ziic prospectus3.indd 1 7/7/2009 12:14 pm · zim 10 - tokwe mukosi dam construction ... imports...

ZIIC Prospectus3.indd 1 7/7/2009 12:14 PM

This prospectus was compiled by KM Financial Solutions - your financial advisor


Zimbabwe Investor’s Prospectus

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ContentsGlossary of TermsForeword by the Minister of Economic Planing and Investment PromotionCountry OverviewEconomic OverviewSectoral Review

• Manufacturing • Agriculture• Mining• Tourism• Energy• Financial Services• Natural Resources & Environment• Information Communication Technology • Infrastructure Development

Summary of Sector Investment OpportunitiesMarket AccessEditorial from The Development Bank of Southern AfricaAppendices

1 - Licensing Requirement - Procedures For Foreign Investors2 - Immigration Requirements3 - Exchange Control Regulations4 - Fiscal Guide 2009 courtesy of KPMG (Zimbabwe)5 - Mining Incentives, Royalties, Rentals and Taxation6 - Summary of Top Ten Available Projects

Strategic ProjectsZim 01 - Zimbabwe Power CorporationZim 02 - Hwange CollieryZim 03 - National Railways of ZimbabweZim 04 - Air Zimbabwe P/LZim 05 - TelOne Zim 06 - Grain Marketing BoardZim 07 - Broadband Connectivity by Africom Continental (Pvt) LtdZim 08 - Coal Bed Methane Production In ZimbabweZim 09- Beitbridge Chirundu Toll RoadZim 10 - Tokwe Mukosi Dam Construction

Important Contacts in ZimbabweContacts – Diplomatic Missions Abroad

34569101112131415161718192125

282829303537

383940414245464849505153


Zimbabwe Investors’ Prospectus


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ACP African, Caribbean and Pacific Group of States

AEC African Economic Community

CAAZ Civil Aviation Authority of Zimbabwe

CEMAC Communauté Économique et Monétaire de l’Afrique Centrale

COMESA Common Market of East and Southern Africa

CSC Cold Storage Company

EAC East Africa Community

ECCAS Economic Community of Central African

States

ECOWAS Economic Community of West African States

ELCC External Loans Coordination Committee

FCA Foreign Currency Accounts

FTA Free Trade Area

FTZ Free Trade Zone

GAFTA Greater Arab Free Trade Area

GATT General Agreement on Tariffs and Trade

GCR Global Credit Rating

GDP Gross Domestic Product

ICT Information, Communication and Technology

IGAD Intergovernmental Authority on Development

NBFIS Non – Banking Financial Institutions

NRZ National Railways of Zimbabwe

PGM Platinum Group Minerals

PPP Public Private Partnership

RBZ Reserve Bank of Zimbabwe

SA or RSA South Africa

SACU Southern African Customs Union

SADC Southern African Development Community

SADC Southern Africa Development Community

STERP Short Term Economic Recovery Programme

UEMOA West African Economic and Monetary Union

UK United Kingdom

UMA Arab Maghreb Union

US$ United States Dollar, currency of the USA

USA United States of America

WTO World Trade Organisation

ZAR South African Rand, the currency of the

Republic of South Africa

ZESA Zimbabwe Electricity Supply Authority

ZIA Zimbabwe Investment Authority

ZINWA Zimbabwe National Water Authority

ZISCO Zimbabwe Iron and Steel Company (Private) Limited

ZSE Zimbabwe Stock Exchange

Glossary Of Terms



4

It gives me great pleasure to present the

Investment Prospectus which contains

priority investment projects and other key

projects in both public and private sectors

of the economy. Zimbabwe is emerging

from a decade of economic decline which

resulted in deterioration of the standards of

living and increasing poverty levels. To that

end the Inclusive Government formu-

lated the Short Term Emergency Recovery Programme (STERP) in order

to stabilize the economy and address the social protection needs of the coun-

try. The recovery of the country is envisaged to come from the private sector

which should be the engine of growth with the Inclusive Government playing

a supportive role. Public private partnerships are also being regarded as key for

revamping the country’s key infrastructure especially in the area of electricity

generation, railways, coal, roads and steel.

The Inclusive Government is undertaking measures that will ensure an inves-

tor friendly environment and attract both foreign and domestic resources on

a sustainable basis. The economy is now operating under the multi-currency

system and more liberalization is underway to ensure that market forces fully

operate. The Inclusive Government is working to address all the impediments

to investment such as the issues of property rights, Bilateral Investment Promo-

tion and Protection Agreements, media freedom and the Indigenisation and

Empowerment Act.

Furthermore, the incentives structure for investors is being revamped and

strengthened so that they will become comparable to what is obtaining in

the region and beyond. The Zimbabwe Investment Authority (ZIA) is also

being restructured in order to make it a truly a “One Stop Shop” Investment

Centre.

The Zimbabwean economy currently offers the following unique and blend

of advantages to potential investors: a stable political environment as a result

of the inclusive government, commitment to operation of market forces as

highlighted in the STERP document, abundant natural resources especially

land, forests, minerals and water, availability of low cost labour which can be

easily trained and availability of a vibrant stock exchange as well as a developed

financial system.

Investment opportunities are in all key sectors of the economy namely agricul-

ture, manufacturing, tourism, mining and infrastructure. The restructuring of

public enterprises which is going to include privatization, commercialization

and restructuring also provides unique investment opportunities to both do-

mestic and foreign investors.

The priority and specific projects in the key sectors both private and public are

contained in this brochure. This brochure will be used by potential investors

who will be attending this years first ever Zimbabwe International Investment

Conference. Evidently, it will continue to be fruitfully utilized in investment

promotion activities beyond this important conference.

I would like to thank the team from my Ministry, The Zimbabwe Investment

Authority (ZIA) and our financial advisors KM Financial Solutions who

worked to put together this brochure. It is informative and provides the reader

with an array of investment opportunities. It is my pleasure to commend it to

you.

Together we can make Zimbabwe great. I thank you.

Foreword




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Total Area 399757 sq. kmLand Area 386670 sq. kmWater 4087 sq. kmPopulation 12.233 million (2006)Urbanisation 33.56%Literacy 97.00%Climate Subtropical climate. Rain season Nov-March Capital City HarareCommercial Language EnglishOther Languages Shona, NdebeleTime GMT + 2 HOURSCurrency Multicurrency (US$ and ZAR)GDP (Current Prices) US$5.54 billion (2006)Real GDP growth rate -4.4% (2006), 2.8% (estimate 2009)Exports US$1.718 billion (2006)Imports US$2.040 billion (2006)Principal Exports Tobacco, gold, ferro alloys, cottonPrincipal Imports Machinery and transport equipment, chemicals, petroleum productsMain export destination China, South Africa (“SA”), Germany, United Kingdom (“UK”), Japan, Netherlands, ItalyMain Imports Origins SA, Democratic Republic of Congo, Mozambique, Germany, UK, United States of America (“USA”), BotswanaNatural Resources Asbestos, gold, copper, nickel, tobacco, platinum, chromeMain Towns Bulawayo, Gweru, MutareClimate Subtropical: Summer 25-30 degrees celsius; Winter 13-20 degrees celsiusBusiness Hours Monday - Friday 8am - 4.30 pmSaturday 8.30 am – 1pmBanking Hours Monday - Friday 8am - 3pm Monday - Friday 8am - 5pm (Private banking) Saturday - Friday 8am - 11.30 am

Zimbabwe: Country OverviewTable 1: Statistics for Zimbabwe

Public Holidays 2009 1 January (New Year’s Day) 10 April (Good Friday) 12 April (Easter Saturday) 13 April( Easter Monday) 18 April (Independence Day) 1 May (Worker’s Day) 25 May (Africa Day) 11 August (Heroes’ Day) 12 August (Defence Forces Day) 22 December (Unity Day) 25 December (Christmas Day)

26 December (Boxing Day)



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The Republic of Zimbabwe is an independent country in Southern

Africa, well endowed with mineral, agricultural and other resources,

which have created opportunities for the growth of resource-based industrial

activities. The inclusive government has crafted an Economic Revival

Framework outlined in a document referred to as Short Term Economic

Recovery Programme (“STERP”). This document articulates Zimbabwe’s

collective vision as the country progresses economically. The Zimbabwe

economy developed from 1950 to 2000 into a highly diversified market based

economy.

Contribution to Gross Domestic Product (“GDP”) by Sector in 2007

Agriculture, Manufacturing, Mining, Tourism and Distribution and

Finance and Insurance, among others, are the major economic sectors with a

contribution of more than 60% to GDP as shown by the table and pie chart

below. The following table and pie chart shows the contribution of the various

sectors in the economy to the GDP.

Table 2: Contribution to GDP

Sector Contribution to GDP (%)

Agriculture 16.1

Manufacturing 18.6

Tourism & Distribution 16.1

Transport and Communication 8

Finance and Insurance 7.2

Education 6.5

Mining 3.8

Construction 2.4

Water % Electricity 1.9

Other 19.4

Total 100

Source: RBZ – Mid Term Monetary Policy Statement 1 October 2007

Economic Overview

The profile of sectoral contribution in former years is a clear indication of

the potential for Zimbabwe to become a balanced developing economy

again. Manufacturing was prominent, this being predicated upon very

deliberate processes of forward integration from agriculture and mining.

Such integration is supported by a stock of infrastructure which includes

a comprehensive road and rail network, an ever increasing national

coverage of the electricity distribution network, international air links and a

telecommunication sector which need to be extensively refurbished. Further

growth potential comes from a sophisticated financial services sector, a

growing information technology sector and a tourism sector of unparalleled

potential. In essence, all fundamentals point to the next fastest growing

economy in Africa if not the world and we invite you to be part of this fiesta

of opportunities.




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The country has immense growth potential given a huge natural resource

base, highly educated and skilled workforce and access to regional markets.

The majority of the Zimbabwean labour force is educated to at least 4 years of

secondary school. Labour rates are very competitive in comparison with the

rest of the world, and due to a high unemployment rate, skilled, semi-skilled

and unskilled labour is readily available. The majority of the labour force is

English speaking.

Recently, the country discovered huge deposits of platinum and diamonds.

Platinum mining and processing will add to an already vibrant mining sector

which will become a major contributor to GDP. The country is endowed

with a wide range of mineral resources: gold, diamonds, nickel, iron ore, copper

and coal bed methane. Coal bed methane is the largest known reserve in Sub

Saharan Africa. At current extraction levels the country can continue mining

coal for the next 5 500 years (Southern African Development Community

(“SADC”) trade industry and Investment review -2007/2008).

Investment Climate

Over the last twenty years, the Zimbabwean government has enacted

laws which provide investors with a conducive business environment. This

is notwithstanding the last five years (2004-2009) when foreign currency

shortages caused businesses to rely on exports to fund their operations and

land reform caused some anxieties in the investment community. From

The following table shows the estimated inflation for various countries

including Zimbabwe.

Table 3: Inflation Figures as at June 2009

Country Latest Inflation (%)

Angola 12.9

Botswana 14

Namibia 12

Malawi 9.3

South Africa 13.6

United Kingdom 5.2

United States of America 4.9

Zimbabwe 3.5

Inflation used to be the main threat to a potentially vibrant economy and has

been well publicised in recent years with inflation reaching 231 million percent

as per last official estimate. This created a very difficult climate in which to do

business. However, currently Zimbabwe has the lowest rate of inflation in US$

terms.

