Country Snapshot
Population (2019, millions)¹ | 14.64 |
Population Projections (2030, millions)¹ | 17.59 |
Economically active population in agriculture (as % of Economically active population)¹², 2019 | 50 |
Capital | Harare |
Surface Area (km²)² | 390,760 |
Weather¹¹ | In Harare: Hottest months, October and November, 16-27°C; coldest months, June and July, 7-21°C (average daily minimum and maximum); driest month, July, 1 mm average rainfall; wettest month, January, 196 mm average rainfall |
Languages³ | Official: Shona, Ndebele, English, and minority official including Chewa, Chibarwe, Kalanga, Koisan, Nambya, Ndau, Shangani, sign language, Sotho, Tonga, Tswana, Venda and Xhosa |
Main Religions³ | Main: Protestant (Apostolic, Pentecostal and other protestant), Roman Catholic, other Christian, Muslim, tradition, others and none |
Time⁴ | Central Africa Time (CAT) +0200 UTC |
Driving Orientation⁵ | Left Side |
Internet Country Code⁶ | .zw |
Country Calling Code | +263 |
Plug, Socket and Voltage⁷ | Type D and G – 220V/50Hz |
Currency | US Dollar (USD) – 1/100 = Cent |
Exchange Rate (As of 19 February 2019, per USD)⁸ | N/A |
GDP at Market Prices (2018, current, billions of USD)⁹ | 31 |
GDP Growth (2018, annual %)⁹ | 6.16 |
Average GDP Growth (2014-2018, annual %)⁹ | 3.15 |
GDP per Capita, PPP (2018, current international $)⁹ | 3,024 |
Inflation, Consumer Prices (2017, annual %)⁹ | 0.90 |
Average Inflation, Consumer Prices (2013-2017, annual %)⁹ | (0.32) |
Total Reserves in Months of Imports (2017)⁹ | 0.5 |
Sources:
¹United Nations Population Division, Department of Economic and Social Affairs.
²COMESA Statistics, COMESTAT Data Hub.
³CIA World Factbook.
⁴Time and Date Portal.
⁵Chartsbin Portal, “Worldwide Driving Orientation by Country”.
⁶Wikipedia, “List of Internet top-level domains”; and, Internet Assigned Numbers Authority, Root Zone Database.
⁷International Electrotechnical Commission, World Plugs.
⁸Reserve Bank of Zimbabwe.
⁹World Bank, World Development Indicators 2019.
¹¹Economist Intelligence Unit.
¹²AFDB Socioeconomic Database
Reasons to Invest in Zimbabwe
- Establishment of the Zimbabwe Investment and Development Agency; a more facilitative and investor friendly One Stop Investment Services Centre for investment promotion, facilitation, nurturing and retention.
- Globally competitive human capital
- Centrally and strategically located in the Southern African Region
- Regional gateway (North-South Corridor)
- 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
- Political stability
- Fully liberalized current account
- Free remittance of dividends
- Pro-Market policies
- Existence of Investment promotion and protection agreements
Source: Zimbabwe Investment Development Agency – ZIDA
Population
Population Projections (millions)
Population (2019) | 14.64 |
Population Projections (2030) | 17.59 |
Source: United Nations Population Division, Department of Economic and Social Affairs.
Population Residing in Urban Areas (%)
Population Projections (2019) | 32.21 |
Percentage of Population Residing in Urban Areas (2030) | 34.23 |
Source: United Nations Population Division, Department of Economic and Social Affairs.
Youth Literacy Rates (2017, %)
Youth Literacy Rate, Population 15-24 Years, Both Sexes |
Youth Literacy Rate, Population 15-24 Years, Female |
Youth Literacy Rate, Population 15-24 Years, Male |
Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.
Labour
Unemployment (2018, % of Total Labour Force)
Unemployment, Total | 4.91 |
Unemployment, Female | 5.42 |
Unemployment, Male | 4.42 |
Source: World Bank, World Development Indicators 2019.
