Government has gazetted the Zimbabwe Investment Development
Agency Bill (HB 2, 2019) which seeks to establish a one-stop shop for
investors. The Bill was published in yesterday’s Government Gazette and is part
of Government’s efforts to create an investor-friendly environment. According
to the Memorandum, Clause 3 and 4 of the Bill say the role of the agency will
be to facilitate entry of investment projects.
“(The Bill seeks to) Establish the Agency, give it a
corporate status and sets out the functions and powers of the Agency
respectively.
“The primary function of the Agency is to facilitate entry
and implementation of investment projects, as well as to coordinate investment
programmes and strategies,” read part of the Bill.
The Bill also provides for organisations that would
constitute the Agency. “Clause 5 (a) establishes a one-stop shop investment centre
which shall have representatives of entities that play a role in the licensing,
establishment and operationalisation of investments.
“These entities are the Zimbabwe Revenue Authority, the
Environmental Management Agency, the Reserve Bank of Zimbabwe, the National
Social Security Authority, the Zimbabwe Energy Regulatory Authority, the
Zimbabwe Tourism Authority, the State Enterprises Restructuring Agency and
specialised investment units and other relevant line ministries.
“(b) Provides for the secondment of officials from line
ministries and statutory agencies to the authority,” further reads provisions
of the Bill.
The Bill also establishes a board that shall control the
Agency including and appointment of a chief executive officer and other staff
of the Agency.
Under clause 10, the Bill enjoins investors to conform to
local legislation. “Clause 11 specifies that investors are free to invest in
any sector save for those that are reserved for locals,” reads the Bill.
Clause 12 and 13 provides that; “(a) foreign investors
should be treated the same way as local investors; (b) foreign investors from
all countries be treated in the same way.” Clause 14 permits investors to
employ key personnel of their choice and that they can be foreigners.
“Clause 16 guarantees that the property of investors would
not be expropriated. Where it is expropriated for a public purpose, the
expropriation should be done in accordance with the law, in a
non-discriminatory manner and a payment of effective compensation in a freely
cover-title currency,” reads the Bill.
Clause 18 of the Bill also provides for the free inward and
outward transfer of investors’ funds and lays out circumstances under which
such transfers may be delayed.
Such circumstances include instances where there is need to
protect the creditors of an investor and in order to assist financial
regulators or law enforcement.
The Bill also empowers the agency to cancel an investor’s
licence if it was obtained fraudulently, transfers the licence without
authority or failure to implement approved activity within agreed time frames.
The agency is also empowered, in consultation with the
Minister of Finance and Economic Development to offer incentives to investors
under Clause 29.
Clause 37 also provides for dispute resolution mechanisms
whenever they arise.
President Mnangagwa has emphasised Government’s commitment
to creating an enabling environment for both investors and the establishment of
ZIDA is part of the ongoing reforms.
Government’s move to establish the Agency follows President
Mnangagwa’s visit to Rwanda last year where he was impressed by the strides
made by the Central African country since the 1994 genocide.
During his visit he met with members of the Rwandan
Development Board.
Following the visit Rwandan governance expert and CEO of
the Board Ms Clare Akamanzi visited Zimbabwe where she met Cabinet Ministers,
Politburo members, senior Government officials and members of the private
sector to share her country’s experiences. Herald
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