The collective wisdom of the inclusive government now in place is

witnessed in the introduction of the multicurrency system credited with

reducing Zimbabwean inflation from the estimated 231 million percent in

December 2008 to 3.5% per annum as at 30 June 2009. This has happened

since the liberalisation of the exchange control regime and the use of multi-

currencies such are the United States Dollar (“US$”) and the South African

Rand (“ZAR”) to transact business in February 2009. The use of these hard

currencies has renewed the focus of business on producing value and getting

due reward for it. Some progressive trading concerns have offered twenty-four

hour service to take advantage of the improving business environment.



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Exchange control regulations have been relaxed to allow for repatriation

of foreign funds invested and profits earned in Zimbabwe without any

restrictions. Immigration laws ensure that qualifying investors get to stay in

Zimbabwe and conduct their business freely. A highly sophisticated urban life

provides a home away from home for foreign investors with social amenities

which meet international standards. The opportunities of coming up with

a highly trained human resource base is well supported by a 97% literacy

rate, a very diversified and high density tertiary education sector and a host

of other ancillary technical training and research institutions. Zimbabwe

boasts of highly proficient human resources at all levels. Years of working in

a sophisticated economy has created an experienced, educated and highly

adaptable labour force. Evidence of this capability is demonstrated by the

millions of employable Zimbabweans doing very well in the diaspora

(the Zimbabwean population overseas). Above all, investors will find

Zimbabweans generally a friendly and welcoming people, simply because of

the traditions and norms of our society.

The country has extensive road and rail links on 1067mm gauge (54kg per

metre according to UICE Class B) to all major cities and neighbouring

countries, and there are 3 international airports in Harare, Bulawayo and

Victoria Falls. Zimbabwe is currently in the process of upgrading its electricity

generation and telecommunications sector in preparation of the anticipated

growth. Opportunities for investors within these sectors are outlined in sectoral

analysis. The Government has put in place investment and trade facilitation

institutions that exist to provide comprehensive direction to foreign investors

choosing to locate in Zimbabwe. The Zimbabwe Investment Authority

(“ZIA”), the Zimbabwe Tourism Authority (“ZTA”), and Zimtrade are all

one-stop shops designed to make any business person feel at home. These

institutions are the interface between government and the investing public.

Their functions and how to invest in Zimbabwe are described further in

Appendix 1.

Politics

Zimbabwe is a democratic state governed by the three arms of government

namely: The Executive, Legislature and the Judiciary. These arms are

independent of each other as enshrined in the doctrine of “rule of law” which

is at the core of democratic governance in the country. Zimbabwe has

held elections for parliamentarians every 5 years since 1980 when it attained

independence from Britain and Presidential elections every 6 six years from

1987. From 2008 both parliamentary and presidential elections will now be

held concurrently after every 5 years.

The signing of the Global Political Agreement on 15 September 2008, which

is centred on the power sharing deal over government ministries between the

country’s three political parties, ushered in a new political dispensation. The

Inclusive Government has unreservedly assured the nation and all potential

investors that the country will uphold property rights for all citizens and

investors coming into Zimbabwe. The Inclusive Government has fostered

a spirit of unity and cooperation among all stakeholders in the country.

The stabilizing effect of the inclusive government is evident in all facets of

Zimbabwean society. Nationwide consultations are currently underway for

preparation of a new constitution.




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Sectoral ReviewThe Zimbabwean economy is agricultural-based, with highly developed forward-inte-

gration links with the manufacturing sector. Mining, tourism and services sectors are also

important components of the country’s economy. Investment and trade opportunities

exist in all these sectors.



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1. Manufacturing Sector

The manufacturing sector was the biggest contributor to GDP between

1980 and 1990 at 22% followed by agriculture at 14%. It is estimated that

agriculture accounts for up to 60% of manufacturing sector’s inputs. In turn,

estimates also show that up to 40% of manufacturing output is used as inputs

in mining and agriculture. However due to challenges relating to low capac-

ity utilisation, foreign currency shortages and rising inflation over the years the

manufacturing sector’s contribution to GDP has declined from 24% in 1991

to about 16% in 2007. The importance of the manufacturing sector is reflected

in the 76% domestic content of manufacturing inputs during the 1980s, with

imported inputs contributing only 24% to the sector at that time. However,

current estimates show that the manufacturing sector’s domestic content in-

puts is a maximum of 60% from agriculture and about 40% from the mining

sector.

According to section 184 of the STERP document, strategically targeted in-

dustries include companies in food processing, beverages, textile and ginning,

clothing and footwear, fertilizer, pharmaceuticals, motor industries, packaging,

paper printing and publishing, chemical and petroleum products, non-metal-

lic mineral products among others.

The Inclusive Government is working on raising capacity utilisation from un-

der 10% at the beginning of the year to around 60% by the end of the year 2009

through availing of funding to the sector.




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The Zimbabwean economy is anchored on agriculture. The sector

contributed 16.1% to the country’s GDP in 2007. It is estimated that

agriculture accounts for up to 60% of the manufacturing sector’s inputs. The

major crops in agriculture are cotton, tobacco, wheat, maize which is the staple

food, and cash crops such as vegetables and flowers within the horticultural

sector.

Traditionally, the agricultural sector contributes a third to the country’s foreign

exchange earnings, and accounts for about 15% of formal employment. The

sector is estimated to have contributed 14.3% to exports in 2006, down from

17.3% in 2005.

Ironically, the below potential performance of the agriculture sector over the

last few years owing to drought and other factors has contributed to the low

capacity utilisation in manufacturing.

Opportunities exist in contract farming, and joint ventures where a number of

local and international companies have facilitated a significant output for each

of the major export crops such as cotton, tobacco and other horticulture crops.

2. Agriculture



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Mining accounts for 3.8% of GDP, about 4.5% of employment, and a third

of total foreign exchange earnings of the country based on the 2007 out

turn. Zimbabwe is endowed with a vast range of mineral resources. Exploitation

of all these resources is still in its infancy according to estimates of the reserves

available in the country (see table below). About 60% of Zimbabwe’s land surface

comprises ancient rocks renowned worldwide for hosting rich varieties of mineral

resources including gold, base metals (e.g.) Nickel, Copper, Zinc and Lead) and

industrial minerals (limestone, phosphates, clay, dolomites). In addition, the

country has vast resources of Platinum Group Minerals (“PGM”s). Zimbabwe

has the second largest platinum deposits in the world. The ancient Archaen

terrain is evident in a number of areas in Zimbabwe hosting Kimberlites, some

of which have diamonds such as the Murowa diamond deposit in Mberengwa.

More diamond sites have been discovered in Manicaland, which is in the eastern

part of Zimbabwe.

Mineral resources in Zimbabwe

Table 4: Minerals in Zimbabwe

Mineral Estimated Resources Current Annual Extraction RateGold 13 million tonnes 20 tonnesPlatinum 2.8 billion tonnes 2.4 million tonnesChromite (Great Dyke) 930 million tonnes 700 000 tonnesNickel 4.5 million tonnes 9 000 tonnesCoal 26 billion tonnes 4,8 million tonnesDiamond 16.5 million tonnes InfancyIron Ore 30 billion tonnes 300 000 tonnesCopper 5,2 million tonnes

Coal-bed Methane The largest known reserve in Sub Saharan Africa

Ref- Investment Opportunities in Zimbabwe, Government of Zimbabwe, 2006.

Opportunities exist in the exploitation of all the above. Mining makes a significant contribution to the inputs of manufacturing sector in Zimbabwe, coming only second to

Agriculture. The support services for mineral processing industries already exist in the country. The smelting sector in particular is relatively developed.

3. Mining




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Zimbabwe’s tourism sector continues to boom and is proving popular

among game hunters and people in pursuit of eco tourism. The

STERP document has therefore outlined the need to increase air traffic

frequency into the country, coupled with continued access to finance the

development of tourism infrastructure. According to the document, air

transport plays a critical role in tourism development which had gone down

to 7 foreign carriers serving the Zimbabwean destination due to restrictive

and protective air transport policies. The government has gone on to commit

to a rationalization process which should see the number of foreign carriers

landing in Zimbabwe going back to 1996 levels of 45 carriers. In tandem with

this growth will be an increase in international destinations to more than 100

potential markets.

The tourism sector contributed about 16.1% to GDP in 2007. Numerous

joint venture opportunities are available in the hotel and catering industry,

services and downstream related activities, conservancies and eco tourism.

Tourism Development Zones are being developed and offer a lot of good

investment opportunities.

4. Tourism



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Zimbabwe is unable to meet its energy requirements from its current

generation capacity and needs to expand and upgrade its electricity

generation and transmission infrastructure against the background of the

SADC regional power deficit. Investment opportunities exist in the projects

outlined below as prioritized by the Government:

• Completion of stage 1 of the rehabilitation of Hwange Power Station

• The expansion and increase of generation capacity at Kariba South.

• Rehabilitation of the transmission and distribution infrastructure in Zimbabwe

• Provision of long term power supply agreement in respect of the country’s

power deficit.

Whilst the current demand is 2200 MW, the country has projects with the

potential to produce 9000 MW. Zimbabwe should be an exporter of power

in the foreseeable future.

5. Energy




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Zimbabwe banking industry is still arguably only second to South

Africa in terms of depth and skills in the region. The Reserve Bank of

Zimbabwe (“RBZ”) acts as the central bank. The interbank market consists of

the commercial and merchant banks, discount houses, finance houses, building

societies and the People’s Own savings Bank, a government owned institution.

Also forming part of the financial system are asset management companies,

pension funds, provident funds, corporate bodies and the Zimbabwe Stock

Exchange (“ZSE”). The government is the single largest borrower.

Table 5: Financial institutionsType of institution Number of institutions at 25 January 2009

Commercial banks 15

Merchant Banks 6

Building Societies 4

Finance Houses 0

Discount Houses 3

Asset Management companies 17

Microfinance companies 75

Source: RBZ MPS January 2009

The banking industry has suffered in recent years from the shortage of foreign

currency and the lack of viability for loans and advances in a hyperinflationary

environment. The number of banking institutions has declined from 43

in 2003 to 28 in 2009 not including asset management companies and

microfinance companies. Lines of credit are becoming available for businesses

with the increased ability of businesses to transact in foreign currency. Recovery

is expected in the medium to long term as the general economy improves.

Most banks would welcome the extension of further lines of credit for their

customers and strategic partnerships to recapitalise and expand operations.

The table below indicates the opportunity for investment in the banking

industry on the back of the minimum capital requirements set by the

RBZ. The banks have until 31 March 2010 to comply with the minimum

requirements in hard currency. We envisage a consolidation within the sector

as players seek to meet new capital requirements. This will make the sector very

attractive.