Labour Force (2018, % of Ages 15+)
Labour Force Participation Rate, Total | 83.54 |
Labour Force Participation Rate, Female | 78.56 |
Labour Force Participation Rate, Male | 88.99 |
Labour Force, Total (number) | 6,948,204 |
Source: World Bank, World Development Indicators 2019.
Economy Overview
GDP
2014 | 2015 | 2016 | 2017 | 2018 | |
GDP at Market Prices (current, billions of USD) | 19.49 | 19.96 | 20.54 | 22.81 | 31 |
GDP Growth (annual %) | 2.37 | 1.77 | 0.75 | 4.7 | 6.16 |
Source: World Bank, World Development Indicators 2019.
Value Added by Sector (% of GDP)
Indicator | 2018 | 2019 |
Agriculture | 13.49 | 13.76 |
Manufacturing | 11.90 | 11.67 |
Industry | 29.86 | 29.52 |
Services | 75.64 | 75.72 |
Construction | 3.58 | 3.58 |
Electricity, gas and water | 4.53 | 4.56 |
Mining and quarrying | 9.86 | 9.71 |
Education | 14.85 | 15.10 |
Finance, real estate and business services | 12.37 | 11.92 |
Public administration and Defense | 12.49 | 12.67 |
Health and Social Work | 3.19 | 3.26 |
Other services | 3.84 | 3.82 |
Transport, storage and communication | 12.37 | 12.39 |
Wholesale and retail trade, hotels and restaurants | 17.29 | 17.35 |
Source: AFDB Socio Economic Database.
Trade Profile
Import Partners (Imported Value, thousands, USD)
2014 | 2015 | 2016 | 2017 | 2018 | |
World | 6,415,988 | 6,045,862 | 5,322,157 | 5,165,089 | 6,468,767 |
South Africa | 2,754,270 | 2,326,521 | 2,176,772 | 2,042,230 | 2,523,514 |
Singapore | 1,168,028 | 1,338,413 | 1,118,087 | 1,105,362 | 1,359,314 |
China | 404,055 | 460,227 | 370,913 | 458,922 | 413,742 |
United Kingdom | 210,395 | 98,001 | 92,452 | 115,401 | 227,674 |
Japan | 155,110 | 129,911 | 100,569 | 124,669 | 217,078 |
Source: COMSTAT database
Export Partners (Exported Value, thousands, USD)
2014 | 2015 | 2016 | 2017 | 2018 | |
World | 3,871,574 | 3,410,659 | 3,341,151 | 3,483,611 | 4,037,945 |
South Africa | 2,016,338 | 2,060,870 | 2,265,839 | 2,154,109 | 2,073,131 |
United Arab Emirates | 96,056 | 147,837 | 116,683 | 222,944 | 731,911 |
Unspecified | 804,117 | 577,551 | 487,528 | 525,278 | 594,383 |
Mozambique | 574,122 | 408,254 | 266,409 | 363,538 | 384,465 |
Zambia | 95,070 | 86,491 | 69,585 | 56,928 | 63,176 |
Source: COMSTAT database
Zimbabwe’s Top Import Products (USD ‘000)
Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
All products | 6,415,988 | 6,045,862 | 5,322,157 | 5,165,089 | 6,468,767 | |
27 | Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes | 1,567,430 | 1,581,847 | 1,502,883 | 1,501,012 | 1,870,363 |
84 | Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof | 489,204 | 481,289 | 408,651 | 520,387 | 666,058 |
87 | Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof | 545,847 | 460,054 | 342,863 | 350,519 | 603,818 |
31 | Fertilizers | 269,314 | 184,794 | 120,323 | 217,684 | 325,155 |
10 | Cereals | 331,649 | 409,879 | 517,921 | 361,764 | 269,708 |
Source: COMSTAT database
Zimbabwe’s Top Export Products (USD ‘000)
Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
All products | 3,871,574 | 3,410,659 | 3,341,151 | 3,483,611 | 4,037,945 | |
71 | Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin | 1,102,188 | 940,877 | 1,023,718 | 1,019,732 | 1,347,399 |
24 | Tobacco and manufactured tobacco substitutes | 843,265 | 907,606 | 927,177 | 838,795 | 893,113 |
75 | Nickel and articles thereof | 570,214 | 428,935 | 434,404 | 436,209 | 525,294 |
26 | Ores, slag and ash | 368,006 | 339,408 | 380,973 | 469,623 | 497,182 |
72 | Iron and steel | 283,582 | 176,746 | 123,958 | 282,049 | 251,778 |
Source: COMSTAT database
Investment Profile
FDI Inflows (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Inflows | 371.8 | 349.4 | 744.6 | 280.0 | 194.4 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outflows (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Outflows | 28.8 | 42.2 | 26.8 | 30.5 | 44.0 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inward Stock (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Inward Stock | 4,338.6 | 4,688.0 | 5,432.6 | 5,712.6 | 5,907.0 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outward Stock (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Outflows | 538.1 | 580.3 | 607.1 | 637.6 | 681.6 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inflows Main Source Countries (in terms of number of projects)
South Africa, UK, China, Togo, Botswana, India, Canada, Netherlands, Russia, and Switzerland.
