging ; 
11. Tobacco processing (removed in March 2018) ; 
12. Advertising  agencies ; 
13. Milk processing (removed in March 2018) ; 
14. Provision  of local arts and crafts, marketing  and distribution ; and  
15. Artisanal mining (added in March 2018) . 
49% maximum foreign ownership: all other sectors  
Source:  Veritas, SI 2013 -66 – Indigenisation Amendment No. 5 Regul ations. Viewed at: 
http://www.veritaszim.net/node/701 . 
Successive amendments were  made to this policy , in recognition of its detrimental effect on 
foreign i nvestment . In 2015, efforts were made to attract foreign investors through the Joint 
Ventures Act (Chapter 22:22) of 2015, which entered into force in May 2016  and aims to encourage 
joint venture agreements , including with foreign entities.  The Act establi shes rules for the 
public -private procurement process and for public -private partnerships (PPPs) so as to support major 
infrastructure investments in 13 specified sectors: power generation plants , and power transmission 
and distribution networks; roads and  bridges; inland ports and harbours; inland container depots 
and logistics hubs; gas and petroleum infrastructure; water supply, treatment and distribution 
systems; solid waste management works; renewable energy; educational and health care facilities; 
urban transport systems; housing; information and communication technology projects; and 
agriculture and irrigation development.25  
In January 2017 , the Government passed the Special Economic Zones  (SEZ)  Act, granting 
generous tax rebates to potential foreign investors in vesting in export -oriented and 
import -substituting sectors ( Section  3.2.4).26 The new legislation establishes the Zimbabwe SEZs 
Authority27, whose functions include establishing and assist ing SEZs; and monitoring and evaluating 
the implem entation of approved investments in SEZs.   
In December 2017, the removal of the 51%/49% indigeni zation rule was announced as an 
amendment to the Indigenization and Empowerment Act, while the Finance Act, 2018 maintained 
foreign investment restrictions on diamonds and platinum group metals .28 Finally, i n March  2019 
(pursuant to the Finance Amendment Bill, 2018) , the Government scrapped the indigenization policy , 
including in the diamond and platinum sectors  (Section 4.2.1) . These frequent pol icy changes have 
not provided  for a stable and predictable investment climate. Zimbabwe continues to fare poorly in 
 
24 S.I. 2011-34 – Indigenisation and Economic Empowerment (Amendment) Regulations, 2011  (No. 3) . 
Viewed at: http://www.veritaszim.net/node/219 . 
25 Joint Ventures Act.  Viewed at: 
http://www.veritaszim.net/sites/veritas_d/files/Joint%20Ventures%20Act.pdf . 
26 Special Economic Zones Act. Viewed at: 
http://www.veritaszim.net/sites/veritas_d/files/Special%20Economic%20Zones%20Act%20%5BCh apter%201
4-34%5D.pdf ; and S.I. 2017-059 – Customs and Excise (Special Economic Zones) (Rebate) Regulations, 2017 . 
Viewed at: http://www.veritaszim.net/node/2064 . 
27 Zimseza. Viewed at: https://www.zimseza.co.zw/incentives . 
28 Veritas, Finance (2018) Bill. Viewed at: http://www.veritaszim.net/node/2310 .  WT/TPR/S/39 8 • Zimbabwe  
 
- 36 - 
 
  the World Bank's Doing Business Index on various aspects related to starting a business, where the 
time needed to obtain a business licence places Zimbabwe in 176th position  out of 190 countries in 
2019.29  
The policy towards foreign portfolio investment was also frequently modified:  
• in October 2014, the RBZ removed restrictions on the participation of foreign investors 
in the bond mar ket. Previously, foreigners could subscribe to up to 35 % of primary 
issues of bonds , and were prohibited from making purchases on the secondary market. 
Now, they can undertake full investment in both the primary and secondary bond 
markets ;  
• in 2016, the ru le whereby a single foreign investor could not acquire more than 10% of 
a company's listed shares on the Zimbabwe Stock Exchange (ZSE) was modified, with 
the share increased to 15% ; and 
• in 2016, the RBZ authorized foreign investors to own up to 49% of most  companies 
listed on the ZSE, up from 40% previously.30   
Foreign investment procedures  
In general, foreign companies consisting of more than 20 persons and wishing to operate in 
Zimbabwe (other than under the S EZ Act, Section  3.2.4) must be registered locally under the 
Companies Act.31 A foreign company is defined as a company or other association of persons 
incorporated outside Zimbabwe which has established a place of business in Zimbabwe, irrespective 
of its ownership. In general, foreign companies are at liberty to establish subsidi aries or branches , 
or to appoint agents in Zimbabwe, with certain exceptions (e.g. banking). However , several potential 
limitations remain in the ZIA Act, whereby the MIC is authorized to: ( i) designate the sectors 
available for investment by domestic and foreign investors; ( ii) specify those sectors reserved 
exclusively for domestic investors; ( iii) prohibit the export of specified raw materials in unprocessed 
form; ( iv) prescribe the manner or the extent to which any raw materials shall be beneficiated be fore 
export; and ( v) prescribe the degree of export orientation of investment proposals submitted by 
applicants.32   
Greenfield investment procedures were facilitated in 2018 by the establishment of a One -Stop 
Investment Centre by the ZIA, under the Office of the President and Cabinet .33 The process involves 
the following steps, and could be simplified:  
• registration at the Department of Deeds, Companies and Intellectual Property34; the 
registration fee for a foreign company is USD  520, and USD 25 for a local company. 
Five possible names for the company must be proposed (form C21) . The Memorandum 
and Articles of Association must then be lodged (forms  CR14  and CR6), stating the 
company 's directors and its physical address. A Certificate of Incorporation must als o 
be obtained ;  
• application for an investment licence from the ZIA , for a  non-refundable processing fee 
of US D 500; the licence fee is USD 2,500;  
 
29 World Bank, Doing Business 2020 . Viewed at:  
https://www.doingbusiness.org/content/dam/doingBusiness/country/z/zimbabwe/ZWE.pdf . 
30 RBZ, January 2016 Monetary Policy Statement by the Reserve Bank of Zimbabwe . Viewed at : 
https://www.rbz.co.zw/documents/mps/mpsjan2016.pdf . 
31 Companies Act. Viewed at: 
http://www.veritaszim.net/sites/veritas_d/files/Companies%20Act%20%5BChapter%2024 -
03%5D%20updated.pdf . 
32 Zimbabwe Investment Authority Act. Viewed at: 
http://www.veritaszim.net/sites/veritas_d/files/Zimbabwe%20Investment%20Authority%20Act%20as%20at%
201.1.2019.pdf . 
33 ZIA, The One Stop Shop Investment Centre (OSSIC). Viewed at: 
https://www.investzim.com/education -2. 
34 Department of Deeds Companies & Intellectual Property. Private Business Corporation Act. Viewed at: 
http://www.dcip.gov.zw/index.php/companies/private -business -corporation .  WT/TPR/S/39 8 • Zimbabwe  
 
- 37 - 
 
  • with respect to residency, investors in ZIA -approved projects of over USD 1 million 
qualify for permanent residence on application.35 Those investing at least US D 300,000, 
and those investing at least USD 100,000 in a joint venture, qualify for a residence 
permit for three  years , at the end of which permanent residence may be granted ; 
• registration wit h the National Employment Council ; any foreigner wishing to take up 
employment in Zimbabwe must have a valid work permit.  Such permits are issued by 
the Department of Immigration, at its discretion, upon application by the company, 
which should provide pro of that the requisite skill cannot be sourced locally.  Spouses 
and minors may reside in Zimbabwe but not take up employment ;  
• registration with the National Social Security  Agency36; and 
• application for a tax clearance certificate and a Business Partner Num ber from t he 
Zimbabwe Revenue Authority . The requirements for the certificate are as follows: 
certified copies of company papers;  certified copies of directors ' identity documents and 
contact details;  proof of residence for every director (attach affidavit  if proof is not in 
the director 's name);  and c urrent personal bank statement of one of the directors.37  
Regarding  portfolio investment, foreign investors can purchase shares on the ZSE without 
prior exchange control approval, provided that their capital passes through normal banking channels. 
Shares purchased on behalf of a foreign investor are registered either in his/her  own name or the 
name of a nominee company. The share certificates, once registered, are endorsed as 
"Non- resident." Non -resident tax applies on royalties (15%) and dividends (10% rate for listed 
companies, 15% for unlisted companies).  
Another foreign investment issue  has been the repatriation of foreign exchange invest ed in 
the country , in the context of foreign exchange scarcity  (Table A1.1) . The Government , in principle , 
guarantees the repatriation of 100% of the original capital investment in the event of a 
disinvestmen t; and up to 100% of dividends net, after payment of tax, may be remitted. In 2019 , 
there was no available foreign exchange to honour this commitment.  To address this challenge, the 
RBZ announced that it would set up a Portfolio Investment Fund to facilita te the efficient repatriation 
of portfolio -related funds to foreign investors on the ZSE.38 However, investors who become 
permanent residents may not remit their dividends without prior approval of the RBZ.  
Local recipients of technology and /or licences fr om external partners  are permitted to pay, in 
foreign currency, royalties and licence fees in respect of these agreements. Such agreements require 
the initial approval of the RBZ. Each approval is valid for five  years , and may be renewed. The 
maximum allow ed on remittances for management, technical, and administration agreements is 
2% of net turnover; the limit for royalties is 5% of net turnover.  
International  investment agreements  
According to UNCTAD, Zimbabwe has signed a total of 33 bilateral investmen t treaties (BITs), 
plus 9 treaties with investment provisions (TIPs); 10 BITs are in force, with China, Denmark, 
Germany, Iran, Kuwait, the Netherlands, the Russian Federation, Serbia, South Africa, and 
Switzerland.39 Among the TIPs , Zimbabwe ratified the S ADC Investment Protocol in 201040, the 
Cotonou Agreement, and the COMESA, SADC and  African Union treaties (Section 2.3.2). T he 
 
35 ZIA, Immigration and Entrance Permits.  Viewed at: https://www.investzim.com/investor -
guide/immigration -and-entrance -permits . 
36 National Social Security Authority. Viewed at: https://www.nssa.org.zw/ . 
37 Company Registrati ons. Viewed at: https://www.companyregistrations.co.zw/#requirements . 
38 Transitional Stabilisation Programme, October 2018.  
39 UNCTAD maintains an exhaustive and up -to-date website th at lists all available texts and measures 
relating to investment agreements worldwide . UNCTAD , Investment Policy Hub . Viewed at: 
https://investmentpolicyhub.unctad.org/IIA/CountryBits/233 . 
40 UNCTAD, Investment Policy Hub. Viewed at: 
https://investmentpolicyhub.unctad.org/Download/TreatyFile/2730 .  WT/TPR/S/39 8 • Zimbabwe  
 
- 38 - 
 
  agreement between the United States and COMESA concerning the Development of Trade and 
Investment Relations is in force since 2001.41 
Several international agreements for the avoidance of double taxation (DTA) are in force.42 
In 2016, Zimbabwe signed a DTA  with China, and another with South Africa.43 These agreements 
contain provisions on import duties, corporate and income ta x, VAT, business tax , and the exchange 
rate regime.   
Zimbabwe is a signatory of international investment protection conventions such as the 
Multilateral Investment Guarantee Agency (MIGA ), with no active projects as at February 2019  44, 
the Overseas Private Investment Corporation (OPIL ) with  two active projects as of February 2019)45, 
the Internation al Centre  for Settlement of In vestment  Dispute (ICSID)46, the UN Convention on 
International Trade Law (UNCITRAL47), the New York Arbitration Convention on the Recognition and 
Enforcement of Foreign Arbitral Awards .
 
41 UNCTAD, Investment Policy Hub. Viewed at: 
https://investmentpolicyhub.unctad.org/Download/TreatyFile/2516 . 
42 KPMG, Zimbabwe Fiscal Guide 2017/18 . Viewed at: 
https://home.kpmg/content/dam/kpmg/za/pdf/2017/12/Zimbabwe%20Fiscal%20Guide%202017_18.pdf . 
43 Veritas,  S.I. 2016-114 - Agreement Between Zimbabwe and China for the Avoidance of Double 
Taxation . Viewed at: http://www.veritaszim.net/node/1852; and Veritas, S.I. 2016 -040 - Zimbabwe -South 
Africa Agreement for the Avoidance of Double Taxation . Viewed at: http://www.veritaszim.net/node/1660 . 
44 World Bank Group, MIGA. Viewed at: https://www.miga.org/projects . 
45 Investment Incentive Agreement between the Government of the United States of America and the 
Government of the Republic of Zimbabwe. Viewed at: 
https://www.opic.gov/sites/default/files/docs/africa/zimbabwebilateral1999.pdf . 
46 ICSID, About ICSID. Viewed at: https://icsid.worldbank.org/en/Pages/about/default.aspx . 
47 UNCITRAL, Status: UNCITRAL Model Law on Cross -Border Insolvency (1997). Viewed at : 
https://uncitr al.un.org/en/texts/insolvency/modellaw/cross -border_insolvency/status .  WT/TPR/S/39 8 • Zimbabwe  
 
- 39 - 
 
  3  TRADE POLICIES AND P RACTICES BY MEASURE  
3.1  Measures Directly Affecting  Imports  
Customs  procedures , valuation, and requirements  
3.1.1.1   Procedures  
The Zimbabwe Revenue Authority (ZIMRA), operating under the authority of the Minister of 
Finance and Economic  Development (MFED), is responsible for assessing, collecting and enforcing 
the payment of import (and export) duties ; and enforcing most import and export controls, including 
on behalf of other government ministries. ZIMRA's mandate is governed by the Revenue Authority 
Act, available on ZIMRA's website, which contains applicable legislation and regulations.1  
Anyone wishing t o import (or export) goods for commercial purposes must have obtained from 
ZIMRA a Business Partner Number2 (Section 2.4.2), and a tax clearance certificate. Commercial 
imports that are not accompanied by this certificate are taxed an additional 10% of the ir c.i.f. value 
under the Income Tax Act (Section  36c). A similar presumptive tax applies to most commercial 
transactions within Zimbabwe; all registered businesses are required to withhold 10% of any 
amounts of USD 2503 or more, that are due to a payee wi thout a valid tax clearance certificate. This 
measure has been criticized for its detrimental effects on small -scale informal entrepreneurship and 
cross-border trade.4  
Various agencies are posted at Zimbabwe's border in addition to ZIMRA, for different mi ssions. 
This has posed challenges for  the smooth movement of transit traffic, as each agent endeavours to 
satisfy his own requirements. In addition to ZIMRA, police, immigration, and state security that are 
traditionally present at the borders, other gover nment departments, intervening specifically in the 
control of imports or exports at the border posts, include the Ministry of Agriculture (Section  3.3.3); 
the Health Department (Section 3.1.7); the Environmental Management Agency (EMA), which 
regulates all  imports and transboundary movement of hazardous substances and chemicals 
(Section  3.3.3); and the Vehicle Inspection Department (fitness of vehicle and load shipped). 
Coordination among all these agencies and institutions within the customs clearance proc ess is being 
improved as part of the World Bank Doing Business Project, to reduce the need for ad hoc  inspections 
by representatives of individual departments.  
Zimbabwe ratified the WTO Trade Facilitation Agreement (TFA) in October 2018.5 Some of its 
Categ ory A commitments were notified in October 2016, and the remaining 24 measures in 
September 2019, as well as its technical assistance needs (Table 3.1).6  
Table 3.1 Notification status of TFA measures, Septemb er 2019  
Article  Notification  Measure/description  
1.1 Category B  Publication  
1.2 Category C  Information Available through Internet  
1.3 Category C  Enquiry Points  
1.4 Category B  Notification  
2.1 Category B  Opportunity to Comment and Information before Entry into Force  
2.2 Category B  Consultations  
3 Category B  Advance Rulings  
 
1 ZIMRA. Viewed at: https://www.zimra.co.zw/ . See, in particular, Register for VAT. Viewed at: 
https://www.zimra.co.zw/index.php?option=com_phocadownload&view=category&id=23:legislation&download
=640:revenue -authority -act&Itemid=1 . 
2 Proof of domesti c residence of every director of the business is required.  
3 The currency amounts referred to in this report are in US dollars, which was legal tender in Zimbabwe 
until 24 June 2019 (Section 1.2.1). However, since then, most taxes, fees and other charges l evied on 
production and trade are, in principle, payable in Zimbabwean dollars.  
4 SAIIA, A cry for recognition and protection: Zimbabwe's forgotten Informal Cross Border Traders. 
Viewed at: https://saiia.org.za/research/a -cry-for-recognition -and-protection -zimbabwes -forgotten -informal -
cross-border -traders/ . 
5 TFA Da tabas e, Rate of implementation commitments.  Viewed  at: 
https://www.tfadatabase.org/members/zimbabwe . 
6 WTO document G/TFA/N/ZWE/1, 16 September 2019.   WT/TPR/S/39 8 • Zimbabwe  
 
- 40 - 
 
 Article  Notification  Measure/description  
4 Category B  Procedures for Appeal or Review  
5.1 Category B  Notifications for Enhanced Controls or Inspections  
5.2 Category B  Detention  
5.3 Category C  Test Procedures  
6.1 Category A  General Disciplines on Fees and Charges Imposed on Importation and Exportation  
6.2 Category A  Specific Disciplines on Fees and Charges for Customs Processing  
6.3 Category B  Penalty Disciplines  
7.1 Category B  Pre-arrival Processing  
7.2 Category B  Electronic Payment  
7.3 Category A  Separation of Release from Final Determination of Customs Duties, Taxes, Fees  
7.4 Category C  Risk Management  
7.5 Category C  Post-clearance Audit  
7.6 Category C  Establishment and Publication of Average Release Times  
7.7 Category B  Trade Facilitation Measures for Authorized Operators  
7.8 Category B  Expedited Shipments  
7.9 Category C  Perishable Goods  
8 Category A Border Agency Cooperation  
9 Category A  Movement of Goods Intended for Import under Customs Control  
10.1 Category B  Formalities and Documentation Requirements  
10.2 Category B  Acceptance of Copies  
10.3 Category A  Use of International Standards  
10.4 Category C  Single Window  
10.5 Category A  Preshipment Inspection  
10.6 Category A  Use of Customs Brokers  
10.7 Category A  Common Border Procedures and Uniform Documentation Requirements  
10.8 Category A  Rejected Goods  
10.9 Category A  Temporary Admission of Goods and Inward and Outward Processing  
11 Category B  Freedom of Transit  
12 Category A  Customs Cooperation  
Source:  WTO TFA Database, Rate of implementation commitments . Viewed at 
https://www.tfadatabase.org/members/zimbabwe .  
Zimbabwe uses the Automated System for Customs Data (ASYCUDA), for customs clearance 
procedures. In 2011, ZIMRA had migrated to the latest, Internet -based version, ASYWorld, which 
automatizes most customs -related processes and improves accessibility. In 2019, all customs 
stations were using ASYWorld. The submission an d processing of commercial customs declarations 
at ZIMRA offices may be done entirely via the Internet; physical submission of original copies of 
supporting documents for agricultural permits (in original form), and of licences from the Ministry of 
Industr y and Commerce (MIC)  is still required. Therefore, the clearing agent still prints a paper copy 
of all the required documents to finalize the clearance process. According to the authorities, ZIMRA 
requires assistance in implementing Article 10.2 of the TFA  (acceptance of copies). Work is in 
progress on establishing a single window with the help of COTECNA.  
Customs declarations are processed based on risk assessment, by channelling imported goods 
into four lanes: green (ready for clearance), blue (deferred c ontrol), yellow (inspection of 
documents), and red (physical inspection). The main factors considered for the risk assessment are: 
value rulings (goods typically undervalued in declarations), country of origin, tariff peaks (goods 
subject to high rates of duty), and significant fluctuations in the quantity of the goods imported. 
Statistics on the percentage of the value of imports entering Zimbabwe under the various channels 
were not available as at September 2019, but a new ASYCUDA performance monitoring s ystem was 
being deployed by UNCTAD at ZIMRA.  
According to the authorities, the average time required for processing correct bills of entry is 
three hours. However, ZIMRA's service has, in the past, been negatively affected by intermittent 
electricity shor tages and network connectivity challenges across the country. Zimbabwe is ranks 
157th out of 190 countries for ease of trading across borders.7  
 
7 World Bank, Doing Business 2019 . Viewed at: 
http://www.doingbusiness.org/content/dam/doingBusiness/country/z/zimbabwe/ZWE.pdf .  WT/TPR/S/39 8 • Zimbabwe  
 
- 41 - 
 
  
Zimbabwe could benefit from technical assistance to simplify its documentation requirements, 
as many documents are still required in original paper form, in duplicate. Clearance of commercial 
imports valued above USD 1,000 is based on:  
• a bill of entry (generated by the system once the clearing agent registers online in 
ASYCUDA);  
• suppliers' invoices;  
• consignment notes, such as a rail advice note, air way bill or bill of lading;  
• freight statements (to assess ocean freight charges);  
• cargo manifests (shows a complete list of what is carried by the vessel);  
• the Consignment Based Conformity Assessment certificate (Section 3.3.2);  
• an export or transit declaration from the country of origin;  
• a "value declaration" (Section 3.1.1.3);  
• an invoice for port charges, to evaluate their cost;  
• originals of import permits (necessary to monitor partial shipments under import 
quotas, mainly for agricultural products and medicines);  
• licences (Section 3.1.7);  
• duty-free certificates, issued by the perma nent secretary of the relevant ministry, solely 
for government imports;  
• rebate letters from ZIMRA, to obtain duty and tax concessions applied for by importers;  
• value rulings issued by ZIMRA after consultation and research;   
• certificates of origin, to cla im preferential treatment; and  
• and a copy of the importer's tax clearance certificate, issued by ZIMRA.  
Zimbabwe phased  out preshipment inspection requirements in 1998. However, in 2015, it 
introduced a preshipment inspection and conformity assessment fo r several imported products, on 
quality grounds (Section 3.3.2).  
It is compulsory to engage the services of professional customs brokers (clearing agents) for 
imports and exports worth more than USD 1,000, unless companies have in -house clearing 
(Section  216 (A) of the Customs and Excise Act).  
The profession of customs clearing agent is governed by ZIMRA, under the Customs and 
Excise  Act. It is open to foreigners, but the company must be locally registered.  To obtain an annually 
renewable licence, applica nts must submit a certified certificate of incorporation; the national 
identity card, finger prints, and police clearance  of shareholders, directors and any employees 
authorized to act on behalf of the clearing agent; curricula vitae  of all employees (with  proof of 
customs experience); and a tax clearance certificate. Where the clearing agent intends to engage in 
imports, removal in bond, or transit, a bond of USD  250,000 must be lodged with a guarantor.8 The 
licence is issued after payment of a USD  800 lic ence fee, and must be renewed annually at a cost of 
USD 100.  
ZIMRA put in place a pre -clearance facility, which allows the importer or his agent to lodge 
all requisite documents before the arrival in Zimbabwe of the goods dispatched by rail, road or air. 
ZIMRA is in the process of implementing Article 7.1 on Pre -arrival Processing.  
Procedures are also in place for advance rulings for both tariff and tax issues; the authorities 
indicated that Zimbabwe is already implementing Article 3 of the TFA on advance rulings.  
To avoid delays at the point of entry, importers and clearing agents who have posted a 
transaction bond with ZIMRA may also opt for the imports' removal under bond. Under this option, 
 
8 World Bank, Doing Business 2019 . Viewed at: 
http://www.doingbusiness.org/content/dam/doingBusiness/country/z/zimbabwe/ZWE.pdf .  WT/TPR/S/39 8 • Zimbabwe  
 
- 42 - 
 
 the goods are moved for final clearance to an inland port; typi cally, they must be cleared within 
ten days. Zimbabwe notified conformity with Article 7.3 of the TFA regarding the separation of the 
merchandise's release from the final payment of duties and taxes.  
According to the Auditor General's 2017 report, ZIMRA ma y grant "report orders" to importers 
for clearance of imported goods within seven days. A report order is a deferred clearance that allows 
the movement of urgent goods to the client. At end -2017, some report orders that were given to 
clients for clearing g oods at an inland port had not yet been acquitted, and some date back to 2013. 
As at 31  December  2017, the total value of goods imported under report orders that were not yet 
acquitted reached nearly USD 63 million.  
Under the dispute settlement procedures  in place, importers may appeal through the 
administrative channel (station supervisor, manager, regional manager, or Commissioner in charge 
of ZIMRA) or approach the fiscal courts directly. Most dispute cases concern customs valuation, 
notably of second -hand vehicles. Financial penalties for most violations range from USD 100 to 
USD 5,000, or three times the duty -paid value, whichever is greater; certain cases are liable to 
criminal charges, with prison sentences of at least one year.  
Imported goods may b e stored in a state -owned warehouse until customs duty obligations 
are settled; the applicable storage fees are determined according to the weight or the nature of the 
goods: motor vehicles (USD 10/day/vehicle), goods under 500 kg (USD  2/day), and goods ab ove 
500 kg (USD 4/day).  
Goods may also be imported into one of Zimbabwe's 100 licensed private bonded warehouses 
for up to two years, without paying duties on the goods (Section 68 to 71 of the Customs and 
Excise   Act). During that period, the importer ca n sell the goods directly from the warehouse and, 
upon payment of the relevant duties and taxes (related to commercial importation for domestic 
consumption), obtain the release of the quantities sold.   
Temporary imports can be cleared by payment of a depos it, which is refundable on export, or 
by an application for temporary importation privileges, which are guaranteed by a bank or an 
insurance company (Section 124 of the Customs Act). Zimbabwe notified conformity with 
Article  10.9 of the TFA on Temporary Ad mission of Goods and Inward and Outward Processing 
(Table  3.1). Vehicles that enter the country temporarily are given Temporary Import Permits. 
According to the Auditor General 2017 Report, as at 31 December 2017, there were 
20,394  electronic permits that had not been acquitted even though they had expired. Some of the 
entries date back to 2013.9  
3.1.1.2   Goods in transit  
Zimbabwe is a landlocked country that shares borders with four countries: Mozambique, 
South Africa, Botswana and Zambia. Because of its strategic  location, Zimbabwe has a critical role 
to play in the facilitation of regional transit traffic. One of the region's busiest and biggest border 
posts, Beitbridge, is at the border with South  Africa. A project to upgrade and modernize Beitbridge 
border post was underway in 2019, at an estimated cost of USD  241 million, implemented by 
Zimborders, a consortium of local and international investors, based on a Build Operate and Transfer 
model.  
According to the Auditor General 2017 Report, Removal in Transit (regional consignments) 
entries at ports exceeding USD 40 million had not been acquitted as at 31  December 2017. Some 
of the entries date back to 2013. For instance, Beitbridge border post had t ransit entries that had 
not yet been acquitted as at 31 December 2017 exceeding USD  10 million. The bulk of Beitbridge 
outstanding transit entries were a result of duplication of clearing agents by transporters; according 
to the authorities, the duplicated  clearances were cancelled. ZIMRA is moving towards automation 
of manifests to ensure the same goods are not cleared twice.  
Both the SADC and the COMESA adopted regional transit schemes (see below). To date, these 
have not been implemented in Zimbabwe, but the authorities indicated that Zimbabwe facilitates 
transit cargo in line with Article 11 of the TFA. Zimbabwe uses a natio nal ASYCUDA -based transit 
 
9 Report of the Auditor General for the year ending 2017.   WT/TPR/S/39 8 • Zimbabwe  
 
- 43 - 
 
  module, whereby a transit declaration lodged at the port of entry (airport or border post) is 
automatically posted to the exit office before the truck arrives. When the truck arrives at the exit 
office, Customs extracts the detail s of the consignment, checks if the goods and seals are intact, 
acquits the entry in the system, and releases the truck.  
Zimbabwe is on the draw -down bond system, whereby the acquittal of the document 
reinstates the bond amount held in the commencement po rt (Section 83 of Customs and Excise Act). 
Goods in transit through Zimbabwe must have security coverage for the full amount of customs duty 
at stake; this requirement is fulfilled either through a cash deposit or through a clearing agent who 
has a bond wi th ZIMRA. Goods released from Customs under the transit regime are expected to exit 
Zimbabwe within three days; the bill of entry is acquitted electronically at the point of exit. The 
system also then terminates the transit operation, and informs the comme ncement office 
electronically. Failure to meet this deadline results in a late acquittal fine of USD 400 upon clearing 
the goods for exit; if the bill of entry remains outstanding in the system, the goods are presumed to 
have been consumed locally, and the  relevant security deposit or bond is forfeited.  
To further strengthen tracking of goods, Zimbabwe also introduced non -intrusive scanning 
equipment of goods in transit. This cuts down on delays caused by the physical examination of 
goods. ZIMRA also intro duced electronic cargo sealing of transit goods.  
The adoption of a single regional administrative transit document would facilitate effective 
management of transit traffic. The adoption of a single, preferably nominal, bond would also help. 
In 2019, despi te COMESA and SADC provisions on transit traffic, most of the countries that belong 
to these regional groupings, Zimbabwe included, have their own national transit systems, with 
differing bond requirements, and different documentation which different count ries require for transit 
operations, procedures and regulations. The various requirements in the management of transit 
traffic, together with multiple border agencies, negatively impact on transit procedures.  
3.1.1.3   Customs v aluation  
Zimbabwe's customs valuation  rules are contained in Part X of the Customs and Excise Act. 
The dutiable value of imports is the sum of the purchase cost plus all expenses incurred for insurance 
and freight up to the point of entry into Zimbabwe. In the absence of proof of insurance an d freight 
charges, an estimate of the cost of insurance is calculated by ZIMRA in the following way10: for 
goods imported by air, the cost of freight and insurance is estimated at 15% of the f.o.b. value of 
the goods; the corresponding percentage is 1% for imports other than by air, and 5% -7.5% for 
imports "loaded into the importer's means of transport". In principle, the primary method of 
valuation of the purchase cost is the transaction value of the imported goods as stated on the invoice. 
According to the  authorities, when necessary, recourse to alternative methods follows the hierarchy 
set out in the WTO Customs Valuation Agreement. A declaration of value is required for all imports 
that are subject to the payment of duty and whose total value for duty pu rposes exceeds USD 100 
in respect of each complete consignment. The value declaration is a means to obtain additional 
details on the transaction beyond those provided on the invoice, such as the relationship between 
the buyer and the seller.  
Rules of origi n 
Zimbabwe notified its non -preferential rules of origin to the WTO Committee on Rules  of Origin  
in 2012, based on the Customs and Excise Act. The Act provides that the country of origin of any 
manufactured goods is the country in which the last process of  manufacture was performed. Most 
imports receive most -favoured -nation (MFN)  treatment, and few importers effectively clear imports 
through one of Zimbabwe's preferential tariff regimes, each with its own set of rules of origin 
(Table  3.2). According to the  authorities, this may reflect stringent rules of origin requirements, 
particularly under the SADC; a larger amount of imports from the COMESA enters under COMESA 
preferential rates, reportedly because COMESA rules are not as stringent.  
 
10 ZIMRA, Customs Act Section 113 (2)c. Viewed at: https://www.zimra.co.zw/downloads/category/17 -
acts?download=166:customs -and-excise -act-chapter -23-02-updated .  WT/TPR/S/39 8 • Zimbabwe  
 
- 44 - 
 
 Table 3.2 Rules of origin under trade agreements, September 2019  
Agreement  Provision  Link to official website containing 
the rule of origin  
WTO Last country of transformation  https://www.wto.org/english/tratop_e/r
oi_e/roi_e.htm . 
COMESA  Either change of tariff classification criteria, or 
regional value content criteria. Cumulation 
possible among Parties  http://www.trade.go.ke/sites/default/file
s/COMESA_Protocol -on-Rules -of-Origin -
2015_0.pdf .  
SADC  Non-originating materials incorporated in the 
product must have undergone "sufficient 
working or processing" in accordance with the 
conditions set out in Appendix I of Annex I; or 
the value of all non -originating materials must 
not exceed 10% of the ex -works price of the 
good. There is no regime -wide rule of origin but 
Appendix  I of Annex  I lists the specific criteria 
(mostly with respect to HS tariff headings (at 
various levels)) that non -originating materials 
must meet for a final good to acquire 
originat ing status  https://www.mcci.org/media/1285/sadc
_protocol_annex_i.pdf . 
Botswana  Minimum local -content threshold of 25%  https://www.tradezimbabwe.com/wp -
content/uploads/2016/03/Stautory -
Instrument -192-of-1988-Zimbabwe -
Botswana.pdf .  
Malawi  https://www.tradezimbabwe.com/wp -
content/uploads/2016/03/Statutory -
Instrument -103-of-1995-Zimbabwe -
Malawi -1.pdf.  
Mozambique  https://www.tradezimbabwe.com/wp -
content/uploads/2016/03/Statutory -
Instrument -33-of-2005-Zimbabwe -
Mozambique.pdf .  
Namibia  https://www.tradezimbabwe.com/wp -
content/uploads/2016/03/Statutory -
Instrument -156A-of-1993-Zimbabwe -
Namibia.pdf .  
EU (EPA)   https://eur -lex.europa.eu/legal -
content/EN/TXT/PDF/?uri=CELEX:22016
A0916(01)&from=GA .  
Source:  WTO Secretariat, based on information provided by the authorities.  
Tariffs  
A consolidated version of Zimbabwe's Customs Tariff (including preferential rates and duty 
rebates, but not duty suspensions) is available at the WTO's Tariff Analysis Online Websi te.11  
3.1.3.1   Applied  MFN tariffs  
Zimbabwe grants at  least MFN treatment to all its trading partners, including those that are 
not WTO Members. Its 2019 applied MFN customs tariff is based on the HS  2017 version of the 
Harmonized Commodity Description and Coding S ystem (HS), and comprises 6,380 lines at the 
eight-digit level. Zimbabwe's simple average applied MFN tariff increased from 15.4% in 2011 to 
15.8% in 2019 (Table 3.3). In November 2018, a new statutory instrument listed a large array of 
food, beverages, co nsumer goods and vehicles whose import duties are to be paid exclusively in 
foreign currencies.12 Beverages, spirits and tobacco are the most protected sectors (Table 3. 4).  
 
11 WTO, Tariff Analysis Online . Viewed at: http://tao.wto.org/ . 
12 Veritas, SI 2018 -252A Customs and Excise (Designation of Foreign Currency Dutiable Goods) Notice, 
2018. Viewed at: http://www.veritaszim.net/node/3 342.  WT/TPR/S/39 8 • Zimbabwe  
 
- 45 - 
 
  Table 3.3 Structure of applied MFN tariffs, 2011 and 2019  
(%) 
  
  MFN applied  Bound tariffc 
2011a 2019b  
1. Bound tariff lines (% of all tariff lines)  n.a. n.a. 24.7 
2. Simple average tariff rate  15.4 15.8  82.7 
        Agricultural products (WTO def.)  
        Non-agricultural products (WTO def.)  
        Agriculture, hunting, forestry and fishing (ISIC 1)  
        Mining and quarrying (ISIC 2)  
        Manufacturing (ISIC 3)  25.1 25.1  144.1  
13.9 14.3  10.1 
17.3 16.7  113.5  
5.9 5.7  Unbound  
15.4 15.9  72.6 
3. Duty-free tariff lines (% of all tariff lines)  9.9 11.1 3.3 
4. WTO tariff quotas (% of all tariff lines)  0.0 0.0 0.0 
5. Non-ad valorem  tariffs (% of all tariff lines)  6.1 8.4 0.8 
6. Domestic tariff "peaks" (% of all tariff lines)d 1.6 1.4 0.0 
7. International tariff "peaks" (% of all tariff lines)e 30.4 30.4 15.3 
8. Overall standard deviation of applied rates  15.8 16.2 70.6 
9. Coefficient of variation  1.0 1.0 0.9 
10. "Nuisance" applied rates (% of all tariff lines)f 0.2 0.0 0.0 
n.a. Not applicable.  
a The 2011 tariff is based on the HS07 nomenclature, consisting of 5,932 tariff lines (at the 8 -digit 
tariff line level).  In the case of non -ad valorem  rates, the ad valorem  part is used for compound 
rates.  
b The 2019 tariff is based on the HS17 nomenclature, consisting of 6,380 tariff lines (at the 8 -digit 
tariff line level). In the case of non -ad valorem  rates, the ad valorem  part is used for compound and 
mixed rates.  
c Final bound rates are taken from the Consolidated Tariff Schedules (CTS) database. The final bound 
schedule is based on the HS12 nomenclature at the 8 -digit level (except for 1.8% of total tariff lines 
are coded  at the 9 -11digit level). In the case of compound and mixed rates, the ad valorem  part is 
used as the estimator.  
d Domestic tariff peaks are defined as those exceeding three times the overall simple average.  
e International tariff peaks are defined as thos e exceeding 15%.  
f Nuisance rates are those greater than zero, but less than or equal to 2%.  
Source:  WTO Secretariat calculations, based on data provided by the authorities; and the WTO CTS 
database.  
Table 3.4 Applied MFN tariff summary, 2019  
 
Number 
of lines  Simple 
average 
(%) Tariff range  
(%) CVa Share of 
duty-free 
lines  
(%) Share of 
non-ad 
valorem  
tariffs  
(%) 
Total  6,380  15.8 0-100 1.0 11.1 8.4 
HS 01 -24 1,320  22.7 0-100 1.0 19.6 7.7 
HS 25 -97 5,060  14.0 0-65 1.0 8.9 8.6 
By WTO category  
WTO agricultural products  924 25.1 0-100 0.9 8.8 10.4 
Animals and products thereof  115 29.6 0-40 0.5 9.6 24.3 
Dairy products  29 28.9 0-40 0.5 3.4 34.5 
Fruit, vegetables, and plants  226 27.7 0-40 0.6 4.0 0.4 
Coffee, tea, and cocoa and cocoa 
preparations  24 32.7 5-40 0.4 0.0 0.0 
Cereals and preparations  108 20.7 0-40 0.7 11.1 10.2 
Oil seeds, fats, oil s and their 
products  99 13.8 5-40 0.9 0.0 12.1 
Sugars and confectionary  18 12.5 0-40 0.8 5.6 33.3 
Beverages, spirits and tobacco  143 49.3 0-100 0.8 22.4 19.6 
Cotton  9 3.3 0-5 0.7 33.3 0.0 
Other agricultural products, n.e.s.  153 9.6 0-40 1.0 7.8 0.0  WT/TPR/S/39 8 • Zimbabwe  
 