Table 6: Minimum capital requirements compliance

Commercial Banks 6,25 million 12,5 million

Merchant Banks 5,0 million 10 million

Building Societies 5,0 million 10 million

Finance Houses 3,75 million 7,5 million

Discount Houses 3,75 million 7,5 million

Asset Management Companies 1,25 million 2,5 million

Source: RBZ CIRCULAR TO BANKING INSTITUTIONS No. 04-009/

BSD: “Minimum Equity Capital implementation Plan”

International credit rating has been implemented through an internationally

accredited credit rating agency, Global Credit Rating (“GCR”). The central

bank is responsible for licensing and supervision of banking institutions

and Non – Banking Financial Institutions (“NBFIS”). The central bank is

answerable to the Minister of Finance, who has the power to give general

direction on all policy issues and determines the budget of the central bank.

6. Financial Services

Minimum Equity Capital Requirement (USD) as at

30 September 2009

Type of Institution Minimum Equity Capital Requirement (USD) as at

31 March 2010



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Waste management in Zimbabwe is the responsibility of local

authorities. Over the years there has been accumulation of

unprocessed waste in the major cities such as Harare and Bulawayo. This is due

to financial constraints faced by the municipalities responsible for the respective

towns as well as the lack of technical capacity to process waste economically.

The resultant scenario has triggered major health related problems such as

the recent cholera outbreak. The major municipalities are currently operating

at about 40% of refuse collection and disposal capacity and practically 0% in

terms of processing. This provides an opportunity for investors to offer services

and technology transfer to local authorities in Zimbabwe.

7. Natural Resources & Environmental Management




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The advent of the information super highway and its pervasive

penetration into all facets of contemporary industry and commerce is

mirrored in Zimbabwe’s small but growing Information, Communication

and Technology sector (“ICT”). Use of computers and its backbone

infrastructure such as the fiber optic networks are currently confined to

a portion of the cities and are virtually non existent in the rural areas. The

sector is well supported by ICT training available from all Universities and

technical colleges in the country. A number of private sector colleges offer

internationally accredited courses and the sum total of all these efforts has been

the availability of a significant pool of ICT professionals. Opportunities lie in

the provision of equipment and other technology based services such as the

internet, call centres and data processing opportunities.

In its July 2006 issue, THE AFRICA REPORT noted that South Africa

aside, in sub-Saharan Africa the number of people on the internet per 1000,

is less than 10. This compares to 81 in South Africa and around 150 in other

developing countries. With only about 2 people connected per 1,000, progress

on the Zimbabwean ICT industry is still in its infancy and the potential for

growth offers great opportunities for players in the industry.

Empirical evidence has shown that infrastructure like telecommunications,

including computer hardware, software and internet, electricity and transport

facilities on one hand, and intellectual capital, institutions, interaction, incentives

and integrity systems on the other, collectively constitute the necessary

foundation and driver conditions for the development and use of ICTs.

This, in turn, raises the innovation, competitiveness, productivity and wealth

accumulation capacity of nations.

8. Information Communication Technology

By harnessing the potential of ICTs, developing and developed countries alike,

are now able to emerge with better solutions to vital and long standing issues

such as poverty reduction, wealth creation, equity, as well as social justice. It

is imperative that Zimbabwe exploits the potential of ICTs as an enabler of

national development.

Opportunities therefore exist in tooling the support infrastructure of the ICT

sector as well as taking advantage of Zimbabwe’s human resources.



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Even though Zimbabwe has a relatively good density in terms of infra-

structure, the Government is actively pursuing the rehabilitation and/

or expansion of all infrastructure in preparation of the coming economic

growth. In line with section 370 of the STERP document(see text on at-

tached DVD) which states that, “The framework for recapitalization of such

entities as the Cold Storage Company (“CSC”), Zimbabwe Electricity Sup-

ply Authority (“ZESA”), Civil Aviation Authority of Zimbabwe (“CAAZ”),

Zimbabwe National Water Authority (“ZINWA”), National Railways of

Zimbabwe (“NRZ”), Tel One, Net One is being developed. This will also

encompass companies in which the government has significant shareholding

such as Hwange Colliery Limited, SMM Holdings (Private) Limited and

the Zimbabwe Iron and Steel Company (Private) Limited (“ZISCO”). The

commercialization and privatization of some of the government entities offers

significant investment opportunities.

There are massive opportunities within the sector including dam and road

construction, provision of urban housing on the back of at least 500 to a mil-

lion hectares of fresh urban land provided by the state, power generation, and

telecommunication infrastructure among other opportunities.

The Inclusive Government has a vision of providing “well functioning effi-

cient, available, affordable, improved infrastructure and services to support the

economy”.

9. Infrastructure Development




19

Summary of Sector Opportunities

Sector

Manufacturing

Mining

Tourism

Environmental Management

Sub Sector

Agro-Processing

Textiles

Clothing & Footwear

Chemicals

Wood & Furniture

Metal & metal products

Technology

Infrastructure and Development

Tourism services

Investment Opportunities

Zimbabwe as an agro-based economy provides abundant opportunities for

investment in value addition in the agriculture sector, for instance, meat processing,

fish processing, food processing, fruit juice manufacturing, horticulture and

floriculture, processing of cotton lint, cigarette manufacturing sugar milling and

timber processing.

Cotton ginning, spinning, weaving, finishing textiles and knitting products

Making wearing apparels and footwear

Fertilisers, insecticides, pesticides, paints, varnishes, soaps, detergents, inks, glues,

polishes, pharmaceuticals, industrial chemicals, petroleum products, rubber and

plastic products

Saw milling, wooden products, furniture and fixtures

Machinery and equipment, radio and communication equipment

Information processing, computer assembly, solar technology and consumer

electronics

Prospecting and mining of various minerals including gold, coal, diamond, granite

and platinum (of which Zimbabwe has the second largest reserves in the world

after South Africa) Opportunities also exist in the beneficiation of the minerals e.g.

cutting and polishing of diamonds, jewellery manufacturing and tile manufactur-

ing from black granite. Quarrying and mineral exploration

Construction of hotels and lodges in designated tourism zones

Running and operating tourist facilities e.g. in the South Eastern part of the

country

Waste management



20

Primary production of food and other cash crops, Primary horticulture, game,

wild life ranching, livestock, Poultry farming, fishing and fish farming

Medium priced residential accommodation,

Commercial and industrial buildings (industrial parks, factory shells & office

accommodation)

Development of Toll roads, building and upgrading of airports, construction of

dams and bridges, The government of Zimbabwe also invites the private sector

into joint ventures in the Public Private Partnerships (“PPP”s), while investors can

also participate in Build Operate and Transfer (“BOT”) and Build Own Operate

and Transfer (“BOOT”) investment structures. BOT & BOOT structures

qualify for tax concessions as shown under the incentives section.

Road haulage, tourist transport, car hire and taxis.

Construction and upgrading of telecommunication facilities. Again PPPs,

BOT, BOOT are welcome.

Building of power generation & transmission facilities. PPPs, BOT, BOOT are

welcome.

Primary Agriculture

Construction of Buildings

Public Infrastructure

Transport

Agriculture

Infrastructure Development

ICT

Energy

Summary of Sector Opportunities




21

Zimbabwe had an estimated population of twelve million in 2006.

Zimbabwe’ s market potential is defined by its strategic geographic

location, right at the epicentre of East, Central and Southern Africa. Its

location as well as participation in regional integration initiatives has

transformed the country into a springboard to a market estimated at two

trillion United States dollars through membership of the proposed African

Free Trade Zone. Zimbabwe is South Africa’s biggest trading partner and a

supplier of manufactured goods to its northern neighbours. Intra regional

airlinks into most of the Southern African Development Community and

Common Market of Eastern and Southern Africa (“COMESA”) countries

also ensure that trade is continuously strengthened between Zimbabwe and

its fellow regional members.

Further attributes:

• 36 hour trucking delivery to at least 10 countries with a population of 170

million people.

• Direct flights to no less than 10 destinations in the region and the rest of the

world. Further destinations are accessed through Johannesburg in South

Africa which is only 90 minutes away from Harare.

• Rail links to all fourteen SADC countries and linked to East Africa

through the TAZARA rail line.

Market Access Below are descriptions of the blocs to which Zimbabwe belongs which it

offers as markets for potential investors.

Southern Africa Development Community

In 2008, the SADC agreed to establish a free trade zone with the East African

Community (“EAC”) and the COMESA including all members of each

of the organizations. Since 2000, the region began the formation of the

SADC free trade area (“FTA”) with the participation of the Southern African

Customs Union (“SACU”) countries (South Africa, Botswana, Lesotho,

Namibia, and Swaziland). Next to join were Mauritius, Zimbabwe, and

Madagascar. In 2008 Malawi, Mozambique, Tanzania, and Zambia joined

bringing the total number of SADC FTA members to 12. Angola, DRC

and Seychelles are not yet participating. On Wednesday October 22, 2008,

SADC joined with the COMESA and the EAC to form the African Free

Trade Zone (“AFTZ”). The leaders of the three trading blocs agreed to create

a single free trade zone, the AFTZ, consisting of 26 countries with a GDP of

an estimated $624bn (£382.9bn). It is hoped the AFTZ agreement will ease

access to markets within the zone and end problems arising from the fact that

several of the member countries belong to multiple groups. Analysts believe

that the AFTZ agreement will help intra-regional trade and boost growth.



22

Comparison With Other Regional BlocsAfrican Economic Community

Pillars regional blocs (REC) Area (km²) Population GDP (PPP) ($US) Member States in millions per capita

AEC 29,910,442 853,520,010 2,053,706 2,406 53

ECOWAS 5,112,903 251,646,263 342,519 1,361 15

ECCAS 6,667,421 121,245,958 175,928 1,451 11

SADC 9,882,959 233,944,179 737,335 3,152 15

EAC 1,817,945 124,858,568 104,239 1,065 5

COMESA 12,873,957 406,102,471 735,599 1,811 20

IGAD 5,233,604 187,969,775 225,049 1,197 7

WesternSahara 1 266,000 273,008 ? ? N/A 2

Other African Blocs Area (km²) Population GDP (PPP) ($US) Member States in millions per capita

CEMAC 3 3,020,142 34,970,529 85,136 2,435 6

SACU 3 2,693,418 51,055,878 541,433 10,605 5

UEMOA 3 3,505,375 80,865,222 101,640 1,257 8

UMA 4 5,782,140 84,185,073 491,276 5,836 5

GAFTA 5 5,876,960 166,259,603 635,450 3,822 5

1 The Sahrawi Arab Democratic Republic (SADR) is a signatory to the AEC, but not participating in any bloc yet

2 Majority under military occupation by Morocco; some territory administered by the SADR

3 Economic bloc inside a pillar REC

4 Proposed for pillar REC, but objecting participation

5 Non-African members of GAFTA are excluded from figures

smallest value among the blocs compared largest value among the blocs compared During 2004. Source: CIA World Factbook 2005, IMF WEO Database




23

Common Market of East and Southern Africa (COMESA)

COMESA is a preferential trading area with nineteen member states

stretching from Libya to Zimbabwe. COMESA was formed in December

1994, replacing a Preferential Trade Area which had existed since 1981. Nine

of the member states formed a free trade area in 2000 (Djibouti, Egypt, Kenya,

Madagascar, Malawi, Mauritius, Sudan, Zambia and Zimbabwe), with

Rwanda and Burundi joining the FTA in 2004 and the Comoros and Libya

in 2006.

