The Sunday Mail
ZIMBABWE will soon establish the Commercial Court to exclusively deal with commercial crime and disputes, Reserve Bank of Zimbabwe Governor Dr John Mangudya has said.
Dr Mangudya told The Sunday Mail Business last week that Cabinet approved proposed amendments to the Banking Act which now await Parliamentary approval.
“We want to ensure that people with complaints go through the Commercial Court and those banks which have problems with customers also go to the commercial court.
“It is a fair court for arbitration,” said Dr Mangudya. The need for such a structure has been necessitated by delays in settling commercial and banking-related cases through the traditional court system.
Developing countries with commercial courts such as Burkina Faso, Mali, Mauritius, Rwanda, Sierra Leone and Tanzania say they attract FDI because of clear channels for investors to deal with business grievances.
Last year, Zimbabwe had FDI inflows of US$410 million last year, according to the United Nations World Investment Report, and plans to attract US$2 billion in 2014.
Analysts say given rising financial uncertainty around the world, investors need more reassurances that efficient processes are in place for dispute resolution and recovery of losses.
Governments with robust commercial judicial systems go beyond increased investor confidence and include greater transparency regarding business activities and increased adherence to fiscal and tax policies, with important implications for revenue collection.
In Zambia, there are three commercial courts and new technology has digitalised processes with significant benefits to private sector activity and the country’s economic outlook.