- 46 - 
 
  
Number 
of lines  Simple 
average 
(%) Tariff range  
(%) CVa Share of 
duty-free 
lines  
(%) Share of 
non-ad 
valorem  
tariffs  
(%) 
WTO non -agricultural products  5456  14.3 0-65 1.0 11.5 8.1 
Fish and fishery products  473 15.5 0-40 1.1 38.3 1.1 
Minerals and metals  988 13.7 0-65 0.9 0.7 0.4 
Chemicals and photographic 
supplies  1,014  7.6 0-40 1.1 6.7 0.9 
Wood, pulp, paper and furniture  344 17.3 0-40 0.9 2.3 5.5 
Textiles  678 17.4 5-40 0.8 0.0 20.4 
Clothing  232 39.1 10-40 0.1 0.0 99.1 
Leather, rubber, footwear and travel 
goods  180 19.7 0-60 0.7 0.6 18.9 
Non-electric machinery  584 6.6 0-65 1.7 42.8 0.2 
Electric machinery  292 13.7 0-60 1.0 16.4 0.0 
Transport equipment  205 17.0 0-60 0.9 11.7 0.0 
Non-agricultural products, n.e.s.  440 16.4 0-60 0.8 8.0 0.2 
Petroleum  26 13.5 0-45 1.0 26.9 0.0 
By ISIC sectorb       
ISIC 1 - Agriculture, hunting and 
fishing  515 16.7 0-100 1.2 24.7 0.6 
ISIC 2 - Mining and quarrying  98 5.7 0-15 0.4 2.0 0.0 
ISIC 3 - Manufacturing  5,766  15.9 0-100 1.0 10.1 9.3 
By stage of processing        
First stage of processing  880 13.3 0-100 1.2 17.5 0.9 
Semi-processed products  2,036  9.8 0-40 0.9 4.5 5.4 
Fully processed products  3,464  20.0 0-100 0.9 13.4 12.1 
a Coefficient of variation.  
b International Standard Industrial Classification (Rev.2). Electricity, gas and water are excluded 
(1 tariff line).  
Note:  The 2019 tariff is based on the HS17 nomenclature, consisting of 6,380 tariff lines (at the 8 -digit 
tariff line level). In the case of non -ad valorem  duties, the ad valorem  part is used for compound 
and mixed rates.  
Source:  WTO Secretariat calculations based on data provided by the authorities.  
Overall, the 2019 Customs Tariff depicts negative escalation on s emi-processed products, 
which are, on average, subject to a lower average applied rate (9.8%) than raw materials (13.3%), 
whereas fully processed products attract the highest average applied rate, resulting in positive tariff 
escalation (Table 3. 4). Thus, the tariff structure may not be conducive to diversification of economic 
activities through value addition at the semi -processed stage, explaining importers' requests for 
duty and tax concessions granted under numerous schemes (see below). However, such co ncessions 
modify the tariff structure, and may result in positive tariff escalation and, thereby, may increase 
the effective protection of selected activities and companies (Section 3.1.6). Furthermore, the high 
tariff protection of finished products does not foster international competitiveness in these goods.  
When ad valorem  equivalents (AVEs) of non -ad valorem  tariff rates are taken into account, 
the simple average applied MFN tariff in 2019 reaches 18.2% instead of 15.8%. Indeed, the number 
of customs d uties expressed in specific monetary amounts per unit of product (e.g. USD 2.5 per kg 
instead of an ad valorem  percentage) increased over the 2011 -19 period (Table  3.5). Some 8.4% 
of all tariff lines in 2019 have non -ad valorem  rates, compared to 6.1% in 2 011: these are either 
specific (31  lines), compound (434  lines) or alternate/mixed (72 lines)  rates. Most non -ad valorem  
duties apply to imports of food products, alcoholic beverages, tobacco, apparel, and footwear. 
Specific duties lead to volatility in th e level of protection when prices (including the exchange rates) 
vary, and their AVEs can reach very high levels (Table  3.5). For example, applied tariffs on mosquito 
nets are 40%, plus a specific import duty of USD 5 per kg, resulting in an AVE of nearly 200% 
(2018).   WT/TPR/S/39 8 • Zimbabwe  
 
- 47 - 
 
  Table 3.5 Examples of non ad valorem tariffs  
Tariff 
line Product description  2019 duty rates 
as reported 
(USD/kg)  2018 unit 
price 
(USD/kg)  2017 unit 
price 
(USD/kg)  AVE 
2018 
(%) AVE 
2017 
(%) 
36050000  Matches  0.02 2.6 2.6 0.8 0.8 
40121190  Retreaded tyres  2.50 1.3 95.2 192.7  2.6 
40121290  Retreaded tyres other than 
solid  2.50 0.9 .. 283 .. 
40122090  Used pneumatic tyres  2.50 1.2 6.3 206.5  39.8 
49029090  Newspapers, journals, etc  0.50 3 3.6 16.8 14 
63090000  Worn clothing and articles  5.00 1.4 2.4 359.1  204.5  
73144100  Other cloth plated with 
zinc 0.25 1.2 1.1 21.7 22.8 
84329010  Plough beams  5.00 28.9 9.6 17.3 52.2 
02061000  Of bovine animals, fresh or 
chilled  40% or  USD 
1.50/kg, whichever 
is higher  .. .. .. .. 
02071490  Of fowls of the species 
Gallus domesticus ; cuts 
and offal, frozen; other 
than mechanically 
deboned meat  40% or  USD 
1.50/kg, whichever 
is higher  17.3 .. 40.0 .. 
04022199  Milk and cream, not 
sweetened  USD 2.50/kg  2.9 3.6 86.4 69.7 
22085019  Gin, other than wholly 
distilled in Zimbabwe  USD 5.00/litre or  
USD 10.00/litre of 
absolute alcohol, 
whichever is higher  .. .. .. .. 
63042000  Mosquito nets  40% +  
USD 5.00/kg  3.2 .. 195.5  .. 
.. Not available.  
Source:  Compiled by the WTO Secretariat, based on data provided by the authorities.  
3.1.3.2   WTO tariff bindings  
Zimbabwe's tariff bindings cover 1,365 tariff lines at the HS eight -digit level (except for 1.8% 
of total tariff lines coded at the nine -eleven -digit l evel, of which 94 are partially bound). Tariffs on 
all agricultural products were bound in the Uruguay Round, at a ceiling rate of 150%, with exceptions 
for 54 lines at 0%, 5%, 10%, 20%, 25%, and 0.1 c per kg.13 Only 12.8% of non -agricultural products 
are bound, mainly at rates of 0%, 5% and 7.5%, with a few ranging up to 150%. In total, less than 
a quarter of Zimbabwe's tariff lines are bound. The average bound tariff rate is 82.7%, considerably 
higher than the average applied MFN rate (15.8%). This, and the low coverage of bindings for 
non-agricultural products, does not ensure predictability of the tariff regime, since it leaves large 
margins for autonomous increases of the applied rates.  
The applied rates exce ed the corresponding bound levels (in some cases by as much as 
60 percentage points) on 61 tariff lines (Table 3.6); another 64 lines carry non -ad valorem  rates 
that could potentially exceed their ad valorem  bindings if import prices fall.  
Table 3.6 Tariff lines where applied MFN rates exceed bound rates  
Tariff codes (Production description at the HS 4 -digit level)  2019 applied MFN 
rates  Bound rates  
Fish, fresh or frozen, fillets, dried, smoked , etc.  
03021310 – 03039200 (18 lines), except:  40 0 
03027100, 03032300, 03035500  40% or USD 1.50/kg  0 
03044100 – 03049500 (23 lines)  10 0 
03053210, 03054110  40 0 
03076000  40 7.5 
Aquatic invertebrates 03089000  20 0 or 7.5  
Crustaceans, molluscs and other, prepared  16052900  40 7.5 
Essential oils 33019010  40 25 
Other plates, etc.  of plastics 39207100  15 10 
Retreaded or used pneumatic tyres of rubber   
  
 
13 This particular specific duty predates the Uruguay Round; there is no indication of the currency.   WT/TPR/S/39 8 • Zimbabwe  
 
- 48 - 
 
 Tariff codes (Production description at the HS 4 -digit level)  2019 applied MFN 
rates  Bound rates  
40121110  25 5 
40121210 – 40122010 (3 lines)  15 5 
Builders' wood carpentry 44182000 – 44187900 (8 lines)  40 15 
Other paper, paperboard, cellulose , etc 48239090  40 10 
Cotton, not carded or combed  52010019, 52010099  5 0 
Other knitted/crocheted fabrics 60063200 – 60064400 (6  lines)  40% + USD 2.50/kg  25 
Railway or tramway track construction material 73029000  20 5 
Interchangeable hand tools 82074010 – 82078010 (4 lines)  15 5 
Pumps for liquids, air or vacuum pumps  84139100, 84148090  10 5 
Agricultural machinery 84322110 – 84322950 (7 lines)  10 5 
Tools with self -contained motor s 84672100 – 84672900 (3 
lines)  15 5 
Calculating machines , etc. 84701000  25 22.5 
Telephone sets, including for cellular networks 85176900  10 0 
Reception apparatus for radio -broadcasting    
85271200  60 0 
85272100 – 85279900 (6 lines)  40 0 
Monitors and projectors, etc . 85287100 – 85287300 (3 lines)  40 0 
Parts and accessories of motor vehicles    
87082930, 87082940  40 5 
87082990 – 87089500 (6 lines)  10 5 
Tricycles, scooters, pedal cars , etc. 95030000  40 30 
Note:  A full comparison between MFN applied and bound rates was not possible; some 1.4% of tariff lines 
could not be compared, mainly due to changes in the HS nomenclature and in the structure of the 
tariff schedule.  
Source:  WTO Secretariat calculations, based on data provided by the authorities; and the CTS database.  
3.1.3.3   Tariff preferences  
The preferential  tariffs (simple averages) for Zimbabwe's main preferential trading groups are 
presented in Table 3.7 .Duty-free treatment is available for all goods imported  from the COMESA and 
Botswana, Malawi, and Namibia. In contrast, under the SADC for countries othe r than South Africa, 
tariffs are close to zero  on all imports except transport equipment. Under  the agreement with 
Mozambique, most tariffs are also close to zero – and could advantageously be eliminated - except 
for beverages, sugars and confectionary, an d transport equipment. Under the interim EPA with the 
European Union, Zimbabwe's  highest (average) tariffs are 39.0% and 32.3%, respectively, on 
clothing and beverages (including spirits ), and tobacco, and 21.9% on dairy products.  
Table 3.7 Preferential tariffs (average), 2019  
 Applied 
MFN  Interim 
EPA Mozambique  SADC   Memo: 
RSA rate  
bilateral 
(until Nov 
2018)  South 
Africa  Other  
Total  15.8 8.7 0.6 2.7 0.4 11.6 
HS 01 -24 22.7 8.1 1.0 4.6 0.2 10.5 
HS 25 -97 14.0 8.8 0.4 2.2 0.4 11.8 
By WTO category  
WTO agricultural products  25.1 9.7 1.4 6.3 0.3 13.3 
Animals and products thereof  29.6 1.9 0 8.4 1.4 2.4 
Dairy products  28.9 21.9 0 7.7 1.0 0 
Fruit, vegetables, and plants  27.7 4.1 0 5.2 0.1 13.8 
Coffee, tea, cocoa and 
preparations  32.7 18.2 0 4.6 0 32.1 
Cereals and preparations  20.7 9.2 0 7.5 0.3 12.0 
Oil seeds, fats, oils and products  13.8 8.4 0 6.8 0 4.7 
Sugars and confectionary  12.5 9.5 5.3 6.7 0 12.5 
Beverages, spirits and tobacco  49.3 32.3 8.4 11.8 0 39.3 
Cotton  3.3 3.3 0 0 0 3.3 
Other agricultural products, n.e.s.  9.6 3.7 0 0.3 0 6.2 
WTO non -agricultural 
products  14.3 8.5 0.4 2.1 0.4 11.3 
Fish and fishery products  15.5 4.3 0 0.7 0.0 4.6  WT/TPR/S/39 8 • Zimbabwe  
 
- 49 - 
 
   Applied 
MFN  Interim 
EPA Mozambique  SADC   Memo: 
RSA rate  
bilateral 
(until Nov 
2018)  South 
Africa  Other  
Minerals and metals  13.7 8.0 0 1.7 0.1 10.7 
Chemicals and photographic 
supplies  7.6 6.0 0 1.1 0 7.4 
Wood, pulp, paper and furniture  17.3 8.6 0 4.7 0 13.6 
Textiles  17.4 11.6 0 1.9 0 14.1 
Clothing  39.1 39.0 0 0 0 34.2 
Leather, rubber, footwear, etc.  19.7 13.9 0 1.3 0 16.3 
Non-electric machinery  6.6 1.2 0 1.1 0 6.0 
Electric machinery  13.7 4.7 0 3.3 0 11.9 
Transport equipment  17.0 11.2 9.8 12.1 9.3 15.2 
Non-agricultural products, n.e.s.  16.4 7.6 0.5 2.5 0 13.1 
Petroleum  13.5 10.1 0 2.5 3.3 13.5 
Note:  The 2019 tariff is based on the HS17 nomenclature, consisting of 6,380 tariff lines (at the 8 -digit 
tariff line level). In the case of non -ad valorem  duties, the ad valorem  part is used for compound 
and mixed rates.  
Source:  WTO Secretariat calculations, based on d ata provided by the authorities.  
Zimbabwe had a dual tariff regime vis-à-vis its main trading partner, South Africa, until the 
termination of the bilateral agreement in November 2018 (Section 2.3.2). Until then, importers 
wishing to procure goods originati ng in South Africa could either claim a bilateral agreement with 
South Africa, with tariffs averaging 11.6%, or the SADC preferential tariff that is specific to 
South  Africa and which averages a much lower 2.7% (Table 3.7). However, on some 297 tariff line s, 
the bilateral tariff was lower that the SADC -South Africa tariff. This was made even more complicated 
by the fact that, on 370 lines, importers could import duty -free from South Africa under the bilateral 
agreement provided they were granted an import l icence. (Those tariff codes were specifically 
assigned as Free Under Licence (FUL) in Zimbabwe's tariff schedule. FUL imports were subject to a 
quota, set and administered by the Ministry of Lands, Agriculture, Water, Climate and Rural 
Resettlement. Beyond  the FUL "quota", the duty reverted to the MFN rate if the imports were not 
suspended altogether.  
Other duties and charges   
Other duties and charges (ODCs) on those national tariff lines that were bound by Zimbabwe 
under the GATT are bound at 15%, thereby  allowing Zimbabwe to levy ODCs up to a level of 15%  in 
addition to the bound tariff itself.  
• a surtax is levied at the general rate of 25% on imports from all countries including 
COMESA and SADC members (except, in principle, on goods entered under the bi lateral 
agreements with Botswana, Malawi and Namibia) on numerous meat and dairy 
products, vegetables, and food preparations; beer not produced in Zimbabwe; cider, 
pet food; tobacco; body products; food containers, cleaning products; candles; certain 
footw ear; and freezers and refrigerators, ovens, and second -hand motor vehicles The 
surtax list was modified in 2014 to add cement and wooden furniture, among other 
products14;  
• a COMESA surtax was levied in 2011 on certain imports at either 
2% (1,078  HS eight- digit lines) or 1% (69 HS eight -digit lines). According to the 
authorities, the rationale for the surtax is twofold: to protect local industry from goods 
originating from the other COMESA countries; and to generate fiscal revenue; but its 
overall impact wo uld be rather modest in comparison to its administration cost;  
• a trade development surcharge of 0.1% is levied on the f.o.b. value of imported and 
exported goods for the purpose of financing the trade development organization 
ZimTrade (70% of proceeds) and  the Competition and Tariff Commission (30%). 
Products exempt from the surcharge include gold and articles thereof, currency, 
 
14 Customs and Excise (Surtax Tariff) Notice, 2012, Statutory Instrument 12 of 2012 . Viewed at: 
https://www.zimra.co.zw/news/721:changes -to-the-surtax -list.  WT/TPR/S/39 8 • Zimbabwe  
 
- 50 - 
 
 electricity, petroleum fuels and oils; any mineral exports involving the Minerals 
Marketing Corporation of Zimbabwe; essential foo d items imported under suspension of 
customs duties; and any goods imported under a "no currency involved" transaction, 
with payment effected outside Zimbabwe. The surcharge is collected by authorized 
dealers (mostly banks) at the time of the trade -related  currency exchange transaction 
and remitted to the beneficiary trade development organization; and  
• imports of fuel are subject to a strategic reserve levy, a debt redemption levy, and a 
carbon tax (Section  4.2.3).  
Internal  taxes  
VAT of 15% is levied on th e supply of goods and services, including on their importation.15 
VAT on imports is levied on the c.i.f. value plus customs duties. Exempt essential necessities include: 
medical and educational services; rentals from residential properties; transport of far e-paying 
passengers; water and electricity for domestic use; and fuel. Some supplies are zero -rated, and are 
thus eligible for a VAT refund on inputs. These supplies include: basic foodstuffs and clothing 
(e.g. mielie meal, sugar, milk, meat, salt, and bre ad); agricultural inputs (e.g. fertilizer, seeds, 
pesticides, animal feed, animal remedy, plants, and tractors); "fiscal memory devices" (see below);  
and exported goods (except un -beneficiated chrome) and services.  
Since 2010, the share of VAT on domestic  goods in total government revenue has increased 
(from 20% to 23% in 2018), while the share accounted for by VAT on imports fell from 16% to 
10% (Table 1.4).  This shift could reflect  efforts by ZIMRA to improve the collection of domestic VAT 
proceeds by tr acking taxable transactions: new electronic registers with a memory device were made 
compulsory for businesses with an annual turnover above USD 240,000, to minimize tax fraud. Any 
device not interfaced with ZIMRA leads to a fine of USD 25 per day. Since O ctober 2018, Zimbabwe 
levies the Intermediated Money Transfer Tax on electronic money transfers (Section 1.2.2 ). 
Zimbabwe levies excise duties on a range of products (Table 3. 8). New products have been 
made subject to excise duties, such as "diesel importe d designated fuel service stations for sale in 
foreign currency"; the rates for petrol and diesel were set in 2019 on an ad valorem  c.i.f. basis, at 
45% and 40% per litre, respectively. Rates for cigarettes were set at USD 50 per 1,000 sticks plus 
20% of t he ex -factory price. The excise duty was waived for imports of "raw" wine (175,000 l). 
However, the fact that the rates are levied in local Zimbabwean dollars may translate into substantial 
revenue losses in case of further inflation . 
Table 3.8 Excise taxes , 2017 and 2019  
Commodity 
code corrected  Description of goods  Rate of duty 
2017  Rate of duty 
2019  
2106.90.10  Opaque beer powder  USD 0.05/kg  ZWL 0.50/kg  
2201.10.11  Water in closed bottles or other containers, 
ready for drinking  25% 25% 
2203.00.11  Beer containing not less than 2 g (dry weight) of 
mashper 100 ml  0% 0% 
2203.00.19  Other beer  0% 0% 
2203.00.91  Clear beer made from sorghum, wholly produced 
in Zimbabwe  15% 15% 
2203.00.99  Other  40% 40% 
2204a Wine USD 0.50/L  ZWL 4.00/L  
2205b Other wine  USD 0.40/L  ZWL 3.50/L  
2206.00.10 -30 Cider, perry, mead  USD 0.36/L  ZWL 3.00/L  
2206.00.41 -9 Opaque beer  10% 10% 
2206c Sparkling wine  USD 0.40/L  ZWL 3.50/L  
2207.10.10  Ethyl alcohol  USD 0.05/L  USD 0.05/L  
2207.10 90 -99 Other alcohol  15% 15% 
2208.20.11 -9 Alcohol containing <33 ⅓% of imported spirit  USD 5.00/ litre 
of absolute 
alcohol  (LAA)  30% + ZWL 
10.00/LAA  
2208.20.90  Other alcohol  40% 40% 
2208.30.10, 90  
2208.40.11 -90 Rum  USD 5.00/LAA  30% + ZWL 
10.00/LAA  
 
15 ZIMRA, viewed at: https://www.zimra.co.zw/d omestic -taxes/vat/mechanics -of-vat.  WT/TPR/S/39 8 • Zimbabwe  
 
- 51 - 
 
  Commodity 
code corrected  Description of goods  Rate of duty 
2017  Rate of duty 
2019  
2208.40.90  
2208.50.11 -19 Tafia USD 5.00/LAA  USD 5.00/LAA  
2208.50.90  Geneva  USD 5.00/LAA  USD 5.00/LAA  
2208d  Vodka and other  USD 5.00/LAA  30% + ZWL 
10.00/LAA  
2401.30.10  Tobacco refuse  60% 60% 
2402e Cigars, cigarettes  USD 20.00 per 
1,000 
cigarettes  20% + ZWL 50.00 
per 1,000 
cigarettes  
2402.90.10 -20 Cigars, cigarettes not containing tobacco  USD 20.00 per 
1,000 
cigarettes  USD 20.00 per 
1,000 cigarettes  
2403f  Tobacco  60% 60% 
2707.10.00  Benzol (benzene)  USD 0.05/m3 USD 0.05/m3 
2710.12.12, 13  Leaded and unleaded petrol  USD 0.385/L  45%  
2710.12.14,15  Leaded and unleaded petrol imported using free 
funds for own use  .. USD 2.31/L  
2710.12.19  Other  45% 45% 
2710.19.12  Kerosene type jet fuel  5% 5% 
2710.19.13, 
14,15  Power kerosene, having a density of 200C, 
illuminating or heating kerosene  USD 0.33/L  40%  
2710.19.16  Power kerosene having a density of 200C  .. USD 0.40/L  
2710.19.17  Other power kerosene, imported  .. USD 0.40/L  
2710.19.18  Illuminating or heating kerosene  .. USD 0.40/L  
2710.19.19  Illuminating or heating kerosene  .. USD 0.40/L  
2710.19.29  Diesel  USD 0.385/L  40%  
2710.19.30  Other fuel oils  25% 25% 
2710.19.31  Diesel imported using free funds  .. USD 0.40/L  
3826.00.00  Biodiesel and mixtures  USD 0.16/L  USD 0.16/L  
8539.22.10  Electrical lamps, power >40W but <60W USD 0.15 each  USD 0.15 each  
8539.22.20  Electrical lamps, power> 60W but <80W USD 0.20 each  USD 0.20 each  
8539.22.30  Electrical lamps, power > 80W but < 100w  USD 0.25 each  USD 0.25 each  
.. Not available.  
a 2204.10.11, 2204.10.19, 2204.10.91, 2204.10.99, 2204.21.11, 2204.21.12, 2204.21.13, 
2204.21.19, 2204.21.91, 2204.21.92, 2204.21.93, 2204.21.99, 2204.22.11, 2204.22.12, 
2204.22.13, 2204.22.19, 2204.22.91, 2204.22.92, 2204.22.93, 2204.22.99, 220 4.29.11, 
2204.29.12, 2204.29.13, 2204.29.19, 2204.29.30, 2204.29.91, 2204.29.92, 2204.29.93, 
2204.29.99.  
b 2205.10.10, 2205.1019, 2205.10.91, 2205.10.99, 2205.90.11, 2205.90.19, 2205.90.91, 
2205.90.99.  
c 2206.00.52, 2206.00.53, 2206.00.59, 2206.00.71, 2206 .00.72, 2206.00.73, 2206.00.79, 
2206.00.90.  
d 2208.60.10, 2208.60.90, 2208.70.10, 2208.70.90, 2208.90.21, 2208.90.29, 2208.90.91, 
2208.90.99.  
e 2402.10.00, 2402.20.10, 2402.20.20, 2402.20.30, 2402.20.40, 2402.20.90.  
f 2403.11.10, 2403.11.20, 2403.11.90, 2403.19.10, 2403.19.20, 2403.19.90.  
Source:  Part II Excise duties, Zimbabwe's tariff schedule ; and Statutory Instrument 161 of 2019.  
Duty concessions, suspensions , exemptions or rebates  
One of the indicators that Zimbabwe's tariffs on certain  industrial imports are too high, and 
hence negatively affect industries that rely on imported inputs, is the high number of duty remissions 
granted annually to importers and the importance of foregone revenue because of these remissions 
(Table 1.6 ). Rebates may concern customs duties, surtax, excise or VAT; they are granted on 
imports of capital plants, equipment and machinery, and inputs. In total, over 150 statutory 
instruments provide for duty rebates of various sorts (Table 3. 9); these would benefit fr om a 
regulatory review by the Ministry  of Finance.  
Table 3.9 Provisions for customs duty or VAT exemptions  
Code  National procedure code description  
001 Suspension of Duty on Sugar  
002 Suspension of Duty on Powdered Milk  
003 Cider Manufacturer Rebate   WT/TPR/S/39 8 • Zimbabwe  
 
- 52 - 
 
 Code  National procedure code description  
004 Suspension on Goods for Beitbridge Railway Line  
006 Importation of Fertilizer under Suspension  
105 Exportation of Goods by the Government of Zimbabwe  
012 Rebate of Duty on Capital Equipment Imported for Use in Special Industries  
120 Exportation of Goods -Industrial Drawback to be Claimed  
125 Export under Bond of Products Manufacture d Claiming Industrial Drawback  
170 Exportation of Products Manufacture d Under I nward Processing Rebate  
175 Exportation of Goods from Export Processing Zone  
178 Exportation of Chrome Products Where Export Tax is Charged  
180 Export of Excisable Goods  
201 Entry of Beer Produced by Local Authorities  
205 Exemption Excise Duty - Companies  
206 Exemption Excise Duty - Families  
207 Exemption Excise Duty - Inheritance  
208 Exemption Excise Duty – Private Voluntary Organizations  
301 Re-Export After Entry for Home Use  
320 Re-Export of Goods Where Ind ustrial  Drawback of Duty Will Be Claimed  
401 Imported Goods for Resale  
402 Goods for Use in Manufacturing  
403 Goods for Use by Zimbabwean Government  
404 Goods for Use by Foreign Embassies and Diplomatic Missions  
405 Donated Hospital Requisites Including Motor Vehicles  
406 Donated School Requisites Including Motor Vehicles  
407 Component Parts and Materials for Use in the Manufacture of A ircraft s  
410 Goods for Occupational Therapy/Training of the Blind  
411 Imports by Registered Miners  
412 Specified Goods for the Mining Industry  
413 Specified Goods for the Mining Industry for Specific Use  
414 Capital Goods for the Prospecting/Search for Mineral Deposits  
415 Goods for Petroleum Exploration  
416 Component Parts and Material for Manufacturing of Electrical Goods  
417 Importation of Goods by Farmers and Agricultural Co -Ops 
418 Importation of Kerosene/Lubricants for Use as Fuel in Jet Aircraft  
419 Surtax on Fuel for Entries Registered Prior to Suspension  
420 Aircraf t Stores/Equipment for Impair Navigation/Rescue , etc. 
421 Spare Parts for Repair/Servicing of Foreign Owned Aircraft  
422 Goods Imported by Int ernational  Organi zations for Free Distribution  
423 Goods Imported by Foreign Org anizations  Under an Aid/Technical Co -Op Agreement  
424 Goods Imported by Road Safety Associations/Organi zations  
425 Goods Imported by Religious, Charitable or Welfare Organi zations  
426 Special Controls and Goods for the Blind/Disabled  
427 Goods Imported for Religious Purposes  
428 Cups, Medals and Other Trophies Awarded Outside Zimbabwe  
429 Goods for Incorporation in Construction of Approved Projects  
430 Importation of Goods for Public Museums  
431 Materials for Preparation/Packaging of Fresh Fruit for Expo rt 
432 Samples Imported for Destructive Testing  
433 Goods Imported by Blood Transfusion Service Organs  
434 Seeds of All Kinds Imported in Bulk for Planting  
435 Substances Prepared for Medical/Veterinary Research  
436 Diamond Drilling Tools Placed Between Machine and Hole Being Drilled  
437 Containers  
438 Grinding Media (Pellets, etc.)   WT/TPR/S/39 8 • Zimbabwe  
 
- 53 - 
 
  Code  National procedure code description  
439 Importation of Capital Equipment for Use in Export Processing Zones  
440 Specified Goods for the Manufacture of Tyres Under Rebate  
441 Importation of Spirits and Wines Under Rebate  
443 Importation of Bicycle Kits for Use in Bicycle Assembly  
444 Importation of Donated Goods by Local Authorities  
445 Importation of Certain Goods by Former President  
446 Importation of Goods for Use by the President of Zimbabwe and/ or His Spouse  
447 Motor Vehicle Component Parts Imported by A Registered Assembler  
450 Reserve Bank Relief on Capital Goods and Spares  
452 Reserve Bank Relief on Raw Materials for Manufacture  
453 Rebate of Duty on Parts and Accessories for Public Transport Vehicles  
454 Rebate of Duty on Parts of Certain Railway Locomotives of National Railways  
455 Rebate of Duty on Parts of Certain Railway Locomotives of Other Operations  
456 Rebate of Duty on Diplomatic Importations  
457 Importations Under Inheritance Rebate  
458 Importations Under Immigrants Rebate  
459 Written -Off/Destroyed Goods , etc. Removed from a Bonded Warehouse  
460 Rebate of Duty on Arts Organi zations Equipment  
461 Rebate of Duty on Refuse Collection/Road Maintenance Vehicles  
462 VAT Exemption on Agricultural Imports  
463 Imports of Goods by Air Zimbabwe  
464 Duty Free on Z imbabwe Iron and Steel Company  Spare Parts  
465 Rebate of Duty on Vehicle Imported by Serving Parliamentarian of Zimbabwe  
466 VAT Deferment on Approved Capital Equipment  
467 Suspension of Duty on ZIMRA Scanners  
468 Surtax on Light Vehicles over 5 Years  
469 Rebate of Duty on Chemicals for Z imbabwe National Water Authority or Local Authorities  
470 Pharmaceutical Manufacturers Rebate  
472 Rebate of Duty on  Zimbabwe Electricity Supply Authority ( ZESA )  Transformer Components  
473 Rebate of Duty on Air  Zimbabwe Engine Spares and Components  
474 Bus Assembly Rebate  
475 Rebate of Duty on Goods for Use by Zambezi River Authority  
476 Ex-warehouse of Goods belonging to Closed H S 2002 Tariffs  
477 Rebate of Duty on Second -Hand Ambulances over 5 Years  for Charitable Organi zations 
478 Suspension of Duty on Imported Specified Groceries  
479 Suspension of Duty on Agricultural Goods  
480 Suspension of Duty on Schools Uniforms   
482 Rebate of Duty on Electronic Registers  
483 Rebate of Duty on ZIMRA Staff Uniforms  
484 Suspension on Goods for Specific Mine Dev elopment  
485 Suspension of Duty on  Civil Aviation Authority of Zimbabwe( CAAZ ) Security Equipment  
486 Donated Educational Requisites for Tertiary Institutions  
487 Rebate of Duty on Imports for Zimbabwe Beitbridge Customs House Development  
488 Rebate of Duty on Prepaid Electricity Meters  
489 Rebate  on Ambulances for Councils   
490 Rebate  on Sports Kit s for Associations   
491 Suspension and VAT Deferment for Mine Dev elopment  
492 Once-Off Rebate of Duty on Imports by NRZ  
494 Suspension of Duty on Wheat Flour  
495 Rebate of Surtax on goods of HS 8418500  
496 Accounting for VAT Deferment  
497 State Appropriation Additional Code  
499 Rebate of Duty (S .I. 95 of 2013)   WT/TPR/S/39 8 • Zimbabwe  
 
- 54 - 
 
 Code  National procedure code description  
502 Temporary Importation of Goods for an Approved Project  
503 Temporary Importation of A ircraft for Rescue and Repairs  
504 Temporary Importation for Repair and Return  
601 Re-Importation After Outright Exportation   
602 Re-Importation After Temporary Export for Repair  
604 Re-Importation After Temp orary  Export for Repairs - Only V AT os Payable  
606 Re-Import of Goods Attracting a Specific Duty Rate After Repairs  
607 Surtax on Light Vehicles of 8703 >5 Years from Date of Manufacture  
701 Surtax on Light Vehicles of 8703 >5 Years from Date of Manufacture  
801 Surtax on Light Vehicles of 8703 >5 Years from Date of Manufacture  
999 Cancellation Code for Selected Declarations  
Source:  Government.  
Additional i mport duty rebates were granted to manufacturers in 2019. Under the 
Manufacturers Rebate Scheme, the duty rebate was extended to additional fabrics 
(Clothing  Manufacturers Rebate, S.I. 39 of 2019) and to additi onal raw materials for 
pharmaceuticals. The duty -free importation of raw materials for manufacturers of bread, fertilizers, 
and dairy products was renewed. The duty -free quota of wine was increased from 90,000 litres to 
175,000  litres. Import duties were s uspended for 75 new tourist buses.  
Import prohibitions, restrictions, and licensing  
3.1.7.1   Import licensing, controls and other restrictions  
Zimbabwe maintains a system of non -automatic import licensing, to ensure that imported 
goods are safe for the public, to r estrict imports for import substitution purposes, and to monitor 
them for statistical purposes. The system is opaque and unpredictable, as the authorities tend to 
regularly modify its scope and procedures. Since the last TPR in 2011, the main legislation o n import 
licensing - the Control of Goods (Import and Export) (Commerce) Regulations, under the authority 
of the MIC, was amended three times; the most recent legislation, S.I. 237A/18 amended 
S.I. 122/17, which had amended S.I.  64/16.16 Other licensing pro cedures are applied by the Ministry 
of Agriculture (Section 4.1). Assistance could help Zimbabwe to review and simplify this system, 
publish a list of products subject to licensing, and clarify conditions to obtain licences.  
In 2016, S.I. 64/16 made it compulsory for imports of products that are also domestically 
produced to be covered by a non -automatic Special Import Licence (SIL) rather than an Open 
General Import Licence (OGIL); according to the authorities, under the OGIL, the importer is free to 
import, and there is no licence  requirements .17 Products affected by S.I. 64/16 included a large 
variety of consumer food items and other products.18 According to the authorities, th ese import 
substitution measure s, together with foreign exchange shortages, ca used imports to decline 
substantially in 2016.19 
In 2018, the list of goods under the SIL was substantially decreased. The fee payable for the 
import licence issued by the MIC was reduced from USD 70 to USD 30 in 2018, and then changed 
to Zimbabwean dollars  in June 2019, at a rate of 1 to 1 (ZWL 30).  
In Table 3.1 0, an attempt has been made to lists all products subject to non -automatic import 
licensing, as at November 2019, as well as the corresponding statutory instrument.  
 
16 See, for example, the 2018 Manufacturing Sector Survey, pg. 1.  
17 Veritas, S.I. 2016 -064 – Control of Goods (Open General Import Licence) (No. 2) (Amendment) 
Notice 2016 (No. 8). Viewed at: http://www.veritaszim.net/node/1715 . 
18 Including coffee creamers, body creams, plastic pipes and fittings, builders' ware such as bridges and 
bridge sections, flat -rolled iron products, metal furniture, metal insulated panels, baked beans, cereals, bottled 
water, mayonnaise, peanut butter, jams, canned fruits and vegetables, pizza bases, yoghurts, flavoured milks, 
dairy juice blends, ice creams, milk, cheese, second -hand tyres, fertilizer, household furniture, and woven 
fabrics of cot ton. 
19 Government of Zimbabwe, National Trade Policy 2019 -23.  WT/TPR/S/39 8 • Zimbabwe  
 
- 55 - 
 
  Table 3.10 Goods subject to import controls and/or licensing, November 2019  
Description/HS Chapter  Legal 
reference  Type of licence/permit  
Issuing agency, conditions and requirements  
Most agricultural and horticultu ral products  ..  
Maize seed/wheat seed  ..  
Wheat, maize grain, sorghum (grain, meal and 
malt), mhunga (grain, meal and malt), soya 
beans  ..  
Cotton (lint, meal, seed and cake), soya cake, 
corn meal, corn soya blend, apples,  bananas, 
grapes, peaches, pears, plums,  potatoes,  sugar 
(raw and refined), vegetable oils, vegetable fats, 
margarine, beans, bean meal, mielie meal, oil 
seeds (cake, cake meal, offal and residues from 
oil seeds), seed for planting (cereals, trees, 
vegetables), flour, maize  and soya mea l, barley, 
barley malt, baby corn, fruit (citrus and non -
citrus), coffee beans, ground nuts, jugo beans, 
manure, mopane worms, rapoko (grain, meal 
and malt), rice in the grain, sunflowers, tea, 
vegetables (dried and fresh), Katambora grass  .. Import Permit from the Ministry of Agriculture, 
conditional on: (i)  biosafety permit; (ii)  Plant Import 
Permit; (iii)  Agricultural Marketing Authority support 
letter; (iv)  Seed Services support letter  
Poultry products (1 -day-old chicks, frozen 
chickens and their products, hatching and table 
eggs, ostrich meat, ostrich eggs), animal oils 
and fats (lard, tallow, dripping), animal semen 
and animal embryos, animal feed stuffs, beef, 
veal, goats, bees, butter, ghee, cream, cattle, 
meat (above 5 kg), meat meal, blood meal, 
carcass meal, bones, bone meal,  pigs (live and 
dead); horns, hides, and skins, milk 
(pasteurized, sterilized, UHT, lacto, condensed, 
or in any other liquid form ), milk powder 
(skimmed and full cream), honey, cheese, ice 
cream, fish ( dried and fresh)  S.I.122/17  Import Permit from the Ministry of Agriculture  
Import licence issued by the MIC (for those products 
also manufactured domestically and listed in 
S.I.122/17)  
Radioactive and associated materials classified 
under HS headings 28.44 and 28.45  S.I.122/17  Import licence issued by the MIC  
Nuclear reactors and parts thereof, including fuel 
elements (cartridges)  .. Radiation Protection Authority  
Hazardous and toxic substances, radioactive 
substances  .. Import licence issued by the MIC, conditional on: permit 
from the Environmental Management 
Authority/Radiation Protection Authority  
Diesel fuel, petrol, jet A -1 fuel, paraffin and 
aviation gasoline, when imported in a container, 
other than the fuel tank of a vehicle, by anyone 
other than the National Oil Company of 
Zimbabwe  S.I.122/17  Import licence issued by the MIC, conditional on 
recommendation from the Ministry of Energy and Power 
Devel opment  
Second -hand clothing and shoes; articles of 
second -hand undergarments of any type, form 
or description, whether purchased, donated or 
procured in any manner  S.I. 19/16 
S.I.122/17  Import licence issued by the MIC  
Sugar classified under HS 17.01, 17.02, 17.03 
and 17.04  S.I.237A  Free (OGIL) since 2018  
Poultry classified under HS headings 01.05 and 
02.07  S.I.122/17  Import licence issued by the MIC  
Meat of swine classified under HS heading 02.03  S.I.122/17  Import licence issued by the MIC  
Milk (liquid and powder packed for retail) under 
HS headings 04.01 and 04.02  S.I.122/17  Import licence issued by the MIC  
Potatoes, tomatoes and onions under HS 
headings 0710, 0702 and 0703  S.I. 126/14  
S.I.122/17  Import licence issued by the MIC  
Biscuits and yeast under headings 1905:1000. 
1905:3100, 1905:9090, 2102: 1000, 2102:2000 
of the customs tariff  S.I. 126/14  
S.I.122/17  Import licence issued by the MIC  
Portland cement classified under HS headings 
2523.21 -9 S.I. 126/14  
S.I.122/17  Free (OGIL) since 2018  
Bar soaps and soap preparations (soap 
preparations put for retail shops) under 
headings 3401:1900,3401:2000 and 3402:2000  S.I. 126/14  
S.I.122/17 
S.I.237A  Free (OGIL) since 2018  
Conveyor belts of HS headings 4009, 4010  S.I. 126/14  
S.I.122/17  Import licence issued by the MIC  
Plastic bags of polymers classified under 
headings 3920, 3921 and 3923 of the customs 
tariff; p lastic packaging other than 
biodegradable; or plastic bread packaging and 
cling film  S.I. 126/14  
S.I.122/17  Free (OGIL) since 2018   WT/TPR/S/39 8 • Zimbabwe  
 
- 56 - 
 
 Description/HS Chapter  Legal 
reference  Type of licence/permit  
Issuing agency, conditions and requirements  
Pharmaceutical medicines of HS codes 300410 -
20 S.I. 18/16  
S.I.122/17  Import licence issued by the MIC, conditional on: permit 
from the Ministry of Health (products manufactured 
locally)  
Blankets and products of HS headings 6001, 
6301 S.I. 19/16  
S.I.122/17  Added to the OGIL in 2016  
Fertilizers (HS code 3102, 3105, 3103), but not 
raw materials such as ammonia, potassium 
nitrate or sulphate  S.I.237A/18  Added to the OGIL in 2016, plus permit issued by 
Ministry of Agriculture  
Automotive batteries (HS 8507) and 8507:20 
(deep cycle batteries)  S.I. 20/16  
S.I.122/17  Import licence issued by the MIC  
Tile adhesive and tylon  S.I.122/17  Import licence issued by the MIC  
Shoe polish  S.I.122/17  Import licence issued by the MIC  
Candles classified under 3406:2000 of the 
customs tariff  S.I. 20/16  
S.I.122/17  Added to the OGIL in 2016  
Floor polish, HS code 3405.20  S.I. 20/16  
S.I.122/17  Added to the OGIL in 2016 Import licence issued by the 
MIC 
Tobacco twine of HS headings 5607.4900  S.I. 20/16  
S.I.122/17  Added to the OGIL in 2016  
Coffee creamers classified under HS code 
2106.9090  S.I. 237A/18  Free (OGIL) since 2018  
Body creams and petroleum of HS code 
3304.9990  S.I. 237A/18  Free (OGIL) since 2018  
PVC and other pipes (HS 3917:2110, 
3917:2190, 3917:2310, 3917:2320 and 
3917:2390)  S.I.122/17  Import licence issued by the MIC  
Builders ware (doors, windows, furniture)  S.I.122/17  Import licence issued by the MIC  
Flush door, beds, wardrobes, bedroom suites, 
dining room suites and office furniture  S.I.122/17  Import licence issued by the MIC  
Metal clad insulated panels (HS headings 
8418:9910, 8609:0010 and 9406:0091)  S.I.122/17  Import licence issued by the MIC  
Baked beans and potato crisps classified under 
HS heading 2005:59 and 2005:20  S.I. 237A/18  Free (OGIL) since 2018  
Cereals of HS 1904.1010  S.I. 237A/18  Free (OGIL) since 2018  
Bottled water, mayonnaise, salad cream, peanut 
butter, jams, maheu, canned fruits and 
vegetables, pizza base, yogurts, flavoured milks, 
dairy juice blends, cultured milk  S.I. 237A/18  Free (OGIL) since 2018  
Cheese, ice cream  S.I. 237A/18  Free (OGIL) since 2018  
Second -hand tyres of HS 4012  S.I.122/17  Licences generally not issued  
Baler and binder twine of HS 5607:2100 and 
5607:4100  S.I.122/17  Import licence issued by the MIC  
Woven fabrics of cotton (HS 5208, 5210, 5211)  S.I.122/17  Import licence issued by the MIC  
Luggage ware (HS heading 4202)  S.I.122/17  Import licence issued by the MIC  
Agricultural implements (hoes, ploughs, etc), 
classified under HS heading 8432 and 8437100  S.I.122/17  Import licence issued by the MIC  
Coaxial cable and other conductors (HS 
8544:3000)  S.I.122/17  Import licence issued by the MIC  
Ignition wiring sets classified under tariff code 
8544:3000  S.I.122/17  Import licence issued by the MIC  
Electrical conductors for a voltage exceeding 
1,000  V classified under tariff code 8544.4200  S.I.122/17  Import licence issued by the MIC  
Wire and cable classified under tariff code 
8544:6099  S.I.122/17  Import licence issued by the MIC  
Flat cable classified under HS 8544:6092 -9  S.I.122/17  Import licence issued by the MIC  
Stranded wire, cables, of HS code 7614:10 -90 S.I.122/17  Import licence issued by the MIC  
Other electric conductors, for a voltage not 
exceeding 1,000  V classified under tariff code 
8544:4900  S.I.122/17  Import licence issued by the MIC  
Animal oils and fats (lard, tallow and dripping)  S.I. 237A/18  Free (OGIL) since 2018  
Crude and refined vegetable oils  S.I. 237A/18  Free (OGIL) since 2018  
Vegetable fats, margarine  S.I. 237A/18  Free (OGIL) since 2018  
Wheat flour  S.I.122/17  Import licence issued by the MIC  
School uniforms  S.I.122/17  Import licence issued by the MIC  
Explosives used in mining (emulsions)  .. Import licence issued by the MIC  
Firearms, ammunitions  .. Licence from the Registrar of Firearms  
Transmitters; transceivers; two -way radios; 
walkie -talkies; citizen -band radios (generally 
installed in cars)  .. Import licence issued by the Postal and Regulatory 
Authority of Zimbabwe ,   WT/TPR/S/39 8 • Zimbabwe  
 
- 57 - 
 
  .. Not available . 
Source:  Information  provided by the authorities.  
These changes are yet to be notified to the WTO. Although detailed answers were provided 
to the WTO Questionnaire on Import Licensing procedures in 2014, no notification has been received 
since then on this matter. There is therefore a need to notify a list of products cur rently subject to 
licensing, and provide a clear description to operators of the practical steps required to obtain an 
import licence under the different systems, explain the system's purpose, and update the 
corresponding official website.20 This website co ntains a description of the import licensing system, 
a general description of the restricted and prohibited goods, and the names of the implementing 
government agencies; it would need an update indicating the purpose of the system, the exact 
nature of all products covered by compulsory licensing, with their HS codes, the types of licences, 
the institutions in charge of delivering them, and the cost. WTO technical assistance could help to 
provide more clarity and predictability to the import licensing system . 
This multi -layered system combines non -automatic licensing, quantitative restrictions and the 
SPS permit system, and could be reviewed to facilitate the importation procedure. The system could 
also be made more user -friendly by accepting copies of the or iginal licence for customs clearance; 
by authorizing importers to exceed the authorized quantity and/or value limits in case of necessity; 
and by accepting licence applications after the goods' arrival at Customs. MIC licences are valid for 
three months fr om the date of issue, and are not transferable between importers.  
The movement of all wild life within Zimbabwe and across its borders is controlled by a permit 
system, run by the Zimbabwe Parks and Wildlife Management Authority, which, inter alia, 
admini sters the CITES protocol.21  
3.1.7.2   Import prohibitions  
Zimbabwe maintains import prohibitions mainly on health and moral grounds, and to comply 
with international conventions to which it is a party (Table 3.1 1). 
Table 3.11 Selected import prohibitions, in force,  2019  
Legal basis  Description  
Customs and Excise Act 
(Section 47)  Base, forged or counterfeit currency; any goods that are indecent, obscene 
or objectionable; any goods that might tend to deprave the morals of the 
inhabitants of Zimbabwe; prison -made and penitentiary -made goods; 
spirituous beverages that contain preparations, extracts, essences or 
chemical products that are noxious or injurious (100% alcoholic content)  
S.I. 150/91  Bufotenine; glutethimide; lysergamide; lysergide and other N -alkayle 
derivatives of lysergamide, which included the medicine commonly known as 
LSD, but not including methysergide maleate; mescaline; methaqualone 
methyprylon; parahexyl; psilocin, psilotsin;  psilocybine; DET N, N -
diethyltryptamine; N -dimethyltryptamine; 2.5 -dimethoxy -4,a 
dimethylphenthylamine; tetrahydrocannabinnols, all isomers; any 
stereoisomerism form, ester, ether or salt of a substance prohibited and any 
preparation thereof  
Dangerous Drugs Act  Prepared opium and heroin  
S.I. 57/89  Gizzards of poultry  
White Phosphorus Matches 
Act Matches containing white phosphorus  
Censorship Act (Section 13)  Indecent, pornographic, and subversive material (mainly publications)  
S.I. 7/11 Ozone -depleting substances whose phase -out periods have expired  
S.I 766/74 (Section 7)  Flick guns, flick knives, and any other lockable knives  
Source:  Information provided by the authorities.  
 