COMESA is one of the pillars of the African Economic Community.

In 2008, COMESA agreed to an expanded FTZ including members of two

other African trade blocs, the EAC and the SADC.

(Source:Wikipedia)

World Trade Organization

The World Trade Organization (WTO) is an international organization

designed by its founders to supervise and liberalize international trade. The

organization officially commenced on 1 January 1995, under the Marrakesh

Agreement, succeeding the 1947 General Agreement on Tariffs and Trade

(“GATT”). The WTO deals with regulation of trade between participating

countries; it provides a framework for negotiating and formalising trade

agreements, and a dispute resolution process aimed at enforcing participants’

adherence to WTO agreements which are signed by representatives of

member governments and ratified by their parliaments.[4][5] Most of the

issues that the WTO focuses on derive from previous trade negotiations,

especially from the Uruguay Round (1986-1994). The organization is

currently endeavouring to persist with a trade negotiation called the Doha

Development Agenda (or Doha Round), which was launched in 2001

to enhance equitable participation of poorer countries which represent a

majority of the world’s population. However, the negotiation has been dogged

by “disagreement between exporters of agricultural bulk commodities and

countries with large numbers of subsistence farmers on the precise terms

of a ‘special safeguard measure’ to protect farmers from surges in imports. At

this time, the future of the Doha Round is uncertain.”[6] The WTO has

153 members,[7] representing more than 95% of total world trade[8] and 30

observers, most seeking membership. The WTO is governed by a ministerial

conference, meeting every two years; a general council, which implements the

conference’s policy decisions and is responsible for day-to-day administration;

and a director-general, who is appointed by the ministerial conference. The

WTO’s headquarters is at the Centre William Rappard, Geneva, Switzerland.

(Source:Wikipedia)

African, Caribbean and Pacific Group of States

The African, Caribbean and Pacific Group of States (“ACP”) is a group of

countries (currently 79: 48 African, 16 Caribbean and 15 Pacific), created

by the Georgetown Agreement in 1975. The group’s main objectives are

sustainable development and poverty reduction within its member states, as

well as their greater integration into the world’s economy. All of the member

states, except Cuba, are signatories of the Cotonou Agreement with the

European Union.

The Cotonou Agreement (signed in Cotonou, Benin in June 2000) is the

successor to the Lomé Conventions. One of the major differences from

the Lomé Convention is that the partnership is extended to new actors such

as civil society, private sector, trade unions and local authorities. These will be

involved in consultations and planning of national development strategies,

provided with access to financial resources and involved in the implementation

of programmes.

Many small island developing states are ACP states; the fourth Lomé

Convention was revised in 1995 in Mauritius and gives special attention to

island countries in this agreement



24

Land Tenure System

Land is classified according to its designated use and its geographical location.

The extent to which one is able to hold rights over the land is also determined

by the above mentioned zoning system.

Industrial land

This is mainly found in towns and designated growth points and rural service

centre. Any investor intending to acquire such land can approach the relevant

local authority such as a town council or rural district council in their area of

interest. Alternatively they can contact real estate agents who sell on behalf

of owner of such land. In certain cases direct negotiation with the owner

can take place. Investors are allowed to hold title upon fulfilling the purchase

requirements for such land.

Commercial land

This is mainly found in towns and designated growth points and rural service

centres. Acquisition of such land is similar to that of industrial land. Investors

are allowed to hold title over this land upon fulfilling all purchase requirements

of the seller.

Agricultural land

This is mainly reserved for locals. In very exceptional cases specific requests

can be submitted to the government through the Ministry of Land and

Land Redistribution. The government prioritises local ownership of such

land and foreign investors can get access to the land through contract farming

arrangements with local farmers. This land is accessed through a system of

leases issued by the Governemnt.

Social Amenities Hospitals

Zimbabwe’s health sector is split into two. The government health delivery

system is based on a hierarchy which begins with the local clinics which refer

to district hospitals who in turn refer to national heath institutions such as the

Parirenyantwa and Harare Hospital in Harare. There is Mpilo and UBH in

the country’s second largest city of Bulawayo.

The government health delivery system is complimented by a vibrant private

hospital sector where the Avenues Clinic, West End Hospital and St Annes

Hospital are prominent in Harare. The Mater Dei Hospital is also prominent

in Bulawayo. Combined the above facilities do offer a very intensive health care

system. More sophisticated procedures are referred to South Africa, which is

only ninety minutes away by air.

Schools

The Zimbabwe education system is similar to the British system. Students go

through seven years of Primary school, four to six years of secondary school

and then a minimum of three years in the Universities or technical colleges.

Zimbabwe has the most extensive primary and secondary education system

on the African continent which accounts for the 97% literacy rates. The public

education system is also complimented by a number of private schools who

offer world class facilities.

Sporting FacilitiesZimbabwe’s main sporting disciplines are soccer, cricket, rugby, tennis , golf and

athletics. Swimming is a growing sports due to the exploits of Kirsty Coventry

who has won two gold metals at the Olympics already.

Sporting enthusiasts will find a wide choice of sports clubs in most major

towns which offer very good facilities.




25

There is no doubting the business

potential that exists in Zimbabwe in

spite of the economic decline witnessed

over the past decade. The problems

in Zimbabwe, and the challenges the

Zimbabwe Government faces, are

well known. The issue at hand – an issue

that has broader regional implications

given Zimbabwe’s location in the SADC region and its relative comparative

advantages – is how does Zimbabwe prepare itself, how does it engage with

the international community, and how much is the Government prepared to

do to catalyse the economic recovery in Zimbabwe?

The All-Inclusive Government of Zimbabwe that took control of the State

in February 2009 – and that was ushered in through the SADC-mediated

Global Political Agreement (GPA) between the major political parties in

Zimbabwe – has found itself with the unenviable task of reversing over a

decade of social and economic deterioration of the majority of Zimbabweans.

The conditions are dire, but there is no doubt that this Government has hit the

ground running, amidst, of course, several teething problems.

Zimbabwe has many obstacles to overcome before it can hope of reclaiming

its once envious position as the breadbasket of Africa, but after years of

economic decline and an inflation rate that had spiralled out of control, the

country is now taking its first steps towards that goal. In spite of what has been

called Zimbabwe’s ‘lost decade’ the country has strong foundations on which

to base a recovery plan including excellent – albeit neglected - infrastructure

and agricultural land. The Development Bank of Southern Africa (DBSA)

has been at the forefront in engaging with various sectors in Zimbabwe, and

we shall continue to do so!

The DBSA provides a mix of financial and non-financial products and services

to a range of private and public sector clients and partners on the continent.

The DBSA also actively participates in key regional and international policy

dialogues, playing an advocacy and thought leadership role in development

finance matters.

The DBSA has a unique opportunity to contribute meaningfully and

strategically in Zimbabwe. Indeed, there are some good commercially

viable investment opportunities in both the public and the private sectors

that are waiting to be seized. The five roles of the DBSA as financier, partner,

integrator, advisor, and implementer are essential for economic recovery in

Zimbabwe, and may prove to be the critical factor in demonstrating to a

generally sceptical international community that Zimbabwe – supported

by its regional neighbours – is ready to do business. Unlike the majority of

the international community that have adopted a “wait and see” strategy, the

DBSA is taking the bull by the horns with a number of promising transactions

under consideration.

The SADC has acknowledged that the region should pave the way and

mobilise financial assistance to kick-start the process of normalizing the country.

There is no doubt that the unity government will have to take full responsibility

for policy decisions aimed at stabilising and rebuilding the economy. Thus far,

the country has taken some steps that should convey a positive message to the

international community. The Unity Government remains the best prospect

for a sustainable economic turnaround. Given the low base from which the

economy is clearly coming, and the inherent comparative advantages of the

economy, double-digit economic growth could be achieved comfortably

over a sustained period of time, provided external funding is sourced and the

right macroeconomic policies continue to be put in place.

Key catalyst for recovery remains external funding – both in terms in direct

budget and balance of payments support, as well as in project and trade finance.

Thus far the reaction from Western donors has been lukewarm. The DBSA

stands ready and committed to growth and development in the Zimbabwe

economy, and it is our firm belief that a resurging Zimbabwe economy will rub

off on the rest of the Southern African region in a positive way.

Sam Muradzikwa, Chief Economist, DBSA International

DBSA - Keen to partner Zimbabwe towards economic recovery



26

APPENDICES




27

Curiousabout

Zimbabwe?

Promoting Investment for Economic Development

P.O.BOX 5950, Harare, Zimbabwe, Tel:+2634757931-6, +2634759911-5, +2634780140-5, Fax:+2634773843

email: [email protected] URL: www.zia.co.zw



28

Appendix 1Licensing Requirement - Procedures For Foreign Investors

Process of company registration

All companies in Zimbabwe have to be registered by the Registrar of

Companies under the Companies Act or the Private Business Corporation

Act. Upon successful registration, the company obtains a Certificate of

Incorporation. Only the locals are allowed to operate under the Corporate

Act as private businesses such as sole trader.

The process of company registration involves the submission of an application

form CR12 to the Chief Registrar of companies. This form enables the Chief

Registrar to conduct a name search at a fee within 14 days and cause company

name reservation from the options submitted. The applicant then submits

a Memorandum and Articles of Association in the name of the reserved

company. Incorporation of the Company follows. This may take up to three

weeks.

Process of Investment Project Approval and Registration

All new foreign investment into Zimbabwe requires an Investment License

issued by the ZIA upon successful approval of a project proposal submitted

to the Authority. A completed application form (ZIA 1) acts as the project

proposal. The application forms can be collected from the ZIA offices or

down loaded from the ZIA website (www.zia.co.zw)

Licence Fee structure

A processing fee of US$500 non-refundable shall be paid on submission of the

application and US$2500 shall be paid when the license is issued.

Appendix 2Immigration Requirements

Residence, Visa/Work Permits Requirements

Visas are not required for certain listed countries available from the Department

of Immigration and in other cases; visas may be applied for in advance of arrival

from the Zimbabwe Embassy and Trade Missions. Investors who:

• Invest not less than US$1 million in a project approved by the ZIA will

qualify for permanent residence on application.

• Invest at least US$300 000 in a sole business venture in a project approved by

ZIA will qualify for a 3 year residence permit at the end of which permanent

residence may be granted.

• Invest US$100 000 in a joint venture, approved by the ZIA, with a

Zimbabwean citizen will qualify for a 3 year residence permit at the end of

which permanent residence may be granted.

Any foreigner wishing to take up employment in Zimbabwe must first be

in possession of a valid work permit. Immigration regulations permit, local

companies to employ foreigners under temporary work permits. Such

permits are issued by the Department of Immigration, at their discretion, upon

application by the company, which should provide proof that the requisite skill

cannot be sourced locally. The foreigner will only be permitted to work within

the capacity for which that specific permit was issued. Spouses and minors

may reside in Zimbabwe provided that they do not take up employment.




29

Exchange Control Regulations

Foreign investment into existing and new companies requires RBZ approval.

