Zimbabwe WT/TPR/S/252 
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 II. TRADE AND INVESTMENT REGIMES 
(1) GENERAL FRAMEWORK  
1. Zimbabwe attained independence in 1980.  It s government is based on the 1979 "Lancaster 
House" Constitution, which has been amended several times.1  The Constitution was amended 
significantly in 2009 to reflect the terms of the Global Political Agreement (GPA), signed between the 
Zimbabwe African National Union-Patriotic Front (ZANU-PF), and the two factions of the main opposition party, the Movement for Democratic Cha nge (MDC).  The President of Zimbabwe is 
directly elected by universal suffrage for a five-year  renewable term as executive head of state.  The 
last presidential election was held in 2008, unde r much contested political circumstances, which 
ultimately led to the GPA in early 2009.  During the existence of the GPA, its provisions pertaining to 
the distribution of executive power (Schedule 8) prevail over the Constitution.
2  The Constitution, as 
amended pursuant to the GPA, provides that "executiv e authority shall vest in, and be shared among 
the President, Prime Minister and Cabinet".  Preside ntial assent is required to enact legislation, which 
is voted by Parliament.  The President is empowered  to dissolve Parliament, provided that in doing so 
he does not preclude the operation of other Constitu tional provisions.  In the event of a vote of no-
confidence in the Government being passed by Parliament, the President must dissolve Parliament 
within 14 days.  There are two Vice Presidents,  created as part of a Unity Accord in 1987,  and 
currently both held by ZANU-PF.   The GPA created the office of Prime Minister, which should be 
held by the leader of the main MDC faction at the time of signing the GPA.  The GPA also created 
two deputy prime-ministers, both of which must be from one of each of the two MDC factions. 
2. Under the Constitution, as recently amended, the Pr esident is required to appoint a Cabinet in 
consultation with the Prime Minister.  Pursuant to the GPA, ZANU-PF and the two factions of the 
MDC are each guaranteed a specific number of cabi net posts. The President chairs the Cabinet, upon 
whose advice he acts unless mandated otherwise by the Constitution.  The Prime Minister chairs a 
Council of Ministers, whose status as distinct from th e Cabinet is not clear;  he/she also chairs the 
Cabinet in the absence of the President.  Cabinet members are required to be members of Parliament; 
if not in Parliament at the time of appointment, they must seek a parliamentary seat within 90 days. 
The President is not a member but has the constituti onal right to act and speak in Parliament.  The 
Cabinet acts as the Parliamentary executive and origin ates most legislation.  Departments involved in 
trade-related policy-making include:  Finance;  Economic Planning and Deve lopment;  Industry and 
Commerce;  Lands, Agriculture and Water Developm ent;  and Mines and Energy.  The Cabinet has 
several committees, including the Industry and Commerce Committee, Finance and Economic Affairs 
Committee, and the Committee on Legislation. 
3. Zimbabwe's Parliament is bicameral, comprising the House of Assembly and the Senate.  The 
House of Assembly consists of 216 members:  210 members elected on a constituency basis, the 
two Vice Presidents, the Prime Minister, and the two Deputy Prime Ministers, or their alternates in the 
event that any of them were already elected Memb ers of the House of Assembly, and the Attorney 
General in an ex-officio and non-voting capacity.    The House of Assembly is presided over by a 
Speaker, elected from among its members.   The Senate is composed of 99 senators, of which 60 are 
elected in senatorial constituencies, 10 provincial governors appointed by the President, 18 traditional 
chiefs elected by the Chiefs Council sitting as an el ectoral college, and 11 other senators appointed by 
the President.  The Senate is presided over by th e President of the Senate, elected from among its 
members.  
                                                      
1 Amendment of the Constitution requires a two-thirds majority. 
2 Amendment No. 19, Act No. 1 of 2009. WT/TPR/S/252 Trade Policy Review 
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 4. Bills presented to Parliament are voted on at thei r third reading, and require a simple majority 
of both chambers of Parliament for passage;  how ever, constitutional amendments require a two-thirds 
majority.  When a bill is passed and the President  assents, it must be promulgated as an Act of 
Parliament3;  however, the date of promulgation is no t normally mandated.  Upon promulgation, the 
administration of the bill is left to the Executive, which has broad authority to make regulations to 
administer the legislation.   
