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Business Opportunities

VICTORIA FALLS INVESTMENT AND TOURISM HUB OF ZIMBABWE AND AFRICA

VICTORIA FALLS INVESTMENT AND TOURISM HUB OF ZIMBABWE AND AFRICA

Zimbabwe, strategically located in the heart of Southern Africa is home to the Victoria Falls, one of the natural wonders of the world. Owing to its geographical landscape, the country has significant agriculture, forestry and tourism potential. The population is relatively distributed across the country. More densely populated urban areas. Key Country Facts

Capital:Harare
Official Languages:English, Ndebele and Shona
Currency:Multi Currency System
Dialling Code:263
Population (2012est.):12 973 308
World Population Rank:72
Population Growth Rate (2012):4.38%
Rank Population growth in Africa:23
Literacy Rate:97%

DISTINGUISHING FEATURES OF THE TOWN

Local languages:Ndebele, Tonga, Nambia, Dombolo, Shona and Nyanja
Business language:English
Currency:US$ Dollar [multi-currency economy].
Climate:Generally warm to hot throughout the year.
Night life:Casinos [fruit and slot machines] and night clubs and pubs.

Accessibility:

  • Road: The town is linked to other towns and cities nationally through a good all weather road network.
  • Through Zim-Zam boarder post [Zambia]
  • Through Kasane border post [Botswana]
  • Air: 24 international flights every week, 21 from Johannesburg and three from Namibia. These are complimented by daily flights from Harare by Air Zimbabwe.
  • Rail: Access through overnight passenger train from Bulawayo and Safari train, Shongololo
  • Sea : only through Namibia and South Africa

Communications: Accessible through broadband internet, fax, telex and cell phone. Environmental control:

  • 1. A signatory to a number of environmental treaties
  • Green destination certified
  • UNESCO certified

Safety ratings: Certified as one of the safest and friendliest centres on the planet. 

MUNICIPAL STATUS GRANTED IN:1999
POPULATION ESTIMATE:±35 000 people
AREA (total surface area):70 square kilometres
ALTITUDE:900 meters
ROAD NETWORK:94.07 km
TARRED:61.43 km
EARTH AND GRAVEL:6
NUMBER OF SCHOOLS: [PUBLIC AND PRIVATE]:9
SECONDARY:1.
PRIMARY:1
VOCATIONAL:1
NUMBER OF HOSPITALS: 1
NUMBER OF CLINICS:2
NUMBER OF PRIVATE MEDICAL FACILITIES:5
HOTELS AND LODGES: 
HOTELS:14
LODGES:62
  • Victoria Falls is zoned as one of the Special Economic Zones in the World
  • Access to major regional markets (SADC and COMESA).
  • Highly- skilled and literate workers.
  • Comfortably and strategically located in the Zambezi valley just a few hundred metres from the bank of one of the Southern Africa’s great rivers, the Zambezi River.
  • Regional gateway (North-West corner of Zimbabwe).
  • Regional logistics hub supported by infrastructure such as railways, roads, power, telecoms.
  • Natural resources endowment.
  • Diversified economy: Manufacturing, services, agriculture, mining and tourism.
  • Rejuvenated economy and domestic market.
  • Use of multiple currencies thus minimizing exchange risks.
  • Political stability.

SELLING PRICE Payment of full purchase price or one quarter deposit +15% VAT (on the full purchase price), the balance to be paid together with interest thereon @ 6% pa within 24 months, or lease with option to purchase DEVELOPMENTS In terms of the Model Building By-law 1977, building plans should be submitted for approval for any proposed building construction. A maximum of 75 % coverage shall be permitted Adequate parking space to accommodate all traffic likely to be generated by the proposed activities is to be provided within the confines of the stand. Any developments should be in terms of Council approved building plans and should comply with the relevant by-laws. The stand is not to be occupied until such time that a potable water supply and approved sanitary facilities have be provided and an occupation certificate issued. Developments should be commenced with 6 months and completed within 30 months of the date of sale. The stand is to be suitably walled and gated SERVICES Sewer and water connection costs will be indicated and these are payable by the developer. Survey fees are also the responsibility of the purchaser The Zimbabwe Electricity Supply Authority’s (ZESA) general servitude covering the property will be required. So too shall Council access to water and sewerage services. ZESA should be contacted with regards to load requirements. TITLE DEEDS Transfer shall be passed in favour of the purchaser upon full compliance with the minimum building requirements. Alternatively, transfer may be passed subject to a simultaneous registration of a mortgage bond in favour of a financial institutions such bond should be sufficient to cover the required buildings. The costs thereof shall be borne by the purchaser. ENVIRONMENTAL PROTECTION No plant, requirement or machinery is to be installed or utilized that will, in the opinion of Council, give rise to excessive pollution. Appropriate measures shall be undertaken to ensure that any emissions or pollution are minimized and maintained at acceptable levels. APPLICATS ARE ADVISED TO SUBMIT THE FOLLOWING INFORMATION FOR CONSIDERATION

  • Company profile including ownership details (CR 14)
  • Approximate size and land required
  • Preferred area(s)-
  • Proposed use of stand (type of investment)
  • Level of intended investment- both capital and operational.
  • Full description of products and services to be offered
  • Proof of funding
  • Project development program- implementation of program
  • Sketch plans
  • Servicing arrangements (where applicable)
  • Employment creation – number of employees to be engaged
  • Community responsibility initiatives

