The Sunday Mail
The Reserve Bank of Zimbabwe is investigating several companies that invested billions of dollars outside the country without Exchange Control approval.
The companies — mainly in fuel retailing, mining and manufacturing — reportedly invested in Zambia, South Africa, Mozambique, Malawi, Botswana and Mauritius from 2013 to 2014.
Those that fail to regularise their investments by November 30 will face prosecution.
Responding to questions from The Sunday Mail, the RBZ said while authorities encouraged offshore investment, such ventures should benefit the local economy.
“It is through (bank surveillance) systems that the Central Bank monitors both inward and outward movement of funds in line with international best practices.
Through these systems, Exchange Control has identified a number of outward remittances that have been made related to the establishment and funding of unauthorised cross border investments.
“In the same vein, Exchange Control has also identified a number of inflows that are related to cross border investment income realised from unauthorised cross border establishments. In this regard, all the cases that were identified were sent for investigation.
“The country recognises the potential growth and expansion associated with the establishment of such offshore investment. These investments are supposed to be of benefit to the national economy through employment creation, opening of new markets, foreign exchange generation through the increased inflow of profits, dividends and other incomes accruing into (the) domestic market. This has a bearing on our liquidity.”
The RBZ’s Exchange Control Division is mandated to monitor funds coming in and out of Zimbabwe via banks.
It also approves and facilitates effective implementation of investments in foreign countries by local companies. In his maiden Monetary Policy Statement, RBZ Governor Dr John Mangudya gave businesses that circumvented the system up to November 30, 2014 to regularise investments.
Defiant companies will be referred to the National Economic Conduct Inspectorate for investigation and possible proseuction.
According to a Global Financial Integrity report on illicit financial flows from Africa, Zimbabwe lost US$12 billion over the last three decades through tax evasion and money laundering.
At a High-Level Meeting on Tackling Illicit Financial Flows and Inequality in Nigeria last May, former South African President Mr Thabo Mbeki said African countries lose between US$50 billion and US$60 billion yearly through illicit financial flows.
The continent could have lost over US$1,4 trillion in the last 30 years.
Analysts have advocated the establishment of regional and international mechanisms to track such funds.