20 Viewed at: https://www.zimra.co.zw/customs/restricted -and-prohibited -goods . 
21 Zimbabwe Parks Wildlife Management  Authority. Viewed at: http://www.zimparks.org .  WT/TPR/S/39 8 • Zimbabwe  
 
- 58 - 
 
 
Violations concerning prohibited or restricted importations are punishable by imprisonment 
for up to five years, and fines of up to USD  2,000, or three times the duty -paid value of the subject 
goods, whichever is greater.  
Anti-dumping, countervailing, and  safeguard measures  
In 2002, Zimbabwe adopted anti -dumping and countervailing duty regulations, and notified 
them to the WTO.22 Other legislation pertaining to trade remedies includes the Customs and Excise 
Act, the Competition Act, and Competition (Safegua rds) (Investigations) Regulations (S.I. 217/06), 
which have yet to be notified to the WTO.  
These provisions are to be implemented by the Competition and Tariff Commission. To date, 
the Commission has developed anti -dumping application  forms and a questionn aire.23 No full 
investigation into an unfair trade practice has taken place  so far . The Commission primarily helps 
local industry through, inter alia : legislative or administrative measures for the purpose of countering 
unfair trade practices; and technical assistance to the Government in the conclusion of arrangements 
with other countries for the benefit of local industry.  
3.2  Measures Directly Affecting  Exports  
Trade policy developments, described above, probably explain part of Zimbabwe's modest 
export performance over the 2011 -18 period (Section 1.3); and suggest that a more 
business -friendly approach to exporters would facilitate the diversification o f exports into new 
activities. This Section describes the export documentation requirements, the export licensing 
procedures and prohibitions, the charges levied on exporters  and exporters incentives . At the time 
of the previous TPR, Zimbabwe's export regi me was considered by the World Bank's Doing Business 
profile as extremely expensive and cumbersome; the situation has not changed much in 2019. 
Nevertheless, probably the most important policy measure affecting exports over the 2011 -19 period 
was the  foreign exchange surrender requirement at an overvalued exchange rate (Section 1.2.1) .  
3.2.1 Customs procedures  and documentation requirements  
Exportation in Zimbabwe starts with the registration at the ZIMRA, which maintains an 
automated clearance system. A B usiness Partner Number  is required for identity purposes when 
processing exports or imports.24 Export documentation must be submitted to Customs by either a 
registered importer, a registered exporter, or a registered clearing agent.  
Exports customs clearan ce procedures require numerous documents:  
• a bill of entry, "Form 21";  
• a supplier's invoice;  
• consignment notes, such as rail advice notes, or airway bills;  
• original export permits from the Ministry of Agriculture, veterinary health certificates, 
plant quara ntine certificates;  
• exchange control clearance CD1 documentation (see below);  
• cargo manifests;  
• certificates of origin where preference is claimed; and  
 
22 Competition (Anti -Dumping and Countervailing Duty) (Investigation) Regulations, 
G/ADP/N/1/ZWE/2/Suppl.1, 15 November 2002. Viewed at: 
https://docs.wto.org/dol2festaff/Pages/SS/directdoc.aspx?filename=Q:/G/SCM/N1ZWE2S1.pdf . 
23 Competition and Tariff Commission, Application for Remedial Action Against the Alleged Dumping. 
Viewed at: http://www.competition.co.zw/complaints/forms/Dumping%20form%20PART%201.pdf ; and 
University of the Western Cape, A critical assessment of Zimbabwe's anti -dumping laws. Viewed at: 
http://etd.uwc.ac.za/xmlui/handle/11394/6826?show=full . 
24 ZimTrade, Application for appearing in E xport Directory. Viewed at: 
http://www.tradezimbabwe.com/exporting -from-zimbabwe -2/are -you-an-exporter -2/application -export -
directory .  WT/TPR/S/39 8 • Zimbabwe  
 
- 59 - 
 
  • licences (where applicable)25. 
In general, goods may not be exported until all the documentation is provi ded to a ZIMRA 
office, but Customs can authorize delivery of certain customs documents within a specified 
time-frame after the goods' exportation. For example,  perishables, such as flowers and fresh 
produce, can be exported without the foreign currency sur render CD1 form, if approved by the RBZ.  
For exports of goods exceeding USD  5,000 per declaration, the CD1 electronic form is 
required; it can also be filled in paper form, at a cost of USD 5. Its purpose is to ensure that exporters 
repatriate export proce eds. The threshold is applied per exporter, for private and commercial 
exportations. Entry in the system represents a declaration of the transaction by the exporter and an 
undertaking that payment will be received in the officially approved manner. The pap er form can be 
presented either to a bank or, since 2017, directly online, for registration in the RBZ's Computerised 
Exports Payments Exchange Control System (CEPECS).  Those exporters that have migrated to 
CEPECS can FILL -IN CD1 forms and generate export performance reports online, outside bank office 
hours, thereby eliminating the expense of multiple trips to the bank and the attendant follow -ups.26  
Certified copies are returned to the exporter and, upon submission of the export 
documentation, are forward ed to Customs, to the RBZ, and to the National Economic Conduct 
Inspectorate, a crime -investigation department of the MFED.  
The exporter is then required to acquit the CD1 forms within three months of receiving the 
foreign currency from the foreign custom er. Failure to do so results in the company being blacklisted 
in the CEPECS, and allowed to export only on a prepayment basis. Earnings from the cross -border 
delivery of services must also be declared and registered in the CEPECS. P roblems reported by 
exporters relate to Internet connection. ZIMRA machines are connected to the RBZ via the Internet, 
to enable the latter to approve CD1 forms; delays in processing the export documents occur when 
there is no electricity. The verification process by the RBZ is a lso frequently described as taking too 
long – up to three  days.27 Finally, the CD1 form is also reported as an obstacle by small operators 
attempting to enter the export market.28  
Taxes, charges, and levies  
Several taxes, charges and other fees are levied on exports:  
• all bills of entry are subjetct to  a clearance fee of USD 10 or equivalent in local currency;  
• a trade development surcharge of 0.1% is levied on the f.o.b. value of exported goods 
(Section 3.1. 4);  
• a surtax applies to raw hide exports (Section 4.1.5);  
• live wildlife specimens and fertile eggs are reportedly subject to an ad valorem  export 
levy of 2% -10%, collected by the Zimbabwe Parks and Wildlife Management Authority 
(Section 3.3.3); and  
• expor ts of lithium, platinum group metals and diamonds are taxed (Section 4.2.1).  
 
25 ZIMRA, Tax Clearance Certificate (IFT 263).  Viewed at: https://www.zimra.co.zw/news/22 -taxmans -
corner/161 -tax-clearance -certificate -itf-263. 
26 NewsDay, RBZ introduces direct access to forms CD1, disintermediates banks. Viewed at: 
https://www.newsday.co.zw/2017/06/rbz -introduces -direct -access -forms-cd1-disintermediates -banks . 
27 Non-Tariff Barriers – Reporting, Monitoring and Eliminating Mechanism, Complaint NTB -000-197. See 
also, NewsDay, RBZ introduces direct access to forms CD1, disintermediates banks. Viewed at: 
https://www.newsday.co.zw/2017/06/rbz -introduces -direct -access -forms -cd1-disintermediates -banks/ . 
28 International Labour Organization, Situational analysis of Women in the inf ormal economy in 
Zimbabwe. Viewed at: https://www.ilo.org/wcmsp5/groups/public/ ---africa/ ---ro-addis_ababa/ ---sro-
harar e/documents/publication/wcms_619740.pdf .  WT/TPR/S/39 8 • Zimbabwe  
 
- 60 - 
 
 
Prohibitions, quantitative restrictions, controls, and licensing  
3.2.3.1   Export licensing  
Zimbabwe's non -automatic export licensing regime covers a wide range of products, including 
most agricultural commodities (Table 3.1 2). As in the case of import licensing, a request for an 
export licence must be submitted to the MIC.29 This policy is designed to ensure sufficient quantities 
of produce domestically, but has the effect of discouraging exports. A bolishing export permits would 
enhance local industry's export competitiveness, as t he need for prior clearance on exports delays  
product delivery.  
Table 3.12 Selected products subject to export controls or licensing, 2019  
Description  Conditions/requirements  
Cotton (lint, meal, seed, and cake)  Permit from the Ministry of Agriculture (MA), conditional on: 
(i) Cotton Growers Association support letter; and (ii)  Agricultural 
Marketing Authority support letter (Livestock Meat Advisory 
Council in the case of meal and cake)  
Fruit and vegetables  Permit from the MA, conditional o n Phytosanitary Certificate  
Meat, dairy and animal products  Permit from the MA, conditional on Veterinary Health Certificate  
Hides and skins  Permit from the MA, conditional on: (i)  Veterinary Health 
Certificate; and (ii)  MIC support letter  
Fish (dried and fresh)  Permits to fish breeders in export processing zones  
Any equipment or machinery used for 
mining, farming, or industry  Export licence from the MIC required to alleviate concerns of de -
industrialization  
Indigenous plantsa and wildlife  Export licence from the MIC based on permit from the  Director of 
Zimbabwe Parks and Wildlife Management Authority  
Precious and semi -precious stones and 
metals and mineralsb May only be exported by the Minerals Marketing Corporation of 
Zimbabwe or Fidelity (gold and silver), Section 4.2.1  
Fertilizers  Export licence from the MIC, permit from the MA  
Timber, timber products  Export licence from the MIC, permit from the Ministry in charge of 
Forestry  
Pharmaceutical products  Export licence from the MIC  
 Cement  
Melamine boards, cooking oil, coconut 
oil, fertilizer, margarine, palm oil, raw 
and refined sugar, vegetable acid oil, 
vegetable oils and fats  
a The list of protected indigenous plants includes: acrostichum aureum linn , cyrtanthus  (all species), 
dierama  (all species), adenium obesum (forsk), roem et schult.  var multiflorum  (klotzsch), 
pachypodium saundersonii, borassus aethiopum mart., gloriosa superba  (flame lily), raphia farinifera 
(gaertn), hylander, hoodia lugardii n.e.br, tava resia barklyi, (thistleton -dyer) n.e.br, juniperus 
procera endi, alsophila (all species), euphorbia davyl n.e.br, duphorbia decidua bally and leach, 
euphorbia memoralis r.a. dyer, euphorbia wildii leach, bivinia jalbertii tul , aloe (all species and 
natural  hybrids), epiphytic  and lithophytic orchidaceae  (all species), adenia fruiticosa burtt davy, 
adenia spinosa burtt davy, platycerium alcicorne desv ., and encephalartos  (all species).  
b The list includes: gold, platinum and platinoid metals, silver, diamon ds (other than those suitable 
only for industrial purposes), emeralds, beryls, chrysoberyls of gem quality, rubies, sapphires, topaz, 
tourmalines, chrome, coal, cobalt, copper, minerals of the lithium group, magnesite, mica, nickel, 
minerals of the tin gro up, and minerals of the tungsten group.  
Source:  ZimTrade, New Exporter's Guide . Viewed at: http://www.tradezimbabwe.com/wp -
content/uploads/2019/ 09/ZimTrade_New_Exporters_Guide_2019 -c.pdf; and information provided by 
the authorities.  
In 2018, the authorities introduced an additional export permit under National Biotechnology 
Regulations Statutory Instrument 157 of 2018, which required importers an d exporters of food, feed, 
food and feed additives, and seeds to register with the National Biotechnology Authority and obtain 
an annual  permit. This resulted in complaints from exporters who felt this permit was an impediment, 
 
29 Application for Licence to Export. Viewed at: http://www.tradezimbabwe.com/wp -
content/uploads/2016/03/Application -for-License -to-Export.pdf .  WT/TPR/S/39 8 • Zimbabwe  
 
- 61 - 
 
  as it was not a requirement by regional and international buyers.30 The permit was eliminated in 
October 2019 to improve the doing business climate, except for those exports destined for markets 
that require a genetically modified organism declaration or certification.  
3.2.3.2   Export prohibit ions 
Under the Zimbabwe  Investment Authority Act of 2006, the Government may prohibit the 
export of specified raw materials in "un -beneficiated" form (Section 4.2.1).31 Besides posing 
considerable administration challenges, including evasion, these export r estrictions are likely to 
discourage investment in the activities concerned.  
Other export prohibitions or "suspensions" are maintained to ensure adequate supply of the 
goods on the domestic market, or to stimulate local value added (Table 3.1 3). For suspe nded 
products, an export permit may only be given in special circumstances.  
Table 3.13 Export prohibitions and suspensions in force in 2019  
Description  
Export prohibitions  
Dangerous and harmful drugs  
Hazardous substances  
Expired drugs  
Pornographic, objectionable or undesirable materials  
Harmful substances which include skin lightening creams, soaps and lotions  
Unprocessed chrome ores  
Diamonds that are not certified under the Kimberley Process  
Scrap metal  
Export suspensions (temporary ban)  
Seeds  
Maize and wheat seed, GMO -free maize grain, mielie meal, rapoko (grain, meal and malt), sunflowers  
Wheat, sorghum (grain, meal and malt), mhunga (grain, meal and malt), soya (beans, meal and cake), 
corn soya blend, oil seeds (cake, cake meal, offal and oil seed residues), flour, maize meal, barley and malt  
Source:  WTO Secretariat, based on information provided by the authorities.  
Tax and other export incentives  
ZimTrade, a public -private association, provides a range of international market expansion 
services to Zimbabwean entrepreneurs, including market information32, practical training in various 
aspects of export mar keting, and coordination and facilitation of Zimbabwean companies' 
participation in international trade fairs. ZimTrade also sells certificate of origin forms (at USD 4 for 
members and USD 5 for non -members) that must be formally validated by the ZIMRA. Zi mTrade 
also participates in bilateral and multilateral trade negotiations, and coordinates private -sector input 
on trade policy matters. ZimTrade's activities are funded by the trade development surcharge 
(0.1%  of the f.o.b. value of imports and exports, s ee above), as well as by grants. Export 
expenditure incurred in an export country in order to export Zimbabwean goods to such country is 
deductible for tax purposes. An additional allowance of 100% of such incurred cost may be deducted .  
Duty drawback scheme  
A duty drawback scheme has been in place since 1991.33 It provides for the refund of all levies 
on imported inputs used in the manufacturing of goods for export (industrial drawback), and on 
unused goods exported in the form in which they we re imported (same -state drawback).  
 
30 All Africa, Zimbabwe: Biosafety Export Permit Suspe nded, 1 October 2019 . Viewed at: 
https://allafrica.com/stories/201910010078.html . 
31 Zimbabwe Investment Authority Act. Viewed at: 
http://www.veritaszim.net/sites/veritas_d/files/Zimbabwe%20Investment%20Authority%20Act%20as%20at%
201.1.2019.pdf . 
32 Besides handling trade enquiries, ZimTrade publishes country and market b riefs, and an annual 
exporter directory; it also maintains databases on Zimbabwean companies, foreign buyers and suppliers, and 
trade statistics.  
33 Customs and Excise (Industrial Drawbacks) Regulations, S.I. 278A/91.   WT/TPR/S/39 8 • Zimbabwe  
 
- 62 - 
 
 Special Economic Zones  
Exporters located in Special Economic Zones pay 0% tax on income arising from their exports 
for the first five years, and 15% thereafter.34 A special initial depreciation allowance on capital 
equip ment is also allowed, at a rate of 50% of cost in year one, and 25% in the subsequent 
two years. A zero capital gains tax applies, and a flat rate of 15% for income tax for specialized 
expatriate staff. Investors also benefit from an exemption from non -resident tax on royalties and 
dividends; duty -free import of capital equipment and machinery; and duty -free import of inputs, 
including raw materials, provided they are not produced locally. When approving an investment in 
such Zones, the Zimbabwe Special Eco nomic Zones Authority  considers, inter alia , the degree of 
export orientation or import substitution of the project. A few Zones were established under the 
Special Economic Zones Act (Section 2.4): in 2018, a zone was established in the Bulawayo 
Metropolit an Municipality; and the  Surewin Zone was established in 2019  in Mutoko for mining 
activities35 (Table  3.14).  
Table 3.14 Special Economic Zones  
City/region  Activities  
Harare  Information communication technology, health services, diamonds, jewelry  
Bulawayo  Heavy industry, leather and footwear, textiles, engineering  
Matebeleland North  Tourism, and financial services hub around the Victoria Falls -Hwange -Kariba 
corridor  
Matebeleland South  Gold production, livestock  
Masvingo  Sugarcane processing, tourism  
Manicaland  Fruit canning, diamond cutting and polishing  
Mashonaland West  Agro-processing, chrome, textiles  
Midlands  Iron and steel corridor, asbestos, gold, leather and footwear, dairy  
Mashonaland Central 
and East  Agro-processing  
Source:  Zimbabwe Transitional Stabilisation Programme (2018 -20).  
Other incentives  
Manufacturing companies exporting 50% or more of their output (by volume), are taxed at a 
reduced income tax rate of 20% instead of the normal rate of 25.75%  (a base rate of 25% plus 
a 3% (of 25%) AIDS levy). Mining companies that hold Special Mining Lease s are taxed at 
15% (Section 4.2.1). Operators of a tourist facility in a tourist development zone, and industrial park 
developers, are taxed at 0% for the first five years, then at the normal rate of 25.75%.  
Foreign Exchange Stabilisation and Incentive Su pport Facility  
The Reserve Bank of Zimbabwe Act set up the Foreign Exchange Stabilisation and Incentive 
Support Facility in May 2016. Backed up by a USD 200 million foreign exchange allowance from the 
Afreximbank, this scheme provided exporters with an add itional 2.5% or 5%  of the value of their 
exports deposited in exporters' RTGS accounts: at the time of selling 50% of USD export receipts to 
the RBZ, the foreign exchange dealer would credit the foreign currency earner's account with "bond 
notes" (the new local currency) amounting to 2.5% of the export value (large mining exporters); 
this amount was 5% for all other exporters.36 This scheme obviously did not compensate exporters 
for the loss of their foreign currency proceeds because of the compulsory surren der requirement at 
a fixed and overvalued exchange rate. This scheme was terminated with effect from 
21 February  2019.  
Export finance, insurance, and guarantees  
In recent years, the RBZ provided several concessional loan facilities, some related to exports : 
• Export Finance Facility (USD 200 million);  
 
34 Zimbabwe Special Economic Zones Autho rity, Fiscal Incentives Gazetted . Viewed at: 
https://www.zimseza.co.zw/incentives/ . 
35 Veritas, GN 2019 -104 Special Economic Zones Act [Chapter 1434] Amendment of a Special Economic 
Zone. Viewed at: http://www.veritaszim.net/node/3403 . 
36 Exchange Control Directive RR86/2016 (Section 1.2.1).   WT/TPR/S/39 8 • Zimbabwe  
 
- 63 - 
 
  • horticulture promotion (USD 10 million);  
• Gold Support Facility (USD 150 million);  
• Tourism Support Facility (USD 15 million);  
• tobacco production (USD 70 million); and  
• Soya Beans Facility (USD 25 million).  
Export finance facilities aim to help companies increase their production and exports.37 
Support includes access to pre - and post -shipment finance at concessionary interest rates: the 
facilities are offered over 12 months for working capital and 36 months for c apital expenditure, at 
an all -inclusive rate of 7.5% and 10.5%, respectively. To secure the facility, all the export business 
must be generated and handled through participating banks.  
The Export Credit Guarantee Corporation of Zimbabwe, a wholly owned su bsidiary of the RBZ 
and a registered short -term insurer, is an export credit agency whose mandate is to help in the 
promotion and facilitation of Zimbabwe's domestic and international trade through the provision of 
export and domestic credit insurance prod ucts. It also provides guarantees to financial companies 
so that they lend to micro, small and medium -sized companies.38  
3.3  Measures Affecting Production and Trade  
Incentives  
Since 2001, Zimbabwe has not submitted any notification to the WTO Committee on Subs idies 
and Countervailing Measures pursuant to Article XVI:1 of the GATT 1994 and Article 25 of the WTO 
Agreement on Subsidies.39 In general, the lack of financial resources would appear to limit the 
Government's capacity to provide substantial subsidies or state aid. However, several state -owned 
enterprises engaged in commercial activities received state aid for recapitalization. Support and 
subsidies are also paid out for agriculture, in particular for maize (Section 4.1). Moreover, various 
incentives are a vailable to investors in export activities (Section 3.2.4).  
Standards and other technical requirements  
Zimbabwe has made one notification to the WTO TBT Committee on  Technical Barriers to 
Trade (TBT) since 2012 (Table 2.2). The Standards Association of Zimbabwe (SAZ) is the national 
standards body, which also functions as Zimbabwe's WTO TBT enquiry point for standards and 
conformity assessment. Trade -related matters a re handled by the MIC. The SAZ is a 
non-governmental and non -profit organization, with offices  in Harare, Bulawayo and Mutare. It is 
funded mainly through grants from the Standards Development Fund and its certification, testing, 
calibration and training s ervices and publications. The Fund, administered by the MIC, collects the 
proceeds of a levy related to the wage bill payable by designated employers.  
The SAZ represents Zimbabwe in standardization activities at the International Organization 
for Standard ization (ISO) and the African Regional Organization for Standardization (ARSO), which 
Zimbabwe joined in 2018, the International Electrotechnical Commission (IEC) ; and the African 
Electrotechnical Standardization Commission (AFSEC). Furthermore, the SAZ is  involved in the 
harmonization of policies and standards within the framework of the COMESA, the SADC, and AfCFTA 
under the ARSO.  
The SADC has committed to work towards the elimination of unnecessary TBTs among its 
members. The SADC Protocol on Trade (Ann ex concerning TBTs) provides for the harmonization 
"through harmonized texts, technical regulations and conformity assessment procedures in order to 
facilitate and increase trade".40 This includes, inter alia , the withdrawal of a conflicting national 
 
37 Viewed at: https://www.newsday.co.zw/2018/05/zimtrade -urges -firms-to-utilise -rbz-facilities/ . 
38 Viewed at http://www.ecgc.co.zw/ . 
39 WTO document G/SCM/N/48/ZWE, 30 March 2001. Viewed at: 
https://docs.wto.org/dol2festaff/Pages/FE_Search/DDFDocuments/12578/Q/G/SCM/N71ZWE.pdf . 
40 Viewed a t: 
https://www.sadc.int/files/6614/1520/1550/TBT_ANNEX_to_the_SADC_Protocol_on_Trade_ -
_Approved_Version_ -_17_J uly_2014_ -_ENGLISH.pdf .   WT/TPR/S/39 8 • Zimbabwe  
 
- 64 - 
 
 standa rd once the text of a regional standard has been developed and approved. To this end, the 
SADC established the Standardisation, Quality Assurance, Accreditation, and Metrology Programme, 
a framework under which several TBT -related harmonization structures were set up , includ ing the 
SADC Accreditation Service (SADCAS) and the SADC Cooperation in Standards (SADCSTAN) . 41 To 
date, the SADCSTAN has developed 99 regional standards, in the areas of management systems, 
construction, electrical appliances, and fish products.  According to the SAZ,  Zimbabwe had adopted 
66% of the SADC harmonized standards by 2019. Some of the standards were not adopted, as they 
conflict with Zimbabwean technical regulations (e.g. the reflective triangle standard for road safety).  
Amon g its many programmes, the COMESA aims to achieve the harmonization of standards, 
which is undertaken by the COMESA Committee on Standardization and Quality Assurance. The 
COMESA has harmonized 322 standards, of which the SAZ has adopted 60%, especially fo r food 
products, steel products, timber, and power cables.  
The Continental Standardization Body under the ARSO was established in 1977, with the 
mandate of harmonizing African Regional Standards, which are developed or adopted. To date, the 
ARSO has harmon ized more than 280 standards and, of these, Zimbabwe has adopted 51.  
Within the SAZ, national standards are prepared by technical committees (TCs) with broad 
representation, including manufacturers, trade associations, government departments, research and 
professional institutions, and the Consumer Council of Zimbabwe under the MIC. The SAZ has over 
250 committees and sub -committees , consisting of over 4,000 national experts. As a signatory to 
the WTO code of good practice for the preparation, adoption, and  application of standards, the SAZ 
seeks to abide by its principles of openness, balance of interests and participants, due process, and 
consensus.42 The process provides for a 60 -day period for public comment. A two -thirds majority of 
the TC members is req uired for a standard's approval for publication.  
To date (2019), the SAZ has published 2,352  Zimbabwean standards, about 57% of which 
are based on international, regional, or foreign nationa l standards  from other countries . The 
Zimbabwe National Standardization Strategy is in place for the three -year cycle of 2018 -20, which 
has identified 133  new standardization projects, mainly in food and agriculture (46).43 
Decisions on the adoption of standards as technical regulations are made by the ministry in 
charge of regulating the relevant sector. A statutory instrument making the standard mandatory 
must be enacted by that ministry and published in the government Gazette. Zimbabwe's technical 
regulations cover a range of products, including Portland cemen t, cement bricks, glass blocks, 
damp -proofing materials, mastic asphalt for roofing, bitumen roofing felts, fibre cement felts, fire 
extinguishers, fire doors, zinc coatings on steel, clay roofing tiles, steel pipes, copper tubes, and 
water taps. The energ y sector is also covered by technical regulations. To date, about 3% of the 
standards have been adopted as technical regulations in Zimbabwe.  
In December 2015, Zimbabwe introduced a mandatory preshipment conformity assessment 
scheme (the Consignment -Based  Conformity Assessment (CBCA) Programme). The Programme was 
promulgated through S.I. 132 of 2015, Control of Goods (Open General Import License) (Standards 
Assessment) Notice 2015, and notified to the TBT Committee.44 According to the authorities, the 
objec tive of the Programme is to reduce the risk of hazardous and substandard imported products 
entering Zimbabwe, for consumer and environmental protection reasons (e.g.  motor vehicles, and 
hazardous substances). The Programme is not related to the valuation o f goods. The statutory 
instrument does not state the objectives of the measure.  
Under the CBCA Programme, designated products (12% of tariff lines at the HS 
eight-digit level) within the following categories are subject to controls under the Programme: fo od 
and agricultural products; fertilizers; building and civil engineering products; certain petroleum and 
fuels (not inspected by the Zimbabwe Energy Regulatory Agency); packaging material; 
 
41 SADC, Non-Tariff Barriers. Viewed at: https://www.sadc.int/themes/economic -
development/trade/non -tariff-barriers/ . 
42 ISO, Stages and Reso urces for Standards Development. Viewed at: https://www.iso.org/stages -and-
resources -for-standards -development.html . 
43 Zimbabwe National Standardization Strategy (ZNSS)  2018-2020. Viewed at: http://saz.org.zw/wp -
content/uploads/2018/09/ZNSS -Full-Document -Foreword -Signed.pdf . 
44 WTO document G/TBT/N/ZWE/1, 4 April 2016.   WT/TPR/S/39 8 • Zimbabwe  
 
- 65 - 
 
  electrical/electronic products; body care products; automotive and  transportation goods; clothing 
and textiles; and toys.45  
The CBCA Programme provides that the designated products, when imported into the country, 
must be accompanied by a certificate of conformity with Zimbabwean national standards. A 
pre-export verifica tion of conformity of the listed products is carried out in the country of export, 
and a Certificate of Conformity (CoC) is issued. The assessment involves "confirmation, through the 
provision of objective evidence, that requirements of the applicable stan dards have been fulfilled 
through one or more of the following tasks: shipment inspection, verification of documentation, 
sample testing and risk assessment". According to the authorities, the CBCA Programme accepts 
certified products from well -known brand s, as long as reports and/or certification documents from 
an accredited third party are provided; in that case, there is no testing, but the fees are still payable.  
Bureau Veritas was appointed by the MIC to assess, in the exporting country concerned, the  
conformity of goods with national standards. At the port of entry, the ZIMRA will require a CoC for 
the products concerned; consignments are otherwi se reshipped at the importer's cost . Howe ver, 
waivers have been issued by the MIC when the CoC is missing ( S.I. 132 of 2015). T here w as no 
border inspection in Zimbabwe  in November 2019 .  
The CBCA Programme contains a complex fee schedule (Table 3.1 5). The fees for verification 
and inspection by the "assessment agent" are levied in ad valorem  terms, but the rat es vary 
according to the "applicable facilitation route", and rates are subject to a minimum (USD 250) and 
a maximum (USD 2,675) per consignment. It appears that the minimum fee of USD 250 would be 
high for imports when applied to the minimum merchandise v alue of USD 1,000. Moreover, WTO 
principles provide that fees should be proportional to the cost of the service rendered, which calls, 
in principle, for flat fees.  
Table 3.15 Fee schedule of the Consignment Based Conformity Assessment Programme  
Facilitation routes  Ad valorem  
fee as % of 
the declared 
f.o.b. value  Minimum fee 
in USD or its 
equivalent  Maximum fee 
in USD or its 
equivalent  
A – Exporters with conformity documents; product 
will otherwise be tested or visually inspected  0.50%  250 2,675  
B – Fast-track certification process without testing, 
for exporters having demonstrated past compliance 
with the CBCA Programme and that ship the same 
product from the same supplier (e.g. computers, 
cars) 0.45%  250 2,675  
C - Licensed products without testing  0.25%  250 2,675  
Source:  S.I. 132 of 2015, Control of Goods (Open General Import License) (Standards Assessment) 
Notice  2015.  
The applicable facilitation routes for assessment are determined by the Assessment Agent 
(Veritas), taking into consideration the supporting documentation provided by the exporter. The fees 
(Table 3.1 5) cover the documentary verification and inspection of goods only; they do not cover 
laborator y testing, sealing of containers, or registration and licensing of products. Testing services 
are charged directly by the Assessment Agent, on a case -by-case basis.  
According to the authorities, inspections for compliance with technical regulations are car ried 
out both at the border and in the domestic market. Customs officers may only intervene upon receipt 
of directives from line ministries. Zimbabwe does not have a single market surveillance system in 
place, but surveillance is carried out by different g overnment bodies, such as the SAZ (e.g. water, 
bricks, and cement), the Medicines Control Authority of Zimbabwe, and the Ministry of Health and 
Child Care (food products). The MIC is also in the process of formulating the National Quality 
Infrastructure Po licy and drafting the National Compulsory Specifications Bill to strengthen the 
national quality system. The objective of the Bill is to establish and administer compulsory 
 
45 S.I. 132 of 2015, Control of Goods (Open General Import Licence) ( Standards Assessment) Notice, 
2015. Viewed at: http://www.veritaszim.net/sites/veritas_d/files/SI%202015 -
132%20Control%20of%20Goods%20%28Open%20Import%20Licence%29%20%28Standards%20Assessment
%29%20Notice%2C%202015_0.pdf .  WT/TPR/S/39 8 • Zimbabwe  
 
- 66 - 
 
 specifications and other technical regulations, with a view to protecting human hea lth, safety, and 
the environment.  
The SAZ operates several ISO certification schemes and HACCP schemes, including for quality 
management systems (ISO 9001); environmental management systems (ISO 14001); occupational 
health and safety management systems (I SO 45001); and food safety management systems 
(ISO22000 and HACCP). The SAZ also operates product certification schemes, which include 
products such as packaged drinking water (other than natural mineral water). ZWS  ISO 9001, 
14001, 45001  certification sch emes are accredited by both the SADCAS and the South African 
National Accreditation System. The SAZ is also licensed under the ARSO to certify forestry and 
agricultural products under the ECOMARK Africa Sustainability Eco -labelling Scheme, to enable 
produc ts to be marketed globally.  
Furthermore, the SAZ promotes the use of standards through product and systems 
certification. To date, the following certifications have been achieved: ISO 9001 (137  companies), 
ISO 14000 (31 companies), ISO 45001 (24 companies) , ISO 22000 (8 companies) and HACCP 
(4 companies). This represents a small percentage of the companies and manufactured products. 
The SAZ continues to support the development of a National Quality Policy and a regulatory 
framework that promotes systems and  product certification, which would foster a culture of 
manufacturing of quality products for competing in export markets.46 
The SAZ maintains laboratory and testing facilities in Harare, Bulawayo and Mutare. The 
Chemical and Food Technology Laboratories of fer comprehensive chemical, physical, and 
microbiological analyses, inspection, and advisory services to meet customer requirements. The SAZ 
is accredited by the SADCAS to ISO IEC 17025 for water and fuel testing. The SAZ's engineering 
laboratories provide  the following services: non -destructive testing, inspection services, electrical 
engineering and electronics, solar testing, mechanical engineering, civil engineering, packaging 
testing, and calibration services. The inspection of boilers and pressure ves sels is accredited to ISO 
IEC 17020 by the SADCAS. The SAZ also operates a specialized High -performance Liquid 
Chromatography Laboratory at the Head Office in Harare, which offers tests mainly for the food 
industry for contaminants such as aflatoxins, herb icides and pesticides in grains and horticulture 
produce.  
With regard to environmental measures, Zimbabwe has signed five environmental 
conventions, the Climate Change Convention, and desertification conventions. The Environmental 
Management Agency was est ablished in 2007 under the Environmental Management Act of 2003. It 
is in charge of environmental impact assessments, including for mining projects (Section  4.2.1), 
ecosystem protection, water standards, air pollution, and chemicals management. On the grou nd, it 
has officers that deal with water, air, and chemical pollutions. Since 2011, six border posts have 
been opened.  
Sanitary and phytosanitary  (SPS) requirements  
Zimbabwe's SPS regime remains substantially unchanged since the last TPR in 2011. The 
legal framework for food safety, animal health, and plant pest and disease control is largely obsolete, 
and requires modernization. Zimbabwe provided five SPS notifications in the period under review 
(Table 2.2). No specific trade concerns were raised against Zimbabwe's measures in the WTO SPS 
Committee.  
Zimbabwe is a member of the Food and Agriculture Organization (FAO) Codex Alimentarius 
Commission, the World Organisation for Animal Health, and the International Plant Protection 
Convention. It is also a memb er of the African Union Inter -African Bureau for Animal Resources, and 
the Inter -African  Phytosanitary Council (a Regional Plant Protection Organization).  
The development of mechanisms for the harmonization of SPS measures at the regional level 
(SADC and C OMESA) are at a very early stage. Within the SADC, Zimbabwe entered into 
commitments to work towards the harmonization of SPS measures within the region. The SADC 
Protocol on Trade (Annex on SPS measures) requires its members to base their practices on the  
international standards, guidelines, and recommendations of the SPS Agreement. Its objective is to 
 
46 Zimbabwe National Standardization S trategy (ZNSS) 2018 -2020. Viewed at: http://saz.org.zw/wp -
content/uploads/2018/09/ZNSS -Full-Document -Foreword -Signed.pdf .  WT/TPR/S/39 8 • Zimbabwe  
 
