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INTERNATIONAL experts will meet in Johannesburg, South Africa next week for a two-day conference to discuss Zimbabwe’s mining and tax policies and how these affect economic growth. A South African-based organisation — the African Influence Exchange — is organising the event, which will be held from October 28 to 29.
“Zimbabwe may finally be open for business and the investment cost may be at investor friendly prices. Join us at the Zimbabwe Mining and Tax Law Market Briefing in Johannesburg on October 28 and 29, 2015 as experts look at the fundamental policy and legal framework that will either enable or deter investment decisions,” the firm’s director, Erena Christofides, said in a statement.
She noted that while Zimbabwe’s foreign direct investment inflows remain low compared to neighbouring countries in the Sadc, key government officials from the country have continued to court European investors. Christofides said this was an effort to revive the economy and meet some of the targets spelt out in the country’s economic blue-print, Zim-Asset.
“While there’s as yet no clear policy adjustment under the Indigenisation and Empowerment Act, multiple sources have confirmed that ownership targets in various sectors have been relaxed. “We’ve gathered a handful of industry experts together to provide some much needed insight into the current state of play of the following legal frameworks and policies in Zimbabwe,” said Christofides.
She said delegates at the forthcoming event would deliberate on policies and legal framework such as the draft Zimbabwe Minerals Policy, Zimbabwe Minerals Tax Policy and the proposed review of the Mines and Minerals Act. The policies would be scrutinised focusing on minerals governance, regulatory framework, fiscal policy, indigenisation, mineral marketing, land rights and use, local content, licensing and timeframes.”
Discussions on the Zimbabwe Minerals Tax Policy would focus on outlining tax sources in the country- tax system and administration including royalties, penalties — mining tax system and incentives, exploration, recapitilisation and beneficiation.
What the potential investor should prepare for with the proposed review of the Mines and Minerals Act, the Indigenisation and Economic Empowerment Act and the Sovereign Wealth Fund Bill, are some of the topics for discussion. Christofides said the country was experiencing a tight liquidity situation that has forced some companies to close down while the government struggles to meet a wage bill that swallows 83 percent of its revenue.
“The size of the country’s economy has shrunk by about half since 2000 . . . Zimbabwe may well finally be open for business and the investment cost may be at investor friendly prices,” said Christofides.
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