The Sunday Mail
GOVERNMENT and investment officials are expeditiously working on the formula needed to simplify doing business in the country in line with the vision enunciated by President Mugabe in the 10-point plan for economic recovery.
Generally, there are concerns on the time taken for business deals to be consummated.
Blue Ribbon’s US$40 million takeover by the Bakhresa Group, for example, was recently concluded after being in the pipeline for three years.
Also, Essar Holdings’ US$750 million investment in Ziscosteel has not taken off since it was signed and launched in March 2011.
Last week, the country played host to Nigerian businessman, Mr Aliko Dangote of Nigeria, arguably the current biggest African investor on the continent, who expressed interest to invest in cement manufacturing, coal mining and power generation.
The projects are valued at US$3 billion.
Economic Planning and Investment Promotion Minister, Ambassador Simon Khaya Moyo last week told The Sunday Mail Business that committees are working flat out to ensure that invest processes are simplified for investors.
“We are working on those things on a daily basis. It is a process, not an event. We do not want our investors to meet with impediments here but we want them to come and do business quickly.
“We have spoken about the one-stop-shop. We don’t want our investors to come and move from pillar to post but everything should be done under one roof.
“The committees are working on those issues so that we move as quickly as possible. I don’t want to give you a date but I can assure you that we are working on that,” said Minister Khaya Moyo.
However, he said investors should know that Zimbabwe has its laws and “they must respect them”.
Currently, the World Bank’s Ease of Doing Business Index, which measures how the business environment is perceived, ranks Zimbabwe
171 out of 183 economies.
President Mugabe has since called for an overhaul of the Companies Act in line with Rapid Results Approach framework by the end of the year and a “robust legislative framework” to establish a one-stop-shop investment centre that streamlines processes and procedures.
“This is now a very urgent and high priority matter for which those responsible will be held to account,” said President Mugabe.
And the Zimbabwe Investment Authority (ZIA) is presently seized with making amendments to the Companies Act. Last week, the Authority’s chairperson, Dr Nigel Chanakira said they were now dealing with the legal aspect of the amendments.
“When he (Mr Dangote) came, we were actually having a workshop that was supposed to be officially opened by Vice President Emmerson Mnangagwa because we are now dealing with the legal aspects of the amendments (to the Companies Act),” he said.
Already, ZIA is inviting comments from lawyers and chartered accountants on the amendments, which are expected to be passed by February 2016.
“We have asked for commitment which they have accepted. Everyone is on the same page and it is urgent and a high priority,” explained Dr Chanakira.
However, much progress has been made to make it easier for investors to get licences as the turnaround time for processing investment licences has been slashed from 30 days to five days.
Plans are underway to further reduce the time to two days. ZIA has also entered into an agreement the Zimbabwe Revenue Authority (Zimra), the National Social Security Authority (NSSA) and the Zimbabwe Manpower Development Fund (Zimdef) to development one application form in line with the one-stop-shop investment centre concept.
“We are saying there is need for an integrated system, there is no need for investors to fill five forms when they can be integrated.
“So stage one of the exercises will be completed by April next year and we plan to be in the top 100 when the next Ease of Doing Business indicators are out,” said Dr Chanakira.
Furthermore, there are plans to revise and automate the processes of name search, company registration and annual account filing.
The process will be completed by February next year. The Registrar of Companies is currently scanning old filings from 1890 so that they can be stored in computers.
0The exercise will chew US$3 million and to cut costs, ZIA is proposing to automate from now. A team that includes ZIA officials will soon visit New Zealand, Georgia and Azerbaijan to learn their information technology processes.
The trip to New Zealand is set for this month.
It is believed that last week’s visit by the Nigerian billionaire is a major public relations coup for the country as it will possibly convince fence-sitters to seriously consider local investments.
Mr Dangote is presently on a crusade of African investments and experts say he could help act as a bait for other investors.
Added Dr Chanakira: “It is very good PR (public relations) for us when he comes. He is well endowed and when he comes and is hosted at the highest level, it shows we are serious.
“He has a good reputation wherever he has invested. In Zambia, cement prices are very low after his investment.
‘‘(His coming) has a snowballing effect because others will want to come.”