Source: Financial Times, fDi Markets, 2018
Financial Times, fDi Markets, 2018
Financial Services, Metals, Communications, Food & Tobacco, Coal, Oil and Natural Gas, Minerals, Renewable energy, Real Estate, Business Services, and Beverages.
Source: Financial Times, fDi Markets, 2018
FDI Inflows Main Companies (in terms of number of projects)
Ecobank Zimbabwe, BancABC Zimbabwe, ZTS International Industrial (G-Tide), Choppies Zimbabwe, Old Mutual Zimbabwe, Telecel Zimbabwe, Lesaffre Zimbabwe, MBCA Bank, Ruschrome Mining, and deVere & Partners (deVere Group).
Source: Financial Times, fDi Markets, 2018
Doing Business
Overall Doing Business Ranking
2020 | 140/190 |
2019 | 155/190 |
Source: World Bank, Doing Business, 2020
Starting a Business
2020 Rank | 167/190 |
Procedures (number) | 9 |
Time (days) | 27 |
Cost (% of income per capita*) | 76.6 |
Paid-in Minimum Capital (% of income per capita*) | 0.0 |
*GNI per capita used: USD 1,790
Source: World Bank, Doing Business, 2020
Paying Taxes
Paying Taxes
2020 Rank | 146/190 |
Payments (number per year) | 51 |
Time (hours per year) | 242 |
Total Tax Rate (% of profit) | 31.6 |
Profit Tax (% of profit) | 17.6 |
Labor Tax and Contributions (% of profit) | 5.6 |
Other Taxes (% of profit) | 8.3 |
Source: World Bank, Doing Business, 2020
Trading Across Borders
2020 Rank | 159/190 |
Time to Export: Border Compliance (hours) | 88 |
Cost to Export: Border Compliance (USD) | 285 |
Time to Export: Documentary Compliance (hours) | 99 |
Cost to Export: Documentary Compliance (USD) | 170 |
Time to Import: Border Compliance (hours) | 228 |
Cost to Import: Border Compliance (USD) | 562 |
Time to Import: Documentary Compliance (hours) | 81 |
Cost to Import: Documentary Compliance (USD) | 150 |
Assumptions
- It is assumed that shipment travels from a warehouse in the largest business city of the exporting economy to a warehouse in the largest business city of the importing economy.
- It is assumed that each economy imports a standardized shipment of 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed that each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product.
- A shipment is a unit of trade. Export shipments do not necessarily need to be containerized, while import shipments of auto parts are assumed to be containerized.
- Shipping cost based on weight is assumed to be greater than shipping cost based on volume.
- If government fees are determined by the value of the shipment, the value is assumed to be $50,000.
- The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, airport or land border crossing.
- Time is measured in hours, and 1 day is 24 hours.
- Costs do not include tariffs.
Source: World Bank, Doing Business, 2020
Investment Regime
Legal Framework
Zimbabwe Investment and Development Agency Act CAP14:3 National Investment Policy 2019
Source: Zimbabwe Investment and Development Agency (ZIDA).