5. Table II.1 contains the main trade-related legi slation and regulations in force in Zimbabwe. 
Table II.1 
Key trade-related legislation 
 Legislation 
1. Control of Goods Act (Chapter 14:05) 
2. The One Stop Border Post Control Act (Chapter 3:04) 
3. The Zimbabwe International Trade Fair Act (Chapter 14:26) 
4. Competition Act (Chapter 14:28) 
5. Competition (Anti-Dumping & Counterva iling Duty) (Investigation) Regulations , Statutory Instrument 266 of 2002 
6. Competition (Safeguards) (I nvestigation) Regulations, Statutory Instrument 217 of 2006 
7. Reserve Bank of Zimbabwe Act (Chapter 22:15) 
8. Investment Authority Act (Chapter 14:30) 
9. Indigenisation & Economic Empower ment (General) Regulations 2010, Statutory Instruments 21 of 2010 
10. Zimbabwe Stock Exchange Act (Chapter 24:18) 
11. Commercial Premises (Lease Control) Act (Chapter 14:04) 
12. Consumer Contracts Act (Chapter 8:03) 
13. The Procurement Act (Chapter 22:14) 1999 
14. Merchandise Marks Act (Chapter 14:13) 
15. Trade Development Surcharge Act (Chapter 14:22) 
16. Sugar Production Act (Chapter 18:19) 
17. Produce Export Act (Chapter 18:17) 
18. The Standards Development Fund Act (Chapter 14:19) 
19. Export Credit Reinsurance Act (Chapter 14:06) 
20. Customs & Excise Act (Chapter 23:02) 
Source: Information provided by the authorities. 
6. In general, each Department initiates legislation in its area(s) of responsibility.  Nevertheless, 
trade-related legislation may be initiated by a depa rtment other than the one in charge of trade, 
depending on the subject matter.  For example, Zimbabwe's customs duties and import surcharges are 
authorized under the Customs and Excise Act.  Thei r rates are set in schedules to the Act and changes 
in these rates require Parliamentary approval.  Furthe r, Section 101 of the Ac t gives the Minister of 
Finance authority to make regulations suspending th e statutory rates set by Parliament.  This action 
may reduce the applied rate of customs duty or surcha rge to any rate the Minister deems appropriate.  
Suspensions/exemptions apply to most of Zimbabwe's tariff lines.  The Minister also has the right to 
change statutory rates on his own authority; in this instance, the change requires parliamentary 
ratification, usually within 60 days, fa iling which it is automatically rescinded. 
                                                      
3 If the President withholds his assent, the bill is re turned to the House of Assembly and is presented 
again to the President only if it recei ves the support of two thirds of the members.  The President must, within 
21 days, assent to the bill or dissolve Parliament. Zimbabwe WT/TPR/S/252 
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 7. The Industrial Tariff Committee plays a strong adviso ry role to the Minister of Finance on the 
setting of tariff and import surcharge rates and the granting of exemptions.  The Committee comprises 
officials from the Ministry of Finance, the Zi mbabwe Revenue Authority and the Competition and 
Tariff Commission.  The Committee examin es submissions from industry and makes 
recommendations on requests for concessionary tariffs or protectionist measures.  These measures are 
implemented through the National Budget or Mid- term Fiscal Policy Review Statement.  The 
Ministry of Industry and Commerce usually forwards recommendations to the Ministry of Finance on an ad hoc  basis, on behalf of companies that make re presentations regarding review of tariffs or 
exemptions from duties. 
8. Treaties do not become part of domestic law unless specifically incorporated by an Act of 
Parliament, although the Constitution provides for exceptions allowing the Executive to enter into 
binding international agreements.  For example, th e President is given power under the Customs and 
Excise Act to make regulations to give effect to any international agreement;  the Act specifies that 
the agreement and its regulations shall prev ail even if inconsistent with any other  law, including the 
Customs and Excise Act .  However, the authorities indicate that, in drafting legislation, they seek to 
avoid conflict with Zimbabwe's inte rnational obligations;  thus legi slation is amended, as necessary, 
when new international obligations are undertaken.   