Applications should be addressed to: The Town Clerk or Public Relations and Economic Development Officer Victoria Falls Municipality Cnr. Livingstone Way/Park Way Dr, P.O. Box 41 Victoria Falls Zimbabwe Phone:      +263 213 2844597 Fax:           +263 213 2844308 or 213 2840253 Email:       rdube@vfm.co.zw  or  nmoyo@vfm.co.zw Website:   www.vfm.co.zw

In Zimbabwe, tourism plays a very significant role in the development of the national economy. The sector has significant potential to become the largest industry in terms of foreign currency generation in the country. The United Nations World Tourism Organization 2013 General Assembly hosted by Zimbabwe and Zambia at Victoria Falls and Livingstone cities provided the much needed boost to the tourism sector. There exist opportunities in the following subsectors:

 

 

  • Conference Convention centers
  • Resorts and Casinos
  • Hotels and Lodges
  • Shopping Malls

DOING BUSINESS IN ZIMBABWE: INVESTMENTS

  1. Investment Options: Depending on the purpose of business, foreign investors have many options to establish their companies in the country. The key forms of business in the country include Limited Liability Company, sole proprietorship, partnership and joint values.
  2. Investment Laws and Regulations: Zimbabwe Investment Authority Act is the primary law that administers investment in the country. It provides various kinds of incentives depending on the amount of investment, location, national importance and contribution to the economy.
  3. Investment Funding Options: The financial sector of Zimbabwe consists of variety of options that include commercial banks, pensions funds, micro – finance institutions etc. The Government is taking steps to strengthen the financial sector and attract financial investment in the in the country.
  4. Taxation: The taxation system in Zimbabwe has started its move towards simplification of tax structures. The Government has reduced the basic level of tax and is in the process to widen the tax revenues. There are also moves towards harmonization of customers and tax practice on a regional basis.

PROCEDURES FOR INVESTING IN ZIMBABWE The investor has a variety of options set up operations in the country. The most common form of limited Liability Company is private company limited by shares. The Companies A ct (chapter 24:03) administers various companies and cooperative societies act (chapter24:05) governs co-operatives in Zimbabwe.  

Zimbabwe introduced several reforms over the years that have resulted in making the business start up process simpler and faster. The government reduced the registration fees and increased the speed for the name search process and also for company and tax registration process.

 

1.     Registrar of Companies 
File MOU and Articles of Association with the Registrar of companies, CR6 and C14 form14days
2.     Zimbabwe Investment Authority 
Investment license5days
3.     Zimbabwe Revenue Authority5days
Registration for PAYE, income tax, customs duty 
 Immigrant’s rebate 
4.     Immigration Control Department14days
Investor Residence Permit 
Temporary Employment permits4-6weeks
  
(NB: time frame can be longer in some instances) 
  
5.     Environmental Management Authority 
EIA License30days
Prospectus submission EIA Report60days

AGREEMENTS AND ASSOCIATIONS Regional Trade Association and Blocs Zimbabwe is a member of the following:

  • Southern African Development Community(SADC)
  • Common Market for Eastern and Southern Africa (COMESA)

International Investment Treaties (BITs) Double Taxation Treaties (DTTs) Zimbabwe has signed a total of 31 BITs. These include BITs with Netherlands, Denmark, Germany, South Africa, Zambia, Mauritius and Swaziland. TAXATION Zimbabwe’s taxation system has undergone significant reforms since 2009. The government has introduced measures to rationalize the level and administration of taxes and removed unofficial tax on exports with the introduction of multi-currency regime. The doing business rank improved, with improvement in tax income as a percentage of the GDP.

Type of taxRateComments
Income Tax Rate25%Reduced from 30% from 1st of January 2010
Capital Gains Tax Rate20%Capital gains tax from sale or disposal of a marketable security and immovable property acquired before 1st February 2009 are charged at a rate of 5% on gross proceeds.
Dividends10%/15%Listed companies on stock exchange are charged at 10%
Interest/Royalties10%/20%Royalties paid to non-resident are charged at 20%
Value- added tax15%0% for education, food stuff, public transport and medical services
Branch Remittance TaxNILHead Office remittance expenditure is charged at 20%
Carry forward6yearsLosses can be carried forward

SPECIFIC TAX INCENTIVES

  • 20% corporate income tax for manufacturing companies exporting at least 50% of their output.
  • 15% corporate tax is applied for the first five years of operation in road, bridge and sanitation or water facility construction.
  • 15% corporate tax for special mining lease operations. Losses are carried forward indefinitely for mining operations.
  • Duty exemptions on imported capital equipment
  • Exemption from duties on the import of raw materials used in the manufacture of goods for export and also for register operator.
  • Five year tax holiday for designated Tourism Development Zones.
  • Exemption from VAT for a variety of products that includes agricultural produce, raw materials for further processing goods used in the production of agricultural, mining, industrial or manufactured products etc.
  • Build Operate Transfer (BOT) and build Own Operate Transfer (BOOT) projects are taxed at a variable rate depending on the years of operation. It is 0% for the initial five years and increases to 30% after 16 years.