Chronicle Editor
After decades of operating in silos, regrettably frustrating investment inflows into the country and ultimately slowing down national socio-economic development, agencies involved in registration and approval of new businesses are now one entity.
This follows the signing into law by President Mnangagwa of the Zimbabwe Investment Development Agency (Zida) Bill on Thursday and the gazetting of the law yesterday. The presidential assent to the Bill creates a one-stop investment centre that consolidates previous agencies and simplifying the process of registering a new business.
This piece of legislation was one of President Mnangagwa’s priorities as, on assuming office in November 2017, he pledged to create a legislative framework that improves the ease of doing business so as to attract more foreign direct and local investment.
The Zimbabwe Investment Development Agency Act establishes Zida to facilitate entry and implementation of investment projects as well as coordinate investment programmes and strategies. The law also provides for organisations that would constitute the agency.
The agency will be a one-stop shop investment centre with representatives of entities that play a role in the licensing, establishment and operationalisation of investments.
The entities operating from the one-stop centre will include the Zimbabwe Revenue Authority, Environmental Management Agency, Reserve Bank of Zimbabwe, National Social Security Authority, Zimbabwe Energy Regulatory Authority, Zimbabwe Tourism Authority, the State Enterprises Restructuring Agency and specialised investment units and other relevant line ministries.
The Act repealed the Zimbabwe Investment Authority Act, the Joint Venture Act and the Special Economic Zones Act, resulting in the dissolution of the Zimbabwe Investment Authority, the Joint Venture Unit and the Zimbabwe Special Economic Zones Authority.
Chief Secretary to the President and Cabinet Dr Misheck Sibanda said in a statement yesterday that the enactment of the Act demonstrates the Second Republic’s commitment to creating a sustainable investment climate to spur economic growth.
“As part of a seamless transition to the new institution, an audit of the three entities that preceded Zida and the hunt for the Zida chief executive officer, are already underway,” he said.
“Because of its critical role in growing the economy through investment, Zida will be supervised and given strategic direction by the Office of His Excellency the President.”
The agency, he added will be responsible for promoting both domestic and foreign investment.
“Its major focus will be accelerating institutional and regulatory reforms as well as inculcating a mindset change towards creation of the much needed conducive investment environment. The vision of Zida is to transform Zimbabwe into a dynamic national hub for local and global business, investment and innovation.”
President Mnangagwa’s approval of the law is welcome, so is his decision to place the responsibility of supervising Zida in his office.
These two points are important because there have been reports of some potential investors complaining of red tape in the registration of businesses and processing of investment proposals. Prospective investors were being tossed from one office, one department to the other with the individual offices or departments often taking their time in handling paperwork. It appeared their business was actually to frustrate investment inflows yet they exist to attract and help it grow.
The two decisions also demonstrate the President and his Government’s commitment to attracting more investment into the country after years of little inflows.
With the agency falling directly under the President we don’t expect the lethargy of old to continue. In fact, this decision stops that business-as-usual approach. At the same time, the reports we have heard of some officials in some offices demanding bribes from prospective investors so that they could fast-track their proposals has ended with the creation of the one-stop investment centre and, more crucially, its placement under the President’s Office.
Looking ahead, the people of Zimbabwe expect the search for the Zida chief executive to be as fast and thorough as possible so that only the best candidate lands the huge job of attracting and retaining the much needed investment in the country. He or she must, in turn, immediately set out putting together an equally competent team of juniors to assist him or her in the job.
Given that we now have one agency doing the job, we have no doubt that the processing of investment proposals and their approval would be faster, thus encourage more potential investors to pour their money into the economy so that the turnaround that we all desire comes to pass, soon.
The creation of Zida is plausible too because it builds on a range of other measures that the Government has undertaken over the past three years to reform and grow the economy. We now have a local currency in place, the indigenisation law was repealed and we have the interbank foreign currency market in place, among other reforms.
In our considered view, these and more measures working together are improving the attractiveness of our country as an investment destination.
Online Reporter