Exchange control is administered through the RBZ which implements the

government policies concerning foreign exchange. Exchange control is guid-

ed by The Exchange Control Act [Chapter 22:05] and directives are issued by

the RBZ.

Exchange control approval for repatriation of dividends, payment of for-

eign loans (interest and principal) and payment of foreign suppliers may be

obtained through a Zimbabwean commercial or merchant bank that is an

Authorised Foreign Exchange Dealer (“Authorised Dealer”). The banks liaise

with the RBZ on the investor’s behalf

Foreign capital inflows

Foreign investors and visitors may bring an unlimited amount of foreign cur-

rency into the country. Foreign investors may bring equity into the country

in the form of cash or machinery and equipment. Foreign investors are not

permitted to capitalize, as part of equity; raw materials, technical and licensing

fees and other services.

Repatriation of Investment

The Zimbabwean Government guarantees the repatriation of 100% of the

original capital investment in the case of disinvestment if the foreign currency

is available in the business for that purpose. Up to 100% of dividends from net

after tax profit may also be remitted. Investors who become permanent resi-

dents may not remit their dividends without prior approval of the RBZ.

Foreign Currency Accounts (FCAs)

Since the Zimbabwean dollar is not in use at the present time, it is essential that

an FCA is used. Corporate and individual FCAs may be opened with local

commercial banks. Export proceeds are eligible for credit to a corporate FCA.

In the past there was a requirement to sell a proportion of the foreign currency

to the RBZ (15-45%) at the rate prescribed by the government but this is no

longer necessary.

Borrowing

• Local: no restrictions on local borrowing for working capital

• Foreign: all companies operating in Zimbabwe are free to borrow offshore

provided such loans are transacted through an authorised dealer. All external

loans require External Loans Coordination Committee (“ELCC”) approval

• Foreign currency financing of capital inwards investment projects can only

be undertaken using funds injected from outside of Zimbabwe, or by utilising

retained foreign currency earnings.

Appendix 3



30

Fiscal Guide 2009 courtesy of KPMG (Zimbabwe)

Income TaxBusiness Income

Tax is levied on a source or deemed source basis. Residents are taxed on

domestic-source income and certain types of foreign income. Non-residents

are usually taxed on Zimbabwe-source income and are subject to a range of

withholding taxes, some of which may be reduced in terms of a double tax

treaty negotiated with the country of the recipient.

RatesResident Companies

Corporation tax:

General Rate 30% + 3% AIDS Levy

Mining Companies 15%

Manufacturing Companies In Growth Point Areas 10%

Manufacturing Companies Which Export At Least 50% Of Output 20%

EPZ enterprises (after 5th year of operations) 15%

Capital Gains Tax 20%

Dividends Distributed By Local Company Exempt

Foreign Dividends 20%

Interest 20%*

Royalties are Taxed as ordinary income

Resident Individuals

Individual tax 0% - 37.5%**

AIDS levy on individual income tax 3% of tax

Capital gains 2 0%

Dividends 15%* or 20%*

Interest from financial institution 20%*

Royalties and fees Taxed as ordinary income

Directors Fees (non-executive directors) Treated as business

income, subject to 20%

advance withholding tax

(WHT)

Commissions 20%*

Non-Residents

Corporation tax As for residents

Individual income tax As for residents

Surcharge on individual income tax As for residents

Capital gains tax As for residents

Dividends 15%* or 20%*

Interest from financial institution 10%*

Royalties 20%*

Fees (whether remitted or not) 20%*

Remittances of allocable expenditure 20%*

* Tax withheld at source

** Individual’s Income Tax Table (w.e.f. 1.02.09)

Income Band (US$) Tax Rate (%)

Up To - 1 650 0%

1 651 - 5 500 20%

5 501 - 11 000 25%

11 001 - 16 500 30%

16 501 - 33 000 35%

Over - 33 000 37.5%

Appendix 4




31

Capital Gains Tax

Capital gains on “specified assets” are taxed in terms of the Capital Gains

Tax Act 1981. Broadly speaking, specified assets are defined as immovable

property and marketable securities. To avoid double taxation, transactions

which are subject to income tax are excluded from the scope of the Capital

Gains Tax Act. In determining a capital gain, deductions from sale proceeds

include:

• Expenditure on the acquisition or construction of a specified asset excluding

expenditure in respect of which an income tax deduction is allowable

• Expenditure on additions, alterations, or improvements to a specified asset

Direct selling expenses

• An allowance of 2.5% per annum of the cost of acquisition and construction

and subsequent additions, alterations and improvements from the date such

costs were incurred to date of sale

Transfer Pricing and Thin Capitalisation

The Act includes a specific anti-avoidance provision dealing with specified

assets which are purchased at inflated prices or sold at less than fair market price.

The Commissioner of Taxes has the power to substitute the fair market price

in such instances. Deduction of interest on borrowings is restricted to the

interest on the portion of debt up to the point where the debt equity ratio is

3:1. The excess interest would be classified as a dividend and subjected to the

dividend withholding tax of 20%.

Inheritances and Donations

Estate duty is levied on the worldwide estate of every deceased person who

was ordinarily resident in Zimbabwe at the time of his death. Foreign assets

acquired prior to 1 January 1967 and any such assets acquired prior to the

deceased becoming ordinarily resident in Zimbabwe are excluded. The rate of

duty varies from 0.02% - 5% of the dutiable estate. There is a tax free threshold of

US$50 000 before duty can be levied. No donations or gift tax is levied.

Transaction Taxes

The standard rate of Value Added Tax is 15% of the value of goods and services

supplied or imported. Certain goods are zero rated and these are listed in the

schedules to the statute.

Stamp and Transfer Duty

Stamp Duty is levied on a number of instruments specified in the Stamp Duties

Act (Cap.23:09). The rate of duty varies according to the nature of the instrument

involved and the value of the matter to which it relates. Transfer duty is levied at a rate

of 6% of the value of the realised value of property transferred. Property is defined as

any land in Zimbabwe including buildings and improvements thereon.



32

Other TaxesTax Basis RateInformal Traders of rental amount payable 10%*Small-scale miners of purchase price of precious metal or stones 5%**Operators of taxicabs (Quarterly tax) – seating capacity 8 - 14 persons1 US$150 - seating capacity 15 - 24 persons US$200 – seating capacity 25 - 36 persons US$400 – seating capacity 37 or more persons US$650Driving schools (Quarterly tax) – class 4 training US$500 – class 1 & 2 US$600 Haulage trucks (Quarterly tax) – more than 10 tones but less than 20 tones US$1 000 - including trailers US$2 500 – 20 tones or more US$2 500Hair salons (Quarterly) - on income US$1 500 Tobacco levy Purchase price of tobacco on auction floor 1.5%

* Collected by the Lessor.

** Collected by the registered agent.

Double Tax Treaties and Reduced Rates

Country Dividends Qualifying Companies Interest Royalties Technical Fees Bulgaria 10% 10% 10% 10%Canada 10% 15% 10% 10%France 10% 10% 10% 10%Germany 10% 10% 7.5% 7.5%Mauritius 10% 10% 15% n/aThe Netherlands 10% 10% 10% n/aNorway 15% 10% 10% 10%Poland 15% 10% 10% 10%South Africa n/a n/a (1) n/aSweden 15% 10% 10% 10%

United Kingdom 5% 10% 10% 10%

1 Exempt from tax in Zimbabwe if taxable in the contracting state.

n/a No specific withholding provisions; standard rate therefore applies.

Treaties with Democratic Republic of Congo, Iran, Malaysia, Seychelles, Serbia and Montenegro have been signed but are not yet in force. Treaties with Namibia and South

Africa are under negotiation.




33

Customs Duties

With effect from 1 February 2009, all customs and excise duties became payable in foreign currency. There is now a seven day credit facility for the payment of customs duties. This

allows importers to bring in goods and pay duty later (within seven days). Traveller’s rebate is now US$300 per calendar month but there are restrictions as to the quantities that

qualify for personal goods. Excess quantities are treated as commercial goods and subject to the relevant customs duties.

The maximum rates of duty have been revised as per the table below.

Product Previous rates of customs duty Current rates of customs duty

Raw materials 0% - 25% 0% - 15%

Intermediate goods 10% - 25% 10% - 15%

Finished goods

Clothing & textiles 40% -60% + US$10/kg 40% + US$5/kg

Clothing & textiles (school uniforms) 60% + US$10/kg 25%

Footwear 40% + US$5 per pair – 60% 40% + US$5 per pair

Electrical goods 60% 40%

Alcohol & alcoholic beverages 60% 40%

Cigarettes & tobacco 60% + US$5/1000 40% + US$5/1000

Motor vehicles 40% - 80% 25% - 60%

Handbags and other articles of leather, plastic or textile material 60% + US$5/kg 40% + US$5/kg

Fruit and vegetables 40% 25%

Investment Information

In general, the attitude towards foreign investment is positive. Whilst there are

no sectors or regions reserved for nationals to the exclusion of foreigners, the

government considers it a priority that Zimbabweans should have adequate

opportunities to participate in the economy. Majority foreign participation

is permitted in high priority projects and applications for 100% foreign

ownership will be considered on a case by case basis.

Investment Incentives

All holders of investment certificates are eligible for the general incentives

under the Act as well as the following special incentives:

• Rural enterprises and farming – generous capital and investment allowances

on capital expenditure, concessional tax rate of 15% and exemption from tax

for the first five years on dividends received from farming

• Licensed to operate a bonded factory

• Self-employment or residence permit plus work permits for up to five

expatriates if an investor invests at least US$250,000 and employs at least 10

people.

• Repatriation of dividends and profits, principal and interest of any foreign

loan, management fees, royalties and net proceeds of sale or liquidation of the

business.

• Licensed as an economic development zone or export processing zone.

Exemption from customs duties, sales duties and VAT on all machinery and

equipment.



34

Exchange Control

Exchange control is administered by the Reserve Bank of Zimbabwe. Whilst

few restrictions are imposed on imports, remittance of capital, dividends,

royalties, and expatriate earnings, all require prior approval. Companies may

remit 100% of after-tax profits but no remittances are permitted from retained

income and any remittances should be made within 12 months of the date of

the balance sheet. Approval is required for the purchase of all unlisted securities

by foreigners and a maximum of 40% of any listed counters may be foreign-

held.

Annual Budget Announcement

The Minister of Finance generally announces the annual Budget and Taxation

Proposals in October each year for the tax year commencing on 1 January

thereafter. This year the budget was presented on 29 January 2009 and revised

on 16 February 2009 before promulgation on 23 April 2009.

Bilateral Trade and Agreements

Membership – WTO, ACP-EU Partnership Agreement, SADC,

COMESA, Organisation of Copper Producing and Exporting Countries

(CIPEC). Trade Agreements entered into with Botswana, Mozambique,

Romania, Bulgaria Iraq and Tanzania. Investment treaties entered into with

Malaysia, Portugal, UK, Germany, China, Switzerland, Yugoslavia, Denmark,

Netherlands, Sweden, India, Indonesia, Jamaica, Italy, Iran, Egypt and Czech

Republic. Zimbabwe is a signatory to the 1965 World Bank Convention on

Settlement of Disputes between States and nationals of other States (ICSID).