Investment Incentives
- Incentives apply equally to domestic and foreign investors. The major goals of incentives include employment creation, small business development, industrial development, export promotion, development and the upliftment of the economically disadvantaged; promote technology lead industrialization towards the 4th industrial revolution, promotion of the green economy, promotion of research and development, facilitate participation in regional and global value chains.
General Incentives
- Five year tax holiday for Build Operate and Transfer (BOT) and BOOT arrangements, 15% for the second five years;
- Duty free importation of ICT related equipment
- Investment allowance of 15% on cost of construction, addition or alterations on industrial or commercial buildings or staff houses can be claimed.
- Deregulated banking system for expedition of payments and loan approvals;
- VAT deferment on capital equipment for the exclusive use in mining, manufacturing, agricultural and aviation industries whose investment generally relies on imported capital.
- A “special initial allowance” (SIA) is provided on specified assets, such as plant and machinery and industrial buildings, at a rate of 25% of the cost of the asset in the year of assessment in which such asset is first During the subsequent three years, the asset is entitled to an accelerated wear-and-tear allowance of 25% each year.
- Qualifying small and medium-sized enterprises (SMEs) may elect a capital allowance structure that includes a 50% SIA, and 25% accelerated wear-and-tear allowances in the following two years of assessment
- Building societies and financial institutions providing mortgage finance are exempt from tax, but only to the extent the receipts and accruals of such financial institutions are attributable to the provision of mortgage finance
- Interest on loans made to small-scale gold miners for mining operations, prospecting or exploratory works in Zimbabwe is exempt
- A double deduction is granted for expenditure incurred to develop export markets.
- Incentives for the small business sector – The Zimbabwe Government is well aware of the important role that small, medium and microenterprises play in job creation and innovative new production SMEs presently access a more favorable capital allowance regime.
- Availability of double taxation agreements with many countries.
- Flexible exchange rate regime; including freedom to remit after tax dividends.
- A pro-investment environment that protects minority shareholders/investor
Special Economic Zones Incentives
- Five year tax holiday for industrial park developers and 24% there-after;
- 0% Corporate Income Tax for the first 5years of operation and corporate tax rate of 15% thereafter for SEZ Licence holders.
- Duty free importation of Capital equipment
- Special Initial allowance of 50% of cost from year one and 25% in the subsequent two years
- Exemption from Non-residents tax on fees on services that are not locally available
- Exemption from Non-residents tax on Dividends, Fees and Royalties
- Duty free importation of inputs-raw materials and intermediate products for use by companies set up in the SEZs
- Zero rated for Capital gains tax
Tourism Incentives
- Tourism Development Zones: 0% for first five years & 24% thereafter
- Duty free importation of specified capital equipment
Manufacturing Incentives
- Export more than 30% of output >>20% income tax
- Export more than 41% of output >>17.5% income tax
- Export more than 51% of output >>15% income tax
- Rebate provisions – These are available to all manufacturing Provision exists for rebate or drawback of certain duties applicable to imported goods, raw materials and components used in manufacturing, processing or for export.
Mining incentives – Capital redemption allowance
Certain tax incentives apply to mining companies, including the following:
- Holders of Special Mining Leases taxed at 15%
- Rebate of duty on capital equipment for exploration and mine devellopment
- 100% Capital redemption allowance on the amount incurred on capital expenditure in the year of assessment is available
- The full capital cost of employee housing for a general miner qualifies for a “capital redemption allowance”
- No restriction of carryover of tax loses for mining companies
- The capital cost of a unit of employee housing acquired or constructed after 1 January 2018 and used by a holder of a “special mining lease” is restricted to USD 10 000 per unit for purposes of claiming a capital redemption allowance
- The cost of a passenger motor vehicle for purposes of claiming a capital redemption allowance is restricted to USD 10,000.
Foreign ownership restrictions
- With effect, from 1 January 2018, the Government of Zimbabwe amended the Indigenisation and Economic Empowerment Act [Chapter 14:33 ], and repealed provisions that imposed restrictions on foreign ownership.
- Investors can own up to 100% equity in all sectors of the economy except for reserved sectors and platinum and diamond mining
Source: Zimbabwe Investment Development Agency (ZIDA) .