9. Formulation of Zimbabwe's trade policy is  coordinated by a Committee made up of 
stakeholders from the "economic ministries";  par astal organizations;  and representatives of the 
private sector.  The economic ministries and agencies include Industry and Commerce;  Finance, 
Economic Planning and Investment Promotion;   Agriculture, Mechanization and Irrigation 
Development;  Regional Integration and Inte rnational Co-operation;  Mines and Mining 
Development;  Lands and Rural Resettlement;  Stat e Enterprises and Parastatals;  Women Affairs, 
Gender and Community Development;  Smal l and Medium Enterprises and Cooperative 
Development;  and Youth Development, Indi genization and Empowerment.  The Committee is 
chaired by the Ministry of Industry and Commerce, and was set up to allow for a consultative process 
with various stakeholders on trade-related issu es.  National positions on trade issues, including 
positions in trade negotiations, are developed after consultations with all these stakeholders.  The 
Committee also undertakes information disseminati on sessions whenever bilateral, regional, and 
international negotiations are launched.  
10. Zimbabwe's highest court is the Supreme Court, headed by a Chief Justice, who is appointed 
by the President.  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 Pr esident in consultation wi th the Judicial Service 
Commission.  Judges may serve until the age of 70, and may be removed only for inability to discharge the functions of the office or for misbeh aviour.  Below the High Court are the magistrates 
courts, whose officers are appointed by the Chief Ju stice.  Zimbabwe also has a number of specialist 
courts such as the Administrative Court, which d eals with administrative disputes, including those of 
a commercial nature;  the Labour Court, which deals with industrial disputes;  and a Small Claims 
Court, which has jurisdiction over sm all civil claims (not exceeding US$250). 
11. The Supreme Court has the power to declare an Act of Parliament ultra vires  if, in the opinion 
of the Court, the Act violates the Constitution.  Th e Court exercises its functions by virtue of the 
authority conferred upon it by the Constitution. WT/TPR/S/252 Trade Policy Review 
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 (2) TRADE POLICY OBJECTIVES  
12. Zimbabwe's trade policy objectives are influenced  by its development obj ectives, contained in 
the Development Framework for Co-operation.4  In this Framework, it seeks to follow the "East Asian 
Growth Model", the "Indian Growth Model", an d also seek best practices from other African 
countries that have experienced strong export-led grow th.  Zimbabwe claims to have developed some 
aspects of the basic requirements for a developmental State:  sufficient access to primary education 
and basic health;  and macroeconomic stability.  However, it acknowledges that it needs to strengthen 
certain basic requirements, namely sound and sustai nable institutions, and infr astructure conducive for 
economic activity.5   
13. The operational aspects of Zimbabwe's trade policy are contained in its draft National Trade 
Policy 2011-15.6  Its overall trade policy goal is to elevate trade as the engine for sustainable 
economic growth and developmen t, and stimulate the productive sectors of the economy towards 
higher productivity, efficiency, and international co mpetitiveness.  This will be done by transforming 
the economy from a primary raw-material producing low-income country to an industrial country, 
based on the principles of: strengthening the pr ivate sector's role in agriculture, mining, 
manufacturing, and services; establishing strong backward and forward linkages between these 
economic sectors and the cross-cutting infrastructur al sectors;  ensuring productivity increases in 
agriculture (communal, small scal e, and large scale) for food security7, as well as providing raw 
materials for the agri-manufacturing industri es, which are essential for export-led growth;  
transforming the mining sector from producing raw ma terials for export into "value addition mining"; 
and ensuring that the manufacturing sector can supply the machinery, inputs, and other related needs 
of the agricultural and mining sectors.  
(3) TRADE AGREEMENTS AND ARRANGEMENTS  
(i) The WTO 
14. Zimbabwe is an original WTO Member, having been a GATT contracting party.  Zimbabwe 
ratified the WTO Agreement on 5 March 1995.  Under Zimbabwe's domestic law, the WTO 
Agreement has the same status as all other treaties to which it is a signatory.   
15. Zimbabwe participates in the DDA negotiations thro ugh its mission in Geneva.  It is an active 
member of the African, Caribbean and Pacific (ACP) group, the WTO African group (which it has 
coordinated at various times), the G-90, as we ll as the G-33 and G-20 groupings of developing 
countries on agricultural issues.  On the DDA negotia tions, Zimbabwe's interests are on agriculture, 
non-agricultural market access (NAM A), as well as special and differential treatment.  Zimbabwe 
supports the objectives of the G-33 on the Spec ial Safeguards Mechanism (SSM) and Special 
Products (SPs) with a view to promoting food secur ity, rural development, and poverty alleviation, as 
well as addressing import surges and price slumps. As a member of the G-20, Zimbabwe supports the group’s position on agricultural trade reforms th rough substantial reducti on in domestic support, 
increase in market access, the phasing out of all forms of export subsidies, and operational and 
effective special and differential treatment for deve loping countries, which it claims have the capacity 
to collectively unlock the potential boom for agricultu re in developing countries. According to the 
                                                      
