Introduction
This is one of my non-technical articles on business and law. In this article I look at some of the common inquiries at applicable laws made to lawyers by foreign investors when they come to Zimbabwe.
Common inquiries
I list below some of the common inquiries:
- Immigration laws
- Registering with the Zimbabwe Development Agency (“ZIDA”).
- Exchange Control laws.
- Tax laws
- Labour laws.
- Mining laws.
- Gold trade laws.
- Environmental laws.
- Property laws.
- Banking
Immigration
Some of the investors want to understand the immigration laws, the types of visas or permits they can get and how to do so. It is therefore important to have an appreciation of the Immigration Act (Chapter 4:02) and related laws. I am aware of legal practitioners and other consultants who are doing well in the area of immigration.
Registering with ZIDA
Many foreign investors will ask you to explain the benefits of registering with ZIDA and how to do so. There are several benefits to foreign investors if they register with ZIDA. For example ZIDA has a one stop investment centre where many government departments have desks. This offers convenience beyond measure. Please familiarise with the Zimbabwe Investment and Development Agency Act (Chapter 14:37) and related laws. The ZIDA website is useful and friendly.
Exchange Control laws
Many investors will not conclude a conversation without asking you about the exchange control laws or regulations, particular with regards to the movement of money into or outside Zimbabwe. There are many applicable exchange control laws, some of which are available on the Reserve Bank of Zimbabwe website. Key laws include Exchange Control Act (Chapter 22:05), Exchange Control Regulations, 1996 (SI 109 of 1996), Exchange Control (General) Order, 1996 (SI 110 of 1996), directives, circulars and orders.
Tax laws
There are various tax laws applicable to businesses. These include the Value Added Tax (Chapter 23:12), Income Tax Act (Chapter 23:06), Capital Gains Tax (Chapter 23:01). This area presents many opportunities for legal practitioners and tax advisors.
Competition laws.
For significant transactions foreign investors want to know if such transactions are subject to any regulatory approvals. It is therefore important to understand the operations of the Competition and Tariff Commission and application of the Competition Act (Chapter 14:28).
Labour laws
This is quite a busy and important area for legal practitioners. Many foreigners inquire into applicable labour laws. Such laws include the Labour Act (Chapter 28:01), Collective Bargaining Agreements (“CBA”) for different industries, applicable Code of Conduct, role of the National Employment Agency, trade unions, workers committees, and so on. There are many problems around the types of contracts and how many times they can be renewed as well as termination of employees.
Mining laws
This is an areas of interest to many foreign investors particularly those from China. Important laws include the Mines and Minerals Act (Chapter 21:05) and applicable regulations. Many investors are particularly interested in laws applicable when acquiring mining title such as claims or established mines, setting up mines and applicable environmental laws.
Gold trade
I have been asked many times to advise on gold trade, particularly on buying and selling of gold. I have explained the Gold Trade Act (Chapter 21:03) and referred some of the people to my contacts at Fidelity Gold Refinery.
Environmental laws
I am quite pleased with the work being done by the Environmental Management Agency (“EMA”). The main law being the Environmental Management Act (Chapter 20:27) though there are related regulations and laws. The most important requirement for new projects being the Environment Impact Assessment commonly referred to as the “EIA”.
Property laws
Many foreign investors are keen on buying land and buildings in Zimbabwe. As a result they also inquire into applicable laws and processes involved in acquiring urban land, farmland, establishing mining rights over private or state land. They want to understand the process of conveyancing.
Banks
Though not about law, many times I have asked to advise new foreign investors to recommend banks they should use. I have made several recommendations at times even giving clients contact details of my friends in the banking sector. They have been thrilled.
Conclusion
The above present opportunities for legal practitioners. I advise accordingly.
Disclaimer
This simplified article is for general information purposes only and does not constitute the writer’s professional advice.
Godknows (GK) Hofisi, LLB(UNISA), B.Acc(UZ), Hons B.Compt (UNISA), CA(Z), ACCA (Business Valuations) MBA(EBS, Heriot- Watt, UK) is the Managing Partner of Hofisi & Partners Commercial Attorneys, chartered accountant, insolvency practitioner, commercial arbitrator, registered tax accountant and advises on deals and transactions. He has extensive experience from industry and commerce and is a former World Bank staffer in the Resource Management Unit. He was recently appointed to sit on the Council of Estate Administrators in Zimbabwe. He writes in his personal capacity. He can be contacted on +263 772 246 900 or ghofisi@hofisilaw.com or gohofisi@gmail.com. Visit www//:hofisilaw.com for more articles.
