Application for Investment Licenses in Zimbabwe

Why investment licence?

The minimum standard in order to attract foreign direct investment is to have a stable and hospitable regulatory environment and a sound investment promotion policy or strategies.

The “Zimbabwe is Open for Business” mantra is one such investment promotion strategy that the government is using to lure much needed foreign direct investment into the country.

Zimbabwe’s ranking has improved on the Ease of Doing Business in the latest World Bank Annual Ratings due to its promulgation of the Companies and Other Entities Act [Chapter 24:03] as well as the creation of the One Stop Investment Services Centre which falls under the control and supervision of the Zimbabwe Investment and Development Agency.

How to Apply for an Investment License

Any investor wishing to obtain the approval of Zimbabwe Investment and Development Agency (ZIDA) for his or her existing or projected investment outside a special economic zone for the purposes of securing the protections accorded by this Act to his or her investment must apply for an investment license, and the application shall be accompanied by the prescribed fee and such documents as the Agency may require.

The Chief Executive of the Zimbabwe Investment Development Agency is in terms of section 22 (3) empowered to without delay either approve or refuse an application for an investment license. The Chief Executive is also empowered at his or her discretion to refer any application for an investment license to the Board for its advice or recommendation thereon; or impose such conditions on the issuance of an investment license as he or she considers fit.

Period of validity of investment licenses

An investment license other than one for investment in a special economic zone shall be for a period fixed by the Zimbabwe Investment Development Agency from the date of issue.

An investment license for investment in a Special Economic Zone shall be for a period of ten (10) years.

Transfer of investment licenses

No licensed investor shall, except with the prior approval of the Agency, assign, cede or otherwise transfer his or her investment license to any other person.

Register of investment licenses

The Zimbabwe Investment and Development Agency shall maintain or cause to be maintained a register of investment licenses, including any conditions subject to which each license is issued; and any amendments, suspensions or cancellations of investment licenses.

The register kept in terms of subsection 1 shall be open for inspection by members of the public at all reasonable times at the Zimbabwe Investment Development Agency office on payment of the prescribed fee. The Zimbabwe Investment Development Agency shall create and maintain an up to date website which among other things, will enable members of the public to access the register.

Notification of non-implementation of investment proposals or changes

Where for any reason, a licensed investor is unable to implement the investment described in his or her investment license, he or she shall notify the Zimbabwe Investment Development Agency of his or her inability to implement such investment, stating the reasons therefor, within thirty (30) days of his or her becoming aware of the non-implementation of the investment.

Suspension and cancellation of investment licenses

The Zimbabwe Investment Development Agency may suspend or cancel any investment license where the licensed investor –

Obtained the license on the basis of fraud or a misrepresentation of a material nature or any false or misleading statement; or Assigns, cedes or otherwise transfers the license to another person without the prior approval of the Zimbabwe Investment Development Agency Fails without reasonable explanation to implement the approved activity described in the license within the period stipulated or any extension thereof; or Fails to comply with any conditions imposed on the issue of the license.