Country Snapshot
Population (2019, millions)¹ | 14.64 |
Population Projections (2030, millions)¹ | 17.59 |
Economically active population in agriculture (as % of Economically active population)¹², 2019 | 50 |
Capital | Harare |
Surface Area (km²)² | 390,760 |
Weather¹¹ | In Harare: Hottest months, October and November, 16-27°C; coldest months, June and July, 7-21°C (average daily minimum and maximum); driest month, July, 1 mm average rainfall; wettest month, January, 196 mm average rainfall |
Languages³ | Official: Shona, Ndebele, English, and minority official including Chewa, Chibarwe, Kalanga, Koisan, Nambya, Ndau, Shangani, sign language, Sotho, Tonga, Tswana, Venda and Xhosa |
Main Religions³ | Main: Protestant (Apostolic, Pentecostal and other protestant), Roman Catholic, other Christian, Muslim, tradition, others and none |
Time⁴ | Central Africa Time (CAT) +0200 UTC |
Driving Orientation⁵ | Left Side |
Internet Country Code⁶ | .zw |
Country Calling Code | +263 |
Plug, Socket and Voltage⁷ | Type D and G – 220V/50Hz |
Currency | US Dollar (USD) – 1/100 = Cent |
Exchange Rate (As of 19 February 2019, per USD)⁸ | N/A |
GDP at Market Prices (2018, current, billions of USD)⁹ | 31 |
GDP Growth (2018, annual %)⁹ | 6.16 |
Average GDP Growth (2014-2018, annual %)⁹ | 3.15 |
GDP per Capita, PPP (2018, current international $)⁹ | 3,024 |
Inflation, Consumer Prices (2017, annual %)⁹ | 0.90 |
Average Inflation, Consumer Prices (2013-2017, annual %)⁹ | (0.32) |
Total Reserves in Months of Imports (2017)⁹ | 0.5 |
Sources:
¹United Nations Population Division, Department of Economic and Social Affairs.
²COMESA Statistics, COMESTAT Data Hub.
³CIA World Factbook.
⁴Time and Date Portal.
⁵Chartsbin Portal, “Worldwide Driving Orientation by Country”.
⁶Wikipedia, “List of Internet top-level domains”; and, Internet Assigned Numbers Authority, Root Zone Database.
⁷International Electrotechnical Commission, World Plugs.
⁸Reserve Bank of Zimbabwe.
⁹World Bank, World Development Indicators 2019.
¹¹Economist Intelligence Unit.
¹²AFDB Socioeconomic Database
Reasons to Invest in Zimbabwe
- Establishment of the Zimbabwe Investment and Development Agency; a more facilitative and investor friendly One Stop Investment Services Centre for investment promotion, facilitation, nurturing and retention.
- Globally competitive human capital
- Centrally and strategically located in the Southern African Region
- Regional gateway (North-South Corridor)
- 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
- Political stability
- Fully liberalized current account
- Free remittance of dividends
- Pro-Market policies
- Existence of Investment promotion and protection agreements
Source: Zimbabwe Investment Development Agency – ZIDA
Population
Population Projections (millions)
Population (2019) | 14.64 |
Population Projections (2030) | 17.59 |
Source: United Nations Population Division, Department of Economic and Social Affairs.
Population Residing in Urban Areas (%)
Population Projections (2019) | 32.21 |
Percentage of Population Residing in Urban Areas (2030) | 34.23 |
Source: United Nations Population Division, Department of Economic and Social Affairs.
Youth Literacy Rates (2017, %)
Youth Literacy Rate, Population 15-24 Years, Both Sexes |
Youth Literacy Rate, Population 15-24 Years, Female |
Youth Literacy Rate, Population 15-24 Years, Male |
Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.
Labour
Unemployment (2018, % of Total Labour Force)
Unemployment, Total | 4.91 |
Unemployment, Female | 5.42 |
Unemployment, Male | 4.42 |
Source: World Bank, World Development Indicators 2019.