- 67 - 
 
  improve SPS cooperation and harmonization in the SADC region, and to ensure that members do 
not arbitrarily discriminate or restrict trade. The SADC adopted  in 2011 several regional guidelines 
on various SPS matters (SPS management, food safety, veterinary drugs, and crop protection).47  
As an example of the nascent harmonization within the SADC, in 2013, a memorandum of 
understanding on the Harmonized Seed Re gulatory System (and related phytosanitary measures) 
was opened for signature among SADC members. It has not yet been signed by Zimbabwe. The 
regulatory regime for seeds is aimed at facilitating cross -border trade in certified seed varieties, and 
reducing repetitive national testing. The system comprises a SADC seed variety catalogue and 
common phytosanitary measures for seeds. The SPS measures include two SADC pest lists: one for 
seed-borne pests/pathogens requiring control when seeds are traded across bor ders within the 
SADC; and the other where seeds are imported from third countries.  
In accordance with Article 132 of the COMESA Treaty, COMESA members undertook "to 
harmonise their policies and regulations relating to phytosanitary and sanitary measures w ithout 
impeding the export of crops, plants, seeds, livestock, livestock products, fish and fish -products".48 
In 2009, COMESA Regulations on the Application of Sanitary and Phytosanitary Measures entered 
into force, which provide for the establishment of a COMESA Green Pass scheme. The Green Pass is 
intended as a commodity -specific SPS certification scheme for the movement of agricultural products 
within the COMESA, implemented by the respective National Green Pass Authorities.49 To date, this 
scheme is not y et operational.  
Food safety  
The legal framework for food safety comprises the Public Health Act (covering, inter alia,  basic 
hygiene requirements), and the Food and Food Standards Act of 1971, last amended in 2001.50 The 
latter food law deals mainly with the production, sale and importation of adulterated or "falsely 
described" food items. It established the Food Standards  Advisory Board to formulate and advise 
the Minister of Health on food safety policy, and to develop regulations; the Food Standards Advisory 
Board also functions as the National Codex Committee. A national food safety strategy was being 
drafted in Novembe r 2019, with the help of the FAO.  
Several food safety regulations were promulgated under the Food and Food Standards Act, 
some of which predate the establishment of the WTO and appear to be outdated. Under the recent 
Food and Food Standards (Import and Exp ort) Regulations (S.I. No. 8 of 2015), all imports of food 
are subject to inspection at the border, unless the importer concerned holds a Food Sanitary 
Certificate, issued by the Minister of Health, in accordance with the Food and Food Standards 
(Inspectio n and Certification) Regulations, 2015 (S.I. No. 5 of 2015).51 Certification involves 
inspection of the premises. Food inspectors are authorized to detain import consignments for up to 
14 days. Both 2015 regulations are based on the Codex Alimentarius, acco rding to the authorities, 
and were notified to the SPS Committee.52 In November 2019, Zimbabwe was in the process of 
drafting a procedure for implementing the relevant Codex Alimentarius Code of Practice for reducing 
aflatoxins in peanuts and peanut butter.   
Zimbabwe has a good record of providing food safety notifications prior to adopting 
measures. During the review period, it notified three Codex -based draft regulations concerning 
bottled water; packaged water; and labelling requirements for pre-packaged food.53 In addition, in 
2016, it notified a draft regulation concerning mandatory food fortification and labelling, which is 
partly based on Codex standards, and partly on national standards, according to the authorities.54 
 
47 SADC, Sanitary & Phyto -Sanitary Measures. Viewed at: https://www. sadc.int/themes/economic -
development/trade/sanitary -phyto -sanitary -measures . 
48 COMESA Treaty. Viewed at: https://www.comesacompetition.org/wp -
content/uploads/201 6/03/COMESA_Treaty.pdf . 
49 COMESA, Regulations on the Application of Sanitary and Phytosanitary Measures.  Viewed at: 
https://www.comesa.int/wp -content/uploads/2019/02/2010 -Gazette -SPS-REGULATIONS1 -Attachment.pdf . 
50 Food and Food Standards Act. Viewed at: http://extwprlegs1.fao.org/docs/pdf/zim24975.pdf . 
51 S.I. 5 of 2015, Food and Food Standards (Inspection and Certification) Regulations, 2015. Viewed at: 
http://extwprlegs1.fao.org/docs/pdf/zim170804.pdf  and http://extwprlegs1.fao.org/docs/pdf/zim170803.pdf . 
52 WTO document G/SPS/N/ZWE/2, 17 April 2013.  
53 WTO documents G/SPS/N/1, 4 and 6, 20 December 2011, 18 April 2013 and 30 August 2016.  
54 WTO document G/SPS/N/5, 30 August 2016.   WT/TPR/S/39 8 • Zimbabwe  
 
- 68 - 
 
 The regulation entere d into force in 2017. In total, Zimbabwe has 24 commodity -specific food 
regulations in place, according to the SPS register maintained by the National Codex Contact Point.  
Phytosanitary measures  
The Department of Research and Specialist Services, Specialis t Services Division, Plant 
Quarantine Services Institute (of the Ministry of Lands, Agriculture, Water, Climate and Rural 
Resettlement) functions as the National Plant Protection Organization (NPPO) and is responsible for 
phytosanitary measures. The basic legal framework comprises the Plant Pest and Diseases  Act 
(Chapter 19:08) of 1958, and the Plant Pests and Diseases (Importation) Regulations, 1976.55 
For imports, the first step is an application, in person, for a plant import permit from the 
Department of  Research and Specialist Services in Harare or the Head Plant Quarantine and Plant 
Protection Services Institute in Mazowe. A permit is required for all plants and plant products 
entering Zimbabwe. The process involves pest risk analysis, and a decision by  the Chief Plant 
Quarantine Office on whether preshipment inspection is required. A weekly schedule is compiled by 
the NPPO for approval, together with a recommendation for approval (or not) by the approving 
authority.  Registration of the applicant with th e Agricultural Marketing Authority is a 
pre-requirement. The second step involves an application for a biosafety permit from the National 
Biotechnology Authority (See also 3.2.3.1).  The third step involves the issuance of an import permit 
by the Ministry o f Lands, Agriculture, Water, Climate and Rural Resettlement. This process takes 
about 14 days. In the case of approval, a permit is issued. There is no website yet that allows for 
import handling permit applications. The applicable fees are USD 5 for comme rcial imports and 
USD 1 for other imports.56  
Plant import permit conditions typically stipulate that plants must be fumigated on arrival, 
unless accompanied by a fumigation certificate; in the absence of this certificate, the plants may be 
released on the importer's signed undertaking to report with the goods to a specified centre for 
fumigation.  
A phytosanitary certificate is required for the importation of any commodity of plant origin; 
release from customs may be refused if the certificate produced is n ot worded in accordance with 
the conditions stipulated on the import permit. The importer has the right to appeal against the 
detention or destruction of a plant. A transit permit is required for all agricultural products. Plant 
health inspectors are stati oned at most of Zimbabwe's entry points to facilitate customs clearance; 
where there are no inspectors, ZIMRA officers have been appointed as plant inspectors.  
Imports of pesticides are regulated by the Fertilizers, Farm Fee ds and Remedies 
Act (Chapter  18:12), and the Pesticide Regulations issued in 2012. No pesticide may be imported 
into Zimbabwe, for private use or for resale, unless it is registered with the Plant Protection Research 
Institute (Pesticides Registration Office). All imports of unregistere d pesticides are detained pending 
registration. Non -registered pesticides may be imported for experimental purposes only, with written 
authorization from the Registering Officer; the containers must bear the label "for  experimental 
purposes only - not for sale". Active ingredients for use in pesticide formulations do not have to be 
registered, and are not subject to control on importation.  
Biosafety policy  
Zimbabwe joined the Cartagena Protocol on Biosafety in 2005. Its biosafety policy, 
international commi tments, and legislation require risk assessment (Section 25 of the National 
Biotechnology Authority (NBA) Act). The NBA Act (Chapter 14:31) was passed in 2006, and it 
superseded the Research Amendment Act of 1998. The NBA replaced the Biosafety Board.   
 
55 Plant Pests and Diseases Ac t. Viewed at: http://extwprlegs1.fao.org/docs/pdf/zim60741.pdf ; and 
Plant Pests and Diseases (Importation) Regulations, 1976. Viewed at: 
https://www.ecolex.org/details/legislation/plant -pests -and-diseases -importation -regulations -1976-lex-
faoc061967/?q=plant+pest+zimbabwe&xda te_min=&xdate_max =. 
56 S.I. 121 of 2019 – Plant Pests and Disease (Importation) (Amendment) Regulations, 2019.   WT/TPR/S/39 8 • Zimbabwe  
 
- 69 - 
 
  
Zimbabwe maintains a ban on cultivation, (sale and use) of GMOs and GMO products. While 
imports of GMO products are generally prohibited, imports of GM -modified grains (e.g. maize and 
soya beans from South Africa) may be authorized under supervised milling r equirements.  
In 2018, new GMO regulations were promulgated, that lay out the procedures for obtaining 
a biosafety permit from the NBA and a registration certificate for GMO operators (importers). The 
registration fee is USD 500. The regulations contain a long and non -exhaustive list of agricultural 
products requiring GMO -free certificates/declarations (commodities, meat, fish, dairy products, feed, 
vegetables, coffee and tea, feed additives, seeds, etc). Applications for a biosafety import permit 
must be a ccompanied by a GMO certificate or a GMO declaration issued by the competent authority 
in the exporting country. GMO declarations are accepted only for milled and other products (except 
seeds and grain) not known to contain GM ingredients. Zimbabwe is in t he process of adopting 
mandatory labelling rules with regard to GM food and feed.  
Veterinary measures  
The Department of Veterinary Services (of the Ministry of Lands, Agriculture, Water, Climate 
and Rural Resettlement) is responsible for animal health and veterinary measures. The Veterinary 
Services, as mandated by law, also administer imports of grains (S.I. 57 of 1989). Zimbabwe's 
Animal Health Act (Chapter 19:01) of 1961, last amended in 2001,57 gives powers to the Minister to 
eradicate and prevent animal  pests and diseases. The Act and most of its regulations require 
updating, and are under review, according to the authorities. The Veterinary Services issued a list 
of endemic notifiable diseases (S.I. 49 of 2017), which include foot and mouth disease, ant hrax, 
rabies, and Newcastle disease.  
Imports of animals and related products require a veterinary import permit, issued by the 
Veterinary Services Head Office in Harare; and a veterinary health certificate signed by the exporting 
country's veterinary auth ority. The granting of a veterinary import permit for certain animals or 
animal products (e.g. chickens and chicken products, dairy products, and processed and canned 
meats) may be conditional on the inspection of processing plants in the exporting country ; the cost 
is paid for by the importer. In addition, some products (certain live animals and animal products) 
require a Control of Goods Import Permit, issued by the Ministry of Agriculture (under S.I. 350 of 
1993), in order to control imported quantities.  Animal health inspection fees at the border were 
revised in 2016 and were USD 20 per shipment until June 2019, when they were brought to 
ZWL 20.58   
Upon arrival at the port of entry, systematic physical inspection of the products is carried 
out. A release  certificate of the consignment is issued, for an additional ZWL 20.  
Live animals entering Zimbabwe are typically quarantined for 30 days. Breeding stock is the 
only live poultry to be allowed into Zimbabwe, and is quarantined for a minimum of 12 weeks  and 
inspected at least twice daily.59 Samples from all shipments of imported animal products are tested 
at the Central Veterinary Laboratory (CVL) to ascertain whether they are fit for human consumption 
before being released into the market; tests are perform ed for salmonella and total bacterial count, 
at a cost of USD 10 and USD 5, respectively. If the test results are favourable, a release certificate 
is issued for a fee of USD 20 per consignment (the charges are, in principle, levied in ZLW since 
June 2019) . A second test could be performed if the results of the first test are unfavourable 
(Article  5.3 of the Trade Facilitation Agreement), provided the laboratory is accredited; in November 
2019, only the CVL was accredited in Zimbabwe.  
Animals, animal produc ts, and "infectious things"60 are not subject to controls if in transit by 
either rail or air (unless they have passed through Kenya, Tanzania, Malawi, Mozambique, or 
Zambia); this measure is currently under review.  A transit permit (conditional on an impor t permit 
from the importing country) must be obtained.  
 
57 Animal Health Act. Viewed at: http://extwprlegs1.fao.org/docs/pdf/zim21477.pdf .  
58 S.I. 56 of 2016. Animal Health (Import) (Amendment) Regulations, 2016 (No. 6). Viewed at: 
http://extwprlegs1.fao.org/docs/pdf/zim170797.pdf . 
59 Quarantine may be at the importer's property or at a government -approved quarantine station.  
60 The term "infectious things" includes animal products, all grains, and any wrapping material  used to 
contain processed or unprocessed materials intended for incorporating into animal feeding stuffs, fodder, etc.   WT/TPR/S/39 8 • Zimbabwe  
 
- 70 - 
 
 
New developments with respect to the veterinary measures include the following:  
• new regulations on veterinary  diagnostic testing laboratories were published in 2017 
(S.I. 89 of 2017);  
• the health certificate for the importation of cattle was amended in 2014 to include the 
section indicating that "the animals  may only be disposed of after 3 years while breeding, 
under close veterinary monitoring";  
• with effect from October 2014, a new prerequisite regarding the importation of cattle was 
introduced. Applicants are now required  to submit a breeder's certificate or breeder's 
confirmation letter and an authorized veterin arian confirmation letter on breeding status. 
This is to prevent imports of live animals for slaughter (which are prohibited) disguised as 
imports for breeding purposes;  
• Section 9 regarding highly pathogenic avian influenza (HPAI) on the health certificat e on 
importation of day -old chicks and hatching eggs was amended, in line with the Terrestrial 
Animal Health Code, 2014. The section "the country must be free from active highly 
pathogenic avian influenza in poultry" was amended to read "the country, zone,  or 
compartment must be free from active highly pathogenic avian influenza in poultry". The 
section "the poultry flocks of origin are located in districts free from highly pathogenic 
avian influenza, and more than 300 Km away from any highly pathogenic avi an influenza 
outbreak in the country" was changed to read "the poultry flocks of origin are located in 
districts free from highly pathogenic avian influenza";  
• the health certificate regarding the importation of blood meal was amended in 2015 for 
Botswana, to read "the processing temperature  90 degree Celsius for a minimum period 
of 30 minutes at an absolute pressure 400 -800 Kpa", from a temperature of 133 degrees 
Celsius for a minimum period of 20 minutes at an absolute pressure of three bar;  
• regard ing the health certificate for the importation of fish, the following condition was 
added in 2015 "declare freedom from algae toxins and seasons for harvesting of fish";  
• testing for Johne's disease on the importation of cattle, sheep and goats was amended on 
health certificates to include the ELISA test;  
• a polymerase chain reaction test was added to the health certificate for the importation of 
semen, to test for Infectious Bovine  Rhinotracheitis;  
• the proposed health certificate for the export of bovine semen  from the Netherlands was 
adopted in 2018; and  
• in 2019, proposed health certificates for the importation of live sheep, goats, and cattle, 
frozen bovine embryos and frozen  semen from Canada and the United States were 
reviewed and adopted by both countries.  
Movement restrictions of animals due to disease outbreaks were implemented for the 
following diseases: HPAI and the tick -borne disease Theileriosis in 2017; foot and mouth disease; 
anthrax (sporadic outbreaks were experienced, and all affected areas are q uarantined); and African 
Swine Fever in 2019. All affected areas were quarantined. The importation of poultry and poultry 
products from South Africa is suspended due to a HPAI outbreak that occurred in 2018.  
Competition policy and price controls  
The Compe tition Act, as amended in 2001, was described in detail in the previous Review; 
it prohibits the abuse of dominance and collusive arrangements between competitors. Collusive 
arrangements are prohibited, per se , and they attract, in principle, both civil an d criminal sanctions. 
The authorities explained that the Act was being amended in 2019, inter alia,  to provide for sanctions 
that would ensure that competition law violations can effectively be deterred.   WT/TPR/S/39 8 • Zimbabwe  
 
- 71 - 
 
  
The Competition and Tariff Commission is a statutor y body, established with the primary 
objective of enforcing the Competition Act. It resulted from a merger in 2001 of two bodies, the 
former Industry and Trade Competition Commission and the former Tariff Commission.61 The 
Commission therefore also has the mandate of implementing the country's tariff policy 
(Section  3.1.8).  
Since its inception, the Commission has handled cases in several sectors, including, inter 
alia, energy, construction, agriculture, financial services, beverages, health, and 
telecommuni cations. Most of the restrictive business practices handled by the Commission were 
remedied through the issuance of cease -and-desist orders. Penalties were levied for breaches of the 
merger notifications provisions, and the highest penalty was USD 2.5 mill ion. The Commission 
undertook studies in the fertilizer sector, and in the petroleum, beef and cement industries.  
The Act also provides for the regulation of mergers of all types. The notifiable merger 
threshold is set at USD 1.2 million or its equivalent  (S.I. 110/10) . The Competition Act's 
merger -control provisions take precedence over any powers of a sectoral regulator in merger 
assessment and approval; regulators that have such functions are required to apply to the 
Commission for final clearance of a merger.  
Price controls  
A range of goods and services supplied in Zimbabwe were subject to price controls during 
the 2011 -19 period; these were implemented  by government departments, sectoral regulators or 
professional associations  (Table 3.1 6).  
Table 3.16 Products subject to price controls, 2019  
Product/service  Description  
Health services provided 
by government centres  Maximum fees set by the Ministry of Health  
Telecommunication and 
bandwidth tariffs  Approved by the Postal and Regulatory Authority of Zimbabwe  
Electricity tariffs  Set and approved by the Zimbabwe Electricity Regulatory Commission  
Legal fees  The Law Society of Zimbabwe fixes minimum tariffs to be levied by law firms 
Petroleum products  Prices set by the Zimbabwe Energy Regulatory Authority (ZERA)  
Services provided by 
local authorities  Rates  set by the Ministry of Local Government  
Water  Prices set by the Ministry of Water and Sanitation  
Maize and wheat  Consumer prices (resale prices) set by the Agricultural Marketing Authority  
Government schools  Fees set by the Ministry of Education, Sports and Culture  
Source:  Information provided by the authorities.  
The National Incomes and Pricing Commission was dissolved in June 2017, and was replaced 
by the National Competitiveness Commission. The latter is mandated to help enable a competitive 
environment for business, through the development, coordination and imp lementation of key policy 
improvements. This follows concern from the authorities that goods and services were overpriced in 
many sectors of the economy, owing to a combination of factors that include high costs of doing 
business and lack of competition.  
Consumer protection  
A new Consumer Protection Bill, gazetted in 2018, aims to protect consumers of goods and 
services, by establishing a Consumer Protection Agency and regulating Consumer Advocacy 
 
61 Competition and Tariff Commission, Setting Price Ranges to be Charged by Retailers/Wholesalers by 
Producers/Manufacturers.  Viewed at: http://www.competition.co.zw/ .  WT/TPR/S/39 8 • Zimbabwe  
 
- 72 - 
 
 Organisations.62 It would  replace  the Consumer Contracts Act . Section 11 provides for the right to 
fair value, good quality, and safety of goods and services. Section 12 further provides for the implied 
warranty of quality a producer, importer, distributor or retailer are expected to give the consumer. 
Section 17 p rovides for the liability for damages caused by goods, which is extended to the producer; 
any person who put their name on the packaging of goods or services; importers; distributors; 
retailers; and suppliers.  
This Bill would require that, in any transact ion, there is an implied provision that the 
producer, importer, distributor or retailer each warrant that the goods or services comply with the 
requirements and standards. This Bill complements the National Compulsory Specifications Bill, 
whereby the produ cer, importer, distributor or retailer of any goods would be liable for any harm 
caused by supplying unsafe goods; a product failure, defect or hazard in any goods; or inadequate 
instructions or warnings provided to the consumer. Also, any person who produ ces, supplies, imports 
or packages any prescribed goods or services must display a notice that discloses the presence of 
any GM ingredients therein.  
State trading, state -owned enterprises, and privatization  
Zimbabwe has a long history of numerous, large an d loss -making state -owned enterprises 
and parastatals (SOEs). The contribution of Zimbabwe's 107 public companies was estimated by the 
Government at about 14% of GDP in 2019, down from 40% in the late 1990s, although no precise 
statistics are available. Th e latest report on SOEs by the Office of the Auditor General of Zimbabwe, 
for the year 2017, reports a worsening of the SOEs' losses, due to irregular transactions and 
misappropriation of funds and, generally, a continued lack of appropriate governance.63  
Several of these entities would appear to be actively engaged in the international trade of 
goods or services (Table 3.1 7). However, in its latest submission to the WTO, dated 25  June 2008, 
Zimbabwe notified that it does not have any state trading enterpri ses that meet the working 
definition adopted for notification purposes.64 Assistance from the WTO on state -trading notifications 
could constitute an opportunity to help the SOE reform process.  
Among these, the Minerals Marketing Corporation of Zimbabwe, wh ich is wholly owned by 
the State,  acts as the exclusive agent  for the marketing and sale of all minerals produced in 
Zimbabwe (Section 4.2.1); and Fidelity  Printers and Refiners Ltd  is the sole exporter of refined gold 
and silver. Other state -owned compani es that are also engaged in trade include the Grain Marketing 
Board, the Cold Storage Company Ltd, the National Oil Company of Zimbabwe, and ZESA Holdings.   
After decades of reliance on SOEs in key agricultural, industrial and services sectors, and 
given t heir longstanding poor performance, in 1999, the Government adopted procedures for the 
privatization and restructuring of SOEs The State Enterprises Restructuring Agency was established 
to provide advice to the technical committees. Two decades later, the implementation of these 
restructuring and privatization strategies has yet to fully occur, and most of the earmarked 
companies remain in the State's portfolio.  
Table 3.17 State -owned enterprises  
 Name of sEP  Financial data 2015 (USD '000)  
Gross income  Total 
expenditure  Dividend 
paid to the 
Government  Accounts 
2016, 
auditeda 
Agricultural and Rural Development Authority  2,811  6,307  0 No 
Agricultural Marketing Authority  .. .. .. .. 
Agricultural Bank of Zimbabwe (AGRIBANK)  29,920  36,219  0 Yes 
Air Zimbabwe  32,879  36,219  0 No 
Allied Timbers  10,693  14,874  0 No 
Astra Industries  .. .. .. .. 
Cairns Holdings  .. .. .. .. 
 
62 Veritas, Consumer Protection Bill, 2018. Viewed at: 
http://www.veritaszim.net/sites/veritas_d/files/Consumer%20Protection%20Bill%202018%20 -%20HB%2010 -
2018.pdf . 
63 The Office of the Auditor -General Zimbabwe, Parastatals. Viewed at : 
https://www.auditorgeneral.gov.zw/downloads/category/2 -parastatals . 
64 WTO document G/STR/N/12/ZWE, 25 June 2008.   WT/TPR/S/39 8 • Zimbabwe  
 
- 73 - 
 
   Name of sEP  Financial data 2015 (USD '000)  
Gross income  Total 
expenditure  Dividend 
paid to the 
Government  Accounts 
2016, 
auditeda 
CBZ Holding  279,010  238,125  469 Yes 
Civil Aviation Authority Zimbabwe  33,534  37,115  0 Yes 
CMED  32,665  35,120  0 No 
Cold Storage Commission/Company  3,534  9,080  0 No 
Forestry Commission of Zimbabwe  .. .. .. .. 
Grain Marketing Board  43,879  99,964  0 Yes 
Hwange Colliery Company  68,146  173,736  0 Yes 
Industrial Corporation Zimbabwe Group  99,483  109,317  0 Yes 
Infrastructure Development Bank Zimbabwe  14,886  19,939  500 Yes 
Minerals Marketing Corporation of Zimbabwe  10,933  17,930  2,990  No 
Zimbabwe Mining Corporation  .. .. .. .. 
National Handicraft Centre  59 104 0 No 
National Handling Service  6,911  13,552  0 .. 
National Oil Infrastructure Company of Zimbabwe  110,916  88,279  3,513  No 
National Pharmaceutical Company  13,061  7,150  0 No 
National Railways of Zimbabwe  99,389  148,144  0 Yes 
NetOne  115,113  117,256  0 No 
New Ziana  1,286  1,158  0 No 
Olivine Industries  Closed down in 2019  
Parks and Wildlife Management Authority  29,501  28,896  .. Yes 
People's Own Savings Bank  35,244  27,336  313 Yes 
Petrotrade  111,674  110,153  0 No 
Pig Industry Board of Zimbabwe  1,007  956 35 No 
Powertel  26,079  26,628  0 No 
Printflow  5,024  8,172  0 No 
Rainbow Tourism Group  30,850  31,984  0 .. 
Zimbabwe Tourist Development Corporation  .. .. .. .. 
Rural Electrification Company  .. .. .. .. 
Small Medium Enterprise Dvl Corporation  649 2,510  0 No 
Tobacco Industry and Marketing Board  12,564  7,929  - No 
Tobacco Research Board  11,948  11,189  - No 
Tobacco Growers Trust    .. .. 
TelOne  148,549  138,628  0 Yes 
Tractive Power Holdings  .. .. .. .. 
Transmedia Corporation  2,696  1,803  0 No 
ZB Financial Holdings (Finhold)  .. .. .. .. 
ZESA Enterprises  16,109  25,694  0 No 
ZESA Holdings Private Limited  30,652  28,059  0 No 
Zimbabwe Broadcasting Corporation  18,193  20,304  0 No 
Zimbabwe Consolidated Diamond Company  .. .. .. .. 
Zimbabwe Electricity Transmission and 
Distribution  885,154  996,628  .. No 
Zimbabwe Investment Authority  1,415  1,406  326 No 
ZISCO  .. .. .. .. 
ZINWA  .. .. .. .. 
Zimbabwe Post  25,286  35,001  0 No 
Zimbabwe Power Company  494,230  475,139  .. No 
Zimbabwe Reinsurance Company  .. .. .. .. 
Zimbabwe United Passenger Company  19,128  22,543  0 No 
Zimpapers  42,277  40,090  .. No 
Grand total  2,957,337  3,250,636  .. .. 
.. Not available . 
a Audited by the Office of the Auditor General.  
Source:  Government, Report on the Evaluation of the Public Financial Management System of Zimbabwe, 
Public Expenditure and Financial Accountability (PEFA) Assessment 2017 ; and information provided 
by the authorities.  
Government procuremen t 
Zimbabwe is neither a party nor an observer to the WTO Plurilateral Agreement on 
Government Procurement. Considering a WTO national training workshop on accession to the 
Agreement, particularly in the light of the recent reforms described below, could co nstitute an 
opportunity for the authorities to consider obtaining observer status in the WTO Agreement on 
Government Procurement. This, in turn, would increase transparency in government procurement 
processes, including those funded through foreign aid, re duce opportunities for corruption, and lay 
the foundations for genuine competition among suppliers, national or foreign.   WT/TPR/S/39 8 • Zimbabwe  
 
- 74 - 
 
 
The Public Procurement and Disposal of Public Assets Act (Chapter 22:23) came into force 
on 1 January  2018, replacing the 1999 Procurement Act. It applies to all stages of the procurement 
process of goods, construction works and services, and to the dispos al of public assets. The new Act 
covers all publicly owned companies in which the State has a controlling interest, at central and 
subcentral level. If one of its provisions conflicts with an obligation of Zimbabwe under, or arising 
out of, any convention,  treaty or agreement between Zimbabwe and one or more foreign States or 
governments, or one or more international financial organizations, the requirements of the 
convention, treaty or agreement shall prevail (Section 3 of the Act).  
Since 2018, the new Pr ocurement Regulatory Authority of Zimbabwe (PRAZ) oversees public 
procurement proceedings to ensure transparency, honesty, cost -effectiveness and competition in 
public procurement.65 It directly reports to the Office of the President. Its functions are to m onitor 
and supervise procuring entities and the public procurement system.66 The PRAZ publishes 
information on procurement procedures, procurement planning, procurement complaints 
procedures; and information about tendering. A bidder dissatisfied with any p art of the procurement 
proceedings can challenge them under Section 73 of the Act.67  
Until 2018, no data had been compiled on the value of publicly awarded contracts. Thanks 
to recent efforts, disaggregated data, by procurement method and by type of purcha se, is available 
for the first time, for the year 2018. That year, total procurement amounted to USD 1.5 billion, or 
10% of GDP.  
The new procurement law established the Special Procurement Oversight Committee (SPOC) 
to review procurement contracts that th e Government deems sensitive or especially valuable. Above 
a certain threshold, the SPOC reviews contracts before award, and may oblige the procurement 
process to be recommenced. For other purchases, procuring entities procure on their own, within 
threshol ds (Table 3.1 8). Procuring entities are grouped in three classes, A, B, and C. The class a 
procuring entity belongs to is determined on a case -by-case basis by the PRAZ, based on published 
guidelines. There were 293 procuring entities in 2018, at central a nd subcentral level (including 
SEPs).  
Table 3.18 Financial thresholds for procurement contracts liable to scrutiny  
Procuring Entity  Financial threshold (USD)  
Class A  
(a) for construction works  500,000  
(b) for goods  250,000  
(c) for non -consultancy and consultancy services  100,000  
Class B  
(a) for construction works  250,000  
(b) for goods  150,000  
(c) for non -consultancy and consultancy services  75,000  
Class C  
(a) for construction works  200,000  
(b) for goods  100,000  
(c) for non -consultancy and consultancy services  50,000  
Source:  Public Procurement and Disposal of Public Assets (General) Regulations, 2018.  
The Public Procurement and Disposal of Public Assets (General) Regulations, 
2018 (S.I. 5/2018) apply to registrations of bidders and contractors; engagement of procuring 
agents; shared procurement; procurement plans; domestic price preferences; market consult ations; 
and financial thresholds.68  
With respect to domestic preference, procuring entities may invite only Zimbabwean 
(domestic) suppliers to bid where the price of the procurement requirement does not exceed 
USD 5 million in the case of construction work s; USD 300 000 in the case of goods; or USD 200 000 
 
65 PRAZ. Viewed at: http://www.praz.gov.zw . 
66 Public Procurement and Disposal of Public Assets Act. Viewed at: 
http://www.veritaszim.net/sites/veritas_d/files/Public%20Procurement%20Act%20r.pdf . 
67 PRAZ, How to Tender . Viewed at: 
http://www.praz.gov.zw/index.php?option=com_content&view=article&id=588&Itemid=943&lang=en . 
68 Public Procurement and Disposal of Public Assets (General) Regulations, 2018. Viewed at: 
http://www.veritaszim.net/sites/veritas_d/files/SI -5-2018ed.pdf .  WT/TPR/S/39 8 • Zimbabwe  
 
- 75 - 
 
  in the case of consultancy and non -consultancy services. Above these thresholds, foreign 
(international) bidders must be invited.  
The competitive bidding method of procurement is the normal method to be e mployed by 
procuring entities; use of another method must be justified in writing. In competitive bidding, all 
qualified bidders should be allowed to participate (Section 38 of the Act).  
If it is not feasible to define fully the technical or contractual as pects of the procurement to 
elicit competitive bids, or because of the complex nature of the procurement requirement, the 
procuring entity may wish to consider various technical or contractual solutions and to discuss them 
with bidders before deciding on t he final technical or contractual specifications. Where the 
procurement requirement is of particularly high value or complexity, competitive bidding may be 
preceded by prescribed pre -qualification procedures, with a view to identifying qualified bidders pr ior 
to the submission of bids.  
The restricted bidding method involves only bidders who are selected or invited by the 
procuring entity. This method may be used in cases of urgency, or when the cost of considering 
many bids is disproportionate to the estimated value of the procurement requirement, or for 
procurement contracts with an estimated value that does not exceed the prescribed threshold. The 
direct procurement method involves only one bidder or supplier; it may be used o nly in prescribed 
circumstances (Section 33 of the Act).  
A domestic price preference envisages a margin of 15% for the procurement of goods, and 
7.5% for the procurement of contractors' services. Within these prescribed limits, preference may 
be given to b idders that are domestic suppliers or manufacturers, and an extra preference, within 
the prescribed limits, may be given to women or entities controlled predominantly by women, or to 
Zimbabwean universities or polytechnics.  
Intellectual property rights (IP Rs) 
Zimbabwe is a member of the World Intellectual Property Organization (WIPO) and its 
administered conventions and protocols; its legal framework is presented in Table 3. 19. Zimbabwe 
is also a member of the African Regional Intellectual Property Organiza tion (ARIPO), which maintains 
a centralized system for the filing and substantive examination of industrial design, trademark and 
patent applications. Zimbabwe has yet to officially adhere to the Protocol amending the TRIPS 
Agreement, to provide additional  flexibilities to grant special compulsory licences for the export of 
medicines.69 
Table 3.19 Framework protecting IPRs, 2019  
Legal text  
Patents  
Zimbabwe Patent Act (Chapter 26:03)  
Patent Regulations (1971)  
Patent Cooperation Treaty  
Harare Protocol on Patents and Industrial Designs  
Trademarks  
Trade Marks Act (Chapter 26:04)  
Trade Marks Regulations, 2005  
Madrid Agreement on the International Agreement for Registration of Marks  
Banjul Protocol for Trademarks under the ARIPO  
Industrial designs  
Industrial Designs Act (Chapter 26:02)  
Paris Convention for the Protection of Industrial Property  
Harare Protocol on Patents and Industrial Designs  
Copyright  
Copyright and Neighbouring Rights Act  
Copyright and Neighbouring Rights Regulations, 2006  
Berne Convention for the protection of literary and artistic works  
 
69 WTO, How to accept the Protocol Amending th e TRIPS Agreement. Viewed at: 
https://www.wto.org/english/tratop_e/trips_e/accept_e.htm .  WT/TPR/S/39 8 • Zimbabwe  
 
- 76 - 
 
 Legal text  
Geographical indications  
Geographical Indications Act (Chapter 26:06)  
Geographical Indications Regulations, 2016 (S.I. 70 of 2016)  
Plant varieties  
Plant Breeders Rights Act (Chapter 18:16)  
Layout -designs (topographies) of integrated circuits  
Integrated Circuit Layout -Designs Act  
Source:  Information provided by the authorities.  
During the period under review, Zimbabwe made no notifications about new IPR laws or 
regulations to the WTO, as re quired by the TRIPS Agreement, although it passed and implemented 
new regulations, such as on geographical indications.  
Zimbabwe has yet to accept the Protocol Amending the TRIPS Agreement, following the 
2001 Declaration on the TRIPS Agreement and Public Health.  This Amendment incorporated the new 
provisions in the Doha Declaration on the TRIPS Agreement and Public Health concerning compulsory 
licensing of certain essential medicines.70  
Zimbabwe's IPR regime is administered by the Department of Deeds, Comp anies and 
Intellectual Property, under the Ministry of Justice, Legal and Parliamentary Affairs (MJLPA).71 
Particularly, the Zimbabwe Intellectual Property Office (ZIPO) oversees the registration of 
trademarks, patents, geographical indications, integrated circuit layout -designs, and industrial 
designs. The ZIPO manages Zimbabwe's participation in international organizations dealing with 
intellectual property issues. Zimbabwe also has plant breeder's rights legislation. However, the 
country is not a member o f the International Union for the Protection of New Varieties of Plants.  
The Zimbabwe Intellectual Property Tribunal (IPT), established by the Intellectual Property 
Tribunal Act of 2008, has jurisdiction to hear and determine any contentious matters in te rms of the 
Industrial Designs Act, the Copyright and Neighbouring Rights Act, the Patents Act, the Trademark 
Act, the Geographical Indications Act, and the Integrated Circuit Layout -Designs Act.72 The Tribunal 
does not have jurisdiction to try any criminal case. Those involved in a dispute before the IPT may 
appeal to the Supreme Court.  
In 2018, the MJLPA launched the Zimbabwe National Intellectual Property Policy and 
Implementation Strategy (2018 -22). The Strategy seeks to rely on IPRs for economic growth and 
development, in science, technology, innovation; for rural development; and the  growth and 
competitiveness of SMEs, among others. It focuses on agriculture, health, industry, small and 
medium -sized enterprises, and educational, training and professional skills development.  
Table 3.2 0 summarizes the registration of new IPR titles dur ing the period under review.  
Table 3.20 Applications for patents, trademarks, industrial designs and patent granted, 
2012 -18 
 2012  2013  2014  2015  2016  2017  2018  
Patent applications  
Resident  4 2 5 8 4 7 18 
Non-resident  4 8 8 12 3 2 2 
Harare Protocol  104 212 314 543 415 489 518 
Abroad  15 11 8 4 4 9 2 
Industrial design applications  
Resident  2 2 2 4 3 4 3 
Non-resident  2 2 2 2 2 4 4 
Harare Protocol  .. 6 16 74 48 36 64 
Trademark applications  
 
70 WTO document WT/LET/638 of 12 December 2008. Viewed at 
https://docs.wto.org/dol2fe/Pages/FE_Search/DDFDocuments/67276/Q/WT/LET/638.pdf . For procedures, see 
WTO, How to accept the Protocol Amending the TRIPS Agreement. Viewed at: 
https://www.wto.org/english/tratop_e/trips_e/accept_e.htm . 
71 Department of Deeds Companies & Intellectual Property. Viewed at: http://www.dcip.gov.zw . 
72 WIPO, IP Portal . Viewed at: https://wipolex.wipo.int/en/text/130488 .  WT/TPR/S/39 8 • Zimbabwe  
 
- 77 - 
 
   2012  2013  2014  2015  2016  2017  2018  
Resident  353 249 211 224 350 305 319 
Non-resident  1,309  1,311  1,489  1,121  852 822 774 
Total  1,662  1,560  1700  1,345  1,202  1,127  1,093  
Abroad (Madrid)  .. .. .. 397 781 1156 1305 
Patents granted  
Resident  4 2 5 8 4 7 18 
Non-resident  4 8 8 12 3 2 2 
Total  4 10 13 20 7 9 20 
Abroad  1 1 1 72 1 .. .. 
.. Not available . 
Source:  WTO Secretariat, based on data provided by the authorities.  
Applications for trademark registration were high during the period under review 
(Table  3.20). The authorities explained that awareness programmes in all provinces have made 
locals aware of the importance of protecting their trademarks.  
The ZIMRA may confiscate counterfeit goods or goods with forged trademarks, or forfeit said 
goods. Anyone who imports prohibited goods is guilty of an offence, and is liable for a fine  or 
three  times the value of the duty paid of the goods concerned, whichever is greater, or for 
imprisonment for a period not exceeding five years, or to both.73  
The owner of a registered tr ademark may request Customs for an import prohibition on any 
goods that have identical or deceivingly similar marks.74 For registered industrial designs and 
copyright, the rights owner may request the Director of Customs to stop the export or import of 
infringing articles for up to ten working days, conditional upon IPT proceedings on the matter, within 
that period; the import or export prohibition remains in force until the tribunal or court instructs 
otherwise. If there is confirmed violation of a copyrigh t or industrial design right, the person shall 
not be subjected to any penalty, except forfeiture of the concerned imported or exported goods.75 
 
 
73 Zimbabwe Legal Information Institute, Customs and Excise Act (Chapter 23:02 ). Viewed at: 
https://zimlii.org/zw/legislation/act/1955/16 . 
74 Trade Marks Act (Chapter 26:04).  
75 Copyright and Neighboring Rights Act (Chapter 26:05) and Industrial Designs Act (Chapter 26:02).   WT/TPR/S/39 8 • Zimbabwe  
 
- 78 - 
 
  
 