Economic Statistics

Prime Interest Rate (April 2009) Libor rate plus 5% pa

Inflation (31 May 2009) -1,1%

Travel Information

Visa Requirements Visas are generally required for travel into Zimbabwe (check with your local embassy)

Flights Daily flights into Harare from South Africa and regular flights from international and regional hubs.

Inoculations Standard requirements

Key contacts

Michael de Beer

Tax Partner - KPMG

Telephone: +263 4 302 600

Email: [email protected]

Terry Matavire

Senior Partner - KPMG

Telephone: +263 4 302 600


Steve Matoushaya

Director - Tax Advisory Services

Telephone: +263 303 700





35

Appendix 5

Mining Incentives

Royalties, Rentals and Taxation

Royalty which is not deductible for income tax purposes, shall be calculated

as a percentage of the gross fair market value of minerals produced and sold as

follows:

Precious stones 10%

Precious metals 3%

Base metals 2%

Industrial minerals 2%

Coal bed methane gas 2%

Coal 1%

• Surface rentals, which are not deductible for income tax purposes, shall be

charged at different rates/levels, during the prospecting/exploration phase

and the development/mining phase of mining project, and will be levied

according to a published table of the rates of surface rents.

• Income tax on mining operations shall be levied at a flat rate of 15%. All

capital expenditure (exploration, development and operating) incurred

wholly and exclusively for mining operations will be allowed as a deduction at

the rate of 100%.

• Mining companies shall continue to enjoy indefinite carry forward of their

tax losses.

• A 5% withholding tax on dividends for both residents and non-residents

for companies listed on the Zimbabwe Stock Exchange (ZSE) shall be levied.

All other companies are levied at a rate of 10%

• In addition, a 5% withholding tax on interest for both residents and non-

residents shall be levied.

Allowable deductions

Separate mines (operating under separate mining titles) shall, as a general rule,

be ring fenced.

• However, upon application to the appropriate authorities, combinations

could be entertained for exploration that has been relinquished by a mining

company.

• In exceptional situations where a combination of mining operations of a

similar nature, for a limited period, will avert a mine closure, accounts could be

combined for tax purposes.

• General and Administrative Costs (G& A) incurred at a Head Office or

by a Parent Company shall be limited to a maximum of 0.75% of allowable

deductions (as defined in the Income Tax legislation) during pre-production

phase of the project and, a maximum of 1% of gross income for that year in the

production phase of the project.

• Allowable as deduction shall be interest paid on borrowing of a debt to

equity ratio of up to a maximum of 3 to 1, and any payments in excess of this

figure shall be treated and taxed as a dividend.

• Loans and any other form of financial accommodation from an affiliated

company or any financial institutions shall be at Arm’s Length Interest Rates..

With regards to interest rate that the Director General of the Zimbabwe

Revenue Authority considers to be in excess of the market rate, that part of

payment, which exceeds the market rate, shall be disallowed as deduction and

the amount of interest so disallowed shall be treated and taxed as a dividend.

FCAs, Customs & Minerals Export

There shall be exemption from Customs Duty, Import Tax and Surtax and

refund of VAT on all capital goods, during the exploration phase of a mining

project and, for a period of up to a maximum of 5 years from the date of grant

of mining title, during the development phase of a mining project.

Mining companies shall be granted the right to market their minerals directly,

in accordance with the provisions of the Minerals Marketing Corporation



36

of Zimbabwe Act, and subject to adequate monitoring arrangements and

reporting obligations on the part of the mining company.

Capital Allowances

Asset Category Special Initial Allowance % of

Cost

Mining equipment 100

The taxpayer may elect to use either the “Special Initial Allowance” (SIA)

for assets acquired by him, or Wear & Tear”. Where the SIA is elected, 25%

accelerated wear and tear (on a straight-line basis) is allowed for the following

3 years.

Losses

Mining companies, may carry forward losses indefinitely, other companies in

other sectors may be carry forward for a maximum

Tourism Sector Incentives

This is a rapidly growing sector of the economy, providing a large proportion

of the economy and a large proportion of the country’s foreign exchange

earnings. The major tourist centers include Victoria Falls, Hwange National

Park, Kariba, Great Zimbabwe, and the Eastern Highlands. The sector has nine

designated zones for special promotion identified as Tourist Development

Zones that await investor exploitation with special incentives attached to them.

The TDZs are currently as follows:

• Beitbridge/ Shashe/ Limpopo and surroundings

• Gonarezhou (GLTP)/ Chiredzi and surroundings

• Great Zimbabwe National Monument/ Lake Mutirikwi and

surroundings. Investors in areas designated as Tourism Development Zones

(TDZ) will enjoy the following incentives.

• Taxable income –

First five years of operation 0%

Second five years of operation 15%

Third five years of operation 20%

Thereafter normal corporate tax rates apply of 30%

• Duty Refund of duty on capital goods imported for use in the

tourist development zone

Preferential Zones

Growth Point Areas: to encourage commercial and industrial development

in selected parts of the country, the Minister of Finance may prescribe an area

as a Growth Point Area. Commercial and industrial operations carried out in

approved growth point areas are granted additional allowances and qualify for

more favorable rates of tax for the first five years, as follows:

(a) Manufacturing company 10%

(b) Any taxpayer providing roads, bridges,

sanitation, water reticulation 15%

N/B: There after normal tax rates of 30% apply.

Other Special Rates

Approved BOT 1st 5 years 0%

2nd 5years 15%

3rd 5years 20%

Thereafter 30%




37

Appendix 6: Summary of key Project Profiles

Code

Zim 01

Zim 02

Zim 03

Zim 04

Zim 05

Zim 06

Zim 07

Zim 08

Zim 09

Zim 10

Promoter

Zimbabwe Power Corporation

Hwange Colliery

National Railways of Zimbabwe

Air Zimbabwe P/L

TelOne

Grain Marketing Board

IDBZ and Africom Continental P/L

African Associated Mines

Small Enterprises Development Company

IDC

Project To Be Undertaken

• Spruce up existing plant, i.e. carry out refurbishment

• Expansion of Hwange Power Station by 2X300MW , transmission

lines and coal mining

• Expansion of Kariba Power Station by 2X150MW

Recapitalisation of Hwange Colliery Operations

Refurbishment of Equipment

Aircraft Fleet Renewal & Hanger Fire Protection System

Telecommunications Network Upgrade & Capacity Expansion Project

comprising 3 Lots, which are:

• Lot 1 : Optical Fibre National Transmission Backbone

• Lot 2 : Soft Switching/IP Nodes

• Lot 3 : Access Networks

The project will deliver 1,600,000 wireless voice lines, 64,000 fixed lines, 2,000

Data (Frame Relay Ports). It will also provide extra transmission capacity for other

licensed operators as well as an MPLS platform for broadband rollout as well a

centralised Network Management System.

Contract Farming

This is a national priority project as the route is a strategic component of the

envisaged National Transmission Backbone. The project not only has immense

commercial value, but also significant development impacts hence its national

priority status.

Chrysotile fibre mining. Funding is required to restart production from the current

care & maintenance status of the two mines. Positive nett cash inflows (cashflow

statement) of nearly USD2m are envisioned from 2011, rising to nearly USD15m

by end of 2012. Payback period of 4 yrs for a USD60m loan

Lending of short-term loans to 200 SMEs into value adding projects. The sectors

are food processing, garment making especially school uniforms, metal fabrication,

and carpentry

Diamond Exploration, mining and processing

Value of Investment Sought

US$900,000,000

US$160,000,000

BOT

Us$750,000,000

US$278,000,000

US$13,500,000

US$60,000,000

US$2,000,000

US$200,000,000

*For the full list of available projects please refer to the Interactive DVD



38

PROJECT CODE

PROMOTING INSTITUTION

OWNERSHIP STRUCTURE

Implementing Vehicle

COMPANY PROFILE

TYPE OF PROJECT REQUIRING FUNDING

VALUE OF PROJECT

PROJECT LOCATION

PARTNERSHIP PROPOSAL

PROMOTER’S CONTRIBUTION

(Immediately Available)

CAPITAL REQUIRED (State whether equity, loan, etc)

IMPLEMENTATION TIMETABLE

(State of readiness of promoter)

PROJECT DOCUMENTATION AVAILABLE

(available for potential partners to view during conference)

PROMOTER’S REPRESENTATIVE

FINANCIAL ADVISORS

BANKERS

POSTAL ADDRESS

EMAIL ADDRESS

CONTACT TELEPHONE NUMBER

Zim 01

Zimbabwe Power Corporation

Government

Statutory Body

Power Generation

Expansion of Hwange Thermal and Kariba South Power Stations. Additional

opportunities in Mini-Hydro Plants.

US$ 900,000,000.00

Hwange & Kariba

Joint Venture

CASH TBA

ASSETS - value TBA

OTHER (eg mining or hunting concession)

CASH US$900,000,000.00

ASSETS - value

Technical Expertise √

OTHER

Immediate – within three months √

Medium Term – three to twelve months

Long Term – Over twelve months

Full feasibility study √

Preliminary feasibility study

Project concept only

Other

Engineer Rafamoyo

Tba

Tba

Electricity Centre, 25 Samora Machel Ave, Harare

+ 263 -4 -774508/35

Zimbabwe Power Corporation – Power Generation




39

PROJECT CODE


OWNERSHIP STRUCTURE

IMPLEMENTING VEHICLE

COMPANY PROFILE


VALUE OF PROJECT

PROJECT LOCATION


PROMOTER’S CONTRIBUTION

(immediately available)

CAPITAL REQUIRED

(State whether equity, loan, etc)

IMPLEMENTATION TIMETABLE

(State of readiness of promoter)

PROJECT DOCUMENTATION AVAILABLE (available for potential

partners to view during conference)


FINANCIAL ADVISORS

BANKERS

POSTAL ADDRESS

EMAIL ADDRESS


Zim 02

Hwange Colliery

Government

Statutory Body

Produces coal and coke

The project involves recapitalisation of Hwange Colliery Operations

US$ 160,000,000.00

Hwange

Joint Venture/ Lines Of Credit

CASH

ASSETS - value


CASH

LOAN

ASSETS - value

Technical Expertise

OTHER




Full feasibility study



Other

Mr F Moyo (Managing Director) Hwange Colliery

17 Nelson Mandela Ave, 7Th Floor Coal House, P.O Box 2870, Harare

[email protected]

+263-81-23101/7

Recapitalisation Of Hwange Colliery



40

National Railways Of Zimbabwe (NRZ) Expansion And Refurbishment Project

PROJECT CODE

BRIEF INTRODUCTION

SHAREHOLDING STRUCTURE

TYPE OF INVESTMENT PARTICIPATION

BENEFIT ANALYSIS

USAGE OF PRODUCTS

MARKET OF THE PRODUCTS

PROJECT ENVIRONMENT

PROJECT PROGRESS

ENTERPRISE POTENTIAL

FINANCING REQUIREMENTS (Millions US$)

CONTACT PERSON

ENTERPRISE ADDRESS

CONTACT DETAILS

Zim 03

The NRZ’s mandate is to provide affordable and efficient rail transport to major towns,

commercial and rural areas of Zimbabwe. The project is to upgrade the railway system as

it plays a major role in industrial, mining and agricultural development. The rail network

has a design capacity of 18 million tonnes and this tonnage was achieved in 1985. The

entity has been operating between 30-50% capacity due to inadequate rehabilitation and

maintenance of equipment and infrastructure.