Labour Force (2018, % of Ages 15+)
Labour Force Participation Rate, Total | 83.54 |
Labour Force Participation Rate, Female | 78.56 |
Labour Force Participation Rate, Male | 88.99 |
Labour Force, Total (number) | 6,948,204 |
Source: World Bank, World Development Indicators 2019.
Economy Overview
GDP
2014 | 2015 | 2016 | 2017 | 2018 | |
GDP at Market Prices (current, billions of USD) | 19.49 | 19.96 | 20.54 | 22.81 | 31 |
GDP Growth (annual %) | 2.37 | 1.77 | 0.75 | 4.7 | 6.16 |
Source: World Bank, World Development Indicators 2019.
Value Added by Sector (% of GDP)
Indicator | 2018 | 2019 |
Agriculture | 13.49 | 13.76 |
Manufacturing | 11.90 | 11.67 |
Industry | 29.86 | 29.52 |
Services | 75.64 | 75.72 |
Construction | 3.58 | 3.58 |
Electricity, gas and water | 4.53 | 4.56 |
Mining and quarrying | 9.86 | 9.71 |
Education | 14.85 | 15.10 |
Finance, real estate and business services | 12.37 | 11.92 |
Public administration and Defense | 12.49 | 12.67 |
Health and Social Work | 3.19 | 3.26 |
Other services | 3.84 | 3.82 |
Transport, storage and communication | 12.37 | 12.39 |
Wholesale and retail trade, hotels and restaurants | 17.29 | 17.35 |
Source: AFDB Socio Economic Database.
Trade Profile
Import Partners (Imported Value, thousands, USD)
2014 | 2015 | 2016 | 2017 | 2018 | |
World | 6,415,988 | 6,045,862 | 5,322,157 | 5,165,089 | 6,468,767 |
South Africa | 2,754,270 | 2,326,521 | 2,176,772 | 2,042,230 | 2,523,514 |
Singapore | 1,168,028 | 1,338,413 | 1,118,087 | 1,105,362 | 1,359,314 |
China | 404,055 | 460,227 | 370,913 | 458,922 | 413,742 |
United Kingdom | 210,395 | 98,001 | 92,452 | 115,401 | 227,674 |
Japan | 155,110 | 129,911 | 100,569 | 124,669 | 217,078 |
Source: COMSTAT database
Export Partners (Exported Value, thousands, USD)
2014 | 2015 | 2016 | 2017 | 2018 | |
World | 3,871,574 | 3,410,659 | 3,341,151 | 3,483,611 | 4,037,945 |
South Africa | 2,016,338 | 2,060,870 | 2,265,839 | 2,154,109 | 2,073,131 |
United Arab Emirates | 96,056 | 147,837 | 116,683 | 222,944 | 731,911 |
Unspecified | 804,117 | 577,551 | 487,528 | 525,278 | 594,383 |
Mozambique | 574,122 | 408,254 | 266,409 | 363,538 | 384,465 |
Zambia | 95,070 | 86,491 | 69,585 | 56,928 | 63,176 |
Source: COMSTAT database
Zimbabwe’s Top Import Products (USD ‘000)
Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
All products | 6,415,988 | 6,045,862 | 5,322,157 | 5,165,089 | 6,468,767 | |
27 | Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes | 1,567,430 | 1,581,847 | 1,502,883 | 1,501,012 | 1,870,363 |
84 | Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof | 489,204 | 481,289 | 408,651 | 520,387 | 666,058 |
87 | Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof | 545,847 | 460,054 | 342,863 | 350,519 | 603,818 |
31 | Fertilizers | 269,314 | 184,794 | 120,323 | 217,684 | 325,155 |
10 | Cereals | 331,649 | 409,879 | 517,921 | 361,764 | 269,708 |
Source: COMSTAT database
Zimbabwe’s Top Export Products (USD ‘000)
Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
All products | 3,871,574 | 3,410,659 | 3,341,151 | 3,483,611 | 4,037,945 | |
71 | Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin | 1,102,188 | 940,877 | 1,023,718 | 1,019,732 | 1,347,399 |
24 | Tobacco and manufactured tobacco substitutes | 843,265 | 907,606 | 927,177 | 838,795 | 893,113 |
75 | Nickel and articles thereof | 570,214 | 428,935 | 434,404 | 436,209 | 525,294 |
26 | Ores, slag and ash | 368,006 | 339,408 | 380,973 | 469,623 | 497,182 |
72 | Iron and steel | 283,582 | 176,746 | 123,958 | 282,049 | 251,778 |
Source: COMSTAT database
Investment Profile
FDI Inflows (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Inflows | 371.8 | 349.4 | 744.6 | 280.0 | 194.4 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outflows (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Outflows | 28.8 | 42.2 | 26.8 | 30.5 | 44.0 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inward Stock (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Inward Stock | 4,338.6 | 4,688.0 | 5,432.6 | 5,712.6 | 5,907.0 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outward Stock (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Outflows | 538.1 | 580.3 | 607.1 | 637.6 | 681.6 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inflows Main Source Countries (in terms of number of projects)
South Africa, UK, China, Togo, Botswana, India, Canada, Netherlands, Russia, and Switzerland.