4 Government of Zimbabwe, "A Development Framework for Cooperation 2011-2015".  
5 Government of Zimbabwe, "A Development Framework for Cooperation 2011-2015".  
6 Ministry of Industry and Commerce (2011). 
7 The National Trade Policy document defines food security as sufficient local production of food with 
a view to reducing food imports. Zimbabwe WT/TPR/S/252 
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 authorities, as one of the countries listed unde r Paragraph 6 of the July 2004 Framework8, Zimbabwe 
is seeking flexibility on tariff bindings in th e NAMA negotiations for the purposes of domestic 
industrial sector development and regional integrat ion initiatives.  Zimbabwe also seeks technical 
assistance and capacity building through th e Aid for Trade initiative (Chapter V). 
16. Although Zimbabwe has made efforts to provide  updated WTO notifications, a number of 
them remain outstanding (Table II.2).  
Table II.2 
Notifications to the WTO, 2005-11 
WTO Agreement Description of requireme nt Most recent notification Comment 
Agreement on Agriculture   
Articles 10 & 18.2 Export subsidy commitments G/AG/N/ZW E/5, 8 March 2011 Notification of total exports 
Agreement on Import Licensing   
Article 7.3 Imports and exports licensing 
system G/LIC/N/3/ZWE/3, 24 June 2010 Notification of regime 
Agreement on Subsidies & Countervailing Measures   
Article 25.11 Countervailing duty actions G/SCM/ N/178/Add.1, 21 October 2008 No actions taken 
GATT 1994 & Understanding on Interpretation of Article XVII  
Article XVII:4(a), 
Paragraph 1 State-trading enterprises G/STR/N/12/ZWE, 1 July 2008 No state trading 
Understanding on Interpretation of Article XVII   
Article 16.4 Anti-dumping actions G/ADP/N/ 166/Add.1, 23 April 2008 No actions taken 
Agreement on Rules of Origin   
Para. 4, Annex II Preferential rules of origin G/RO/N /55, 16 October 2007 List of preferential agreements 
Agreement on Trade in Services   
Articles III:4, IV:2 Enquiry and contact points S/E NQ/78/Rev.8, 3 November 2005 List of enquiry points 
Agreement on Trade-Related Aspects of  Intellectual Property Rights/TRIPS)  
Article 63.2 TRIPS legislation IP/N/1/ZWE/2 
IP/N/1/ZWE/C/3 
IP/N/1/ZWE/P/1 
IP/N/1/ZWE/T/1 IP/N/1ZWE/D/1 List of all acts & bills 
Copyright 
Patents 
Trade marks Industrial designs 
Source:  WTO documents. 
(ii) Regional agreements 
(a) African Union and African Economic Community 
17. Zimbabwe is a member of the African Uni on (AU) and the African Economic Community 
(AEC).  The AU seeks to become an economic and political area.  The African Economic Community 
(AEC) was created by treaty in 1991, under the Or ganization of African Unity (OAU), the forerunner 
to the AU.  The AEC is, therefore, an AU instituti on with the aim of creating an African customs and 
monetary union in six stages, the last of which is  envisaged to be completed by 2028.  The gradual 
integration process first requires the establishm ent of regional customs unions (by 2017), a 
continent-wide customs union (by 2019), and an African common market (by 2023).  However, the 
                                                      
8 WT/L/579, 2 August 2004. WT/TPR/S/252 Trade Policy Review 
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 AEC has encountered several problems, including inte r-state conflicts; lack of institutional capacity 
caused by low financial resources; and the low level of commitment from member states.    