NRZ is a parastatal 100% owned by Government of Zimbabwe.

BOT

When the project is completed it will facilitate the transportation of goods for various

purposes in the mining, agricultural and manufacturing sector. The project will enhance

export of transport services within the region and generate foreign currency for the

nation and the company.

Transportation of raw materials, minerals and manufactured goods locally and regionally.

Zimbabwe is now becoming a gateway for traffic within the region especially for

Zambia, Malawi, DRC, Tanzania e.t.c. There has been an increase in the demand for

transport services within the region. Zimbabwe is centrally located for the ease of

facilitation of trade with the SADC region.

NRZ has a wide railway network which cuts across the whole nation which makes it a

lucrative investment.

Feasibility study completed and project is awaiting funding for immediate

implementation.

The project involves the upgrading of the railway system as it plays a major role in mining,

manufacturing and agricultural development.

274

MR. M.T KARAKADZAI (GENERAL MANAGER)

P.O. BOX 596, BULAWAYO

+263 9 363518, +263 9 363 365,+263 9 363 685

+263 9 363 257




41

Air Zimbabwe Holdings-Recapitalisation Of The Airliner

PROJECT CODE


OWNERSHIP STRUCTURE


COMPANY PROFILE/INSTITUTION


VALUE OF PROJECT

PROJECT LOCATION


PROMOTER’S CONTRIBUTION (Immediately Available)


IMPLEMENTING TIMETABLE – (State of readiness of promoter)

PROJECT DOCUMENTATION AVAILABLE


FINANCIAL ADVISORS

BANKERS

POSTAL ADDRESS

EMAIL ADDRESS


Zim 04

Air Zimbabwe Holdings

Government

Statutory Body

Aircraft Fleet Renewal & Hanger Fire Protection System

USD750 Million

Harare Airport

60/40% Shareholding Private Sector/Government

CASH

ASSETS – VALUE

USD750 Million

OTHER (e.g mining or hunting concession)

Immediate – within three months

Hanger Fire System



Fleet Renewal


Preliminary feasibility study available


Other

Ernest & Young

CBZ

Box AP1,Harare

[email protected]

+263-4-4575111



42

PROJECT CODE


OWNERSHIP STRUCTURE


COMPANY PROFILE/INSTITUTIONAL PROFILE


VALUE OF PROJECT

Zim 05

TelOne, Zimbabwe

Government

Private Limited Company

TelOne is one of three successor companies of the Posts and

Telecommunications Corporation of Zimbabwe (PTC). The other two are

NetOne and Zimpost. TelOne is licensed to provide Voice, Data and Internet

services – effectively all the 3 play services . TelOne is totally owned by the

Zimbabwe Government. TelOne’s Executive Management comprises of the

Managing Director, 3 Executive Directors (ie Finance & Admin, Commercial

and Technical Director ), reporting to the Board appointed by the Minister of

Information and Communication Technology (ICT)

Telecommunications Network Upgrade & Capacity Expansion Project

comprising 3 Lots, which are;

• Lot 1 : Optical Fibre National Transmission Backbone

• Lot 2 : Soft Switching/IP Nodes

• Lot 3 : Access Networks

Turnkey planning, procurement, installation & commissioning of switching,

transmission, data and access equipment for the provision of voice, data services

and Internet countrywide. The project will deliver 1,600,000 wireless voice

lines, 64,000 fixed lines, 2,000 Data (Frame Relay Ports). It will also provide extra

transmission capacity for other licensed operators as well as an MPLS platform for

broadband rollout as well a centralised Network Management System.

(Million)

Lot 1 US$ 98.0

Lot 2 US$ 90.0

Lot 3 US$ 90.0

Total US$ 278.0

TelOne Zimbabwe - Network Upgrade




43

PROJECT LOCATION


PROMOTER’S CONTRIBUTION (IMMEDIATELY AVAILABLE)


Lot 1 : Optical Fibre National Transmission Backbone

Harare-Mutare-Forbes Border Post Link

Harare-Kwekwe-Gweru-Masvingo-Beit Bridge Link

Beit Bridge-Bulawayo-Victoria Falls Link

Gweru-Bulawayo-Plum tree-Botswana

Harare-Mrewa-Mutoko-Malawi

Mutare-Juliasdale-Nyanga

Hwange-Binga-Gokwe-Kwekwe

Lot 2 : Soft Switching/IP Nodes

Harare

Bulawayo

Gweru

Mutare

Masvingo

Lot 3 : Access Networks

Harare

Bulawayo

Gweru

Mutare

Masvingo

Rascom

Loan

Public Private Partnerships (PPP)

CASH

Nil

ASSETS - value

(To be determined)


CASH USD 278.0 Million

ASSETS - value (To be determined)

Technical Expertise Yes




44

IMPLEMENTATION TIMETABLE – (State of readiness of promoter)




FINANCIAL ADVISORS

BANKERS

POSTAL ADDRESS

EMAIL ADDRESS


OTHER


Medium Term – three to twelve months √

Long Term – Over twelve months √



Project concept only √

Other

Managing Director – Mr Hampton Mhlanga

CBZ

Stanbic Bank & Standard Chartered Bank

TelOne, Runhare House, 107 Kwame Nkrumah Ave, P O Box CY 331,

Causeway, Harare, Zimbabwe

[email protected]

+263-4-798111





45

PROJECT CODE


OWNERSHIP STRUCTURE




VALUE OF PROJECT

PROJECT LOCATION



CAPITAL REQUIRED (State whether equity, loan, etc.)





FINANCIAL ADVISORS

BANKERS

POSTAL ADDRESS

EMAIL ADDRESS


Zim 06

Grain Marketing Board

Government

Statutory Body

The Grain Marketing Board (GMB) is a parastatal that is involved in the business

of agricultural grain trading, storage, processing and logistics. The company

is wholly owned by the Government of Zimbabwe and is run by a Board of

Directors appointed by Government.

Contract Farming

US$13,500,000.00

Manicaland, Midlands, Mashonaland East, Mashonaland West and

Mashonaland Central

Loan

CASH

ASSETS – Value √

OTHER (eg. Mining or hunting concession)

CASH

Loan

ASSETS- Value

Technical Expertise

OTHER

Immediate – within three months

Medium Term – three to twelve months √



Preliminary feasibility Study

Project concept only √

Other

Mr. A Mandizha – General Manager

179-187 S.Machel, Eastlea, Harare, Zimbabwe

[email protected], [email protected],

+263 4 701870-95 or +263 4 791525

Grain Marketing Board - Contract Farming



46

Broadband Connectivity by Africom Continental (Pvt) Ltd

PROJECT CODE


OWNERSHIP STRUCTURE



Zim 07

IDBZ and Africom Continental (Pvt) Ltd

Private

Africom Continental (Private) Limited is a Special Purpose Vehicle (SPV) company

formed by Africom (Private) Limited, the IDBZ, and NSSA to spearhead the

development of an optic fibre telecommunications link between the cities of Harare

and Mutare.

Shareholding Structure

The shareholding structure for Africom Continental is as follows:

Shareholder % Shareholding

Africom (Private) Limited 50%

IDBZ 30%

NSSA 20%

Total 100%

Directorship

Africom Continental (Pvt) Ltd board was formally constituted on 18 May 2007 and is

composed of the following members:

K. Kashangura Representing Africom (Private) Ltd

N. Nyagura Representing Africom (Private) Ltd

A. Machimbirike Representing IDBZ

W. Mubaiwa Representing IDBZ

B. Chidyagwai Representing NSSA

B. Musvaire Representing NSSA




47

Management Structure

Africom (Pvt) Limited was appointed to manage implementation of the

project. This was premised on the fact that the Africom (Private) Limited

team has successfully implemented a similar project before; the Makwiro /

Zimplats project over 80 km, using techniques similar to those to be employed

on the Harare/Mutare project. The civil works for this particular project were

handled internally using the flexible firm concept with locals being employed

for some of the labour intensive tasks. Africom’s Chief Executive Officer, Mr

K Kashangura, is the Entrepreneur of the Year 2009.

The Project

The project is currently under implementation with trenching now approach-

ing Macheke (approximately 50% of the route) and is behind schedule due to

cost overruns associated with the previous hyper inflationary environment.

The promoters seek to raise additional funding to complete the project. This

may possibly entail changing the project procurement model in order to com-

plete the project within three months of securing funding. This is a national

priority project as the route is a strategic component of the envisaged National

Transmission Backbone. The project not only has immense commercial val-

ue, but also significant development impacts hence its national priority status.

COMPANY PROFILE/INSTITUTIONAL PROFILE (ctd)

Broadband Connectivity by Africom Continental (Pvt) Ltd



48

Coal Bed Methane Production In Zimbabwe

PROJECT CODEPROMOTING INSTITUTIONOWNERSHIP STRUCTUREImplementing VehicleCOMPANY PROFILE/INSTITUTIONAL PROFILETYPE OF PROJECT REQUIRING FUNDING

VALUE OF PROJECT

PROJECT LOCATION





PROJECT DOCUMENTATION AVAILABLE (available for potential partners to view during conference)

PROMOTER’S REPRESENTATIVEFINANCIAL ADVISORSBANKERSPOSTAL ADDRESS

EMAIL ADDRESSCONTACT TELEPHONE NUMBER

Zim 08Reserve Bank Of ZimbabweGovernment Statutory Body Gas ProductionThe project involves partnership in exploration, mining and establisjing processing plants .US$ 250,000,000.00

Lupane and low veld.

Joint venture/ lines of credit

Cash --Assets - Value -Other (Eg Mining Or Hunting Concession) Cash LoanAssets - Value -Technical Expertise -Other -

Immediate – within three months √Medium Term – three to twelve months Long Term – Over twelve months Full feasibility study Preliminary feasibility study Project concept only

Mr Thankful Musukutwa- -Precious minerals& provincial research division, rbzRESERVE BANK OF ZIMBABWEP.O BOX 1283, HARARE

[email protected]+263-4-703000




49

PROJECT CODE


OWNERSHIP STRUCTURE

Implementing Vehicle



VALUE OF PROJECT

PROJECT LOCATION




POSTAL ADDRESS


Beitbridge Chirundu Toll Road

Zim 09

Ministry of Transport and Infrastructure Development

Government Statutory Body Gas Production

The project involves the construction of the Beitbridge Chirundu Toll road

Estimated at US$ 1 billion

Lupane and low veld.

BOOT or other PPP framework

- Government is looking for a partner to implement the project on a BOOt or other PPP framework. Kaguvi Building, Cnr Central Avenue, Fourth Street, Harare

+263-4-252396



50

PROJECT CODE

OWNERSHIP STRUCTURE



TYPE OF INVESTMNET PARTICIPATION

BENEFIT ANALYSIS

USAGE OF PRODUCTS

MARKET OF THE PRODUCTS

PROJECT ENVIRONMENT

FINANCIAL REQUIREMENTS

(MILLIONS USD)

Zim 10

Government

Statutory Body

Tokwe Mukosi Dam is situated about 75 km South of Masvingo City,

Zimbabwe’s oldest city. The dam is within the vicinity of the sugar estates of

Zimbabwe.