Source: Financial Times, fDi Markets, 2018
Financial Times, fDi Markets, 2018
Financial Services, Metals, Communications, Food & Tobacco, Coal, Oil and Natural Gas, Minerals, Renewable energy, Real Estate, Business Services, and Beverages.
Source: Financial Times, fDi Markets, 2018
FDI Inflows Main Companies (in terms of number of projects)
Ecobank Zimbabwe, BancABC Zimbabwe, ZTS International Industrial (G-Tide), Choppies Zimbabwe, Old Mutual Zimbabwe, Telecel Zimbabwe, Lesaffre Zimbabwe, MBCA Bank, Ruschrome Mining, and deVere & Partners (deVere Group).
Source: Financial Times, fDi Markets, 2018
Doing Business
Overall Doing Business Ranking
2020 | 140/190 |
2019 | 155/190 |
Source: World Bank, Doing Business, 2020
Starting a Business
2020 Rank | 167/190 |
Procedures (number) | 9 |
Time (days) | 27 |
Cost (% of income per capita*) | 76.6 |
Paid-in Minimum Capital (% of income per capita*) | 0.0 |
*GNI per capita used: USD 1,790
Source: World Bank, Doing Business, 2020
Paying Taxes
Paying Taxes
2020 Rank | 146/190 |
Payments (number per year) | 51 |
Time (hours per year) | 242 |
Total Tax Rate (% of profit) | 31.6 |
Profit Tax (% of profit) | 17.6 |
Labor Tax and Contributions (% of profit) | 5.6 |
Other Taxes (% of profit) | 8.3 |
Source: World Bank, Doing Business, 2020
Trading Across Borders
2020 Rank | 159/190 |
Time to Export: Border Compliance (hours) | 88 |
Cost to Export: Border Compliance (USD) | 285 |
Time to Export: Documentary Compliance (hours) | 99 |
Cost to Export: Documentary Compliance (USD) | 170 |
Time to Import: Border Compliance (hours) | 228 |
Cost to Import: Border Compliance (USD) | 562 |
Time to Import: Documentary Compliance (hours) | 81 |
Cost to Import: Documentary Compliance (USD) | 150 |
Assumptions
- It is assumed that shipment travels from a warehouse in the largest business city of the exporting economy to a warehouse in the largest business city of the importing economy.
- It is assumed that each economy imports a standardized shipment of 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed that each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product.
- A shipment is a unit of trade. Export shipments do not necessarily need to be containerized, while import shipments of auto parts are assumed to be containerized.
- Shipping cost based on weight is assumed to be greater than shipping cost based on volume.
- If government fees are determined by the value of the shipment, the value is assumed to be $50,000.
- The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, airport or land border crossing.
- Time is measured in hours, and 1 day is 24 hours.
- Costs do not include tariffs.
Source: World Bank, Doing Business, 2020
Investment Regime
Legal Framework
Zimbabwe Investment and Development Agency Act CAP14:3 National Investment Policy 2019
Source: Zimbabwe Investment and Development Agency (ZIDA).