(b) Common Market for Eastern and Southern Africa (COMESA) 
18. Zimbabwe is a member of the COMESA Cust oms Union, which was launched in June 2009.9  
Member states have a transitional period of three years to align their national tariffs with the 
COMESA Common External Tariff (CET).10  Although implementation of the Customs Union 
commenced in June 2009, it is not yet fully operatio nal:  the CET is not yet in force and the other 
trade policy instruments are yet to be harmonized;  there is no revenue-sharing formula;  and there is 
no free movement of goods within COMESA.  The C ET has a three-band structure:  zero for capital 
goods and raw materials, 10% for intermedia te goods, and 25% for finished products.11  During the 
transition period, member states are also required to  finalize the list of sensitive products and agree on 
their common tariff rates.12  
19. Zimbabwe has signed and ratified the Agreement on the COMESA Fund.   The Fund 
comprises two facilities:  the Adjustment Facility, to  assist member states cope with adjustment costs 
arising from implementation of COMESA integra tion programmes; and the Infrastructure Facility, 
whose priority programmes and projects are in the transport and communications sector.  COMESA is 
considering a Community Levy, which will be a tax on transactions within the Customs Union. 
20. Zimbabwe is implementing several COMESA trade facilitation initiatives, including the 
COMESA Simplified Trade Regime with Zambia as a pilot project, the COMESA Yellow Card 
Scheme (motor vehicle insurance valid in all par ticipating countries), and the Regional Customs Bond 
Guarantee Scheme.   It is also a party to the COMESA Protocol on Trade in Services and is 
participating in a number of COM ESA institutions, including the Regi onal Investment Authority, the 
Competition Commission, and the COMESA Court of Justice.13 
(c) Southern African Development Community (SADC) 
21. Zimbabwe has signed the SADC Trade Protocol and is participating in its Free Trade Area 
(FTA), which was launched in August 2008, following an eight-year transition period.14  An estimated 
85% of trade in "community goods" in the original 12 signatory countries  is now duty free; the 
remaining tariff lines are to be phased out by the end of 2012.  However, 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).   The derogation means that Zimbabwe will 
suspend the phase-down of tariffs for Category C products until 2012, when yearly reductions will 
commence, and be completed by 2014.  SADC's se nsitive product list is not identical to COMESA's, 
                                                      
9 Prior to the formation of the Customs Union, Zi mbabwe had participated in the COMESA FTA from 
2000. 
10 The three-year transitional period may be review ed by the COMESA Council after 18 months, and 
may be extended to 5 years. 
11 COMESA online information.  Viewed a t:  http://programmes.comesa.int/index.php. 
12 Five member states;  DR Congo, Eritrea, Ethiopia, Swaziland, and Uganda are not part of the FTA, 
hence will not participate in the Customs Union.  Swazila nd is participating in the FTA under derogation, since 
it is a member of the Southern African Customs Union (SACU). 
13 Other institutions include: the COMESA Leathe r and Leather Products Institute; Federation of 
Women in Business (FENCOM); PTA Bank; Re-insurance Bank; COMESA Clearing House;  COMESA Regional Investment Agreement;  and the Africa Trade Insurance Agency.   
14 Angola, DR Congo, and the Seychelles have not yet ratified.  For information on the tariff phase-out 
and other details see WTO document WT/REG176/4, 12 March 2007. Zimbabwe WT/TPR/S/252 
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 and includes textiles and clothing.  The simple av erage preferential tariff is 10.2% on imports from 
South Africa, and 7.8% on imports from other SADC countries, with a maximum tariff of 25%. 
22. SADC's trade facilitation initiatives include ha rmonizing customs procedures and customs 
classifications;  increasing customs cooperation;  redu cing costs by introducing a single, standardized 
document (Single Administrative Document) for customs clearance throughout the region;  and 
establishing one-stop border posts. According to th e authorities, Zimbabwe's dual membership of 
SADC and COMESA has so far not created any conflict. However, any problems created by overlapping membership may be resolved by the harmonization efforts under way among COMESA, 
the East African Community (EAC), and SADC.  The COMESA-EAC-SADC Tripartite arrangement 
is to oversee the creation of a Tripartite Free Trade Area (TFTA), encompassing all 26 members of 
these regional groupings.  The 2
nd Tripartite Summit, held in June  2011, launched the negotiations for 
the establishment of the TFTA, and adopted the roadmap for establishing the TFTA as well as the negotiating principles, processes, and institutiona l framework.  The TFTA will be anchored on 
three pillars: market integration, infrastructur al development, and industrial development. 
