Online Reporter
Wallace Ruzvidzo
Herald Reporter
THE Zimbabwe Investment and Development Agency has launched an Investor Grievance Response Mechanism expected to see discontent raised by investors punctually addressed, pursuant to the Second Republic’s ease of doing business thrust.
The IGRM is a formal process designed to address grievances arising directly from a Government Ministry, Agency or Department (MDA) action and or policy changes that may negatively impact an existing investment project.
This precedent puts Zimbabwe among a few countries in Africa to adopt an investor grievance policy that gives investors harmed by problems, a real path to justice.
Whether an investor faces adverse regulatory changes, contract breaches, or other investment-related challenges, this mechanism provides a direct and structured avenue for resolution.
In a press release, ZIDA said the aim of the IGRM is for grievances to be addressed promptly and effectively before they escalate.
Similar mechanisms in other countries, added the investment agency, have proven effective in retaining investments by resolving disputes early.
“Over the past four years, following the promulgation of the Zimbabwe Investment and Development Agency [Chapter 14:38] (ZIDA Act), investing in Zimbabwe has been an increasingly promising and fruitful endeavour.
“The ZIDA Act has been pivotal in affording investors with guarantees and protections, while outlining their rights and obligations.
“In December 2023, the Agency promulgated the Zimbabwe Investment and Development Agency (General Investments) Regulations (GI Regulations), S.I. 227 of 2023 to further simplify and streamline licensing procedures.
“The G.I Regulations also establish the Investor Grievance Response Mechanism (IGRM), a new feature in investment legal framework in Zimbabwe,” said ZIDA.
The IGRM emphasises early-stage resolution, meaning that grievances will not fester or escalate into more complex issues that could jeopardise the investment.
Such initiatives, said ZIDA, were not only an international best practice, but a confidence booster to investors.
“By encouraging our investors to report grievances as soon as they arise and dedicating a team to investigate the matter, the Agency will prevent minor issues from escalating into significant legal disputes that lead to operational disruptions and financial losses.
“A transparent and efficient grievance resolution process such as this, which is aligned with international best practice for investment retention and expansion, fosters trust between investors and the State.
“Knowing that there is a reliable system in place to address concerns encourages both current and potential investors to commit resources, being confident in the stability and fairness of the investment environment,” reads the statement.
Through the IGRM, ZIDA will facilitate direct and timely communication between investors and relevant Government MDAs for the prompt resolution of grievances, contributing further to investor confidence and creating a stable and predictable investment climate.