Investment Incentives
- Incentives apply equally to domestic and foreign investors. The major goals of incentives include employment creation, small business development, industrial development, export promotion, development and the upliftment of the economically disadvantaged; promote technology lead industrialization towards the 4th industrial revolution, promotion of the green economy, promotion of research and development, facilitate participation in regional and global value chains.
General Incentives
- Five year tax holiday for Build Operate and Transfer (BOT) and BOOT arrangements, 15% for the second five years;
- Duty free importation of ICT related equipment
- Investment allowance of 15% on cost of construction, addition or alterations on industrial or commercial buildings or staff houses can be claimed.
- Deregulated banking system for expedition of payments and loan approvals;
- VAT deferment on capital equipment for the exclusive use in mining, manufacturing, agricultural and aviation industries whose investment generally relies on imported capital.
- A “special initial allowance” (SIA) is provided on specified assets, such as plant and machinery and industrial buildings, at a rate of 25% of the cost of the asset in the year of assessment in which such asset is first During the subsequent three years, the asset is entitled to an accelerated wear-and-tear allowance of 25% each year.
- Qualifying small and medium-sized enterprises (SMEs) may elect a capital allowance structure that includes a 50% SIA, and 25% accelerated wear-and-tear allowances in the following two years of assessment
- Building societies and financial institutions providing mortgage finance are exempt from tax, but only to the extent the receipts and accruals of such financial institutions are attributable to the provision of mortgage finance
- Interest on loans made to small-scale gold miners for mining operations, prospecting or exploratory works in Zimbabwe is exempt
- A double deduction is granted for expenditure incurred to develop export markets.
- Incentives for the small business sector – The Zimbabwe Government is well aware of the important role that small, medium and microenterprises play in job creation and innovative new production SMEs presently access a more favorable capital allowance regime.
- Availability of double taxation agreements with many countries.
- Flexible exchange rate regime; including freedom to remit after tax dividends.
- A pro-investment environment that protects minority shareholders/investor
Special Economic Zones Incentives
- Five year tax holiday for industrial park developers and 24% there-after;
- 0% Corporate Income Tax for the first 5years of operation and corporate tax rate of 15% thereafter for SEZ Licence holders.
- Duty free importation of Capital equipment
- Special Initial allowance of 50% of cost from year one and 25% in the subsequent two years
- Exemption from Non-residents tax on fees on services that are not locally available
- Exemption from Non-residents tax on Dividends, Fees and Royalties
- Duty free importation of inputs-raw materials and intermediate products for use by companies set up in the SEZs
- Zero rated for Capital gains tax
Tourism Incentives
- Tourism Development Zones: 0% for first five years & 24% thereafter
- Duty free importation of specified capital equipment
Manufacturing Incentives
- Export more than 30% of output >>20% income tax
- Export more than 41% of output >>17.5% income tax
- Export more than 51% of output >>15% income tax
- Rebate provisions – These are available to all manufacturing Provision exists for rebate or drawback of certain duties applicable to imported goods, raw materials and components used in manufacturing, processing or for export.
Mining incentives – Capital redemption allowance
Certain tax incentives apply to mining companies, including the following:
- Holders of Special Mining Leases taxed at 15%
- Rebate of duty on capital equipment for exploration and mine devellopment
- 100% Capital redemption allowance on the amount incurred on capital expenditure in the year of assessment is available
- The full capital cost of employee housing for a general miner qualifies for a “capital redemption allowance”
- No restriction of carryover of tax loses for mining companies
- The capital cost of a unit of employee housing acquired or constructed after 1 January 2018 and used by a holder of a “special mining lease” is restricted to USD 10 000 per unit for purposes of claiming a capital redemption allowance
- The cost of a passenger motor vehicle for purposes of claiming a capital redemption allowance is restricted to USD 10,000.
Foreign ownership restrictions
- With effect, from 1 January 2018, the Government of Zimbabwe amended the Indigenisation and Economic Empowerment Act [Chapter 14:33 ], and repealed provisions that imposed restrictions on foreign ownership.
- Investors can own up to 100% equity in all sectors of the economy except for reserved sectors and platinum and diamond mining
Source: Zimbabwe Investment Development Agency (ZIDA) .