Built Operate and Transfer (BOT)

The dam construction and irrigation development could boost sugar and citrus

production in the country for exports. The project is expected to boost the

country’s electricity generation capacity. The surrounding irrigation projects and

the potential receipts from electricity generation will guarantee increased returns

to the investor.

Water from the dam is expected to irrigate 25,000 hectares of land under

sugarcane, citrus and horticultural crops. The dam will also have capacity to

generate hydro-electricity.

There is ready market in the surrounding farms and electricity generated will also

be utilised in the country and for exports purposes.

The dam project site is situated about 75 km South of Masvingo City. The site

of the project is easily accessible by road and covered by mobile communications

network.

36

Tokwe Mukosi Dam Construction




51

Important Contacts In ZimbabweOffice of the President and CabinetMunhumutapa Building

Samora Machel Avenue, Harare

Tel: +263 4 707989

Office of the Prime Minister P. Bag 7700, Causeway, Harare

Website: www.zimbabweprimeminister.org

The GovernorReserve Bank of Zimbabwe

80 Samora Machel Avenue, P. O. Box 1283, Harare

Tel: +263 4 251871 or 703096


Ministry of AgricultureNgungunyana Building

1 Borrowdale Road, Harare

Tel: +263 4 701304

Ministry of Industry and Commerce13th Floor Mukwati Building

Livingstone Avenue, Harare

Tel: +263 723996

Ministry of Environment11th Floor Kaguvi Building

Between 4th & 5th Street, Harare

Tel: +263 4 701683, 701691-92, 730174

Fax: +263 4 252673, 252559

Zimbabwe Investment AuthorityInvestment House

109 Rotten Row, Harare

Tel: +263 4 757931-6, 780140-6

Fax: +263 4 759917


Website: www.zia.co.zw

Confederation of Zimbabwe Industries (CZI)31 Josiah Chinamano Avenue

Harare, Tel: +263 4 251494-9, 252421

Chamber of MinesStewart House

4 Central Avenue, Harare

Tel: +263 4 702841-5, 707992

Zimbabwe Electricity Regulatory Commission14th Floor Century Towers

45 Samora Machel Avenue, P. O. Box CY 2585, Causeway, Harare

Tel: +263 4 780010, 253461

Fax: +263 4 250596

Immigration DepartmentLinquenda House

Nelson Mandela Avenue, P Bag 7717, Causeway, Harare

Tel: 263 4 752977

Ministry of FinanceNew Govt. Complex

Samora Machel Avenue / 4th Street, Harare

Tel: +263 4 738603, 727472

Ministry of Economic Planning and Investment PromotionNew Govt Complex

Samora Machel Avenue /4th Street, Harare

Tel: +263 4 738603, 727472

Ministry of Mines and Mining Development7th Floor, Zimre Centre

Kwame Nkrumah Avenue, Harare

Tel: +263 4 750884, 798775



52

Ministry of Energy and Power DevelopmentGround Floor Chaminuka Building

Cnr 4th Street / Central Avenue, Harare

Tel: +263 4 791760-9, 733095/9

Fax: +263 4 727 524, 703326

Ministry of Foreign Affairs Munhumutapa Building

Samora Machel Avenue, Harare

Tel: +263 4 705420, 727044

ZIMTRADEPremium Close

Mt Pleasant Business Park

Mt Pleasant, Harare

Tel: +263 4 369330-50

Website: www.zimtrade.co.zw

Zimbabwe National Chamber of Commerce (ZNCC)Malawi House

42 Harare Street, Harare

Tel: +263 4 749737, 749816, 749335

Zimbabwe Tourism AuthorityTourism House

55 Samora Machel Avenue, P. O. Box CY286, Causeway

Harare

Tel: +263 4 780663-67

Fax: +263 4 758826/8


Website: www.zimbabwetourism.co.zw

Zimbabwe Stock Exchange (ZSE)4th Floor

101 Kwame Nkrumah Avenue, Harare

Tel: +263 4 736861, 795255


Website: www.zse.co.zw

Minerals Marketing Corporation of Zimbabwe90 Mutare Road

Msasa, P. O. Box 2628, Harare

Tel: +263 4 487200/4, 486945/8

Fax: +263 4 487137/8


Website: www.mmcz.co.zw

KM Financial SolutionsBlock 3, Arundel Office Park, Mnt Pleasant, Harare, Zimbabwe

Tel: +263 4 338333 - 5 Mobile: +263 11 360706, 0912 789876


Website: www.kmfs.co.zw




53

Diplomatic Missions Abroad

Angola - LuandaAmbassador J. Manzou

Edificial Secil 11th Floor, 42 Avenue 4 De Fevereiro, Caixa Postal 428, Luanda

Cell: 244923522821

Dir: 244-222-310683

Off: 244-222-311528/310125

Pvt office: 244-222-441060

Tlx: 244-222-311528

Fax: 244-2311528/310013

E-mail: [email protected]

Australia – Canberra11 Culgao Circuit, O’ Malley, A.C.T 2606, Canberra

Tel: 61-2-62862251-81

Res: (062) 865931, 62862700

Fax: 61-2-62962281


N.B: +7 hours ahead

Austria – ViennaAmbassador G.T Mutandiro

Strozzingasse 10-15, 1080 Vienna, Vienna

Tel: 43-1-4079236/7

Res: 43-1-9799500

Fax: 43-1-4079238


Belgium – BrusselsAmbassador G. Punungwe

11-12 Josephine Charlotte Sq., 1200 Brussels, Brussels

Tel: 32-2-7625808

Res: 32-203542660

Fax: 32-27629605


Botswana – GaboroneAmbassador T. Mandigora

Plot 8895, P. O. Box 1232, Gaborone

Cell: 267-71836488

Tel: 267-3914495

Fax: 267-3905863

Res: 267-312500


Canada – OttawaAmbassador F. Chideya32 Somerset Street West Ottawa, Ontario, Canada

K2P OJ9

Tel: 001-613-2374388/9

Res: 001-613-7377567

Fax: 001-613-5638269

E-mail: [email protected], [email protected]

Website: www.zimbabweembassy.ca

China – BeijingAmbassador F. Shava

No. & Dong San Jie, San Lie Tun *, Beijing

Cell: 86-1391-0827-137

Tel: 86-10-653223665/65323665

Res: 86-1065325102

Fax: 86-1065325383/65323084


Cuba – La HabanaAmbassador J. B. Maseko

Calle 3Y 10, Miramar, Havana

Tel: 53-7-242837

Res: 53-7-336565

Fax: 53-7-2042720

E-Mail: [email protected], [email protected]



54

Democratic Republic of Congo – KinshasaAmbassador J. Mayowe

No 4 Ave. Dela Justice, Ogedep Building, 2nd Floor East Wing, Gombe

Kinshasa

Tel: 243-8803557

Cell: 243-81333 0675

Fax: 24381-8803610


Egypt – CairoAmbassador A.M. Ncube

40 Ghaza Street, Mohondessine, Cairo

Cell: 20-2-3030404

Tel: 20-2-3030404

Res: 20-2-3155060/3515668

Fax: 20-2-3059741


Ethiopia Addis AbabaAmbassador Dr A.H Mtetwa

House No. 007, Higher 17, Kabele 19, P.O.Box 5624, Addis Ababa

Cell: 251-11-6613877/2

Tel: 251-11-6633787/6613877

Fax: 251-11-6613476


[email protected]

France - ParisAmbassador D. Hamadziripi

5 Rue Lord Byron , 75008 Paris, Paris

Tel: 33-1-56881600

Res: 33-1-47950525/47951265

Fax: 33-1-56881609


Germany BerlinKommandatenstrasse, 1010117, Berlin

Tel: 49-30-2062263

Fax: 49-30-20455062

E-mail: zimberlin@botschaft-zimbabwe.

Ghana - AccraAmbassador P. T. Musaka

PBM CT 88, Cantonments, Accra, Ghana

Cell: 233-244 314 353 – 2hrs

Tel: 233-21-780956/780958/325687

Res: 233-21-780 744

Fax: 23-21-780 959


India – New DelhiAmbassador J Wutawunashe

23 Paschimi Marg, Vasanti Vihar, New Dehli 110057

Cell: 91-11-66154313

Tel: 91-11-26154313/14or 26140430/31

Res: 91-1125064604/25064430

Fax: 91-11-6884532


Website: www.zimhcindia.com

Iran - TehranAmbassador N D Kitikiti

10 Malek Street, Shariati Avenue, Tehran

Tel: 98-21-202-7553

Fax: 98-11-6884532


Italy - RomeAmbassador M. Muchada (Mrs)

Via Virgilio 8, 00193, Rome

Tel: 39-06-68308265 / 68308282

Res: 00-39-06-30889152

Fax: 39-06-68308324


Japan - TokyoAmbassador S. Comerberbach

5-9-10 Shiroganedari, Minato-ku 108, Tokyo

Tel: 81-3-32800331/2

Res: 81-3-37242367

Fax: 81-3-32800466





55

Kenya - NairobiAmbassador N. Nkomani

6th Floor, Minet ICD Builing, Mamloka Road, P.O.Box 30806, Nairobi

Cell: 254-7335-24641/254-7229-25871

Tel: 254-2-37442-052/746546/582537

Res: 254-2-582537/582957

Fax: 254-20-3748079


KuwaitAmbassador M G Marongwe

Salwa Area 9, P.O.Box 36484, AI Raas 24755, Salmiya

Tel: 965-5651517/5620845

Fax: 956-5621491/5625283

Res: 965-5318716/19


Malawi - LilongweAmbassador T.S. Dumbutshena

Plot 13/33, P.O.Box 30187, Lilongwe

Tel: 265-1-774413/774988/771508

Res: 265-1732230

Fax: 265-1-794441/772382


Malaysia – Kuala LumpurAmbassador L.P.Tavaya

124 Jalan Sembilan, Taman Ampang Utama, Selangor Darul Ehsan,

Kuala Lumpur

Tel: 60-3-42516779/81

Fax: 60-3-42517252


Mozambique - MaputoAmbassador A. Mutambara

Avenue Kenneth Kaunda 816/820, Caixa Postal 743, Maputo

Tel: 258-21-490404/490699

Res: 258-21-491187

Fax: 258-21-492237

Mozambique - BeiraConsul General M. Chadoka

617 Rua Francico Decharge, Almelda Ponde Gea, Beira

Tel: 258-23-327950

Res: 258-23-327942

Fax: 258-23-328942

Namibia WindhoekAmbassador C. Zindoga

Gamberg Building, Cnr Grim & Kaiser Street, P.O.Box 23056,

Windhoek 9000

Cell: 264-618112-21009

Tel: 264-61-226859/252599

Res: 264-61252599

Fax: 264-61226859


Nigeria - AbujaAmbassador J. S. Mvundura

P.O.Box 8214, Wuse Abuja, Chacery, Abuja

Tel: 070-95-2484364/7

Fax: 070-95-2302497



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