 
 4  TRADE POLICIES BY SE CTOR  
4.1  Agriculture, Forestry, and Fisheries  
4.1.1   Overview  
4.1.  Agriculture is the backbone of the Zimbabwean economy, and subsistence farming and a few 
cash crops are the main livelihood of most of the population. Agriculture contributed 9.3% to GDP 
in 2017 (including fis heries and forestry) and 29% to exports in 2018 (Chart 1.6).  Zimbabwe was a 
net exporter of agricultural products in recent years (Tables A1.2 and A1.3).  The agriculture sector 
has important linkages with the industrial sector , as a supplier of raw materia ls and a market for 
manufactured  inputs.  
4.2.  Zimbabwe's agriculture is highly vulnerable to natural disasters, particularly droughts.1 Annual 
losses from drought are estimated by the World Bank at USD 126 million on average. In  March  2019, 
Cyclone Idai hit Mo zambique and the Eastern regions of Zimbabwe, causing devastation and losses 
in agriculture. At same time, the rest of the country experienced drought, and a poorer crop harvest 
is to be expected in 2019.  
4.3.  Due to drought -related and other factors, agricult ural performance varied substantially, making 
Zimbabweans highly food -insecure. During the lean season, a large part of the population 
(4 million  people in 2017) rely on government food aid from the Strategic Grain Reserve, or 
international food aid scheme s.2 To address malnutrition, Zimbabwe has a food fortification policy, 
with mandatory vitamin fortification for corn flour, wheat flour, sugar and cooking oil 
(S.I. 120 of 2012).  
4.4.  Zimbabwe's agricultural area was approximately 16.3 million ha in 2012, with diverse 
agroclimatic conditions and regions. The arable area is about 4.31 million ha, with an irrigated area 
of about 123,000 ha.3 The main crops are maize, wheat, sorghum and millets, groundnuts, tobacco, 
cotton, sugar, and horticulture (Table 4.1).  
Table 4.1 Agricultural production, 201 6-19 
('000 tonnes)  
 2016/17  2017/18  2018/19  
Tobacco  188.9  194.3  .. 
Maize  2,155.5  1,708.7  776.6  
Sugarcane  4,350.0  3,903.0  .. 
Cotton  127.0  130.3  133.0  
Groundnuts  139.5  127.2  321.7  
Wheat  158.5  136.0  .. 
Sorghum  182.0  154.2  77.5 
Soybeans  35.7 59.8 .. 
Barley  15.0 33.4 .. 
Sunflower seeds  10.4 3.8 11.0 
Tea 19.0 20.0 .. 
Horticulture  70.0 71.0 77.0 
Dairy (million l)  65.4 66.4 75.4 
Poultry  134.5  166.0  .. 
Beef 72.0 74.5 .. 
Pork 10.0 11.4 .. 
.. Not available .  
Source : Information provided by the Ministry of Land, Agriculture, Water, Climate and Rural Resettlement; 
and the Ministry of Finance, Supplementary Budget, 2019 . 
4.5.  Maize is the key food security crop  and is therefore at the centre of Zimbabwe's agricultural 
policy.  For most Zimbabweans, it is the staple food for their daily corn meal porridge (Sadza). Maize 
 
1 Severe droughts occurred in 2001/02, 2007/08, and 2 015/16. The rainy season normally lasts from 
November to March/April. In one year, the main cropping areas may have an average of 1,200 mm of rainfall, 
and in the next year only 600 mm.  
2 World Bank  (2019) , Zimbabwe; Agriculture Sector Disaster Risk Assess ment, p. 5, March 2019 . 
3 Transitional Stabilization Programme, para. 795.   WT/TPR/S/39 8 • Zimbabwe  
 
- 79 - 
 
  is cultivated by both small -scale and larger farms. Production, while on a long -term decline, is highly 
volatile. The 2016/17 season was exceptionally good, and the harvest filled national maize 
requirements including feed, estimated at 2.2 million tonnes (Table 4.2). However, i n the 
2018/19  season, the maize harvest was poor, as noted above. A range of policies are in place, 
essentially to control maize supplies and prices. In response  to the 2019 drought, the Government 
introduced a single -buyer regime, whereby all marketed maize production must be channelled 
through the Grain Marketing Board ( GMB). Other measures include temporary import and export 
bans, dependi ng on the domestic supply situation, an input subsidy scheme called "Command 
Agriculture", price support, and consumer subsidies. The strategic food reserve is mostly maize.  
Wheat is the second most important cereal for national food security. Other import ant staple crops 
include millet and sorghum, groundnuts, and beans.  
Table 4.2 Maize production and imports  
Maize  Production  (tonnes)  Area ( ha) Yield (t/ha)  Imports  (tonnes)  
2015/16 512,000  1,162,000  0.44 201,900 (2015)  
2016/17 2,155, 500 1,875,000  1.15 183,700 (2016)  
2017/18 1,708,700 1,894,000 0.99 155,200 (2017)  
2018/19 776,600 1,722,700  0.99 1,811,400 (2018)  
Source:  Information provided by the Ministry of Land, Agriculture, Water, Climate and Rural Resettlement.  
4.6.  Zimbabwe is one  of world's largest tobacco producers and exporters. Tobacco accounted for 
20% to 30% of Zimbabwe's exports in recent years, and about 80% of agricultural exports 
(Chart  1.4 and Table A1.2). In  2018, the value of tobacco production was around  USD 740 million , 
with deliveries of close to  253,000 tonnes. Tobacco is the main cash crop grown by both smallholders 
and larger farms. The crop is grown u nder contract farming arrangements or marketed by auction 
in Harare. The forex retention threshold is 50%, and the sector benefits from a retention period 
of 180 days, which is longer than normal (30 days).  The sector is regulated by the Tobacco Industry 
and Marketing Board.  
4.7.  Cotton is an important cash crop for alleviating poverty among smallholders. After tobacco, it 
is Zimbabwe's second largest foreign exchange earner in agriculture; it contributed 1.7% to total 
exports in 2018 (Chart 1.4). At i ts peak, the country was producing 350,000 tonnes of cotton but 
when thousands of smallholders abandoned  cotton growing, production dropped to 28,000 tonnes 
by 2015  (see below) . Cotton production has since  recovered (Table 4.1), supported by a Cotton 
Input  Subsidy Scheme (see below).  
4.8.  Sugarcane  is a significant crop in terms of exports (1% -2% of total exports in 2016 -18) and 
as a raw material for local industries, including ethanol production (Section 4.2.3).  It also plays a 
minor role in electricity genera tion (from bagasse). The area under sugarcane, mostly irrigated, was 
about 47,000 ha in 2018/19. Two large private farms in South Eastern Zimbabwe (Triangle Sugar 
Estate and Hippo Valley Estate Sugar) account for about 80% of sugarcane production. There ar e 
two sugar refineries , with a total sugar production capacity of about 640,000 tonnes. Zimbabwe is 
a net  exporter of sugar. It exports mainly raw sugar to Kenya, the United States, the E uropean 
Union, Botswana , and South Africa.  
4.9.  Horticulture has been in decline following the land reform. The sector's foreign currency 
earnings fell from a peak of USD 143 million, or 10% of total exports in the 1999 -2000 season, to 
USD 83 million in 2016. Zimbabwe was once the world's third largest exporter of flowers 
(1999 - 2005). In 2019, the country was exporting about 170 tonnes of horticultural produce  per 
week, mainly mangetout peas. There were about 100 farmers engaged in horticulture. The industry 
was grappling with access to foreign exchange (due to a 20% retention threshold and a short 
retention period of 30 days), as well as an unfavourable/insecure land tenure situation for investors.  
4.10.   There were no major developments regarding land distribution since the last TPR in 2011. In 
2000, Zimbabwe had launched the Fast T rack Land Reform Programme.  Land expropriation 
payments are to start in 2019 ; ZWL 68 million were allocated in the 2019 Budget for compensation 
payments. A major issue is security of tenure for peasant agriculture. The Government plans to 
introduce new ban kable 99 -year leases to facilitate the financing of farmers, but banks still seem 
reluctant to extend loans.   WT/TPR/S/39 8 • Zimbabwe  
 
- 80 - 
 
  
 
 
 4.1.2   Agricultural policy framework  
4.11.   The Ministry of Lands, Agriculture, Water, Climate and Rural Resettlement  is responsible for 
agricultural policy and oversees a number of parastatals ( Agricultural Bank of Zimbabwe - Agribank , 
Agricultural and Rural Development Authority , Agricultural Marketing Authority , Cold Store 
Commission, Grain Marketing Board (GMB), Pig Industry Board of Zimbabwe , Tobacco Industry and 
Marketing Board , and Tobacco Research Board).4  
4.12.   Zimbabwe did not have an (approved) agricultural policy framework for most of the period 
under review.5 Furthermore, the Z imbabwe Agricultural Investment Plan (ZAIP) (2013 –17) was no t 
fully operational due to the political and economic environment.6 In practice, the main objective of 
agricultural policy has been to ensure food security (confined to self -sufficiency) by subsid izing maize 
production through procurement by the GMB at above -market prices, with the stocks resold at 
subsidized prices to ensure affordable consumer prices.  
4.13.   A National Agricultural Policy Framework (2018 –30) was issued in draft form in June 2018 
but ha s yet to be adopted. It aims to enhance investment, productivity and output, and improve 
food security and nutrition . Self-sufficiency ( in maize) still figures as a policy objective. According to 
the new agricultural policy framework, policy -making is base d on the following principles: 
evidence -based decision -making; productivity and growth -oriented; nutrition -sensitive; and with 
market -based interventions where "the Government will commit to a rule -based system of 
interventions that will not undermine priv ate sector investments".  
4.14.   The Transitional Stabilization Programme outlines a host of actions and targets "for realisation 
of self -sufficiency and food surpluses that will see the re -emergence of Zimbabwe as a major 
contributor to agricultural production a nd regional food security in the Southern Africa region and 
beyond".7 The Programme envisages greater involvement of the domestic financial sector, since 
heavy reliance on government support has proved to be unsustainable.  
4.15.   In terms of policy implementatio n, the Agriculture Marketing Authority (AMA)  is mandated 
with the overall regulation of the production, marketing and processing of agricultural products in 
Zimbabwe. Its responsibilities include: to promote proper marketing and fair pricing; to promote 
contract farming of strategic crops; and to advise the Minister  of Agriculture  on agricultural policy 
matters connected with prices of agricultural product s, mark eting guarantees , subsidies  and levies. 
The AMA registers private companies that enter into agre ements with farmers for contract farming. 
It raises funds, through the issuance of treasury bills (the last issuance of USD 80 million was in 
2018), to produce crops, and to purchase them from farmers through the GMB. According to the 
authorities, there ar e issues to be addressed with this system.  
4.16.   Contract farming has long been a key instrument of agricultural policy in Zimbabwe, either 
through private out -grower arrangements or government schemes, such as Command Agriculture. 
Contract farming arrangements exist for a range of commodities, including dairy, cotton, tobacco, 
maize, soya, and wheat. For grains and oilseeds, AMA regulations provide that contractors supply a 
minimum input package to contracted farmers, as determined by a stakeholder committee (Gr ain 
and Oilseeds Technical Committee) and "a contractor and a grower shall agree on a price or pricing 
model that takes into account the cost of inputs and services of the contract grains and oilseeds".8 
4.17.   Cotton is grown almost entirely under contract farmi ng arrangements between the growers 
and several private ginners or the Cotton Company of Zimbabwe (Cottco). The Government recently 
announced its intention to reinforce the enforcement of the cotton marketing regime (S.I. 142 of 
2009), which regulates the cotton value chain, from production to marketing, and prohibits a buyer 
to buy cotton from a grower contracted by another merchant. The aim is to address side -marketing 
 
4 Ministry of Lands, Agriculture, Water, Climate and Rural Resettlement, Parastatals. Viewed at: 
http://www.moa.gov.zw/in dex.php/parastatals . 
5 A draft Comprehensive Agricultural Policy Framework, completed in 2012, was never formally adopted.  
6 The ZAIP foresaw investments in agriculture of about USD 4.7 billion, in line with Zimbabwe's 
commitments under the Comprehensive Africa Agricultural Development Programme to allocate at least 10% of 
the national budget to agriculture to achieve a growth rate of at least 6% per year in the sector.  
7 Transitional Stabilization Programme, para. 43.  
8 The Agriculture Marketing Authority (Grain, Oilseed and Products) By -laws, 2013  (S.I. 140 of 2013).   WT/TPR/S/39 8 • Zimbabwe  
 
- 81 - 
 
  of the crop which, according to the Government, resulted in poor loan recovery by contr actors and 
prompted them to scale down investment or exit the sector.  
4.18.   The private sector is an important source of financing in agriculture, including through 
contract farming. In addition, Agribank  provides agricultural and non -agricultural financial serv ices 
to customers and stakeholders, grants loans and takes deposits. Its operations are supervised by 
the RBZ. In the 2019  (Supplementary) Budget, ZWL  35 million  were allocated for the recapitalization 
of Agribank.  
4.1.3   Market access  
4.19.   The market access regime fo r agricultural products comprises MFN tariffs; preferential tariffs 
within the framework of bilateral and regional trade agreements; and, for some products, t ariff 
quotas , quotas (QRs), non -automatic licensing and import bans. The latter are applied under the 
Control of Goods Import and Export Agriculture Order (S.I. 350 of 1993) when domestic supply is 
plentiful.  Products concerned include maize (Table 3. 10), wheat, other grains, live bovine animals, 
and some horticultural products, e.g. onions and pineapples.  
4.20.   Imports of a gricultural products generally require an import permit for SPS reasons. However, 
Zimbabwe has also applied and still uses discretionary (non -automatic) import licensing to limit or 
restrict imports (Table 3.1 0). Pursuant to S.I.  237A of 2018, the following agricultural products, 
which were hitherto subject to non -automatic import licensing, reverted to automatic import 
licensing (OGIL): cereals; wheat flour; sugar; cheese; vegetable oils and fats; animal oils and fats; 
and certain o ther food products (baked beans, bottled water, coffee creamers, cooking oil, ice cream, 
jams, juice blends, margarine, mayonnaise, potato crisps, peanut butter, pizza base, yoghurt, and 
palm oil fat).  
4.1.4   Domestic support  
4.21.   There is limited information availabl e with respect to Zimbabwe's domestic support measures. 
Its last domestic support notification to the WTO covers the years 1999 and 2000.9  
4.22.   Agriculture was one  of the main drivers of the  large budget deficit  in FY 2018 (Section 1) . 
Expenditure s for agricul ture greatly exceed ed the budget allocation of USD 401 million , reaching 
USD 1.1 billion (as  at August  2018), of which USD 238 million went towards Command Agriculture, 
USD 263 million to  the Vulnerable Households Input Support Scheme , and USD 505 million to grain 
procurement.  As agricultural expenditures became unsustainable, the Minister of Finance advocated, 
in the 2019 Budget , a shift away from government support to private contract farming . 
4.23.   The original Budget for FY 2019 was intended as an austerity b udget (Section 1). When a 
Supplementary Budget was passed in mid -2019, the resources for the Ministry of Lands, Agriculture, 
Water, Climate and Rural Resettlement  were increased from about ZWL  1 billion  to ZWL  4,382 billion 
(Table 4.3). The revised allocation covers the operational functions of the Ministry, such as extension 
and other general services, as well as input subsidy schemes, price/consumer support, the Strategic 
Grain Reserve, and land expropriation payments.   
Table 4.3 Budget of the Ministry of Lands, Agriculture and Rural Settlement, FY 2019  
 ZWL million  
Ministry of Lands, Agriculture and Rural Settlement, of which : 4,382  
Grain procurement (Strategic Grain Reserve , and price support for maize)  1,489  
Input subsidy schemes, of which:  1,928  
   Command Agriculture (maize and soybeans)  1,028  
   Vulnerable Households Input Support Scheme and Cotton Input Subsidy  780 
   Agriculture Input Guarantee Scheme  120 
Agricultural Marketing Authority  80 
Compensation for land expropriation  68 
Source:  Ministry of Finance, 2019 Mid -Year Budget Review  and Supplementary Budget  
 
9 WTO document G/AG/N/ZWE/2, 20 September 2000.   WT/TPR/S/39 8 • Zimbabwe  
 
- 82 - 
 
  
 
 
 4.1.4.1 G eneral services   
4.24.   Zimbabwe provides Green Box -type general services as part of its mandate (Table 4.3). 
Extension services are provided to farmers free of charge by the Agricultural Technical and Extension 
Services. There are about 1,900 extension workers for approximately 2  million  farmers.10 
4.1.4.2   Input subsidies   
4.25.   Zimbabwe has implemented various input subsidy programmes. Past and present schemes 
include:  
• Command Agriculture:  the agricultural production initiative for crops, livestock , and 
fisheries, commonly called Command Agriculture11, was promulgated in 2017  under a 
regulatio n of  the Agricultural Marketing Authority Act  (S.I. 79 of 2017).12 The stated 
objective is food security and import substitution. The programme was first launched in 
the 2016/17 marketing year, and continued in 2017/18, 2018/19 and 2019/20. It 
covers maize , soya beans, and winter wheat (2017 and 2018 only).  Command 
Agriculture is essentially a governmental contract farming scheme, whereby 
participating contract farmers receive an input package from the GMB on loan (seeds, 
fertilizers, pesticides, fuel , or tillage services) for a specified area "in return for the 
contract farmer delivering the contract produce to the designated delivery points or 
depots specified in the Scheme contract".  The farmers are eligible to receive the 
government guaranteed producer p rice against delivery of the product (see below). For 
maize, the G overnment targeted a total crop area under maize of 2.2 million ha, to 
ensure cover age of national requirements of 2 million tonnes for food and feed. 
Command Agriculture provides support fo r a fraction of that targeted area. The area 
planted to maize under Command Agriculture was 168,666 ha in 2017/18. In the current 
2019/20 marketing year, the programme targets 210,000 ha of maize , at a budgetary 
cost of ZWL  1.03 billion (this amount includ es input support for 30,000 ha of soybeans). 
There is no budgetary provision for winter wheat input subsidies, where participation 
rates remained far below targets in the past.  Command Agriculture has suffered from 
high default rates by farmers (greater  than 35%). According to the IMF, the 
Government has undertaken to cap its default guarantees.13 Also, the Government 
announced that it would select eligible farmers based on their track record of honouring 
loan obligations in previous programmes and producing  high yields. Measures would be 
put in place to recover all loans. According to the authorities, the high cost of inputs 
explains the high budget cost of the programme , of ZWL 1.03 billion 
(about  USD 500 per ha).  
• Vulnerable Households Input Support Scheme : this ongoing food security p rogramme  
is designed to replace food assistance by more sustainable ways , support ing vulnerable 
households and allow ing them to escape  the poverty trap . In the 2018 -20 seasons, the 
Scheme provide s inputs  for maize , sorgh um and pearl millet , free of charge , targeting 
over 2  million vulnerable households and 640,000 ha. The budgetary cost of 
ZWL 780 million includes input subsidies for cotton (see below).  The input pack age 
comprises 10 kg of seeds (5 kg for millet), 50  kg of basal fertilizer, 50 kg of top -dressing 
fertilizer, and pesticides for 0.4 ha of maize . Eligibility of farmers (identification and 
registration) require a means tests that involves the local community.  
• Cotton Input Subsidy Scheme : with this product -specific input subsidy in place, cotton 
production increased from 28,000 tonnes in 2015 to 133,000 tonnes in 2018 /19. The 
input scheme for 2018/19 targeted 1.3 million smallholders, with 400,000 ha under 
 
10 World Bank  (2019), pg. 23.  
11 Ministry of Lands, Agriculture, Water, Climate and Rural Resettlement, Programmes. Viewed at: 
http://www.moa.gov.zw/index.php/programmes . 
12 S.I. 79 of 2017 – Agriculture Marketin g Authority (Command Agriculture Scheme for Domestic Crop, 
Livestock and Fisheries Production) Regulations, 2017. Viewed at: 
http://www.veritaszim.net/sites/veritas_d/files/SI%2079Agriculture%20Marketing%20Authority%20%28Com
mandAgriculture%20Scheme%20for%20Domestic%20Cro p%2C%20Livestock%20and%20Fisheries%20Produc
tion%29%20Regulations%2C%202017.pdf . 
13 IMF 2019, pg. 41.   WT/TPR/S/39 8 • Zimbabwe  
 
- 83 - 
 
  cotton, and expected to produce over 200,000 tonnes acros s the country's dry regions. 
The 2019/20 programme was scaled down to provide input subsidies for 200,000 ha. 
The input package includes 20 kg of cotton seed, 100 kg of basal fertilizer, 50 kg of top 
dressing fertilizer, and pesticides. Beneficiaries are s elected based on their repayment 
record and delivery to Cottco. The Scheme is implemented by Cottco, and is restricted 
to farmers selling to Cottco.  
• Presidential Well -Wishers Input Scheme:  the Scheme operate d similar to  the Vulnerable 
Households Scheme. It provided free seeds  and fertilizer for 0.4 ha under maize for 
820,000 smallholders (seeds and fertilizers) in 2017 -18.  
4.1.4.3   Grain procurement  
4.26.   The public procurement of grains through domestic purchase or imports is managed by the 
Grain Marketing Boar d (GMB) . The main functions of the GMB are to administer the Strategic Grain 
Reserve; to act as the buyer of last resort for all grains  produced in Zimbabwe; to ensure the orderly 
marketing of "controlled products"; to act as importer and exporter of grain s; to provide storage, 
handling and processing facilities; and to administer input schemes on behalf of the Government . 
The GMB's accumulated losses stood at USD 209 million as at 31 March 2017.14 The 2019 Budget 
allocated USD 235 million for the recapitali zation of the GMB. Among recent developments, t he GMB 
is no longer involved in the processing and packaging of rice, groundnuts, sugar beans, coffee, nyimo 
or popcorn  since April 2019.  
4.27.   The domestic maize trade was liberali zed in 2009 to encourage competiti on and ensure that 
farmers obtain the highest price for their harvest. However, in June 2019 , the Government reverted 
to strict controls of the domestic maize trade , and made all sales to the GMB compulsory: private 
purchases from farmers were prohibited.15 Accordingly, "no person or statutory body or company or 
entity shall buy or otherwise acquire any maize from any farmer or producer otherwise than through 
the Grain Marketing Board" , although "a producer of maize or farmer is permitted to transport no 
more than five bags of maize of a capacity not exceeding 50 kg per bag from one area of the country 
to the other without any authorised person or police officer having to confiscate the maize" .16 The 
rationale for this restrictive policy was to ensure sufficie nt supply of maize for the population, but it 
may encounter numerous implementation issues  in the future , notably in the absence of sufficient 
funds.  
4.28.   Zimbabwe maintains a price support policy via minimum guaranteed prices for maize and 
other grains. The mi nimum guaranteed producer prices are established by the AMA, subject to 
appro val by the Cabinet.17 From the 2013/14 to the 2018/19 marketing season s, the maize 
procurement price was set at USD 390 per ton ne, considerably exceeding regional and world market 
prices. However, prompt payment to farmers was not guaranteed and were subject to the availability 
of funds. In 2019, procurement prices were increased several times  due to inflation  (Table 4. 4).  
Table 4.4 Guaranteed producer prices, 2019  
Commodity  Until March 2019  June 2019  October 2019  
Maize  USD 390  ZWL 1,400  ZWL 4,000  
Wheat  USD 622  ZWL 1,089  ZWL 8,612  
Soybeans  USD 780  ZWL 918  ZWL 1,825  
Cotton  .. ZWL 1,950  .. 
Traditional grains  USD 390  ZWL 1,400  ZWL 4,000  
.. Not available . 
Source:  GMB.  
 
14 Office of the Auditor -General Zimbabwe, Report of the Auditor -General for the Financial Year Ended 
December 31, 2017 on State Enterprises and Parastatals,  pg. 43.  
15 S.I. 145 of 2019 Grain Marketing (Control of Sale of Maize) Regulations , 2019.  
16 S.I. 145 of 2019, Grain Marketing (Control of Sale of Maize) Regulations, 2019. Viewed at:  
http://www.veritaszim.net/sites/veritas_d/files/SI%202019%20 -
%20145%20Grain%20Marketi ng%20%28Control%20of%20Sale%20of%20Maize%29%20Regulations%2C%2
02019.pdf . 
17 Agricultural Marketing Authority (Minimum Grain Producer Prices) Regulations (S .I. 129 of 2014).   WT/TPR/S/39 8 • Zimbabwe  
 
- 84 - 
 
  
 
 
 4.29.   Zimbabwe's price support policy for maize tends to disadvantage rather than support the 
smallholders, since they tend to be net buyers of food.18 To overcome this dilemma, and to ensure 
that maize (mealie -meal) remains affordable for consumers, the Government intervened and 
provided consumer subsidies.  The subsidized GMB resale price to millers was fixed at USD 240/t in 
2016/17 to 2018/19. The larg e price gap between procurement and resale prices opened (illegal) 
arbitrage opportunities.  
4.30.   Zimbabwe's strategy reserve policy for grains dates back to the severe drought experienced 
in 1992. According to a 1996 agreement between the Government and the GM B, the latter manages 
the Strategic Gain Reserve , which fluctuate s between 500,000 and 936,000 tonnes.  The GMB has 
national depots and silos to handle about 1.5 million tonnes of grains. It is mandated to procure 
grains domestically or import them for the Strategic Reserve and other food security purposes. The 
GMB does not have exclusive import privileges, according to the authorities. Grain millers have been 
granted import permits to import grain without resorting to the GMB, as long as they can access 
foreign exchange to do so. The Grain Millers Association of Zimbabwe represents , and acts as 
importer on behalf of , the private sector.  
4.1.5   Export measures  
4.31.   Zimbabwe notified the WTO Committee on Agriculture that it did not provide export subsidies 
to agricultural products in the years 2000 to 2017.19 It also notified, as a "significant exporter" of 
tobacco, its total exports of tobacco for the years 2001 to 2003 and 2011 to 2017.20 
4.32.   The RBZ provided concessional loan schemes in 2017 -18 for various sectors  of the economy, 
including tobacco (USD 70 million), soyabeans (USD 25 million), horticulture (USD 10 million), 
cotton and macademia nuts. There was generally little uptake of the loans due to unattractive 
requirements, and the IMF advised against the use of these quasi -fiscal commitments. The schemes 
were terminated with effect from 21 February 2019.21 
4.33.   Zimbabwe has not issued export permits for maize and other grains for food security reasons 
in the event of a poor domestic harvest.  
4.34.   Zimbabwe maintains an e xport tax on exports of raw hides , together with export quota 
restrictions,  to encourage further processing of raw hides. The tax is levied at a rate of 
USD 0.75 per kg or 15% of the export value, whichever is higher. Exporters requested the removal 
of bot h the tax and the export restrictions  for products deemed too small for local tanning. According 
to the Zimbabwe National Statistics Agency, close to 60% of the raw hides (running into thousands 
of tonnes) went to waste between January and August of 2017, as the sector exported only 
900 tonnes of processed hides out of an estimated production of about 5,000 tonnes. A new statutory 
instrument came into effect on 1  January  2019, which provides an exemption from the tax on 
un-beneficiated raw hides to register ed companies.22 The tax relief is applied in terms of 
company -specific export quotas (deemed to be excess stockpiles) for a 12 -month period , with effect 
from 1 January 2019.   
4.1.6   Forestry  
4.35.   The regulatory framework for the forestry sector  and the timber industry is based on the 
Forest Act (Chapter 19:05), which regulates activities on state forests and private forests , as well 
as trade in forestry products ; and the Communal Land Forest Produce Act (Chapter 19:04), which 
regulates the manag ement and utilization of forest resources on communal land and resettlement 
 
18 According to the Zimbabwe Draft National Agriculture Policy Framework (2018), pg. 14: "The output 
subsidies offered to maize producers have been disadvantaging the majority of smallholder farmers who rely 
on the market for their food needs".  
19 WTO documents G/AG/N/ZWE/6, G/AG/N/ZWE/8 and G/AG/N/ZWE/10 , dated 8 September 2015, 
26 Octobe r 2017 and 9 October 18, respectively.  
20 WTO document G/AG/2/Add.1 refers . WTO documents G/AG/N/ZWE/ 7, G/AG/N/ZWE/ 9 and 
G/AG/N/ZWE/1 1, dated 9 September 2015, 27 October 2017 and 9 October 2018, respectively.  
21 RBZ Exchange Control Directive RU/2019, para. 7.1.  
22 S.I. 274 of 2018, Value Added Tax (Unbeneficiated Hides Export) Regulations, 2018. Viewed at: 
http://www. veritaszim.net/sites/veritas_d/files/S.I.%20274%20of%202018.impo -.pdf.  WT/TPR/S/39 8 • Zimbabwe  
 
- 85 - 
 
  areas.  Under these two enabling Acts, several statutory instruments address specific forest ry 
regulatory issues .  
4.36.   Zimbabwe's forests cover about 21.8 million ha, or 45% of the land  area, comprising 
indigenous forests (about 829,000 ha); plantations ; and woodlands , bush land and wooded 
grasslands.23  
4.37.   The Forest Act distinguishes between: (i) listed ("gazetted") forests , which are state -owned 
and managed by the Forest Commission  with the aim of conserv ing biodiversity;  (ii) protected 
forests , which belong by tradition to local communities  or fall under the national parks; and (iii) 
forests for permanent exploitation (plantations  by private companies).  Under S.I. 116 of 2012, 
Zimbabwe prohibits the harvesting of 12 protected forest species: teak, mukwa, mchibi, pod 
mahogany, wooden banana, mopane, msasa, white syringa, munhondo, red mahogany, marula, and 
ebony.24  
4.38.   The forestry sector is managed by the Forestry Commission, a parastatal under the Ministry 
of Environment, Tourism and Hospitality. Since 2016, the Commission receives no funding from the 
Government; it is funded by fees. Under the Tobacco Wood Energy Programme, the Commission 
also imposes the Tobacco  Levy on farm ers, to pay for the wood used for curing of tobacco. The 
Commission's mandate covers, inter alia , the regulation of trade in timber and forestry products, 
including firewood; and the sustainable management of Zimbabwe's forests.  The main challenges in 
forestry management are deforestation due to land clearance for agriculture , and over-exploitation 
of trees for fuel wood , aggravated by the electricity shortage..25 Deforestation is driven also by 
uncontrolled fires; overgrazing  and e lephant damage; and illega l harvest ing for wood curio carvings.   
4.39.   Zimbabwe does not yet have a national forestry policy in place to guide forestry development.  
It is a signatory to the SADC Protocol on Forestry. The Protocol applies to all activities relating to 
the development, conservation, sustainable management, and utilization of all types of forests and 
trees, and trade in forest products within the SADC region.   
4.40.   Zimbabwe's timber industry, which used to employ more than 10,000 people and over 
40,000  people in downstream industries, has been in steep decline in recent years. Forest 
plantations, which are concentrated in Manicaland , decreased from about 120,000 ha in 1999 -2000 
to abo ut 85,000 ha  in recent years , mainly due to the generally unfavo urable  business environment, 
wild fires, and miners  and illegal settlers clearing plantations for settlement and agricultur e. As a 
result of the industry's decline , Zimbabwe, which was traditi onally a net exporter of timber and wood 
products (including wooden furniture (HS9403) ), became a net  importer in 2017 and 2018.26 
4.41.   The leading timber companies , under the private plantations category,  are the wholly  
state-owned Allied Timbers Zimbabwe (Pvt)  Ltd., the Wattle Company , and Border Timbers Ltd, 
which produce softwood. They specialize in sawn timber, poles, and other value -added timber -based 
products, such as doors, flooring, etc., and export products to Botswana, Namibia and South Africa. 
The Gov ernment approved the privatization of Allied Timbers Zimbabwe in February 2019.  According 
to the authorities, f oreign investment restrictions related to the indigenization policy were lifted in 
the timber industry.  
4.42.   Timber concession agreements for selected cutting in listed forests are signed between the 
Forestry Commission, the concessionaire and/or the local authority to regulate the timber 
exploitation process. Timber concessions (for a renewable term of five year s) are awarded through 
the the Forestry Commission Internal Tender Committee, and the process is guided by provisions in 
the Procurement Act and its statutory instruments. The procedure for awarding concessions is 
 
23 Zimbabwe's Fifth National Report to the Convention on Biodiversity . Viewed at: 
https://www.cbd.int/doc/world/zw/zw -nr-05-en.pdf . 
24 Forest (Control of Firewood, Timber and Forest Produce) Regulations , 2012. Viewed at: 
http://forestry.co.zw/wp -content/uploads/2017/03/SI -116-of-2012-ForestControl -of-firewoodtimber -and-
forest -produceRegulations -2012-1.pdf. 
25 The Forestry Commi ssion administers the tobacco fund, targeted to fund tree seedling production and 
planting in the four tobacco -growing provinces, i.e. Manicaland and the three Mashonaland provinces.  
26 Export s and imports (including furniture HS 9403)  totalled USD 17.8 mil lion and USD 25.8 million,  
respectively, in 2018.   WT/TPR/S/39 8 • Zimbabwe  
 
- 86 - 
 
  
 
 
 detailed in a Forestry Commission publicat ion, which serves as a manual for Forestry Commission 
staff, and was made available to the local authorities with timber resources.  
4.43.   Timber concessions are subject to the following fees and royalties: a forest concession fee of 
USD 5.00 per ha per year (su rface rent); a fee of USD 2.00 per ha per year on small -scale 
timber - cutting operations; and a reforestation tax of 1% of the ex -works value per m3 of wood 
harvested. In addition, concessionaires must pay royalty fees of the local currency equivalent of 
USD 68 per cubic meter for standing timber; management fees of 5% of royalty fees; and 
supervision fees of USD  450 per Forestry Commision timber measurer per month.  
4.44.   Zimbabwe maintains a ban on exports of unprocessed or semi -processed indigenous 
hardwoods ( S.I. 112 of 200127), aimed at promoting the beneficiation of sawn timber in the country. 
For exports of processed timber and wood products , an export permit is required, and is issued by 
the District Forest Extension Officer  (Section 14 of the Forest Act) . The permit may be refused on 
the grounds, inter alia , that the consignment involves exports of timber in contravention of 
S.I. 112 of 2001; that there is a general shortage of timber in the country ; or for sustainability or 
phytosanitary reasons.  Export pe rmit fees  are the local currency equivalent of USD 100 per 
consignment or 1% of the export value, whichever is greater (S.I.  116 o f 2012).  
4.2  Mining  and Energy  
4.2.1   Mining  
4.45.   The mining sector (including quarrying) contributed 6.4 % to GDP , and 31.1% to total exports , 
in 2017; and provided formal employment for about 33,000 people.28 After a period of strong growth 
(2009 -13), the sector experienced a downturn  in 2014 and 2015, followed by a modest recovery  
(2016 and 2017). T he industry has been  struggling  with low -capacity utili zation and profitability , 
due to low commodity prices  and a host of internal challenges,  arising from foreign exchange 
shortages and surrender requirements, restrictive foreign investment conditions, heavy taxes and 
fees, and power shortages, among others.   
4.46.   Zimbabwe is endowed with a wealth of (more than 40) mineral and metal resources  along the 
Great Dyke area and in the greenstone belts, also known as gold belts. Gold, platinum and associated 
minerals, diamonds, nickel, coal, and c hromite are the main minerals that are currently extracted , 
(Table 4.5). The country has the world's second largest reserves of chrome and platinum group 
metals (PGMs), and the fifth largest of lithium. The total value of mineral production from over 
800 registered mines was estimated at about USD 3.2 billion in 2018.  
Table 4.5 Mining sector production, 2017 -19 
 2017  2018a 2019b 
Black granite (tonnes)  177 213 184 
Chrome (tonnes)  1,674  1,756  2,000  
Coal (tonnes)  3,074  3348 2,000  
Cobalt (tonnes)  445 402 520 
Copper (tonnes)  8,839  9,076  9,700  
Diamonds (carats)  2,508  3,252  2,000  
Gold (kg)  26,495  35,054  28,000  
Graphite (tonnes)  1,577  1,577  5,800  
Nickel (tonnes)  16,617  17,810  16,000  
Phosphate (tonnes)  60,094  51,393  61,000  
Platinum group metals  
Palladium (kg)  11,822  12,094  12,000  
Platinum (kg)  14,257  14,703  15,000  
 
27 Forest (Control of Timber) (Export of Unprocessed and Primarily Processed Indigenous Hardwood) 
Regulations, 2001 . 
28 The Chamber of Mines of Zimbabwe, 2017 – State of the Mining Industry, Survey Report. Viewed at: 
https://miningzimbabwe.com/wp -content/uploads/2017/12/The -2017-State -of-the-Mining -Industry -Survey -
Report -2.pdf.  WT/TPR/S/39 8 • Zimbabwe  
 
- 87 - 
 
   2017  2018a 2019b 
Rhodium (kg)  1,283  1,334  1,500  
Ruthenium (kg)  1,102  1,155  1,200  
a Estimated.  
b Project ion. 
Source:  Ministry of Finance, 2019 Mid -Year Budget Review  and Supplementary Budget . 
4.2.1.1   Mining policy  
4.47.   Under the Transitional Stabilization Programme, Zimbabwe's mining policy is geared towards 
revitalizing the mining sector , by encouraging the opening, re -opening or expansion of mines; 
promoting beneficiation; and improving transparency.  The legal framework, the Mines and Minerals 
Act (Chapter 21:05) was amended in 2015.29 It aims , inter alia,  to promote exploration and mining  
through a new "use it or lose it policy" , by revoking unutilized claims held for speculative purposes. 
The law also formally recognizes (informal) small -scale mining , to enable the Government to support 
the small -scale mining sector, which is particularly  important in gold and chrome mining.  The 
Government also undertook to improve transparency through open bidding or auctioning of mining 
rights. A cadastre system has yet to be implemented. The mining sector, including steel30, is 
regulated by the Ministry of Mines and Mining Development (MMMD).  
4.48.   Beneficiation remains a key element of government mining policy, to generate greater 
benefits for Zimbabwe through downstream processing, comprising smelting and refining in the gold, 
platinum and chromium industrie s; diamond cutting and polishing; and coking from local coal for 
electricity generation. The beneficiation policy has been  enforced through export bans and export 
taxes, aimed at making these inputs available to local industries. However, a 15% export tax on 
un-beneficiated platinum was suspended in January 2017, and an export prohibition for chrome ore 
was removed in July 2015 . The following export taxes were in place in 2019:   
• un-beneficiated lithium – 5%; 
• uncut diamonds – 5%; cut diamonds  – 2.5%; and  
• un-beneficiated PGMs – 5%; smelted PGM matter – 2.5%; and refined PGM metal – 1% 
(although there was no refining activity in 2019).  
4.49.   The 2018 amendment to the Indigenization and Empowerment Act removed the 51%/49% 
indigenization rule, while th e Finance Act, 2018 maintained foreign investment restrictions for 
diamonds and PGMs. These restrictions were removed in 2019 (Finance Amendment Bill, 2018). 
Foreign investors may thus own 100% of the shares in mining companies in all minerals. Most of 
the major mines in Zimbabwe are foreign -owned, such as Zimplats, Mimosa, Bindura Nickel Mines, 
and various granite and gold mines.   
4.50.   The State continues to play an important role in the mining industry. The wholly state -owned 
Zimbabwe Mining Development Corpor ation has mining operations, through joint ventures and 
subsidiaries, in platinum, gold, graphite , and emeralds.31 The Zimbabwe Consolidated Diamond 
Company has operations, and joint ventures, in the Marange diamond field. The Zimbabwe Asset 
Management Corp oration has holdings in the mining industry.  
4.51.   Mineral rights are vested in the President. Prospecting, exploration and exploitation of mineral 
deposits are regulated by the Mines and Minerals Act. The requirements for acquiring mining rights 
and the steps t o be followed are provided by law. A prospecting licence (valid  two years) confers on 
the prospector the right to search for any minerals, mineral oils or natural gas, and  to peg and 
register claims.  Exploration rights are conferred by a prospecting licen ce. Applications for 
 
29 Parliament, Mines and Minerals Amendment Bill Final H.B. 19, 2015. Viewed at: 
https://www.parlzim.gov.zw/component/k2/mines -and-minerals -amendment -bill-final-h-b-19-2015. 
30 Iron and steel factories (Zimbabwe Iron and Steel Company - ZISCO) have been idle since 2008. 
ZISCO was granted Special Economic Zone status in 2017 , but has not yet started operating.  
31 Zimbabwe Mining Development Corporation. Viewed at: http://www.zmdc.co.zw/about -us.  WT/TPR/S/39 8 • Zimbabwe  
 