(iii) Bilateral agreements 
23. Zimbabwe has bilateral trade agreements with Botswana, Malawi, Namibia, South  Africa, 
DR Congo, and Mozambique (Chapter IV).  The rele vance of the bilateral agreements has diminished 
with the emergence of the SADC FTA.  However, a ccording to the authorities, bilateral agreements 
offer more preferential treatment and flexibility.  The authorities concur that once a full-fledged 
customs union is in place for either COMESA or S ADC, the bilateral agreements with members of 
any customs unions would need to  be reviewed for relevance. 
(iv) Other preferential agreements 
24. Zimbabwe was an original beneficiary of th e U.S. African Growth and Opportunity Act 
(AGOA).  However, Zimbabwe has been de-listed from the beneficiary list, making it ineligible for 
any benefits under AGOA.
15  
25. Zimbabwe currently benefits from the GSP sc hemes of Australia, Canada, the EU, Japan, 
Korea, New Zealand, Norway, Sri Lanka, Switzerland, and the United States.  
26. In the negotiations on an Economic Partnershi p Agreement (EPA) with the EU, Zimbabwe is 
party to the Eastern and Southern Africa (ESA) ne gotiating group, a sub-group of COMESA member 
states.  Zimbabwe signed an interim EPA with the EU in August 2009.  It is yet to sign the final agreement for which negotiations are on-going.   
27. Zimbabwe has an agreement on trade, invest ment, and technical cooperation with China. 
(4) I
NVESTMENT REGIME  
28. Zimbabwe has signed bilateral investment prom otion and protection agreements with:  the 
United Kingdom; China; Germany; Mozambique; Ma laysia; the Netherlands; Portugal; Switzerland; 
Egypt; Yugoslavia; Iran; Denmark; Sweden; India;  Indonesia; Jamaica; Italy; South Africa; 
Czech Republic; Croatia; Thailand; Mauritius; Singapor e; Serbia; Austria; Fr ance; Botswana; Ghana; 
Belgium; Luxembourg; Uganda; Tanz ania; and Malawi.  However, only six of these are in force (with 
Germany, China, Denmark, Netherla nds, South Africa, and Switzerland). 
                                                      
15 US Federal Register, Vol. 74, No. 183, 23 September 2009. WT/TPR/S/252 Trade Policy Review 
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 29. Zimbabwe's Constitution guarantees legal protectio n for all investors irrespective of country 
of origin, including the right to private property.  It prohibits expropriation of  private property without 
compensation.  However, events in the last decad e, whereby private commercial land has been seized 
without compensation would appear to indicate that the authorities have not always complied with the 
letter and spirit of the Constitution (see Chapter V). 
30. Information on investment in Zimbabwe is c overed by the Comprehensive Investment Guide, 
issued by the Zimbabwe Investment Authority, a parastatal body established by Act of Parliament.  
The Guide covers all aspects of investment, in cluding foreign exchange controls for capital 
externalization, taxation, and work and residence permits.  Foreign investment in companies already 
incorporated in Zimbabwe requires Reserve Bank approval.  Application must be made to the 
Exchange Control Department of the Reserve Bank  through the investor company's commercial bank 
or merchant bank (authorized dealer).  After being issued with a Zimbabwe Investment Authorization 
licence the investor may apply for other post-approva l requirements, like residence and work permits, 
and other licences required in their areas of operation.   Mining operations are governed by the Mines 
and Minerals Act (Chapter IV). 
31. Through the Medium Term Plan (MTP), recently approved by the Cabinet, the Government 
has identified priority sectors for investment: energy, infrastructur e, agriculture, information and 
communication technology, tourism, and manufacturing.  The authorities are of the view that projects 
under these sectors will be implemented through public-p rivate partnerships ( PPPs) and joint ventures 
with local investors.  Under the Investment Act, local investors are defined as those holding a 
Zimbabwean passport, and not all persons resident  in the country.  In addition, according to the 
recently enacted Indigenisation and Economic Empowe rment Act, 51% of the controlling interest in 
every business established in the co untry that meets a specified capita l threshold, must be held by 
"indigenous Zimbabweans."16  
32. The Government has reserved a number of sector s of the economy for local investors.  The 
reserved sector list comprises:  (1) agriculture and forestry including (a) primary production of food 
and cash crops, (b) primary horticulture, (c) game, wildlife ranching, and livestock, (d) forestry, 
(e) fishing and fish farming, (f) poultry farming, (g) other than agri-industry involving post-growth processing;  (2) transportation, including (a) road haulage, (b) passenger bus, taxis, and car hire 
services of any kind, (c) tourist transportation (excluding airways);  (3) retail/wholesale trade, including distribution of local and other locally produced goods;  (4) barber  shops, hairdressing, and 
beauty salons;  (5) commercial photography;  (6) empl oyment agencies;  (7) estate agencies;  (8) valet 
services;  (9) armaments manufacture, marketing, and distribution;  (10) public water provision for domestic and industrial purposes;  (11) rail operati ons;  (12) grain mill products;  (13) bakery 
products;  (14) sugar products;  ( 15) tobacco packaging and grading (post auction);  and (16) tobacco 
products. 
