admin
THE twin Zimbabwean policies under the Second Republic of being a friend to all and an enemy of none and then of attracting investment with a fair and clear framework, have been generating results, the latest being fast growing interest from American potential investors.
The double policy is important. The foreign affairs side, of engaging and re-engaging everyone, and seeking friendship with everyone and displaying enmity to no one, is an initial condition.
Every potential investor gets to know that regardless of their country of origin, they are welcome in Zimbabwe and that Zimbabwe is continually moving to improve its relations with every country.
This means the potential investor knows they are not on “enemy territory” and that their business proposals will be treated with respect and quite fairly.
The second plank of the Second Republic in attracting investment has been to overhaul and streamline a lot of law and regulation, for the benefit of both Zimbabwean businesses and those set up by incoming investors.
There are essentials that all in business must follow, but these are reasonable in that they are the sort of rules that you find everywhere. The dross and unnecessary sections have been dropped simply because they were not needed. The required regulations have been made very clear, so they are easy to follow.
The regulations are in several areas. First come the environmental regulations, a straightforward set of standards to ensure that a miner or industrialist does not wreck what they are investing in with rubble and waste.
The labour law is now clear and simple to apply, and all investors come under one of the national employment councils which treat all employers, and for that matter all employees, alike in a labour system that concentrates on the conditions that provide a fair deal for both workers and those who hire them. The investor is even expected to be involved as an equal of those already in the system.
Zimbabwean tax law is not complicated, and investors from countries where tax laws can be very complex, such as the United States with its thousands of pages of tax law, might be startled at the comparatively simple set of taxes in Zimbabwe, with businesses expected to maintain accounts in internationally recognised forms for everyone’s benefit.
The company and business laws were overhauled and clarified, again so that anyone setting up a business can work their way down a fairly short list of obvious requirements.
Added to that is a very firm modern opposition to corruption or attempted corruption, with hot lines and other reporting mechanisms if an investor suddenly feels someone is putting the squeeze on them.
In March this year, a respectable group of African-American business people from the Atlanta Chamber of Commerce in Georgia, United States, visited Zimbabwe, were welcomed and were able to get around and have a good look.
Already 10 investments with a combined value of around US$500 million are in the process of being finalised, and we are likely fairly soon going to have a solid jump in the number of American-owned businesses in Zimbabwe.
The African-American orientation of that delegation was the result of a fairly common trait in American business, of having an interest in the countries where one’s forefathers came from and so being able to approach the opportunities with an open mind and being able to fit in a bit better.
But those American business people would still want quality legal frameworks, rational rules and the like. They do not want excuses.
A second and larger group of at least 75 businesspeople is coming from Illinois, a major industrial state in the north of the US, on a similar sort of visit, to have a really good look around, talk to people and generally see what the opportunities are.
Both groups almost certainly spoke to those Americans already here, to get the unofficial low-down, and some might even have Zimbabweans on their payroll back home, even if only as university interns, and have other ways of making sure they hear unofficial views as well as official views.
This is one of the major advantages of these sort of visits by a group. They set their own agenda and while Government departments and other officials who have the job of being helpful to potential investors will be doing their job, it is also useful to walk through the streets, drive through the countryside and have that personal contact with ordinary people that helps to cement impressions.
No one is trying to tie them to any formal programme, although all assistance will be given, and like any other visitor they are entitled to go where they like and talk to who they like.
In fact, when they do invest, they will be encouraged to join local representative bodies such as the Confederation of Zimbabwe Industries, and become part of the Zimbabwean business landscape.
Some of the American businesspeople interested in Zimbabwe also want to help have the remaining US sanctions removed.
The downgrade in the sanctions this year has largely meant from a US business point of view that they are mainly an irritation, and their bankers might want them to keep additional records so that there are zero potential complications, but they still want them gone.
Although President Mnangagwa had to pull out of the delegation at the formal opening of the United Nations General Assembly for its new session, the team in New York is very strong and includes critical officials such as the head of the Zimbabwe Investment Development Agency who can give the precise regulatory requirements.
Online Reporter