- 88 - 
 
  
 
 
 prospecting licences/permits involve several agencies and procedural steps.32 There are three  main 
types  of prospecting licences/permits:  
• Exclusive Prospecting Order (EPO): confers the exclusive right to prospect for specified 
minerals  in any defined area of up to 65,000 ha; application to the Mining Affairs Board 
and payment of a refundable deposit equal to USD 0.12  per ha per month; presidential 
approval is required; licence is valid for three years , renewable; and fees range from 
USD 1,000 -USD 3,000 ;  
• Ordinary  Licence : for precious metals; and covers blocks of 10 ha;  
• Special Prospecting Licence : for base metals; and covers blocks of 25 -100 ha.  
4.52.   In the case of a discovery, the EPO holder may apply to the Mining Commissioner for a Spec ial 
Grant. Prospectors registered under an Ordinary or Special Licence may apply for a Mining Claim. 
Multiple Mining Claims may be consolidated under a Mining Lease , renewable annually . A Special 
Mining Lease requir es FDI of over US D 100 million . 
4.53.   Royalties  are calculated as a percentage of the gross "fair" market value of the minerals , and 
are paid at the time of export . They are levied under  Section 244 of the Mines and Minerals Act, and 
the rates are fixed under  the Finance Act , and are payable in the currency in which the export sale 
was made. A  full rebate of royalt ies is granted in respect of all minerals or mineral -bearing products 
used wholly within Zimbabwe . Zimbabwe's royalties range up to 15% for diamonds (Table  4.6) and 
are relatively high by r egional standards, according to the Chamber of Mines  of Zimbabwe.33 To 
address this concern, tax deductibility of mineral royalties will be introduced with effect from 
1 January 2020. Corporate income tax on mining operations is levied at 15% for Special Mi ning 
Lease holders , and at 25% for other mining title holders.  
Table 4.6 Royalty rates, September 2019  
Mineral  Royalty  
(% of gross 
mineral 
value)  
Diamonds  15 
Other precious stones  10 
Platinum  10 
Gold below  USD 1,200 per ounce  
above U SD 1,200 per ounce  3 
5 
Gold s mall-scale miners (<0.5  kg) 2 
Other precious metals 4 
Base metals 2 
Industrial metals 2 
Coalbed methane  2 
Coal 1 
Source:  Information provided by the  authorities.  
4.54.   Zimbabwe's mining fees and charges were last revised in 2016 and , since June 2019 , are 
payable in the local currency. Fees include an environment fee of 2% of gross revenues. New projects 
require an environmental impact assessment (EIA). EIA fees range from 0.8% to 1.2% of the project 
cost, depending on the environmental impact , with the costs including only components that affect 
the environment. Fees are capped at USD 2 million.   
4.55.   The mining industry is eligible for exemptions or rebates  of import duties on goods and capita l 
equipment used in a project ( S.I. 190 of 2010 ; S.I 154/2001 ; and S.I. 6 of 2016). The duty rebates 
 
32 Ministry of Mines and Mining Development, Procedures Introduction. Viewed at: 
http://www.mines.gov.zw/?q=mining_procedures . 
33 Chamber of Mines of Zimbabwe, 2017 – State of the Mining Industry, Survey Report. Viewed at: 
https://miningzimbabwe.com/wp -content/uploads/2017/12/The -2017-State -of-the-Mining -Industry -Survey -
Report -2.pdf.  WT/TPR/S/39 8 • Zimbabwe  
 
- 89 - 
 
  are also available for prospecting, and petroleum exploration. At least 75% of expenses by mining 
companies must be sourced locally (Exchange Control Directive RR:101/2016).   
4.56.   With respect to the export regime, the Minister of Mines and Mining Development has the 
authority to prohibit, regulate and control the export of base minerals; and to implement export 
licence (permit) requirements under the Base Minerals Export Control Act (Chapter 21:01). Export 
permits are required from the Ministry for all minerals, except silver and gold , which are handled by 
Fidelity  Printers and Refiners Ltd.  Export p ermits are valid from three months to one year, except 
for diamonds where permits are issued per shipment ; permit fees range from USD 500 to 
USD 20,000 , depending on the product.  
4.57.   Exports are controlled by two state -owne d marketing monopolies , the Minerals Marketing 
Corporation of Zimbabwe (MMCZ),  and Fidelity Printers and Refiners  Ltd. The MMCZ was established 
in 1983  for the purpose of reduc ing transfer pricing abuses , and has the sole authority under the 
Minerals Marke ting Corporation of Zimbabwe Act (Section  42) to market and sell all domestically 
produced minerals34 (except silver and gold), and  to control and regulate the stock -piling of minerals. 
The MMCZ appears to be an export state -trading enterprise, but it has n ever been notified as such 
to the WTO Working Party on STEs.   
4.58.   Export sales are subject to approval by the MMCZ, which acts as export agent on behalf of 
the respective mining company, and does not export directly.  Together , the MMCZ and the mining 
company negotiate sales with prospective buyers . The MMCZ charges a 0.875%  commission. It does 
not have its own laboratory to perform independent analysis of the mineral samples it receives from 
the mining operators  (independent assay verifications ). It relies on information provided by the 
corporation's assigned monitor, following sample analysis carr ied out by the mining companies.   
4.59.   The forex surrender threshold for the mining sector, as at 22 February 2019, stood  at 50%, 
except for gold mining (55%); t he remainder can be retained in foreign currency accounts for a 
limited number of days (Table 1.2). This caused widespread complaints from producers . (The mining 
industry was eligible, until termination of the scheme, for export incentives of up to 5% of g ross 
export values under the Foreign Exchange Stabilisation and Incentive Support Facility 
(Section  3.2.4).  
4.2.1.2   Gold 
4.60.   Gold remains Zimbabwe's main export commodity (Chart 1.6). In 2018, production increased 
to 35.1  tonnes, up from 26. 5 tonnes  in 2017.  There ar e over 400 major gold deposits in Zimbabwe. 
In addition to providing formal employment for about 11,600 people (2017), over 300,000  people 
were engaged in small -scale (artisanal) gold mining35, whose combined output exceeded that of the 
large-scale operatio ns. However , the heavy taxation of exports, combined with numerous levies and 
controls, is mak ing Zimbabwean gold less competitive , as well as encouraging fraud and smuggling .  
4.61.   The gold sector has a two -tier royalty regime, which distinguishes between larg e- and 
small -scale producers ( Table 4 .6). For large gold producers, the royalty rates were modified, with 
effect from 1 September 2019, to a sliding scale: when international gold prices are lower than USD 
1,200 per ounce, a 3% royalty applies; and when in ternational gold prices are higher than USD 
1,200 per ounce, the royalty is 5%. The royalty rate for smallholders was increased from 
1% to 2% of the gross fair market value, to reduce incentives for tax avoidance by large producers.  
4.62.   Fidelity Printers and Refiners  Ltd., a subsidiary of the RBZ, is the sole purchaser of all gold 
and silver produced in the country, from both large - and small -scale producers, and the sole refiner 
and the sole exporter. Export s of unrefined  gold are not permitted.  
 
34 Metals, precious and semi -precious stones (rough and uncut), and minerals (ore, concentrate s or 
other unmanufac tured product s thereof) produced in Zimbabwe.  
35 Small -scale gold mining is defined as a monthly output of less than 1 kg.   WT/TPR/S/39 8 • Zimbabwe  
 
- 90 - 
 
  
 
 
 4.2.1.3   Diamonds  
4.63.   Zimbabwe's diamond deposits are concentrated in Somabula, Beitbridge, Murowa (near 
Zvishavane ), and in the Marange diamond field s in Eastern Zimbabwe . About 10% of the diamond 
output from Marange is of gem quality, and the rest are industrial diamonds.  
4.64.   The Zimbabwe C onsolidated Diamond Company (Pvt) Ltd (ZCDC) was established  following 
the March 2015 government decision to consolidate all diamond mining  companies in Marange,  to 
form a wholly state-owned company. At present, there are four licensed diamond mining companies: 
the ZCDC; Murowa Diamonds (a subsidiary of Riozim); and two recent government joint ventures 
between the ZCDC  and Alrosa of Russia, a nd Anjin of China.  Seven companies are currently engaged 
in the cutting and polishing of diamonds (beneficiation).   
4.65.   The main acts that govern the diamond industry include the Mines and Minerals Act 
(Chapter  21:05); the Minerals Marketing Act (Chapter 21:04 ); the Precious Stones Trade Act 
(Chapter  21:06); and the Finance Act (Chapter 23:04).36  
4.66.   Exports of rough and cut diamonds are controlled by  the MMCZ, which also issues certificates 
under the Kimberly Process Certification Scheme  (KPCS) to control trade in  conflict diamonds.  
Diamonds are marketed by the MMCZ either by tender in Harare or through " sights " in Antwerp. 
Participation in tenders is by invitation.   
4.67.   The producer must notify the MMCZ in writing of its intention to sell rough diamonds produced 
in compliance with the KPCS minimum requirements. The MMCZ will then send a team of evaluators 
to evaluate the consignment, following either of the options below:  
• Murowa Option: the MMCZ evaluation is compared to that of the producer and both 
sides come to an a greed value. The producer uses the agreed value to prepare an export 
permit, which is endorsed by the MMCZ and approved by the Ministry of Mines. Once 
the export permit is approved, the MMCZ prepares the KPCS and other export 
documents and, once all docume nts are processed, the consignment is despatched in 
tamper -proof containers, accompanied by the required documents. The Murowa Option 
is similar to sights but is referred to as relational selling , where parcels are prepared 
and sold according to specific customer  needs; and  
• Marange Option: once the MMCZ evaluators complete the evaluation, the producer 
surrenders the diamonds to the MMCZ, against receipt. The MMCZ prepares the 
diamonds for tender, by counting the stones, and weighing and labelling the indivi dual 
packets. The MMCZ prepares a manifest for the consignment, and invites selected 
customers to a scheduled tender. It manages the tender process but works in the 
presence of other stakeholders, e.g. the producer and the Criminal Investigations 
Departmen t. At the close of the tender, the producer and the MMCZ compare the 
evaluations, and come to an agreed value. The agreed evaluation is used as a reserve 
value for the adjudication process, which is normally overseen by the Attorney General's 
office. Once adjudication is completed, the results are communicated to all participants, 
and winning bidders with bids within an acceptable range of the reserve prices are 
invoiced. Upon receipt of the proceeds from the winners, consignments are processed 
and despatch ed. 
4.68.   According to the authorities, Zimbabwe complies with the minimum requirements of the KPCS. 
The KP Certificate is completed by an officer using information from the invoice, the packing list and 
the export permit. The certificate is stamped with a speci al MMCZ KPCS stamp. The completed KP 
Certificate is taken to any of the two MMCZ signatories (one must be the registering officer and the 
other the authorizing officer) together with the invoice, the packing list and the export permit for 
verification and authorization. After obtaining the two signatures, the officer tears off the main part 
of the KP Certificate, with the confirmation slip still intact, and despatches it, together with a copy 
 
36 Statutory instruments that directly impact the diamond industry are S.I.s 79 of 2014, 157 of 2010, 
249 of 2003, and 282 of 2003.   WT/TPR/S/39 8 • Zimbabwe  
 
- 91 - 
 
  of the Export Permit to the MMMD for signing by the Minister of M ines or a ministry -authorized 
signatory.  
4.2.2   Electricity  
4.69.   Zimbabwe's electricity sector s in a state of prolonged crisis, as reflected by chronic and 
extended power cuts, lagging investment, and a drain on the public finances caused by the national 
power utilit y, the Zimbabwe Electricity Supply Authority (ZESA).37  
4.70.   The Energy Regulatory Authority Act of 2011 (which amended the Electricity Act of 2002 and 
the Petroleum Act of 2006) (S ection 4.2.3 ) established the Zimbabwe Energy Regulatory Authority 
(ZERA), which replaced the Zimbabwe Electricity Regulatory Commission. The ZERA has extended 
authority to regulate the production, transmission, distribution, importation and exportation of 
energy from any source . The Minister of Energy and Power Development may advise the ZERA on 
policy issues of national interest, and the ZERA Board must comply (Section 24 of the 2011 Act).38 
In the case of a dispute, licensees may take an appeal to the Administrative Court (Section 64(1) of 
the Act ). 
4.71.   The ZERA has the mandate to create an enabling environment for competition , and promote 
an efficient energy supply industry. It is responsible for preparing a pricing methodology, and for 
setting electricity tariffs in consultation with the Minister (Section  53(1)  of the Act). Electr icity tariffs 
must be set to recover full costs , with a view to phasing out , or substantially reducing , 
cross-subsidies; and they must not cause undue discrimination among customers (Art 53 of the 
Electricity Act).  
4.72.   Zimbabwe's tariffs, as applied since in 2013,  were among the highest in the region in 
2017-1839 but, after the floating of the RTGS dollar (Section 1.2.1) on 20 February  2019, they fell 
far below cost -recovery tariffs. With effect from August 2019, the Government approved an increase 
of electrici ty tariffs40, followed by another increase in October 2019. As at November 2019, the 
currency in which a company was to pay its electricity bill depended on its status.  Foreign 
currency - earning customers may apply, under ad hoc  agreements  with the ZERA, to  pay their bills 
in US dollars , in order to ensure the supply of electricity from imports , and avoid power cuts . For 
other  foreign currency -earning customers ( e.g. hotels and tourism industry ), the tariff is fixed in the 
local currency, but paid in US dollars at the official exchange rate. Non-exporting companies , 
domestic consumers and agricultural consumers  are charged in the local currency , at fixed prices .  
4.73.   Electricity tariffs are subject to a surcharge of 6% (Rural El ectrification Levy), plus 15% VAT  
for all customers except domestic consumers . In urban areas, approximately 86% of the population 
has access to electricity, but only 16% of households in rural areas.41 Firewood is the main source 
of energy in Zimbabwe.  
4.74.   There has been no change in the structure of the electricity sector  since 2011 . It is dominated 
by the state -owned ZESA Holdings, which operates through its subsidiaries, the Zimbabwe Power 
Company (ZPC) and the Zimbabwe Electricity Transmission and Distribut ion Company (ZETDC) , 
ZESA Enterprises (repairs, maintenance and new projects), and Powertel (in  charge of information 
and communication technology (ICT)) . In August 2019, the Government approved the re -bundling 
of all ZESA subsidiaries into a vertically  integrated single board.  
4.75.   Zimbabwe's electricity mix is based on electricity generation mainly from local coal supplies, 
hydropower, and imports. The ZPC operates five licensed hydroelectric and thermal power plants , 
with a combined installed capacity of 2,230 MW (Table 4. 7). Howev er, ZPC's plants have been 
 
37 Office of the Auditor -General, Report of the Auditor -General . The 2019 National B udget includes a  
ZWL 35 million capital transfer to the ZESA, to recapitalize the state -owned enterprise, in addition to its 
recurrent annual deficits.  
38 Electricity Act (Chapt er 13:19 ). Viewed at : 
https://www.zera.co.zw/images/legislation/electricity_act.pdf . 
39 Viewed at: http://www.sapp.co.zw/annual -reports . 
40 Ministry of Finance, 2019 Mid -Year Budget Review  and Supplementary Budget , para. 126.  
41 SADC Centre for Renewable Energy and Energy Efficiency, SADC Renewable Energy and Energy 
Efficiency Status Report, 2018 . Viewed at: 
https://www.sacreee.org/sites/default/files/documents/files/SADC_EN_%28web%29.pdf .  WT/TPR/S/39 8 • Zimbabwe  
 
- 92 - 
 
  
 
 
 running well below capacity in recent years. Table 4.7 gives a snapshot of the gravity of the shortfall 
in electricity generation (as at end -July 2019), causing a highly unreliable electricity supply 
throughout the country. Produ ctive sectors, such as agriculture, mining and manufacturing,  have 
not been spared by the power cuts. The Kariba Dam hydropower plant, with a capacity of 1,050 MW, 
has been adversely affected by low water levels of the Zambezi River due to drought. Local c oal 
shipments to the thermal power plants have been constrained by payment delays and logistical 
problems. Generally, forex shortages have caused maintenance -related generation outages.  
4.76.   Several electricity generation projects , both government - and private sector -financed,  are in 
the pipeline. The  projects  include the Hwange 7 & 8 Expansion Project (600 MW , at a cost of 
USD 1.5 billion ), carried out by the ZPC; the Batoka Hydro Electric Power Plant (1,200 MW) under a 
build-operate -transfer arrangement ; the Munyati Solar Plant (100  MW), to be implemented  by the 
ZPC in the Midlands Province ; the Gairezi Mini Hydro Power Plant (30  MW), to be implemented by  
the ZPC in the Manicaland Province, Mutare ; the Peaking Plant (120  MW)m for a diesel/gas combined 
cycle gas turbine power plant , to be implemented by the ZPC in the Manicaland Province ; and the 
Gwanda Solar Plant project (100 MW) , to be carried out by the ZPC in Matabeleland South.  Plans 
are at an advanced stage to develop a 2000  MW coal –fired thermal plant at Binga (adjacent to Lake 
Kariba), Matabeleland North Province. The power plant will be implemented in phases of 500  MW 
each.  There are also projects to explore the feasibility of coalbed methane for power generation.  
Table 4.7 ZPC's generation capacity, as at end -July 2019  
Power station  Type  Installed capacity  
(MW)  Available capacity  
(MW)  Available capacity 
as % of installed 
capacity (%)  
Kariba  Hydro  1,050  358 34 
Hwange  Thermal  920 535 58 
Harare  Thermal  60 15 25 
Bulawayo  Thermal  100 18 18 
Munyati  Thermal  100 18 18 
Total   2,230  944 42 
Source:  ZERA.  
4.77.   Incentives for renewable energy generation include duty -free imports of s olar panels, 
inverters, solar lights, solar geysers, energy -saving bulbs and tubes, electrica l motors and 
generators . Import duties on lithium -ion solar batteries were eliminated, with effect from 
5 August  2019.  
4.78.   The Electricity Act confers upon the ZERA the mandate  to license all undertakings in the 
generation, tra nsmission, distribution and supply of electricity in excess of 100 kW. The Act provides 
three categories of licensees, namely for generation, transmission and bulk supply, and distribution 
and retail. A generation licen see may supply electricity to any tra nsmission licensee, distribution or 
retail/supply licensee that purchases electricity for resale and, with the approval of the ZERA , supply 
electricity to consumers.   
4.79.   Independent power producers (IPPs) are licensed under the Electricity Licensing Regulatio ns 
of 2008 (S.I. 103 of 2008).42 72 IPPs were licensed as at September 2019.  The (non -refundable) 
licence application fee is USD 2,500 (plus 15% VAT). T he licence fees  are denominated in US dollars, 
and are based on: installed capacity for greenfield electricity generation projects  - 1-10 MW 
(USD  10,000); 11 MW and above (USD 20,000 plus USD 10,000 per 25 MW or part thereof); a f lat 
rate for transmission projects (USD 120,000); and e nergy distributed for distribution projects 
(USD  20,000 plus USD 10,00 0 per 1,000 GWh) . For brownfield generation projects, the fees are half 
those levels. Generation licences are valid up to 30 years. P ower purchase agreements are 
negotiated on a case-by-case basis, between the ZESA and the investor , on a cost -plus basis, s ubject 
to approval by the regulator . A feed -in tariff regime for renewable  energy was reviewed in 2018, but 
has not yet been implemented. IPPs have a marginal share in electricity generation, mainly solar 
and small hydropower projects. They generated 3% (3 13 GWh) of the t otal electricity generated  
 
42 ZERA, Electricity Licencing Guidelines and Requirements 2017. Viewed at:  
https://www.zera.co.zw/images/Electricity_Licencing_Guidelines_2015.pdf .  WT/TPR/S/39 8 • Zimbabwe  
 
- 93 - 
 
  in 2018 ( 9,713.9 GWh ). Two large sugar estates (Triangle Sugar Estate and Hippo Valley Estates) 
supply excess electricity (from bagasse) into the national grid.  
4.80.   The country's electricity shortfall is partially co vered by imports , approximately 27% of 
national electricity consumption in 2017/18. As a member of the SADC, Zimbabwe benefits from the 
Southern Africa Power Pool (SAPP) , with its 12 members (including the ZESA) connecting it to the 
regional energy grids. Generating compan ies outside Zimbabwe are free to  enter into a power 
purchase agreement with large Zimbabwean consumer s at freely negotiated prices, using 
transmission agreements to use the national grid ; prices for wheeling are generally based on the 
SAPP reference prices.  Imports are carried out mainly under supply contracts with Eskom of South 
Africa and the Mozambican power utility , Hidroelectrica de Cahora Bassa. However, Zimbabwe's 
capacity to import electricity has been compromised by forex shortage s and non -payment of bills  by 
domestic consumers .  
4.81.   Licences are available for independent distribution, subject to the setting up of a distribution 
infrastructure. According to the authorities, t he ZETDC  no longer operates as a monopoly in 
electricity transmission and distribution  (Section 43  of the Electricity Act) .43 Transmission is open to 
competition where there is no transmission grid, but the transmission  grid is not accessible to IPPs. 
Projects to upgrade the transmission infrastructur e within the SAPP region include the ZIZABONA 
Project , linking the Zimbabwe, Zambia, Botswana and Namibia transmission networks , at a cost of 
USD 154 million, and the MOZISA Project , linking Mozambique, Zimbabwe and South Africa.  
4.2.3   Petroleum products  
4.82.   Zimbab we has no oil or gas exploitation or refineries, and relies largely on imports, although 
there is some ethanol production (see below). The country's import bill for refined petroleum 
products reached nearly USD 2 billion in 2018, corresponding to about one  third of total imports 
(Chart 1 .6).  
4.83.   From late 2018, Zimbabwe's fuel imports were affected by the deepening foreign currency 
shortage, as witnessed by long queues at petrol stations. The current fuel crisis has been long in the 
making , and can be traced t o Zimbabwe's exchange rate policy and currency controls, as well as 
competition issues. Fuel importers relied on foreign currency allocations by the RBZ, or on foreign 
credit lines, to pay for imports. The non -transparent forex allocation system , together with a 
subsidized (overvalued) exchange rate , made imported fuel cheaper in Zimbabwe than in 
neighbouring countries , and led to diversion and smuggling of fuel, with resulting shortages in 
Zimbabwe.44  
4.84.   In response, excise taxes on fuel were raised in Decemb er 201845, followed by a five -fold 
increase on 12 January 2019.46 Thus, the Government announced an overnight price increase for 
petrol from USD 1.24 per litre to USD 3.31 per litre, and for diesel from USD 1.36 to USD 3.11 per 
litre, causing social unrest i n the country. Meanwhile, the controlled fuel prices fell in USD terms to 
USD 1.08 for petrol  and US D 1.12 for diesel at end -October . According to the authorities, the subsidy 
element was eliminated by end -October 2019.  
4.85.   Under the Energy Regulatory Authorit y Act of 2011, the ZERA became the regulator of the 
petroleum sector; until then , the sector had been regulated by the Ministry of Energy and Petroleum 
Development. However , under the Petroleum Act (Chap  13:22, Section  57), "the Minister may, after 
consult ation with the Authority, make regulations prescribing all matters which by this Act are 
 
43 The ZETDC is in the process of moving to a pre -paid metering system, to recover unpaid bills and 
improve cash flow.  
44 2019 Natio nal Budget Statement , para. 791. Viewed at: 
http://www.veritaszim.net/sites/veritas_d/files/Zimbabwe%202019%20National%20B udget%20Statement%2
022%20Nov%202019.pdf . 
45 2019 National Budget Statement , para. 796.  
46 With effect from 13 January 2019, excise duties on diesel  were increased,  from USD 0.40/L to 
USD 2.05/L, and for petrol , from USD 0 .45/L to USD 2 .31/L. Viewed at: 
http://www.veritaszim.net/sites/veritas_d/files/S.%20I.%209 %20of%202019%20Customs%20and%20Excise
%20%28Tariff%29%20%28Amendment%29%20Notice%2C%202019%20%28No.%207%29.pdf .  WT/TPR/S/39 8 • Zimbabwe  
 
- 94 - 
 
  
 
 
 required to be prescribed or which, in the opinion of the Authority, are necessary or convenient to 
be prescribed for carrying out or giving effect to this Act".47  
4.86.   Fuel prices are controlled by the ZERA under the Petroleum (Petroleum Products Pricing) 
Regulations, 2018 (S.I. 10 of 2019). The Regulations provide for a fuel pricing formula, with price 
caps throughout the distribution chain, including maximum wholesale (f. o.b. ex Beira, Mozambique) 
and maximum retail prices, and caps on profit margins. The Government collects the following taxes 
and levies (August 2019)48: 
• excise duties: with effect from 2 August 2019, the taxation basis for fuel imports was 
changed from specific to ad valorem  duties, due to the inflationary environment and 
currency depreciation. The new rates are 45% and 40% per litre of petrol and diesel, 
respect ively (Table  3.8); 
• carbon tax collected by the ZIMRA: USD 0. 04/L of petrol and USD 0.013/L of diesel;  
• debt redemption levy: USD 0.057/L of petrol  and USD 0.013/L of diesel. This levy is 
used to paid back debt left by the NOCZIM, the predecessor of the Nati onal Oil 
Infrastructure Company (NOIC);  
• ZINARA road levy: USD 0.06/0.02/L of petrol/diesel; and  
• Strategic Reserve Levy: USD 0.015/L of petrol/diesel.  
4.87.   The state -owned NOIC engages in the storage, handling, blending of petroleum products, and 
pipeline tran sportation. The NOIC is the entity through which all fuel by pipeline is imported. It owns 
and controls fuel storage capacity of about 500  million litres , with depots in Harare, Bulawayo, 
Beitbridge, and Mutare. The Ministry of Energy has the exclusive man date of procuring stocks for 
the strategic reserve, stored by the NOIC, with a target of 60 days of consumption.  
4.88.   According to the authorities , importation and distribution of petroleum products are open to 
competition (subject to licensing by the ZERA).49 Any locally  registered company may apply for a 
licence.  The state -owned company P etrotrade , earmarked for privatization, engag es in the 
importation of petroleum products  (about 9% of import volume) in competition with the private 
sector . There are currentl y more than 100 oil -importing companies; the five major companies, 
mainly locally -owned or joint ventures,  are Engen Petroleum Zimbabwe, Petrotrade , Puma Energy, 
Total Zimbabwe, and Zuva Petroleum .  
4.89.   Fuel is imported either via the oil pipeline from Mozambique to Zimbabwe, which supplies 
most of the fuel, or via the Beitbridge -Bulawayo Railway, or by road. About 5% of the oil arrives by 
road or rail from South Africa and Mozambique, and is imported and stored by the private sector. 
Bulk imports of diesel or petrol are subject to a road levy (USD 0.10 per litre) if the products are 
transported by road on eith er one of two specific routes within Zimbabwe. The levy is intended to 
boost utilization of the pipeline between the  port of Beira and the Msasa Fuel Terminal in Harare, 
and of the Beitbridge -Bulawayo railway.  
4.90.   The oil pipeline from the port of Beira is own ed and maintained by the Companhia do Pipeline 
Mocambique -Zimbabwe Ltd (CPMZ )); and the Zimbabwe part of the pipeline is owned by the NOIC. 
The NOIC transports fuel through the pipeline on behalf of international oil traders that sell to  
ZERA -registered im porters . A Throughput and Storage Agreement outlines the terms and conditions , 
and covers the injection of fuel from the various terminals at Beira , Mozambique,  into the CPMZ 
pipeline to either Feruka (Mutare) or Msasa  (Harare) , the storage of the fuel in inland depot s, and 
the re-delivery into road or rail tank cars.  The pipeline fees are (August 2019): USD 78.89 per cubic 
meter from Beira to Harare, USD 58.89 from Beira to Mutare, and USD  20.00 from Mutare to Harare.  
 
47 Petroleum Act (Chapter 13:22). Viewed at: 
https://www.zera.co.zw/images/Petroleum_Act_Chapter_Chapter_1322_as_amended.pdf . 
48 Since June 2019, all amounts are set in Zimbabwe dollars.  
49 The ZERA issues eight types of fuel operator licences for procurement, wholesale, retail, production, 
and LPG retail and wholesale.   WT/TPR/S/39 8 • Zimbabwe  
 
- 95 - 
 
  4.91.   In principle, the Government has an o pen access policy for pipeline imports.  The main users 
of the pipeline are five international traders (e.g. Trafigura). Over the past two years, the pipeline 
has been running at 80% of its capacity.  Total daily imports by pipeline for the domestic market a re 
about 3 million litres of diesel and 2 million litres  of petrol.  
4.92.   The Competition  and Tariff  Commission is currently undertaking a study into competition 
issues in the fuel market  in Zimbabwe. Overall, the fuel import regime would benefit from 
market -based reforms, transparency, and strong competition policy enforcement.  
4.93.   Under Zimbabwe's ethanol programme, mandatory blending of petrol was first introduced in 
2011, with a 5% blending requirement of ethanol from sugarcane ; the ratio currently stands at 
20% of ethanol, subject to availability. The company Green Fuel manages about 9,000 ha of 
sugarcane for ethanol production (about 56 million l itres in 2018 -19). The company Triangle Sugar 
produced about 23 million litres of ethanol as a by -product of sugar p roduction. The ethanol 
production is purchased by the registered oil companies, some of which are licensed to do the 
blending, although the NOIC also carries out blending.   
4.3  Manufacturing  
4.94.   Zimbabwe has a relatively diversified manufacturing sector, with industries in the 
agro-processing industry (based on sugar, oilseeds , grains , dairy products, and horticulture) ; 
beverages ; clothing and textiles; leather and leather products; pharmaceuticals, fertilizers , cement  
and chemicals; rubber and related articles; soaps and detergents; motor vehicle assembly; furniture 
and timber; and paper , printing  and packaging. Since the last Review, the sector continued its 
decline as a share of the country's GDP  (Chart 4.1).  
Chart 4.1 Evolution of manufacturing GDP  
(% of GDP at constant (2012) prices ) 
 
Source:  Zimbabwe National Statistics . 
4.95.   The authorities consider that the sector has the potential to contribute much more in terms 
of GDP, e mployment and export growth, provided that an enabling productive infrastructure is put 
in place. An appropriate enabling environment should include, inter alia , an adequate exchange rate 
policy whereby investors can retain their foreign exchange  proceeds, and the availability of working 
capital from banks to renew obsolete equipment. I n its 2018 Manufacturing Sector Survey, the 
Confederation of Zimbabwe Industrie s (CZI) noted that capacity utili zation in the manufacturing 
sector dropped to 42% at the end of 2018, and that companies expected  a further decline in capacity 
utilization to 34% in 2019 due to a plethora of problems summari zed in Table 4. 8, the main 
5%7%9%11%13%15%17%19%
2010 2011 2012 2013 2014 2015 2016 2017Agiculture, hunting and fishing and forestry Mining and quarrying ManufacturingChart 4. [Zimbabwe] Manufacturing, value added 
Source: Zimbabwe National Statistics online information. Viewed at: www.zimstat.co.zw/.(% of GDP at constant (2012) prices) WT/TPR/S/39 8 • Zimbabwe  
 
- 96 - 
 
  
 
 
 ones being foreign currency shortage s causing liquidity constraints; obsolete machinery; the high 
cost of imported raw materials; and electricity shortages.50 
Table 4.8 Business environment affecting manufacturing companies, 2018  
(%) 
Measure (section of TPR report)  Very 
negative  Negative  No 
effect  Positive  Very 
positive  
Forex access (1.3)  81 14 3 0 3 
Exchange rate (1.3)  65 22 8 3 3 
Cash shortages (1.3)  61 31 5 0 3 
2% tax on electronic transactions (1.2.2)  59 27 10 2 3 
Policy instability (2.1)  54 35 7 4 0 
Corruption (2.1)  52 31 13 3 2 
Access to financing (4.4.7)  43 28 18 6 6 
Ageing equipment  36 42 19 1 2 
Competition from imports (3.1)  35 31 27 3 4 
Interest rates (1.3)  32 43 21 3 2 
Power cuts (4.2.1)  26 29 31 10 2 
Electricity charges (4.2.1)  21 31 37 8 3 
Environmental requirements (3.3.2)  19 23 47 9 3 
Conformity assessment (3.3.2)  13 28 50 4 6 
Domestic demand  12 20 15 39 14 
Minimum wage/labour regulations  12 29 46 7 6 
Import restrictions (3.1.7)  9 4 34 27 27 
Note:  The totals may not add up to 100 because of rounding.  
Source:  CZI, 2018 Manufacturing Sector Survey , Table 75.  
4.3.1   Overview  of policy  developments   
4.96.   The manufacturing  sector has been affected by many adverse policies , the most serious 
probably  being acute foreign currency shortages  and failure to access credit lines, including 
internationally. Past fixed exchange rate policies, together with a lack of monetary discipline, have 
led to  real effectiv e currency overvaluation, which encouraged most industries to rely on (artificially 
cheaper) imported raw materials ; the general unavailability of foreign currency severely affect s their 
operations. The lack of international credit lines has meant that Zim babwean industries are generally 
required to pay upfront for any imported supplies while exporters are deprived of their foreign 
currency earnings through the foreign exchange surrender requirements (Section  1.2.1). In 2019, 
the floating of the RTGS dollar , followed by the abolition of the US dollar as legal tender, led to 
further instability , which , in turn , caused companies to scale down or clos e some of their production 
lines.   
4.97.   On the demand side, lowering prices in US dollars would have been the only wa y to counteract 
the US  dollar's overvaluation in real effective terms ; but failure to do so made local industries 
uncompetitive compared to industries in neighbouring countries that produced in non US dollar 
currency environments . 
4.98.   Other policies have led t o difficulties in importing inputs. I n 2015, Zimbabwe put in place the 
Consignment -Based Conformity Assessment (CBCA  Programme), a preshipment inspection scheme 
that has proved an obstacle to import by industry (Table  4.8). 
4.99.   The main development in Zimbabwe's trade -related  policy is the possibility , since 2018, of  
100% foreign ownership of industrial projects , as a result of the repealing of the indigenization 
legislation ( Section 2. 4.1). In 2018, about 79% of the manufacturin g companies surveyed by the 
CZI were owned by Zimbabwean nationals, while 12.3% were owned by foreigners, suggesting that 
there is ample room for additional foreign investment and know -how.  
 
50 CZI (2018) Manufacturing Sector Survey; and African Development Bank Group (2018), Zimbabwe 
Economic Report  . Viewed at: https://www.afdb.org/fileadmin/uploads/afdb/Documents/Generic -
Docum ents/Zimbabwe_Economic_Report_ -
_Building_a_new_Zimbabwe_Targeted_policies_for_growth_and_job_creation.pdf .  WT/TPR/S/39 8 • Zimbabwe  
 
- 97 - 
 
  4.100.   In June 2019, the MIC adopted the Zimbabwe National Industrial De velopment Policy 
(ZNIDP) (2019 –23) that envisions a build -up of the industrial base to 25 % of GDP. The ZNIDP is 
anchored in innovation, investment , and export -led industrialization. It envisions the development 
of industrial parks, whose infrastructure and  utilities are to be developed by local authorities in 
collaboration with higher education institutions and the private sector, including foreigners. Mention 
is also made of Special Economic Zones that will host both industrial and other (services) compani es. 
In this respect, t he Strategy for the Pharmaceutical Industry , developed in partnership with the 
United Nations Industrial Development Organization, yet to be approved by Cabinet as at mid-2019, 
could constitute a model for government support to the re st of the manufacturing sector. It  include s 
measures to enhance production infrastructure , including : expansion of productive space for local 
industry ; provision of adequate electricity and water; upgrading of manufacturing quality to 
international Good Ma nufacturing Practice standards; and mobilization of required financial 
resources.51  
4.3.2   Trade policy in the manufacturing  sector  
4.101.   The ZNIDP aims to "support industries and steer them towards the export market in addition 
to providing import substitution" . In recent years, Zimbabwe has incrementally restricted imports of 
consumer goods by raising tariffs (Section  3.1.3) and by extending the scope o f discretionary import 
licensing (Section 3 .1.7) in order to shield domestic manufacturers from foreign competition. This 
trend peaked in 2016 , with S.I. 64 that prohibited imports of 43 products , whereby the Government 
monitored the demand for those produ cts in relation to the capacity of the local manufacturing 
companies , and issued import licences accordingly.  In 2017, a consolidated list of products subject 
to such discretionary import licensing was issued (S.I. 122 of 2017). The CZI praised the positiv e 
impact of the non -tariff barriers that the Government put in place , which  helped divert competition 
from imports.  It argued that this policy had some benefits , as capacity utili zation increased from 
45% in 2017 to 48% in 2018 , and the overall output in t he manufacturing sector increased by 1 2% 
during the same period.52 In autumn 2018, the Government  liberalized imports for some 29 of the 
43 restricted products .  
4.102.   The Duty Rebate Facility provides specific industrial companies with targeted import duty 
and V AT exemptions (Section 3.1. 6 for imports of capital equipment and raw materials, but only 
where these are not locally available. This system is administered on a case -by-case basis. 
Administrative procedures prior to the issuance of a rebate aim to ensure that the equipment being 
imported fits the description of the importer , and that it is indeed to be used for purposes of 
manufacturing.  The 2019 Budget renews industry -specific rebates for clothing manufacturers, the 
dairy industry, the baking industry53, agriculture, the motor industry, the wine industry, the fertilizer 
industry, the furniture industry, the pharmaceutical industry , and tourism.  
4.103.   The Industrial Development Corporation of Zimbabwe (IDCZ) is a wholly state -owned 
enterprise , established by the Industrial Development Corporation Act (Chapter 14:10). The IDCZ 
does not trade, but its subsidiaries manufacture and trade. Its investment por tfolio includes newly 
created export -oriented enterprises , and acquired enterprises, mostly those in distress and rescued 
for import -substitution purposes. Its subsidiaries are involved in the manufacture of fertilizer, animal 
and plant health products, in dustrial minerals , motor vehicle assembly , and insurance . For example, 
Zimbabwe's largest fertilizer group (Chemplex) and its subsidiaries are wholly  owned by the IDCZ, 
which was looking for investors to reduce its stake. The IDCZ also operat es as a develo pment finance 
institution , to provide funding for industrial companies.  It recorded profits of USD 29 million in 2017, 
up from USD  16 million in 2016.54 But its annual report also stated that , in the 2017 and 2018 
national budgets , the Government failed to provide recapitalization of USD  83 million to address 
technical insolvency.  
4.104.   The new Zimbabwe Local Content Strategy of June  2019 aims to increase local content levels 
in prioriti zed sectors from current levels of approximately 25% to around 80% (on average) by 
2023. Local Content Rating Agents are to independently verify compliance with minimum local 
 
51 Sector Development Strategy for Pharmaceutical Manufacturing in Zimbabwe.  
52 Confederation of Zimbabwe Industries Manufacturing Sector Survey (2018).  
53 S.I. 275 of 2018, Customs and Excise (Baking Industry Manufacture) (Rebate) Regulations, 2018. 
Viewed at: http://www.veritaszim.net/sites/veritas_d/f iles/S.I.%20275%20of%202018.impo -.pdf. 
54 IDCZ, IDCZ Annual Report 2017 . Viewed at: http://idc.co.zw/wp -content/uploads/2018/09/annual -
report -final-2017.pdf .  WT/TPR/S/39 8 • Zimbabwe  
 
- 98 - 
 
  
 
 
 content thresholds, and issue Certificates of Compliance to qualifying products an d services eligible 
to benefit from local content incentives and support measures , which have yet to be defined . 
Assistance from the WTO could help to design ways to promote the competitiveness of local 
production in a WTO -consistent manner . 
4.4  Services  
4.4.1   Over view  
4.105.   Zimbabwe's s ervices sector s were singled out in the 2018 -20 Transitional Stabilisation 
Programme as significant potential contributors to the country's economic recovery. The services 
sector accounts for 67% of GDP. As described below, Zimbabwe has co mparative advantages in 
several sectors, particularly tourism and the longstanding insurance and pensions industr ies. Its 
specific GATS commitments from the Uruguay Round concern tourism, banking, and 
telecommunications services.55  
4.106.   Significant structural r eforms are needed for services to contribute to the economy's 
development. State intervention remains significant, rendering the supply of key services, such as 
transport and telecommunications, inefficient and costly. As noted in the 2017 Report of the 
Auditor-General on state enterprises and parastatals, 23 entities fac ed challenges regarding  
providing services sustainably , including the National Railway, Air Zimbabwe, and Zimbabwe Post.  
Zimbabwe grants at least MFN treatment in services to all WTO Membe rs, and did not list 
any exemption to the principle of MFN treatment  under the GATS . COMESA Regional Regulations 
Governing Trade in Services  aim to achieve  the free movement of services envisioned in the COMESA 
Treaty, but few effective preferences  have so  far been granted. Zimbabwe also participated in the 
SADC Services negotiations in 2017, but the offer of specific commitments is limited.56  
4.108.   A horizontal market access restriction listed in Zimbabwe' Uruguay Round Schedule relates 
to the unbound nature of mode 4 – movement of natural persons – except for the entry and 
temporary presence of intra -corporate executive and senior managerial personn el. Locally 
incorporated companies may employ foreigners under temporary work permits  that are issued at 
the discretion of the Department of Immigration. The guiding principle is that the company should 
provide proof that the required skill cannot be sourc ed within Zimbabwe. A permit holder will only 
be allowed to work within the confines of the granted employment capacity  (Section 2.4.2) .  
4.109.   Regarding the taxation of services imports (mode 1 under the GATS), the following taxes 
apply:  
• the supply of imported (non-exempt) services  is subject to VAT at the standard rate of 
15%; and  
• business income (rather than profits)  paid to n on-residents is taxed at a rate of 25.75%.   
4.110.   A withholding tax – the Non-Resident Tax on Fees - is imposed on non -residents at a rate of 
15% on gross fees or royalties paid abroad to legal or natural persons for technical, managerial, 
administrative and consulting services. The tax is allowed as a credit against income tax assessed 
at the normal rates. The amount of the credit is limited to  the lesser of the tax assessed or the 
withholding tax . There is no refund where the withholding tax exceeds the income tax liability. The 
rate of tax can be reduced in accordance with a double taxation treaty (Section 2.4.3).   
4.4.2   Construction  services   
4.111.   Accor ding to the Construction Industry Federation of Zimbabwe (CIFOZ), there are no 
market access restrictions (cross -border or commercial presence) limiting foreign companies' 
 
55 WTO I -Tip database on services. Viewed at http://i -
tip.wto.org/services/GATS_Detail.aspx/?id=21842&sector_path=00000 . 
56 SADC negotiations on Trade in Services, Final Offer b y Zimbabwe, document 
SADC/FO/ZWE/01.08.2017.   WT/TPR/S/39 8 • Zimbabwe  
 
- 99 - 
 
  participation in the local construction services sector. Registration with the Procu rement Regulatory 
Authority of Zimbabwe (Section 3.3.6) is not compulsory, nor is registration with the CIFOZ.57  
4.4.3   Wholesale distribution  services  
4.112.   According to the authorities, there are no specific market access limitations precluding 
foreign companies from  participating in wholesale distribution services .  
4.4.4   Tourism  
4.113.   The tourism sector experienced a mixed performance (Table 4.9 and Chart  4.2), as receipts 
and the number of arrivals both increased until 2018 but fell in 2019. In 2019, the operating 
environment had become very difficult for the tourism sector, against a backdrop of cash shortages, 
rising prices, low incomes for the population, and fuel and electricity shortages. Persistent shortages 
of fuel continued to impact negatively on the sector, as both lo cal and foreign tourists found it 
difficult to be assured of reaching destinations across the country, which led to many cancellations. 
The current power outages have forced tourism operators to resort to the use of generators for more 
than 12 hours every day, compounded by the unavailability of fuel on the formal market most of the 
time. This increased the sector's operating costs, which are ultimately passed on to customers, 
making the destination very expensive and uncompetitive. Nevertheless, the sector contributes over 
7% to GDP, with 2.6 million tourists generating revenues of nearly USD 1.4 billion in 2018.  
Table 4.9 Tourism sector indicators , 2010 -18  
  2010  2011  2012  2013  2014  2015  2016  2017  2018a 
Number of tourists (million)   
Arrivals  2.2  2.4  1.8  1.8  1.9  2.1  2.2  2.4  2.6 
Departures  0.7  0.7  0.7  2.9  3.2  3.4  2  2.8  .. 
Trade in tourism servicesa (USD million)  
Exports  123.5  151.8  160.8  169.9  172.3  174.8  177.3  149.2  182.1  
% of total 
services 
exports  42.8 44.3 47.2 48.0 47.4 45.2 44.7 31.3 36.4 
Business  23.3 26.5 29.0 31.0 31.4 31.9 32.3 44.7 54.6 
Personal, of 
which:  100.2  125.3  131.8  138.9  140.9  142.9  145.0  104.4  127.4  
Health -related  71.0 89.0 97.0 100.0  101.4  102.8  104.3  3.0 1.8 
Education -
related  1.6 1.7 1.8 1.9 2.0 2.0 2.1 11.9 14.6 
Imports  130.6  228.0  272.2  337.4  342.1  476.2  326.9  314.6  247.5  
% of total 
services 
imports  9.6 12.5 15.3 17.8 17.5 31.3 25.9 27.8 24.1 
Business  1.5 4.6 7.3 7.2 8.0 9.5 7.8 5.8 6.4 
Personal, of 
which:  129.1  223.4  264.9  330.2  334.2  466.7  319.0  308.8  241.1  
Health -related  119.7  149.6  187.0  251.2  251.5  373.6  260.2  5.9 6.4 
Education -
related  7.9 69.2 70.6 71.8 75.1 93.1 58.8 60.1 65.4 
Tourism 
revenues  
(USD 
million)  634.0  662.0  749.0  856.0  827.0  886.0  819.0  917.0  1,386.0  
.. Not available.  
a Based on balance of payments  statistics . 
Source:  Zimbabwe Tourism, Tourism Trends and Statistics Report 2018; World Bank World Development 
Indicators; and information provided by the authorities.  
 