33. Zimbabwe guarantees the repatriation of 100% of original capital investme nt in the event of a 
disinvestment; and up to 100% of dividends net, afte r payment of tax, may be remitted.  However, 
investors who become permanent residents may not remit their dividends without prior approval of the Exchange Control authority, which is the Reser ve Bank.  For as long as Zimbabwe maintains the 
multi-currency regime, the maintenance of forei gn currency dominated accounts is no longer of any 
practical relevance. 
                                                      
16 The Act defines "indigenous Zimbabwean" as any person who, before 18 April 1980, was 
disadvantaged by unfair discrimination on  the grounds of race, and any descen dant of such person, and includes 
companies, associations or partnerships in which indigenous Zimbabweans hold the controlling interest. Zimbabwe WT/TPR/S/252 
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 34. Companies in receipt of technology know- how and licences from external entities are 
permitted to remit, in foreign currency, royalties a nd licence fees in respect of agreements concluded 
with external technical partners.  Such agreemen ts require initial approval of the Exchange Control 
authority.  Each approval is valid for five year s, and may be renewed.  The maximum allowed on 
remittances for management, technical, and administrati on agreements is 2% of net turnover; the limit 
for royalties is 5% of net turnover. 
35. Foreign companies are at liberty to create bran ches or subsidiaries, subject to obtaining the 
necessary approvals from the relevant licensing author ities or regulatory bodies, or to appoint agents 
in Zimbabwe.  According to the authorities, branch es or subsidiaries of foreign companies are treated 
no differently from local companies, unless e xpressly provided otherwi se by legislation or 
government regulations. A foreign company is defi ned as a company incorporated outside Zimbabwe. 
Conversely, a local company is one incorporated in Zimbabwe, irrespective of ownership. 
36. Locally incorporated companies may employ foreigners under temporary work permits, 
which must be applied for by the company.  These work permits 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 sourced within Zimbabwe.  A permit holder will only be allowed to work 
within the confines of the granted employment capacity. 
37. In the last decade, Zimbabwe has faced signi ficant problems in attracting foreign direct 
investment (FDI) due to the fractious political envi ronment, as well as policies seen by many potential 
investors as offering little in the way of security guarantees for investment.  Concerns raised by 
potential investors include lack of guarantee of pr ivately owned commercial agricultural land, which 
is a potential area for investment in light of the im portance of agriculture to the economy and to food 
security; and recent legislation to compel foreign co mpanies already operating in the country, as well 
as any new entrants into the market, to surrend er 51% of their shareholding to "indigenous 
Zimbabweans."  Zimbabwe is a signatory to intern ational investment protection conventions such as 
the Multilateral Investment Guarantee Agency (M IGA), Overseas Private In vestment Corporation 
(OPIL), International Convention on Settlement  of International Dispute, UN Convention on 
International Trade Law (UNCITRAL), and the New York Convention on the Enforcement of 
Arbitral Awards.  However, recent rulings by the SADC Tribunal against the Government on the 
forcible land seizures have been ignored by the au thorities.  This raises wider concerns about the 
country's willingness to abide by any foreign arbitral award that may be issued against it. 
38. Zimbabwe fares poorly in the World Bank' s 2011 profile of countries on various aspects 
related to doing business17:  it is  ranked, on average, 157th out of 183 countries across all aspects of 
doing business (one place lower than in 2010).  In specific areas, it ranked 143rd in the world in terms 
of ease of doing business;  120th in protecting investors;  168th in trading across borders;  131st in 
paying taxes;  and a fairly decent 82nd in registering property. 
 
                                                      
17 World Bank Group online information.  Viewed at:  http://www.doingbusiness.org/data/ 
exploreeconomies/zimbabwe/.