ABOUT ZIMBABWE

Amongst all the countries in the African continent, Zimbabwe is a landlocked country located in Southern Africa. The capital of Zimbabwe is Harare, which is the highest populated city in the country. According to the report of the World Bank, Zimbabwe has been classified as a Lower Middle-Income Economy. The official currency of Zimbabwe is the Zimbabwean Dollar (ZWL), and the value of Indian currency is significantly higher than the Zimbabwean Dollar at the time of writing this article. The population of Zimbabwe is approximately 1.59 crores as of 2023. The neighboring countries of Zimbabwe are South Africa, Botswana, Zambia, and Mozambique. The most commonly spoken languages in the country are Shona, Ndebele, and English. The majority of the Zimbabwean population practices Christianity, but other religions, such as traditional African religions and Islam, are also followed. Currently, there are 8 international airports in Zimbabwe, and regular flights are available from these airports to several parts of the world. The air connectivity of Zimbabwe is fairly convenient. As Zimbabwe is a landlocked country, it relies on neighboring countries’ seaports for its trade requirements.

The corporate tax rate in Zimbabwe is generally 24.72% (inclusive of a 3% AIDS levy). Specific sectors might have different rates. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a rental property for your office.

Establishing a business in Zimbabwe has to be done with utmost care, keeping in mind the laws of the country. The Companies and Other Business Entities Act (Chapter 24:31) clearly outlines how a foreign investor can register a company in Zimbabwe. A foreign investor who is planning to start his business in Zimbabwe can form many different company types in the country, such as Private Limited Company (Pvt Ltd), Public Limited Company (PLC), Partnership, and Private Business Corporation (PBC). A Private Limited Company (Pvt Ltd) formed and registered in Zimbabwe allows foreign investors to own 100% of the company in most sectors.

In case an investor is planning to establish a Private Limited Company in Zimbabwe or a corporation business setup, Opesh Group will be helping you in taking the right decision for setting up your business in Zimbabwe, and we will also guide you on how to follow the procedure while formulating your company in Zimbabwe.

Types of Business which can be started in Zimbabwe:

Agriculture – Agriculture is a significant contributor to Zimbabwe’s GDP and a major source of employment. Investing in this sector, particularly in cash crops like tobacco, cotton, and horticulture, can yield good returns. There is also potential in improving food security through increased local production of staple crops. Mining – Zimbabwe is rich in various mineral resources, including gold, platinum, diamonds, chrome, and nickel. The mining sector is a major foreign exchange earner, and with proper investment and technology, there are vast opportunities for exploration, extraction, and processing. Tourism – Zimbabwe boasts iconic tourist attractions like Victoria Falls, Hwange National Park, and the Great Zimbabwe Ruins. The tourism sector has immense potential for growth, with opportunities in developing accommodation facilities, tour operations, wildlife safaris, and cultural tourism. Renewable Energy – Zimbabwe faces challenges in energy supply and has significant potential for renewable energy sources like solar and hydro power. The government is encouraging investment in this sector to reduce reliance on traditional energy sources and address power shortages. Manufacturing – Opportunities exist in manufacturing for import substitution and value addition to local raw materials. This includes sectors like food processing, textiles, pharmaceuticals, and manufacturing of agricultural implements. Information & Communication Technologies (ICT) – The ICT sector in Zimbabwe is growing, with increasing internet penetration and mobile usage. Opportunities exist in developing software, e-commerce platforms, digital services, and expanding internet infrastructure. Infrastructure – There is a significant need for infrastructure development in Zimbabwe, including roads, railways, housing, and public utilities. Companies with expertise in construction and infrastructure development can find numerous projects, often through public-private partnerships. Healthcare – The healthcare sector in Zimbabwe is in need of significant investment to improve facilities, access to medicines, and quality of services. Opportunities exist in setting up private clinics, hospitals, diagnostic centers, and pharmaceutical distribution.

Advantages of Starting Business in Zimbabwe:

Zimbabwe has a relatively young and educated workforce, which can provide a skilled labor pool for businesses. The country has a stable political environment, which can reduce investment risk for foreign investors. Zimbabwe’s strategic location in Southern Africa provides access to regional markets. Its membership in regional blocs like SADC and COMESA can facilitate trade. English is an official language and widely spoken, which can ease communication and business operations for international investors. The government is increasingly focusing on creating a more investor-friendly environment, implementing reforms to improve the ease of doing business. There are various underdeveloped sectors with high growth potential, offering less competition for new investors looking to establish a presence.

Business Opportunities for Indians in Zimbabwe:

There are excellent business opportunities in Zimbabwe for new investors who are planning to start their business abroad. Zimbabwe has opened its doors for foreign businesses and foreign investors. In Zimbabwe, there are vast business opportunities for investors who are planning to start their business abroad. They can invest in manufacturing, infrastructure, agriculture, and the mining sector. While the mining sector has historically attracted significant investment, there are emerging opportunities in other less explored sectors that can yield high returns.

Imports & Exports:

Many goods are imported and exported from Zimbabwe. The imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in a product that you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Zimbabwe to India:

Minerals (Gold, Platinum, Diamonds) Tobacco Cotton Ferrochrome Hides and Skins

Major items which are imported in Zimbabwe from India:

Pharmaceuticals Machinery and Mechanical Appliances Vehicles and Parts Plastics and Articles thereof Cereals (e.g., Rice) Electrical Equipment Textiles Chemical Products

Manufacturing:

With a focus on local production and value addition, there are opportunities for Indian companies to set up manufacturing plants in Zimbabwe in sectors such as: Pharmaceuticals (due to high demand and potential for local production) Agricultural machinery and implements Food processing Textiles and garments

Mining:

The mining sector remains a key area for investment. Indian companies with expertise in mining can explore opportunities in gold, platinum, chrome, and diamond extraction and processing. Investment in exploration and modern mining techniques is also needed.

Major Indian companies which could potentially work in Zimbabwe (based on sectors of interest):

• Mining companies
• Pharmaceutical companies
• Agricultural equipment manufacturers
• Infrastructure development companies

GDP = $26.17 billion (2023 est.) GDP Growth = 4.5% (2023 est.) Ease of doing business rank = 140 (2020) GDP per Capita = $1,600 (2023 est.)

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