57 CIFOZ. Viewed at: http://www.cifoz.co.zw .  WT/TPR/S/39 8 • Zimbabwe  
 
- 100 - 
 
  
 
 
 Chart 4.2 Tourism, 2010 -19 
(Number of arrivals in millions)          (Touris m receipts  
             in USD million ) 
 
Note:  Estimates for 2019 . 
Source:  Zimbabwe Tourism, Tourism Trends and Statistics Report 2018; World Bank World Development 
Indicators ; and information provided by the authorities.  
4.114.   The shortage of bank notes and the foreign exchange crisis proved another deterrent for 
tourists in 2019. The y had to pay for h otel rooms in foreign currency , despite legislation imposing 
the use of the new local currency (Section 1.2.1) . Similarly, park -entry fees are due in foreign 
currency. Foreigners were also asked to pay for restaurants, and airline service s in foreign currency. 
Out of that foreign currency, recipients must convert 20% into the local currency; 80% of the 
proceeds may remain in foreign currency "transitory" accounts for longer, undetermined periods, 
allowing the tourism industry more flexibil ity to pay for its imported inputs.  
4.115.   Moreover, non -automatic import licences (Section 3.1.7) constitute another constraint for 
the tourism industry, causing delays or shortages in the delivery of consumer products sold to 
tourists. A 2% tourism levy is cha rged on hotel room bills. VAT is levied at the standard rate of 
15% on hotel accommodation and all other tourism projects, up from 0% in 2015. In addition, the 
2% electronic transaction Intermediated Money Transfer Tax (Section 1.2.2) applies.  
4.116.   Despite the se economic challenges, the tourism industry continued to attract new 
investments , mostly small a ccommodation such as lodges and guest houses. The number of t ravel 
agents  also increased . The Zimbabwe Tourism Authority provides an exchange platform for inve stors 
and project promoters.58 Investors must register with the Zimbabwe Investment Authority to obtain 
an investment licence for their project, which is granted based on the recommendation of the 
Zimbabwe Tourism Authority.   
4.117.   The real estate regime provide s the possibility for foreigners to acquire hotels and lease 
tourism concessions from local authorities. To supp ort investment  in tourism projects , the 
Government provides import duty rebates to companies that have been in existence for more than 
two years :  
• duty-free import s of capital goods  (S.I. 50/2006 ) into the Tourism Development Zones  
under the Tourism Act; in these Zones, investors benefit from simplified labour 
legislation and more favourable tax provisions;  
• duty-free imports of safari vehicles (S .I. 159/2017) by safari operators;  
 
58 Zimbabwe Tourism. Viewed at: https://www.zimbabwetourism.net . 
02004006008001,0001,2001,4001,600
0.00.51.01.52.02.53.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Arrivals Tourism receipts(Number of arrivals in millions )(Tourims receipts 
inUSD millions)Chart 4. [Zimb] Tourism, 2010 -19
Esimates for 2019.
Zimbabwe Tourism, tourism trends and statistics report 2018; World Bank World Development Indicators: and 
information provided by the authorities.Note:
Source: WT/TPR/S/39 8 • Zimbabwe  
 
- 101 - 
 
  • duty-free imports of equipment (S .I. 10/2018) for t ourism businesses ; rebates are valid 
until December 2019, and restaurants are not eligible; and  
• import duties were suspended on imports of specified buses by tour operators  
(S.I. 279/2018) . 
4.118.   Limitations on national treatment relate only to tourist guide ser vices, under the Tourism 
Act. Also, under the Policy on Wildlife of 1999, only locally registered safari operators may obtain 
wildlife concessions.  
4.4.5   Transport services  
4.119.   Zimbabwe's stated trade policy objective in the area of transport services is to liberal ize 
market access, albeit generally on a case -by-case and reciprocal basis. In fact, market access 
continues to be determined on a bilateral basis , and restrictions remain , although commercial 
presence ( mode 3 of the GATS) was liberalized following the rep eal of the Indigeni zation Act in 2018 
(Section 2.4).   
4.4.5.1   Air transport services  
4.120.   Considering that liberali zation of air transportation would  benefit not only the air transport 
and tourism sector s, but also the rest of the economy,  the Government declared an Open Skies 
Policy in the air transport sector, including the major airports of Harare, Bulawayo and Victoria Falls, 
and Zimbabwe's tourist airports and aerodromes across the country ; this led to an increase in activity 
at all ai rports (Table 4.10) . In practice , however, the fifth freedom is granted on a case -by-case 
basis under bilateral agreements , covering specified locations and airlines, as was the case recently 
with Ethiopian Airways, Air Namibia, Rwanda Air, Emirates, and TAG Angola.   
Table 4.10 Traffic statistics for the main airports  
  Passengers by a irport  Total f reight  
(tonnes)  Harare  Victor ia Falls  Bulawayo  
2011 746,015  175,858  64,123  19,322  
2012 719,017  180,704  49,161  17,196  
2013 871,795  219,041  90,464  18,362  
2014 949,865  237,056  122,238  17,362  
2015 1,056,923  245,465  151,905  16,525  
2016 1,096,375  268,920  143,758  14,932  
2017 1,148,315  345,078  149,011  15,766  
2018 1,317,617  411,057  172,140  19,720  
Source:  Civil Aviation Authority of Zimbabwe.  
4.121.   At national level, the following laws and statutory instruments govern commercial activities 
in the air transport sector : the Air Services Act , the Carriage by Air Ac t, the Civil Aviation Act  and 
its amendment  of 2018 providing for the spinning of certain functions to a future Airports Company 
of Zimbabwe, and the Air Zimbabwe Corporation Act .  
4.122.   The Ministry of Transport is the Aeronautical Authority of Zimbabwe. The Civil Aviation 
Authority of Zimbabwe (CAAZ) is a technical advisor to the Government on aviation matters, 
including internationally. Any airline wishing to set up in Zimbabwe  and, inter alia , enjoy the 
privileges of a designated Zimbabwean company , must obtain an air service permit from the 
Ministry , and be locally registered with the Registrar of Companies. It then proceeds to the CAAZ for 
operational modalities, including the issuance of an Air Operator Certificate . The 51% local ownership 
provision was abolished in 2018 ( Section  2.4); no minimum sh are of the company's capital must be 
held by Zimbabwean nationals, provided the aircraft have their port of registry in Zimbabwe and are 
listed in the Zimbabwe aircraft register .  
4.123.   Cabotage is restricted to Zimbabwean  companies . Domestic routes previously m onopoli zed 
by Air Zimbabwe were opened to other airlines, with Fastjet and Fly Africa now licen sed on the 
Harare -Bulawayo, and the Harare -Victoria Falls routes.  International air transport is governed by 
bilateral air services agreements , which stipulat e provisions in terms of routes, frequency, and  WT/TPR/S/39 8 • Zimbabwe  
 
- 102 - 
 
  
 
 
 capacity (Table 4. 11). Fastjet Zimbabwe is designated  as a national carrier,  together with  Air 
Zimbabwe , in these agreements.  
Table 4.11 Bilateral air services agreements signed/initiated since 2011  
Country and region  Frequency 
limitations  Capacity 
limitations  Price 
provisions  Carrier 
designation  
1. Angola (2013)  Yes Yes No No 
2. The Gambia (2018)  No No No No 
3. Botswana (2017)  No No No No 
4. Burkina Faso (2018)  No No No No 
5. Cape Verde (2018)  No No No No 
6. Congo Brazzaville (2012)  No No No No 
7. Egypt (2015)  No No No No 
8. Ethiopia (2012)  No No No No 
9. Mauritius (2015)  Yes Yes No No 
10. Morocco (2014)  Yes Yes No No 
11. Mozambique (2017)  No No No No 
12. Nigeria (2015)  Yes Yes No No 
13. Rwanda (2012)  No No No No 
14. South Africa (2017)  Yes Yes No No 
15. Eswatsini  (2012)  No No No No 
16. Tanzania (2013)  No No No No 
17. Togo (2015)  No No No No 
18. Zambia (2015)  No No No No 
19. Austria (2015)  Yes Yes .. .. 
20. Iceland (2015)  Yes Yes .. .. 
21. Luxemb ourg (2015)  Yes Yes .. .. 
22. Netherlands (2013)  No No No No 
23. Spain (2017)  No No No No 
24. Bahrain (2014)  No No No No 
25. Singapore (2014)  No No No No 
26. Sri Lanka (2017)  No No No No 
27. Jordan (2014)  No No No No 
28. Oman (2017)  No No No No 
29. United Arab Emirates  (2012)  No No No No 
30. Yemen (2013)  No No No No 
31. Guyana (2018)  No No No No 
.. Not available . 
Source:  CAAZ.  
4.124.   According to the authorities, the Government implements the 2000 Ministerial Declaration 
of Yamoussoukro , which  defines the conditions for intra -African air transport services.59 It eliminate d 
all non -physical barriers and restrictions relating to  the granting of traffic rights, especially fifth 
freedom rights, between signatories.60 It prohibits anti -competitive beh aviour with respect to tariff 
regulation and airline designation , and introduces a "Community ownership clause" , by virtue of 
which any company of another member State is treated in the same way as a national company. 
The Declaration provides for a similar  regime for scheduled and unscheduled flights (passengers and 
cargo).61Any wholly or majority foreign -owned company can benefit from the advantages of the 
Decision if it satisfies the eligibility criteria if its headquarters, its central administration and its 
principal place of business are physically located in the signatory State concerned.62 In 2018, 
Zimbabwe signed the solemn commitment to the implementation of the Single Africa Air Transport 
Market . There are no preferences at the SADC/COMESA level for air transport services providers.  
4.125.   Zimbabwe's civil airports, which belong to the State, are managed by the CAAZ , which is 
responsible for airport management and operation. The state company, National Handling Services , 
is solely in charge of passenger gro und handling , and carries out cargo handling in competition with 
 
59 The Decision was taken under Article 10 of the Treaty of Abuja , establishing the African Economic 
Community; it was signed in July 2000 , and has been in force since 12 August 2002. According to Article  2, the 
Decision takes precedence over all non -conforming b ilateral and multilateral air transport agreements.  
60 The right of an airline to carry passengers, freight and mail between tw o state parties other than 
the state party in which it is licensed . 
61 WTO document S/C/270/Add.2 , 28 September 2007.  
62 Article 6.9  of the Decision.   WT/TPR/S/39 8 • Zimbabwe  
 
- 103 - 
 
  a private company, AGS. The private company Catercraft  is the only company in charge of catering , 
and enjoys a de facto  monopoly position. Several private companies ( e.g. PUMA, and ZUVA) 
distribute aircraft fuel , which is an activity open to competition , according to the authorities .  
4.126.   Zimbabwe is a  member of the International Civil Aviation Organization and the International 
Air Transport Association . In July 2019, an arrangement was negotiate d for the payment of 
USD 196 million in arrears, because of foreign exchange shortages, that were owed to airlines  from 
the sale of air tickets in Zimbabwe  
4.4.5.2   Rail transport  
4.127.   National Railways of Zimbabwe ( NRZ), a state-owned body, is the sole  mover of local, transit 
and international traffic of freight and passengers by rail , operating under  the Railways Act  as 
amended in 1997 . The rail network stretches 2 ,760 km across Zimbabwe, and is linked to Botswana, 
Mozambique, South Africa, Zambia , and the Democratic Republic of Congo. There has been no recent 
investment in the expansion of the  domestic  rail network .  
4.128.   The NRZ's designed operational capacity is 18 million metric ton nes per annum . At its peak 
in 1998 , it carried 12.4  million metric ton nes, considerably more than the average of 3.5 million 
metric tonnes per annum carried over the last five years. Th is poor performance is due to the 
deteriorating state of NRZ 's resources and infrastructure , and the general underperformance of the 
economy . The NRZ has reportedly not received any subsidies since 2014; an  estimated 10% of its 
track infrastructure is under temporary speed restrictions. The NRZ's gross earnings in 2018 reached 
USD 106 million, up from USD 101 million in 2011. Freight services contr ibute 93% to the NRZ's 
overall business.  Chart  4.3 shows each sector 's major products  transported . 
Chart 4.3 Sectors' contribution to NRZ business, 2019  
Source:  NRZ. 
4.129.   Although the State retain s a de facto or de jure  monopoly on the construction, operation 
and management of railroads for transporting passengers and goods, there were exceptions . In 
November 1996, the Government and the NRZ entered into a build-operate -transfer  (BOT) 
agreement with th e then -owners of Beitbridge -Bulawayo Railways , for the construction of a direct 
railway link between Beitbridge and West Nicholson , where the NRZ line terminated. The BOT 
agreement is in force for 30 years, after which (in 2026) the railway line will be ha nded over to the 
Government . In return, the G overnment , through NRZ , got a 15% shareholding in the company for 
its railway line. The Government , also  through the NRZ, also allows tourist/safari passenger services  
trains to run through its system , while maintaining its monopoly on ordinary passenger trains. 
Finally, there are plans to allow a BOT joint venture Harare -Chitugwiza commuter rail.  
Energy and mining: coal, 
chrome ore, granite, fuel, 
coke, ferrochrome, 
phosphate rock, etc.
52.8%
Agriculture: maize, wheat, 
sugarcane,  raw sugar, 
molasses, etc.
25.9%Industry: fertilizer, cement, slag, 
clinker, steel, etc.
13.4%Transit: fertilizer,  coal, grains, 
fuel, sulphur, copper, etc.
3.8%Passenger services
4.0%Chart 4. [Zimb] Sectors’ contribution to NRZ business, 2019
Source: NRZ.Total turnover: 
USD 106 million  WT/TPR/S/39 8 • Zimbabwe  
 
- 104 - 
 
  
 
 
 4.4.5.3   Road transport  
4.130.   Road transport is the principal mode of domestic goods transport, with lorries being used f or 
99% of domestic freight volume. The highway network (3,400 km) belongs to the State , and is 
managed by the Ministry of Transport and Infrastructural Development . 
4.131.   The transport of goods and passengers by road, whether from one place to another within 
Zimbabwe or to or from Zimbabwe, remains reserved for companies established under Zimbabwean 
law under the Motor Road Transportation Act.63 A similar nationality requirement applies to the 
provision of commercial vehicle rental services , and maintena nce and servicing services, as well as 
to services related to road transport. Foreigners wishing to provide these services must set up a 
company under Zimbabwean law, and the company must be registered with the Ministry. However, 
the capital may be majorit y foreign -owned , and there are no nationality requirements  regarding 
management.   
4.132.   Cabotage is generally prohibited, as is delivery or picking -up in third countries. Zimbabwe 
signed bilateral road agreements with Botswana, the Democratic Republic of Congo, Mozambique, 
Namibia, Malawi, South Africa , and Zambia , that restrict market access to companies established in 
one of the two States that are party to the agreement; these market -sharing provisions are 
implemented by permit systems , managed by the regional  Cross -Border Road Transport Agency .64 
For example, the Bilateral Agreement on Road Transportation between South Africa and Zimbabwe 
applies to freight and passenger transport; it allows a Joint Committee to organize the number of 
permits that may be issued  to the carriers of each Party, and the maximum number of journeys that 
a given carrier may undertake.65 This Agreement does not cover rentals or vehicle maintenance.  
4.4.6   Telecommunications  and broadcasting  
4.4.6.1   Market overview  
4.133.   The ICT sector registered a strong in crease between 2010 and 2013, followed by an 
important decline and, as a result, revenues in 2018 were at their 2013 level (Table 4.12) .66 The 
mobile telephone penetration rate increased strongly, to 103% in 2017, before falling in 2018. The 
Internet penetration rate is relatively high, at almost 63% in 2018. One of the drivers of 
telecommunications is mobile banking, given the shortage of ca sh in the economy, as m obile money 
provides an effective alternative to cash for making payments during liquidity crises  (Box 4.1) . 
Table 4.12 Telecommunication sector, 2010 -18 
  2010  2011  2012  2013  2014  2015  2016  2017  2018  
Subscriptions ('000):  
Fixed telephone  378 356 302 304 330 334 306 264 269 
Fixed teledensity 
(%) 3.0 2.8 2.3 2.3 2.5 2.6 2.4 1.9 1.9 
Mobile -cellular 
telephone  7,700  9,200  12,614  13,633  11,799  12,757  12,879  14,092  12,909  
Mobile 
penetration rate 
(%) 50.4 60.6 80.0 84.3 90.3 94.4 94.8 102.7  93.1 
Internet  1,375  2,413  3,945  5,473  5,880  6,575  6,722  6,973  8,723  
Internet 
penetration rate 
(%) 11.0 19.3 30.6 41.9 45.0 48.1 50.0 50.8 62.9 
Revenue and investment (USD million):  
Fixed -telephone 
services  176 149 132 148 163 163 117 117 135 
Mobile networks  607  746 890 1,105  907 745 723 849 1,156  
 
63 Viewed at: https://parlzim.gov.zw/acts -list/download/799_c9823f9e0482702e5b32981a9f33f752 . 
64 Cross -border Road Transport Agency, Bilateral Ro ad Transport Agreement with Zimbabwe. Viewed at: 
http://www.cbrta.co.za/resources/bilateral -road-transport -agreement -with-zimbabwe . 
65 Transport Deregulation Act No. 80 of 1988. Viewed at: http://cbrta.co.za/uploads/files/Agreements -
MozMalawiZambiaZimb004.pdf . 
66 Postal and Telecommunications Regulatory Authority of Zimbabwe, Abridged Annual Postal and 
Telecommunications Sector Performance Report 2017. Viewed at: http://www.potraz.gov.zw/wp -
content/uploads/2017/03/Annual_Sector_Perfomance_Report_2017.pdf .  WT/TPR/S/39 8 • Zimbabwe  
 
- 105 - 
 
    2010  2011  2012  2013  2014  2015  2016  2017  2018  
Annual 
investment in 
telecommunicati
on services  410 .. 488 188 206 318 276 198 .. 
.. Not available.  
Source:  The Postal and Telecommunications Regulatory Authority of Zimbabwe , Annual Postal and 
Telecommunications Sector Performance Report 2018 ; and International Telecommunications Union  
World Telecommunication/ICT Indicators Database 2018 (22nd Edition/January 2019) . 
Box 4.1 Mobile banking  
As noted in Section 1, Zimbabwe's chronic shortages of foreign currency led to shortages of physical cash in 
the economy. Given the shortage of cash, the RBZ promoted the use of mobile banking  as an alternative to 
cash for making payments during liquidity crises.  
As the chart below shows, most domestic transactions in value terms are carried out on the RTGS system 
(53.5% in 2018), but RGTS transactions accounted for only a negligible share of all transactions (0.3% in 
2018). The vast majority of individual transactions was made with mobile money transfers (84.7% of all 
payment transactions in 2018). In 2018, Zimbabwe saw a surge in the volume and value of mobile 
transactions, which reflected th e worsening cash crisis, among other factors.  
Mobile banking has been one of the main drivers of telecoms business in Zimbabwe. The total number of 
active mobile money subscriptions increased to 6.1 million users in 2018, compared with 4.6 million in 2017 
(up 33%). In comparison, Internet banking subscriptions totalled 353,100 subscribers in 2018, up from 
277,700 in 2017. The mobile payment operators are licensed by the RBZ under the National Payments Act, 
which regulates payments and charges, whereas the P OTRAZ regulates the platforms through which mobile 
money is offered and the quality of service. As at 31 December 2018, there were five regulated mobile 
payment systems providers: Ecocash (with 13 participating banks); MyCash (1); Getcash (1); One Money 
(5); and Telecash (2).  
Main payment transaction streams, 2015 -18 
 
Note:   Other payment transactions include Swift FX Payment, Swift FX Receipts, and cheques, which are 
negligible.  Less than 1% of total volume for RTGS, Internet and ATMs.  
Source:  Information provided by the authorities.  
0102030405060708090
2015 2016 2017 201802004006008001,0001,2001,4001,6001,8002,000
RTGS Mobile Internet Point of scale ATMsVolume in millionValue in USD billionChart 4. [Zimbabwe] Main payment transaction streams, 2015 -18
Source: Information provided by the authorties.Note: Other payment transactions include Swift FX Payment, Swift FX Receipts and cheque which are negligible .
Less than 1% of total volume for RTGS, Internet and ATMs. WT/TPR/S/39 8 • Zimbabwe  
 
- 106 - 
 
  
 
 
 4.134.   The State controls two of the three mobile telecom providers: it fully owns NetOne, and owns 
60% of Telecel; Econet is in private local ownership. F ixed-line telephone services  are supplied only 
by TelOne, a 100% s tate-owned company .67  
4.135.   One national backbone company ( operated by Liquid) controlled nearly  70% of the country's 
bandwidth capacity  (in 2019)  and nearly 53% of Internet revenues  (2017) ; TelOne controls another 
24% of that capacity, and 23% of revenues  (2017);68 Powertel , 4.3% , and Dandemutande (a new 
Internet services provider), 2.4%.   
4.136.   The fibre optic cable network covered 10,140  km as at 30 June 2019 . In 2019, each operator 
has its own network , and operates national and international traffic on  its own network. In ternational 
roaming is very expensive , about USD  100 for 10 megabytes  (Swisscom) . International calls were 
priced at USD 4 per minute  for Switzerland, USD 0.5 for the United States, and USD 0.3 for regional 
destinations, from a fixed li ne. Operators continue to use very expensive satellite links for 
international telecommunications  but are increasing their use of fibre optics.  Zimbabwe is connected 
to the submarine cable networks of SEACOM, WACS and EASSy   
4.4.6.2   Telecommunications regulation  
4.137.   The Postal and Telecommunications Act of 2000 constitutes the main legislation of the 
sector.69 Zimbabwe made specific commitments on telecommunications under the GATS.70 These 
also stipulate d the monopoly of public telecommunications services granted to the Posts and 
Telecommunications Company, a monopoly which was abolished in 2000. At the time of the previous 
TPR, restrictions on foreign investment applied to data transmission, including packet -switched data 
transmission and circuit -switched data transmissi on. All investment restrictions were lifted in 2019, 
according to the authorities  (Section 2 .4.2). 
4.138.   The Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) regulates 
the provision of telecommunications services in Zimbabwe. Since 2011, new regulations were issued 
with respect  to customer registration (2014); Very Small Aperture Termin als (VSAT ) (2015); quality 
of service (2016); and sharing of infrastructure (2016).71  
4.139.   On the advice of the POTRAZ , the Ministry  in charge of telecommunications approves and 
grants licences, except in the case of a few services (mainly private networks) , where a simple 
declaration is required . If a new operator applies for a licence, the POTRAZ carries out a needs test 
to decide whether a licence is to be issued by the Minister. The licence is not a public document. The 
POTRAZ also allocates radio -frequency bands, manages the frequencies , and collects the fees 
associated with their  use.  
4.140.   There is no domestic roaming. The segregated market structure (between the three mobile 
operators)  calls for strong regulations on pricing. The POTRAZ monitor s tariffs charge d by operators 
based on the long -run incremental costing model, balancing affordability for consumers and viability 
for operators.   
4.141.   Telecommunications equipment and computers are currently subject to relatively high MFN 
customs duties (Table 4.1 3), plus 15 % VAT, which does not facilitate access to information 
technologies and the Internet.  All telecommunications equipment is type -approved before use in the 
country by the POTRAZ . 
 
67 Viewed at: https://www.telone.co.zw . 
68 POTRAZ, Abridged Annual Postal and Telecommunications Sector Performance Report, 2017. Viewed 
at: http://www.potraz.gov .zw/wp -content/uploads/2017/03/Annual_Sector_Perfomance_Report_2017.pdf . 
69 POTRAZ. Viewed at: http://www.potraz.gov.zw/?page_id=877 . See al so 
https://zimlii.org/zw/legislation/num -act/2000/4/Postal_Act.pdf . 
70 WTO, I-TIP Database . Viewed at: http://i -
tip.wto.org/services/DetailV iew.aspx/?id=Zimbabwe&isGats=1&sector_code=2.C . Zimbabwe did not participate 
in the extended negotiations on basic telecommunications , did not accept the Fourth Protocol (basic 
telecommunications) , and did not schedule  the Reference Paper. 
71 POTRAZ. Viewed at: http://www.potraz.gov.zw/?page_id=877 .  WT/TPR/S/39 8 • Zimbabwe  
 
- 107 - 
 
  Table 4.13 Applied MFN tariffs on telecom and computer equipment  
HS Product desc ription  Applied 
MFN 2019  Min.  Max. 
 
Total  17.2 0.0 60.0 
8443a Printing machinery, copying machines and parts thereof  5.0 0.0 15.0 
8470 Calculating machines , cash reg isters, etc.  17.5 0.0 25.0 
8471 Automatic data processing machines and units thereof  0.0 0.0 0.0 
8472 Other office machines  15.0 15.0 15.0 
8473 Parts and accessories  4.0 0.0 5.0 
8517 Telephone sets  12.0 0.0 40.0 
8518 Microphones , loudspeakers, etc. 35.0 20.0 40.0 
8519 Sound recording or reproducing apparatus  40.0 40.0 40.0 
8521 Video recording or reproducing apparatus  40.0 40.0 40.0 
8522 Parts and accessories for 85.19 or 85.21  30.0 10.0 40.0 
8523 Discs, tapes, solid storage devices, etc .  17.8 0.0 20.0 
8525 Apparatus for broadcasting , cameras and video recorders  15.0 0.0 40.0 
8526 Radar apparatus, radio navigational aid apparatus  14.2 0.0 40.0 
8527 Reception apparatus for radio -broadcasting  34.0 0.0 60.0 
8528 Monitors and projectors  26.7 5.0 40.0 
8529 Parts suitable for 85.25 to 85.28  17.5 0.0 40.0 
8540 Thermionic, cold cathode or photo -cathode valves and tubes  5.0 5.0 5.0 
8541 Diodes, transistors and similar semiconductor devices  5.0 0.0 10.0 
8542 Electronic integrated circuits  9.0 5.0 10.0 
a Only HS 8443.31, HS 8443.32, and HS 8443.39.  
Source:  Zimbabwe's Integrated Tariff.  
4.142.   Universal service obligations include the routing of telephone calls to and from subscriber 
points, the free routing of emergency calls, and the provision of an information service.  A universal 
service fund is in place since 2009, financed by a levy of 1.5% of every licensed operator's annual 
turnover. The fund amounted to USD 131 million in June  2018.72 Thanks to the funding, the POTRAZ 
has rolled out over 146 com munity information centres.   
4.143.   Several projects to harmonize telecommunications services have been on the back burner  
at the regional level . For example , the Communications Regulators Association of Southern Africa, 
the Africa Telecommunications Union and th e International Telecommunications Union are working 
to harmonize the regulatory framework to develop common telecommunications legislation. A 
technical regulation committee is planned but is not yet in place. There is no r adio-frequency 
management system at regional (COMESA, SADC) level.   
4.4.6.3   Postal and courier services  
4.144.   The POTRAZ is the regulator of postal and courier services. Zimbabwe Posts (ZIMPOST) is 
the designated postal operator , with the mandate of providing universal postal, courier, real estate , 
and financial services within Zimbabwe . It is  a state -owned enterprise established under the 
Companies Act  and incorporated in 2000 after the unbundling of the former Posts and 
Telecommunications Corporation. The provision of the following services is reserve d exclusively for 
ZIMPOST: the conveyance of letters of less than 500 g, other than such letters are conveyed by a 
commercial courier service, "provided that the operator of a commercial courier service shall not 
charge less than the prescribed rate for th e conveyance of such letters by ZIMPOST; the issuance 
of money orders or postal orders for an amount in excess of , or less than , that prescribed by the 
Minister; and any prescribed agency service".  ZIMPOST wholly owns Courier Connect , one of 
seven  courier companies . Total postal and courier volumes declined by 4.1% in 2018 from 2017 . 
Revenues declined by 1 4% to USD 35 million in 2018 from USD 41 million in 2017.  
4.4.6.4   Broadcasting  
4.145.   Zimbabwe Broadcasting Corporation (Private) Limited (ZBC) was established under  the 
Broadcasting Services Act and the Zimbabwe Broadcasting Corporation Commercialization Act , 
2001. It is a government -owned company under the Ministry of Information and Broa dcasting 
Services. Its core function is to carry on broadcasting services , within and outside Zimbabwe. The 
 
72 TECHZIM, Since 2009 POTRAZ Has Collected Over USD 120 Million For The Universal Service Fund. 
Viewed at: https://www.techzim.co.zw/2018/06/potraz -rakes -in-120-million -from-universal -service -fund.  WT/TPR/S/39 8 • Zimbabwe  
 
- 108 - 
 
  
 
 
 ZBC competes with private companies in the market for broadcasting services.  In May 2019, the 
Cabinet approved the Broadcasting Services Amendment B ill, which aims to merge the country 's 
media and telecoms regulators. The Broadcasting Authority of Zimbabwe and the POTRAZ are to be 
combined as the Broadcasting and Communications Authority.73 
4.146.   Since 1 January 2019, foreign -domiciled satellite and broadcas ting services providers, and 
foreign -based suppliers of goods and services via electronic commerce platforms (beyond a 
minimum prescribed amount) are required to pay corporate income tax in Zimbabwe. They must 
register with the ZIMRA , appoint Public Office rs or agents to act on their behalf , and obtain  a tax 
clearance certificate to enable remittance of funds.   
4.4.7   Financial services  
4.147.   Zimbabwe made commitments on some banking services74 as a result of the Uruguay Round. 
It did not improve or modify those commitme nts during the extended financial services negotiations 
in 1995 and 1997 , and is therefore not a party to either the Second or Fifth Protocols to the GATS, 
through which the results of those negotiations were adopted.  
4.4.7.1   Insurance  and pension  funds  
4.148.   Zimbabwe h as a long insurance tradition, and is host to some of the world's oldest 
multinational insurance companies, such as Old Mutual. The m ain national insurance groups have 
close ties  with Zimbabwe's main commercial banks , as several  financial conglomerates have 
insurance or banking subsidiaries , and vice versa. The foreign presence is substantial , with  Old 
Mutual , Zimnat Life, Zimnat Lion, Grand Reinsurance and FBC Insurance  all foreign -owned . With 
respect to state ownership, the Exp ort Credit Guarantee Corporation of Zimbabwe is 100% owned 
by the RBZ ; Nicoz Diamond is 45% -owned by the National Social Security Authority; Emeritus is 
43%-state-owned through ZIMRE Holdings ; and Allied Insurance is 2 .23%-owned by the IDCZ 
(Section 4.3.2) . 
4.149.   The insurance (and pension) market represents gross premiums written (GPW) of 
approximately USD 700 million annually (Table 4. 14), comprising agencies, brokers, insurance and 
reinsurance companies, and retrocessions. There were 81 insurance services prov iders in 2017, of 
which 11 life insurance companies; 18 n on-life insurance companies; 2 composite life and non -life 
companies; 9 funeral assurance companies; 4  reinsurance companies ; 33 brokers; and 
7 reinsurance brokers. Nearly 44% of non -life insurance p remiums are for motor vehicles, followed 
by fire (20%), and personal accident (8%). Agricultural insurance represents nearly 5% of turnover. 
Zimbabwe 's insurance penetration rate, which reached a high of 10% in the early 1990s, has been 
declining over the last two decades, to 4.7% in 2017 , according to  the Insurance and Pensions 
Commission (IPEC) .75 Insurance penetration is estimated to have declined to around 3% in 2018.  
Table 4.14 Trend in insurance premiums written by largest companies, 2011 -18  
(USD million)  
  
2011  2012  2013  2014  2015  2016  2017  2018  
Total 
premium  Non-life 159 194 210 215 215 216 236 277 
Life 148 196 258 310 332 347 369 426 
Old Mutual  Non-life 16 23 28 31 36 37 38 41 
Life 93 134 139 149 158 164 165 185 
Alliance  
Nyaradzo 
(mostly 
funeral 
business)  Non-life 20 29 26 30 33 33 32 32 
Life .. .. 47 62 76 84 96 108 
First Mutual  Life 24 22 28 34 32 36 35 43 
 
73 New Zimbabwe, New broadcasting law seeks to end alleged ZBC bias towards Zanu PF. Viewed at:  
https://www.newzimbabwe.com/new -broadcasting -law-seeks -to-end-alleged -zbc-bias-towards -zanu-pf. 
74 These commitments concern: a cceptance of depos its; lending; financial leasing; all payment and 
money transmission services; guarantees and commitments; and services supplied by merchant banks 
(underwriting, portfolio management, development capital raising, and financial arrangements for mergers and 
takeovers) . 
75 IPEC. Viewed at: http://www.ipec.co.zw .  WT/TPR/S/39 8 • Zimbabwe  
 
- 109 - 
 
    
2011  2012  2013  2014  2015  2016  2017  2018  
Nicoz 
Diamond  Non-life 21 23 28 27 29 29 32 41 
Zimnat  Non-life 13 14 19 22 24 25 28 42 
Life 9 12 14 15 18 18 22 26 
FBC (ex 
Eagle)  Non-life 8 13 15 17 18 19 19 22 
Cell Non-life 15 19 22 22 21 19 18 27 
.. Not available.  
Source:  IPEC Quarterly Reports . 
4.150.   Conditions of establishment are spelt out in the Insurance Act76 and in the respective 
principal regulations. The IPEC is the regulatory and prudential  authority for the insurance industry.  
Motor vehicle third party insurance is compulsory under the Road Traffic Act; insurance rates are 
set by insurers but are subject to approval by the Ministry of Transport.  
4.151.   In 2017, new regulations amend ed and substantially increased the minimum capital 
requirements for insurers and insurance brokers. Minimum capital requirements were increased to: 
USD 5 million77 for life assurance business, including funeral assurance; USD 2.5 million for non -life 
insurance business; USD 7.5 million for both types of insur ance business; USD 5.0 million for 
reinsurance; and USD  2.5 million in the case of an insurer which carries on life assurance solely for 
the purpose of issuing funeral policies .78 Some insurance companies in 2019 were below these new 
thresholds. As at 30 Ju ne 2019, two life and two non -life companies, and five funeral companies 
were not compliant.  
4.152.   Regarding market access, i nsurers and reinsurers are required to register for a specific class 
or classes of business, i.e. assistance, disability, fund, health, or life. There are no economic needs 
tests prior to obtaining a licence.  Foreign -based insurers are not allowed to solicit  business in 
Zimbabwe (Sections 7, 12 and 14 of the Act). Section 72 of the Act restricts the placement of 
insurance business abroad: no registered insurer or insurance broker shall place Zimbabwean 
insurance business with an insurer who carries on business outside Zimbabwe and who is not 
registered in Zimbabwe.  Zimbabwean legislation  is silent on whether residents may purchase policies 
from non -resident insurance companies  (e.g. travel insurance).  
4.153.   The Act (Sections 8 and 17) limits the composition of foreign directors sitting on the board 
of an insurer. At least 50% of directors, trustees or other individuals who have administrative cont rol 
over the insurance company must be Zimbabweans residing in Zimbabwe.  
4.154.   Reinsurers are required to register in Zimbabwe to conduct business.  Also, a reinsurer must 
exhaust local reinsurance capacity before sourcing abroad (Insurance Act, Section 72). In practice , 
fronting is the rule, and Zimbabwean insurance companies enter into reinsurance arrangements with 
foreign reinsurers  for most of the ir large underwriting business . For this reinsurance to be 
acknowledged for purposes of capital adequacy requirements, the foreign reinsurer must provide 
security in the form of a monetary deposit with the Zimbabwean primary insurer , or an irrevocable 
guarantee or a letter of credit issued by a Zimbabwean bank.  Insurance brokers must be registered 
(Section 35) ; and t here are no nationality restrictions.  
4.155.   There are no restrictions preventing foreigners from operating a pension fund in Zimbabwe. 
The Act recognizes external funds, defined as one whose head office is outside Zimbabwe. However, 
like a local fund, the fund must  be registered in Zimbabwe , and must have a registered office under 
Section 12 of the Pension and Provident Funds Act. In additio n, an external fund must appoint a 
principal officer who reside s in Zimbabwe (S ection 13 ). Furthermore, S .I. 80 of 2017 makes it 
mandatory for trustees of all pension funds to reside in Zimbabwe. Pension funds are generally 
 
76 Insurance Act, (Chapter 24:07). Viewed at: https://ipec.co.zw/wp -
content/uploads/2018/03/Insurance -Act.pdf . 
77 Since June 2019, all amounts are expressed in Zimbabwe dollars, in principle at a rate of one to one.  
78 S.I. 95 of 2017 , Insurance (Amendment) Regulations, 2017 . Viewed at: 
http://www.veritaszim.net/sites/veritas_d/files/SI%2020 17-
95%20Insurance%20%28Amendent%29%20Regulations%2C%202017%20%28No.19%29.pdf .  WT/TPR/S/39 8 • Zimbabwe  
 
- 110 - 
 
  
 
 
 restricted from investing abroad  (Section 18 ); however , foreign  pension funds (with a head office 
abroad) with less than 13 Zimbabwean members can invest abroad .  
4.4.7.2   Banking  services  
4.156.   At end-2018, Zimbabwe's banking sector consisted of 18 banking institutions (excluding the 
Post Office), dow n from 24 in 2010; and 205 microfinance institutions, up from 114 in 2010 but 
down from 213 in 2005 (Table 4.15 ).  
Table 4.15 Structure of the banking sector, 2005 , 2010, 2016 -19 
Institution  2005  2010  2016  2017 2018  2019a 
Commercial banks  13 15 13 13 13 13 
Merchant banks  5 5 0 0 0 0 
Discount houses  6 0 0 0 0 0 
Finance houses  4 0 0 0 0 0 
Building societies  4 4 5 5 5 5 
Total  32 24 18 18 18 18 
Savings banks  1 1 1 1 1 1 
Microfinance institutions  213 114 185 183 205 210 
Memo items:  
Banking sector loans and 
advances at year end 
(USD billion)  .. 1.4 3.4 3.7 4.1 0.9a 
Average capital adequacy ratio, 
% (minimum 12%)  25.8 17.6 23.7 26.8 27.7 32.6 
.. Not available.  
a First half of 2019.  
Source:  RBZ. 
4.157.   The rates of government participation and foreign ownership in the banking sector are 
presented in Table 4.16.  
Table 4.16 Ownership structure of banking institutions, as at end of June 2019  
(%) 
Banking institutions  Government 
shareholding  
(%) Local 
shareholding  
(%) Foreign 
shareholding  
(%) 
Commercial banks     
African Banking Corporation Zimbabwe Limited  0 0 100 
Agricultural Bank of Zimbabwe (Agribank)  100 0 0 
First Capital Bank Limited  0 48 52 
CBZ Bank Limited  37 44 19 
Ecobank Zimbabwe Limited  0 0 100 
FBC Bank Limited  35 65 0 
Nedbank Zimbabwe Limited  0 28 72 
Metbank Limited  0 40 60 
NMB Bank Limited  0 46 54 
Stanbic Bank Zimbabwe Limited  0 0 100 
Standard Chartered Bank Zimbabwe Limited  0 0 100 
Steward Bank Limited  0 100 0 
ZB Bank Limited  41 59 0 
Building societies  
CABS  0 25 75 
CBZ Building Society  37 44 19 
FBC Building Society  35 65 0 
National Building Society  100 0 0 
ZB Building Society  41 59 0 
Saving banks  
People's Own Savings Bank  100 0 0 
Source : RBZ.  WT/TPR/S/39 8 • Zimbabwe  
 
- 111 - 
 
  4.158.   The RBZ is responsible  for the regulation and supervision of banking institutions under the 
Banking Act of 2000. Other legislation applicable to the banking sector is described in Table 4.17. 
Foreign -owned banks may operate in Zimbabwe as locally incorporated subsidiaries of th eir foreign 
parent institutions , and are subject to the same supervisory requirements as domestic banks. 
Foreign branches and foreign representative offices are not allowed.  
Table 4.17 Principal banking legis lation , as at end of December 2018  
Type of 
institution  Statute  Key requirements for 
establishing a domestic or 
foreign bank (e.g. 
minimum capital 
requirements)  Key activities  
Commercial 
banks  Banking and Anti -money 
Laundering Act (Chapter 24:20)  
Banking Regulations S .I. 
205/2000 Minimum current capital – 
USD 25 million; shareholding 
structure complying with 
stipulated holding limits for 
individuals, and financial and 
non-financial entities; 
shareholders with capacity to 
provide adequate capital on  
an ongoing basis; capital 
structure that does not 
prevent effective supervision; 
sound corporate governance 
and risk -management 
structures and systems; 
sound internal controls; fit 
and proper board , senior 
management and principal 
shareholders; viable bus iness 
plan Accepting deposits 
withdrawable by cheque or 
otherwise; lending; foreign 
exchange transactions; money 
market instruments; and 
custodial services , among 
others. Activities are 
prescribed in Section  7 of the 
Banking Act  
Merchant 
banks  Banking and Anti -money 
Laundering Act (Chapter 24:20)  
Banking Regulations S .I. 
205/2000 Minimum current capital – 
USD 25 million ; 
other requirements , same as 
for commercial banks  Issuance of bankers' 
acceptances; acceptance of 
deposits; trade finance; 
corporate finance; and 
advisory services  
Discount 
houses  Banking and Anti -money 
Laundering Act (Chapter 24:20)  
Banking Regulations S .I. 
205/2000 Minimum current capital – 
USD 20 million ; 
other requirements , same as 
for commercial banks  Discounting of bills; and short-
term investments  
Finance 
houses  Banking and Anti -money 
Laundering Act (Chapter 24:20)  
Banking Regulations S .I. 
205/2000 Minimum current capital – 
USD 20 million ; 
other requirements , same as 
for commercial banks  Hire-purcha se financing ; and 
financial leasing or factoring  
Building 
societies  Building Societies Act (Chapter 
24:02) and Regulations  
Some sections of the Banking 
Act and Banking Regulations  Minimum current capital – 
USD 20 million ; 
other requirements , same as 
for commercial banks  Mortgage finance; savings 
accounts ; and investments  
People 's Own 
Savings Bank  People 's Own Savings Bank of 
Zimbabwe Act (Chapter  24:22) 
and some sections of the 
Banking Act  n.a. Lending  and savings accounts ; 
and investments  
Asset 
management 
companies  Asset Management Act (Chapter 
24:26), Collective Investment 
Schemes Act (Chapter 24:19), 
and Regulations 1998  Under Securities and 
Exchange Commission  Fund management (unit 
trusts) ; and portfolio 
management   WT/TPR/S/39 8 • Zimbabwe  
 
- 112 - 
 
  
 
 
 Type of 
institution  Statute  Key requirements for 
establishing a domestic or 
foreign bank (e.g. 
minimum capital 
requirements)  Key activities  
Microfinance 
institutions 
and 
moneylending 
institutions  Microfinance Act (Chapter 
24:29) and Money  Lending and 
Rates of Interest  Act (Chapter 
14:14 ), as amended by the 
Microfinance Act  Minimum current capital – 
USD 5 million ; 
other requirements same as 
for commercial banks ;  
the target market is the 
unbanked and under -banked 
communities  Accepting deposits; offering 
credit facilitie s prescribed in 
the Banking Act except offering 
checking accounts ; foreign 
exchange transactions ; and 
speculative activities  
n.a.  Not applicable.  
Source:  RBZ.  
4.159.   The establishment of the Credit Registry in 2017 was designed to bolster credit underwriting 
standards in the banking sector and improve the credit referencing environment across the economy.  
As at 30 September  2019, the Credit Registry held 1.1 million records, of which 481,000  were active 
loan accounts. Individual records represented 98. 3% of the active loan records. Total subscribers 
were 1 83, comprising 1 8 banking institutions  and 160 microfinance institutions.  Currently , foreign 
entities do not have access to the Credit Registry database, pending finali zation of Credit Reporting 
Regulations , which will outline the requirements of foreign entities to access the database, including 
registration procedures, fees and proof of consent by data s ubject. Foreign entities may, however, 
request the data subject/borrower to furnish them with a copy of their latest Credit Report from the 
Credit Registry.  The Movable Property Security Interests Act of 2017 establish ed a Collateral Registry 
and the regis tration of security interests in movable assets,  except for  marine vessels and aircraft. 
It also provides for administration of the registry by the RBZ. 
4.4.7.3   Securities regulation  
4.160.   The Zimbabwe Stock Exchange (ZSE)79 is regulated by the Securities and Exchange 
Commission of Zimbabwe.80 It is a member of the SADC Stock Exchange Committee, which includes 
Botswana, South  Africa, Mauritius, Zambia, Lesotho , and Namibia.  In 2019 , the Securities 
Act of 2004 was being amended to develop new listing rules, a central securi ties depository, and 
securities regulations to conform to similar laws being implemented by other SADC members. This 
could make it easier for companies to seek dual listing in any of the SADC States.   
4.161.   Foreigners cannot collectively own more than 49% of a p ublicly listed company, according 
to the Monetary Policy Statement  of 2016. Also, 30% of shares must be sold to the public when a 
company goes public on the Stock Exchange.   
4.4.8   Selected professional services  
4.4.8.1   Accountancy services  
4.162.   The Companies Act defines basi c requirements for accounting, auditing, and financial 
reporting for companies registered under the Act. It requires that all companies apply the 
international accounting standards as adopted by the Public Accountants and Auditors Board (PAAB) . 
Over the past decade, the profession continued to systematically adopt international standards; 
progress was made in t he implementation of the International Financial Reporting Standard 9 w hich 
came into effect on 1 January 2018. The Standard is designed to enhance risk management and 
ensure that banks set aside provisions for loan losses in a timely manner. All Zimbabwe banks were 
to publish IFRS 9 compliant financial statements for 2018.   
4.163.   There are over 30 accountancy offices in Zimbabwe, including representations of several 
large international accountancy firms. The profession is regulated jointly by the PAAB and by 
 
79 ZSE. Viewed at: https://www.zse.co.zw/ . 
80 Securities and Exchange Commission of Zimbabwe. Viewed at: http://www.seczim.co.zw/regulated -
entities/exchanges/2 -zse.  WT/TPR/S/39 8 • Zimbabwe  
 
- 113 - 
 
  professional accountancy organizations, in conformity with the Chartered Accountants Act, the 
Chartered Accountants By -Laws, and the International Federation of Accountants (IFAC) Code of 
Ethics, under the responsibility of the Ministry of Finance. A report o n the observance of Standards 
and Codes in Zimbabwe's accountancy and auditing profession was carried out by the World Bank 
in 2011.81  
4.164.   Only chartered accountants and accountancy firms may perform the functions of  a statutory 
auditor  or legal expert in acco untancy.  To exercise the profession of chartered accountant, it is 
compulsory to b e a member of the Institute of Chartered Accountants of Zimbabwe (ICAZ), the main 
national association of chartered accountants, which has over 2 ,100 members. Half of the members 
are non -residents, mostly from South  Africa, the United Kingdom and Commonwealth countries.   
4.165.   The objective of the Institute is to enhance the international standing and recognition of the 
Chartered Accountant (Zimbabwe) qualification for the benefit o f its members, and to support them 
in providing quality services to the public.   
4.166.   The ICAZ has memoranda of understanding with the South African Institute of Chartered 
Accountants (SAICA) and with the Institute of Chartered Accountants in England and Wales (ICAEW) . 
It is affiliated with  them, and with the Chartered Accountants Australia and New Zealand ; the 
Hong Kong Institute of Certified Public Accountants; Chartered Accountants Ireland; the CPA 
Canada; the Public Accountants and Auditor s Board  of Namibia;  the Pan African Federation of 
Accountants ; and the IFAC.  
4.167.   All professional accountants must be registered with the PAAB , either as general 
accountants, tax accountants, public accountants, and/or public auditors . Public accountants must 
be members in good standing of either the ICAZ; the Zimbabwe branch of the Chartered Association 
of Certified Accountants of the United Kingdom; the Zimbabwe branch of the Chartered Institute of 
Management Accountants of the Unite d Kingdom; the Institute of Chartered Secretaries and 
Administrators in Zimbabwe; or the Institute of Certified Public Accountants of Zimbabwe (another 
professional association).82  
4.4.8.2   Legal services  
4.168.   Providers of legal services in Zimbabwe are represented by the Law Society of Zimbabwe, 
which regulates the profession and controls its membership.83 The Legal Practitioners Act deals  with 
issues relating to market access; no change took place since 2011.84 The number of companies 
providing legal services is not lim ited by regulation. However, the new establishment of foreign law 
companies is not allowed . Existing foreign -owned firms may hire only locally  licensed professionals 
as employees. But foreign companies can associate with locally  licensed professional as pa rtners or 
shareholders. Local law companies can join international networks of law firms , subject to the 
jurisdiction of the latter . Since 2016, the new Code of Professional Conduct governs the practice of 
legal practitioners in Zimbabwe.85  
4.169.   A foreign -qualified lawyer wishing t o become a legal practitioner  must apply  to the Ministry 
of Justice , which may  waive the requirement of residen cy in Zimbabwe or in a reciprocating country  
(no reciprocity agreements were in force in 2019), having regard to the importance, complexity or 
special circumstances of the matter . 
4.170.   Foreigners holding an Bachelor of Law (LLB)  "designated degree " and wishing to practice law 
in Zimbabwe must convert it into an LLBS qualification obtained from the Minister of Justice before 
applying for registration as legal practitioners.  The Council for Legal Education designates degrees 
 
81 World Bank, Report on the Observance of Standards and Codes (ROSC), Zimbabwe, Accounting and 
Auditing , 15 February 2011 . Viewed at: 
http://documents.worldbank.org/curated/en/209411468167384541/pdf/625750WP0ROSC000Box0361486B0P
UBLIC0.pdf . 
82 IFAC, Zimbabwe. Viewed at: https://www.ifac.org/about -ifac/membership/country/zimbabwe . 
83 Law Society of Zimbabwe. Viewed at: http://lawsociety.org.zw . 
84 Zimbabwe Lega l Information Institute, Legal Practitioners Act (Chapter 27:07). Viewed at: 
https://zimlii.org/zw/legislation/act/1981/15 . 
85 S.I. 2016-111 Legal Practitioners (Designated Legal Qualifications) Notice 2016 ; and Law Society of 
Zimbabwe, Draft Legal Practitioners Bill (2018). Viewed at:  
http://lawsociety.org.zw/Downloadables/LegalPractitionersBill.pdf .  WT/TPR/S/39 8 • Zimbabwe  
 
- 114 - 
 
  
 
 
 obtained from foreign countries through Conversion Exams, and issues a certificate to the applicant , 
who must , thereafter , submit it to the Law Society of Zimbabwe along with transcripts and degrees , 
with an application to the High Court for registration. In 2019, such designated degrees were 
accepted  only from the University of Zimbabwe  and the Midlands State University ; however , reforms 
were underway in 2019 to accept degrees from other universities.   WT/TPR/S/39 8 • Zimbabwe  
 
- 115 - 
 
  5  APPENDIX TABLES  
Table A1. 1 Balance of payments, 2011 -18 
(USD million ) 
  2011  2012  2013  2014  2015  2016  2017  2018a 
Current account  -2,749  -2,278  -2,649  -2,334  -1,597  -697 -295 -1,413  
     Balance on goods  -2,926  -2,647  -2,686  -2,283  -2,114  -1,263  -951 -1,968  
          Exports  4,528  3,964  3,810  3,682  3,577  3,663  4,140  4,648  
          Imports  7,453  6,610  6,496  5,965  5,691  4,926  5,091  6,616  
     Balance on services  -1,477  -1,435  -1,541  -1,590  -1,137  -867 -654 -526 
          Exports  343 341 354 363 387 397 477 501 
          Imports  1,819  1,776  1,895  1,953  1,524  1,264  1,131  1,026  
     Balance on primary income  -246 -290 -290 -341 -366 -395 -387 -315 
          Credit  9 7 4 4 3 3 4 4 
          Debit  256 297 294 344 370 399 391 319 
     Balance on secondary  
income  1,899  2,094  1,868  1,880  2,020  1,827  1,697  1,396  
          Credit  1,912  2,109  1,888  1,901  2,044  1,853  1,726  1,424  
          Debit  13 14 19 21 24 26 29 29 
Capital account  346 738 251 369 398 242 278 209 
Financial account, net lending 
(+)/net borrowing ( -) -722 -1,075  -1,475  -1,758  -1,366  -898 -1,110  -790 
     Direct investment  -344 -350 -373 -473 -399 -343 -306 -707 
     Portfolio investment  -10 -99 -114 -130 -123 80 101 -55 
     Other investment  -368 -626 -987 -1,155  -844 -635 -905 -28 
Net errors and omissions  1,681  465 923 207 -168 -443 -1,093  414 
Memorandum items:  
Reserve assets  407 432 331 349 434 421 296 303 
     Monetary gold  1 1 0 0 16 0 1 0 
     Special drawing rights  253 143 143 134 128 122 112 56 
     Reserve position in the IMF  1 1 1 0 0 0 0 0 
     Other reserve assets  153 287 187 214 289 298 183 29 
External payment arrears  4,234  4,501  4,749  5,261  4,958  5,036  5,393  5,555  
Reserves in months of imports  0.7 0.8 0.6 0.7 0.9 1.0 0.7 0.5 
Current account (% of GDP)  -19.5 -13.3 -13.9 -12.0 -8.0 -3.4 -1.3 -6.1 
a Estimate.  
Source:  Information provided by the authorities . 
   WT/TPR/S/39 8 • Zimbabwe  
 
- 116 - 
 
  Table A1. 2 Merchandise exports by group of products, 2011 -18 
  2011  2012  2013  2014  2015  2016  2017  2018  
Total exports (USD million)  3,512.1  3,882.4  3,507.3  3,063.7  2,704.1  2,832.3  3,480.4  4,037.2  
 % of total  
Total primary products  70.2 75.2 70.4 60.3 63.8 60.6 62.1 60.1 
  Agriculture  33.3 33.4 35.7 39.6 43.5 40.1 30.2 29.0 
    Food 24.0 26.3 30.9 35.3 40.1 37.4 28.2 25.8 
1212 - Tobacco, wholly or 
partly stemmed/stripped  18.2 19.1 24.6 26.0 31.5 31.1 22.4 20.9 
          0611 - Sugars, beet or cane, 
raw, in solid form  1.1 2.6 2.1 4.9 3.5 1.9 1.4 0.9 
          0741 - Tea, whether or not   
flavoured  0.5 0.5 0.6 0.6 0.7 0.6 0.6 0.6 
          1223 - Other manufactured 
tobacco  0.2 0.3 0.1 0.3 0.4 1.2 0.9 0.5 
          0577 - Edible nuts  0.1 0.1 0.2 0.3 0.4 0.4 0.4 0.4 
    Agricultural raw material  9.3 7.2 4.8 4.3 3.4 2.7 2.0 3.2 
          2631 - Cotton (other than 
linters), not carded or 
combed  7.3 5.5 2.8 2.2 1.8 0.6 0.8 1.7 
          2119 - Hides and skins, 
n.e.s.; waste and used 
leather  0.6 0.6 0.7 0.8 0.1 0.9 0.6 0.8 
  Mining  36.8 41.7 34.7 20.7 20.2 20.5 31.9 31.1 
    Ores and other minerals  32.9 36.6 27.9 14.5 17.1 18.3 29.8 28.9 
2842 - Nickel mattes, nickel 
oxide sinters and other 
intermediate products of 
nickel metallurgy  15.0 9.1 11.7 0.1 0.8 1.2 12.5 13.0 
          2841 - Nickel ores and 
concentrates  9.8 9.2 9.3 11.6 8.1 10.4 10.6 9.8 
2879 - Ores and 
concentrates of other non -
ferrous base metals  0.4 0.0 0.0 0.0 0.0 0.8 2.7 2.4 
 2771 - Industrial diamonds, 
sorted, whether or not 
worked  6.4 16.9 5.4 0.9 5.8 3.8 2.3 2.3 
2731 - Building or 
monumental (dimension) 
stone  0.4 0.4 0.5 0.8 1.2 1.2 0.8 0.6 
          2789 - Minerals, crude  0.2 0.2 0.3 0.4 0.6 0.5 0.5 0.5 
    Non-ferrous metals  3.2 4.2 5.9 5.7 1.6 2.0 1.4 1.2 
6812 - Platinum and other 
metals of the platinum group  2.9 3.7 4.0 4.5 1.3 1.8 1.3 1.1 
    Fuels 0.8 1.0 1.0 0.5 1.5 0.3 0.7 1.0 
          3250 - Coke and semi -coke 
(including char) of coal, of 
lignite or of peat  0.7 0.9 0.5 0.0 0.0 0.0 0.5 0.6 
          3510 - Electric current  0.1 0.0 0.2 0.4 1.5 0.2 0.2 0.3 
Manufactures  21.1 8.7 15.0 22.3 12.9 9.3 12.4 11.7 
  Iron and steel  3.4 3.5 4.5 9.2 6.1 4.3 8.1 6.2 
          6715 - Other ferro -alloys 
(excluding radioactive ferro -
alloys)  3.2 3.3 4.2 8.9 5.9 4.2 8.1 6.1 
  Chemicals  0.8 0.5 0.9 0.7 0.8 0.5 0.4 0.4 
  Other semi -manufactures  2.8 1.8 6.0 8.9 2.6 1.4 0.7 1.0 
  Machinery and transport 
equipment  1.4 1.4 1.6 1.7 1.3 1.4 1.8 1.0 
    Power generating machines  0.0 0.0 0.0 0.0 0.1 0.0 0.5 0.1 
    Other non -electrical machinery  0.6 0.4 0.4 0.6 0.4 0.6 0.5 0.3 
      Agricultural machinery and 
tractors  0.1 0.2 0.1 0.2 0.1 0.1 0.1 0.0 
    Office machines & 
telecommunication equipment  0.0 0.0 0.0 0.1 0.1 0.1 0.0 0.0 
    Other electrical machines  0.3 0.3 0.3 0.4 0.4 0.3 0.3 0.3 
    Automotive products  0.2 0.2 0.3 0.3 0.2 0.1 0.2 0.1 
    Other transport equipment  0.2 0.4 0.5 0.3 0.2 0.3 0.2 0.2 
  Textiles  0.5 0.5 0.7 0.5 0.6 0.4 0.2 0.2 
  Clothing  0.1 0.1 0.1 0.1 0.3 0.3 0.3 0.4 
  Other consumer goods  12.1 0.9 1.2 1.3 1.2 1.0 0.8 2.4 
8973 - Jewellery of gold, 
silver or platinum group 
metals and goldsmiths' or 
silversmiths' wares  0.0 0.0 0.0 0.0 0.0 0.0 0.1 1.7 
Other  8.8 16.1 14.6 17.4 23.4 30.1 25.5 28.3 
          9710 - Gold, non -monetary  8.8 16.1 14.3 17.4 23.3 30.0 25.5 28.3 
Source:  WTO Secretariat's calculations, based on UNSD, Comtrade database (SITC Rev.3).    WT/TPR/S/39 8 • Zimbabwe  
 
- 117 - 
 
  Table A1. 3 Merchandise imports by group of products, 2011 -18 
  2011  2012  2013  2014  2015  2016  2017  2018  
Total imports (USD millions)  8,599.3  7,362.5  7,704.2  6,379.8  6,002.2  5,211.6  4,962.1  6,258.9   
% of total  
Total primary products  32.1 41.5 37.7 42.0 44.1 49.7 46.2 42.6 
  Agriculture  15.4 19.6 14.8 15.6 17.1 20.5 15.3 12.2 
    Food 15.0 19.1 14.3 15.1 16.7 20.1 14.9 11.7 
          4211 - Soya bean oil 
and its fractions  0.6 1.1 0.5 0.9 1.8 2.4 2.1 2.0 
0423 - Rice, semi -
milled or wholly milled  0.9 1.4 1.4 1.8 2.0 2.1 2.0 1.8 
 0411 - Durum wheat  0.9 0.7 1.1 1.4 1.7 1.9 1.5 1.7 
    Agricultural raw material  0.4 0.5 0.5 0.4 0.4 0.3 0.4 0.5 
  Mining  16.7 21.8 23.0 26.4 26.9 29.3 30.8 30.4 
    Ores and other minerals  1.8 0.9 1.7 1.5 0.3 0.3 0.4 0.4 
    Non-ferrous metals  0.3 0.4 0.2 0.4 0.3 0.2 0.3 0.3 
    Fuels 14.6 20.6 21.0 24.5 26.4 28.8 30.1 29.7 
          3510 - Electric current  0.6 0.5 0.9 0.8 0.6 3.2 3.6 2.4 
Manufactures  67.3 58.4 61.3 57.3 55.2 49.6 53.3 56.8 
  Iron and steel  1.9 2.1 1.9 2.3 2.3 2.6 2.4 2.8 
  Chemicals  31.8 15.0 24.5 17.4 15.7 14.7 16.8 18.8 
5621 - Mineral or 
chemical fertilizers, 
nitrogenous  0.5 0.7 1.0 2.5 1.0 0.6 2.0 2.6 
          5429 - Medicaments  0.8 1.9 1.8 3.0 2.6 2.4 1.9 2.2 
          5629 - Fertilizers  22.9 3.6 12.7 1.4 1.4 0.7 1.3 1.2 
          5913 - Weed -killers  0.2 0.2 0.2 0.2 0.3 0.3 0.4 0.9 
          5911 - Insecticides  0.3 0.3 0.3 0.3 0.5 0.5 0.6 0.8 
          5623 - Mineral or 
chemical fertilizers, 
potassic  0.2 0.2 0.2 0.2 0.3 0.4 0.7 0.8 
          5711 - Polyethylene  0.2 0.5 0.4 0.5 0.5 0.6 0.6 0.7 
5986 - Organic 
chemical products  0.2 0.3 0.3 0.4 0.4 0.5 0.8 0.7 
  Other semi -manufactures  5.4 6.7 5.7 7.1 7.6 6.8 6.9 7.1 
  Machinery and transport 
equipment  24.1 28.9 23.2 23.4 23.5 20.7 22.1 23.1 
    Power generating machines  0.7 0.9 0.6 0.6 0.7 0.9 1.2 0.4 
Other non -electrical 
machinery  5.8 7.3 7.2 7.9 7.8 7.5 6.9 8.0 
           7232 - Mechanical 
shovels, excavators 
and shovel -loaders, 
self-propelled  0.4 0.6 0.7 0.7 0.5 0.6 0.6 1.0 
7283 - Machinery for   
sorting, screening, 
separating, washing, 
crushing, etc  0.6 0.8 0.9 0.6 0.7 0.6 0.6 0.7 
Agricultural machinery 
and tractors  0.5 0.6 0.6 0.8 0.8 0.7 0.6 0.7 
    Office machines & 
telecommunication 
equipment  2.8 3.0 3.8 3.9 4.9 3.8 4.7 2.9 
     7643 - Transmission 
apparatus for radio -
telephony,  radio-
broadcasting or 
television  0.3 0.4 0.7 0.8 0.3 0.3 0.3 0.9 
    Other electrical machines  2.1 2.3 2.3 2.3 2.3 2.0 2.3 1.6 
    Automotive products  11.9 14.5 8.7 7.8 7.0 5.8 6.2 9.1 
      7812 - Motor vehicles 
for the transport of 
persons  5.7 7.2 3.3 3.1 2.5 2.1 2.5 3.7 
      7821 - Motor vehicles 
for the transport of 
goods  4.4 5.3 3.5 2.7 2.9 2.2 2.2 3.5 
     7832 - Road tractors 
for semi -trailers  0.7 0.4 0.5 0.5 0.4 0.4 0.5 0.8 
    Other transport equipment  0.8 0.8 0.7 0.9 0.8 0.8 0.8 1.2 
  Textiles  1.2 1.4 1.2 1.3 1.1 0.9 1.2 1.1 
  Clothing  0.3 0.3 0.6 0.5 0.4 0.4 0.3 0.4 
  Other consumer goods  2.7 4.0 4.0 5.4 4.5 3.4 3.5 3.5 
          8931 - Articles for the 
conveyance or packing 
of goods, of plastics  0.4 0.5 0.6 0.7 0.7 0.7 0.6 0.9 
Other  0.5 0.2 1.0 0.7 0.7 0.7 0.5 0.6 
Source:  WTO Secretariat's calculations, based on UNSD, Comtrade database (SITC Rev.3) .    WT/TPR/S/39 8 • Zimbabwe  
 
- 118 - 
 
   
Table A1. 4 Merchandise exports by destination, 2011 -18 
  2011  2012  2013  2014  2015  2016  2017  2018  
Total exports (USD million)  3,512.1  3,882.4  3,507.3  3,063.7  2,704.1  2,832.3  3,480.4  4,037.2   
% of total  
Americas  0.9 0.4 0.1 0.1 0.1 0.1 0.1 0.1 
  United States  0.6 0.4 0.1 0.1 0.1 0.1 0.0 0.1 
  Other America  0.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Europe  6.9 3.3 0.9 5.0 1.1 2.2 1.8 1.5 
  EU-28 6.3 2.9 0.9 5.0 1.0 2.2 1.8 1.5 
          Belgium  1.7 1.2 0.8 4.1 0.7 1.6 1.5 1.0 
          Netherlands  0.1 0.1 0.0 0.1 0.2 0.1 0.1 0.1 
          Italy 1.7 1.1 0.0 0.1 0.0 0.0 0.1 0.1 
          Germany  0.9 0.4 0.0 0.1 0.0 0.1 0.1 0.1 
          United Kingdom  0.9 0.1 0.0 0.2 0.1 0.1 0.0 0.1 
  EFTA 0.6 0.4 0.0 0.0 0.0 0.0 0.0 0.0 
  Other Europe  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Commonwealth of Independent States  0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
          Russian Federation  0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Africa  76.9 80.6 90.4 90.8 91.7 93.4 76.5 64.6 
          South Africa  67.2 68.9 74.5 67.0 71.1 79.4 62.7 51.5 
          Mozambique  3.7 7.3 10.5 18.8 15.1 9.5 10.5 9.7 
          Zambia  2.4 2.5 3.3 3.4 3.4 2.5 1.7 1.6 
          Botswana  1.1 1.3 1.3 0.9 1.1 1.0 0.6 0.8 
          Kenya  0.1 0.0 0.0 0.0 0.0 0.4 0.5 0.5 
          Namibia  0.1 0.0 0.2 0.3 0.5 0.3 0.3 0.2 
          Malawi  0.6 0.1 0.2 0.2 0.1 0.1 0.2 0.2 
          Democratic Republic of the Congo  0.5 0.4 0.3 0.1 0.1 0.0 0.0 0.0 
          Sudan  0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Middle East  6.9 13.2 7.7 3.4 6.0 4.2 6.4 18.1 
          United Arab Emirates  5.9 12.4 6.5 3.1 5.5 4.1 6.4 18.1 
Asia 8.3 2.4 0.9 0.6 0.2 0.1 0.1 1.0 
  China  5.3 2.2 0.9 0.4 0.2 0.0 0.0 0.9 
  Japan  0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
  Other Asia  2.8 0.2 0.0 0.1 0.1 0.1 0.1 0.1 
          Hong Kong, China  0.3 0.1 0.0 0.1 0.0 0.0 0.0 0.0 
          Viet Nam  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
          Indonesia  0.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other  0.0 0.0 0.0 0.1 0.9 0.0 15.1 14.7 
          Unspecified  0.0 0.0 0.0 0.1 0.9 0.0 15.1 14.7 
Memo:          
SADC  76.7 80.6 90.4 90.7 91.6 92.9 75.8 64.0 
COMESA  4.3 3.1 3.9 3.7 3.8 3.1 2.4 2.4 
Source:  WTO Secretariat's  calculations, based on UNSD, Comtrade database.  
   WT/TPR/S/39 8 • Zimbabwe  
 
- 119 - 
 
  Table A1. 5 Merchandise imports by origin, 2011 -18 
  2011  2012  2013  2014  2015  2016  2017  2018  
Total imports (USD million)  8,599.3  7,362.5  7,704.2  6,379.8  6,002.2  5,211.6  4,962.1  6,258.9   
% of total  
Americas  7.8 8.1 2.6 1.9 1.7 3.1 2.2 2.1 
  United States  6.9 7.6 2.2 1.2 1.2 1.3 0.8 0.8 
  Other America  0.9 0.5 0.4 0.7 0.5 1.8 1.4 1.3 
          Canada  0.2 0.1 0.1 0.1 0.1 0.2 0.3 0.4 
Europe  5.7 22.0 23.8 9.8 6.3 5.9 6.5 8.5 
  EU-28 5.0 21.2 22.8 8.6 5.8 5.3 6.1 8.0 
          United Kingdom  2.2 17.2 18.4 3.3 1.6 1.8 2.2 3.6 
          Denmark  0.3 0.3 0.6 0.5 0.5 0.5 0.5 0.7 
          Germany  1.0 0.9 0.9 1.0 0.6 0.7 0.4 0.5 
          Netherlands  0.2 0.3 0.5 0.4 0.3 0.3 0.4 0.5 
          France  0.2 0.4 0.5 0.7 0.5 0.4 0.4 0.5 
  EFTA 0.5 0.6 0.9 1.2 0.4 0.6 0.3 0.4 
          Switzerland  0.5 0.6 0.9 1.2 0.4 0.5 0.3 0.4 
  Other Europe  0.1 0.1 0.1 0.1 0.0 0.1 0.1 0.1 
Commonwealth of Independent 
States  0.2 0.6 0.3 0.6 0.6 0.4 0.5 0.7 
          Russian Federation  0.2 0.3 0.2 0.6 0.4 0.3 0.5 0.6 
Africa  66.6 54.9 58.2 53.4 50.0 52.7 50.5 50.0 
          South Africa  56.2 42.2 47.5 42.9 38.4 41.3 40.6 39.3 
          Mauritius  1.4 0.5 0.6 0.8 0.8 1.4 2.1 2.9 
          Zambia  2.5 6.7 3.4 2.8 4.6 3.5 2.5 2.8 
          Mozambique  2.0 2.2 2.6 2.3 2.8 3.1 2.3 2.0 
          Botswana  2.4 1.5 2.3 2.3 0.9 0.8 0.6 0.8 
          Malawi  1.0 0.6 0.6 0.7 0.7 0.8 0.6 0.5 
          Eswatini  0.3 0.3 0.3 0.4 0.6 0.7 0.4 0.5 
Middle East  10.5 3.5 1.8 2.1 1.7 1.5 1.9 2.4 
          United Arab Emirates  0.8 1.2 1.3 1.7 1.3 1.2 1.5 2.0 
Asia 9.2 10.9 13.4 32.2 39.7 36.3 38.3 36.3 
  China  4.3 4.8 5.7 6.3 7.6 7.0 8.7 5.7 
  Japan  0.5 1.3 1.8 2.4 2.2 1.9 2.5 3.4 
  Other Asia  4.5 4.8 5.9 23.5 29.9 27.4 27.1 27.1 
          Singapore  0.4 0.4 0.8 18.3 22.3 21.5 22.3 21.7 
          India 2.0 2.0 2.0 2.1 4.0 3.2 2.1 2.7 
          Thailand  0.5 0.3 0.3 0.8 0.9 0.7 1.1 1.1 
          Hong Kong, China  0.5 0.6 0.8 0.8 1.5 0.9 1.0 0.9 
Other  0.0 0.1 0.0 0.0 0.0 0.0 0.1 0.0 
Memo:          
SADC  66.1 54.3 57.6 52.8 49.5 52.2 49.9 49.2 
COMESA  5.8 8.7 5.4 5.3 7.2 6.9 6.2 7.4 
Source:  WTO Secretariat's calculations, based on UNSD, Comtrade databas e.  
   WT/TPR/S/39 8 • Zimbabwe  
 
- 120 - 
 
  Table A1. 6 International transactions in services by sector, 2011 -18 
(USD million)  
  2011  2012  2013  2014  2015  2016  2017  2018a 
Trade balance on services  -1,476.6  -1,434.9  -1,541.1  -1,590.0  -1,137.1  -867.1  -654.1  -525.6  
     Exportsb 342.6  340.9  353.9  363.3  386.7  396.7  476.6  500.5  
          Transport, of which:  100.5  85.6 85.2 87.6 89.4 91.3 223.6  213.9  
               Air transport  12.0 12.6 13.2 13.8 14.4 15.1 8.8 8.6 
               Other modes of 
transport  88.5 73.1 72.1 73.8 75.0 76.2 214.8  205.4  
          Travel  151.8  160.8  169.9  172.3  174.8  177.3  149.2  182.1  
               Business  26.5 29.0 31.0 31.4 31.9 32.3 44.7 54.6 
               Personal, of which:  125.3  131.8  138.9  140.9  142.9  145.0  104.4  127.4  
                    Health -related  89.0 97.0 100.0  101.4  102.8  104.3  3.0 1.8 
                    Education  
related  1.7 1.8 1.9 2.0 2.0 2.1 11.9 14.6 
          Charges for the use of 
intellectual property 
n.i.e. 1.9 2.0 2.1 2.2 2.3 2.4 0.0 0.0 
          Telecommunications 
services  2.2 2.3 2.4 2.5 2.6 2.8 13.9 9.5 
          Professional and 
management 
consulting services  56.1 58.7 61.4 64.3 67.3 70.4 41.3 43.6 
          Technical, trade -
related, and other 
business services  3.6 3.7 3.9 4.1 4.3 4.5 0.0 0.0 
          Government goods and 
services n.i.e.  26.5 27.7 28.9 30.3 46.0 48.1 47.7 48.8 
     Importsb 1,819.2  1,775.7  1,895.0  1,953.2  1,523.8  1,263.8  1,130.7  1,026.2  
          Transport, of which:  1,024.2  943.9  949.5  992.3  454.1  372.4  337.7  398.4  
               Air transport  85.6 111.1  100.2  104.9  75.9 75.4 60.2 68.0 
               Other modes of 
transport  934.9  829.0  845.2  883.2  373.7  292.4  223.0  265.3  
Postal and courier 
services  3.7 3.9 4.1 4.2 4.4 4.7 1.4 0.3 
          Travel  228.0  272.2  337.4  342.1  476.2  326.9  314.6  247.5  
               Business  4.6 7.3 7.2 8.0 9.5 7.8 5.8 6.4 
               Personal, of which:  223.4  264.9  330.2  334.2  466.7  319.0  308.8  241.1  
                    Health -related  149.6  187.0  251.2  251.5  373.6  260.2  5.9 6.4 
                    Education  
related  69.2 70.6 71.8 75.1 93.1 58.8 60.1 65.4 
          Charges for the use of 
intellectual property 
n.i.e. 8.8 9.3 17.8 18.7 19.5 10.4 4.3 2.5 
Telecommunications, 
computer, and 
information services  9.2 9.6 10.1 10.5 11.0 11.6 48.9 60.3 
          Telecommunications 
services  9.2 9.6 10.1 10.5 11.0 11.6 2.3 3.5 
          Computer services  0.0 0.0 0.0 0.0 0.0 0.0 45.3 56.3 
          Information services  0.0 0.0 0.0 0.0 0.0 0.0 1.3 0.5 
          Professional and 
management 
consulting services  444.5  428.9  463.4  460.2  386.5  429.6  170.4  74.0 
          Technical, trade -
related, and other 
business services  51.2 58.1 61.1 67.0 70.4 66.9 122.1  116.0  
Personal, cultural, and 
recreational services  4.2 8.8 18.3 9.6 49.3 10.0 3.2 5.9 
Government goods 
and services n.i.e.  49.0 44.8 37.4 52.7 56.7 36.1 21.2 17.7 
a  Estimate.  
b Only major categories are presented in the Table.  
Source:  Information provided by the authorities.  
 
__________