Doing Business in Zimbabwe - A critical assessment of the investment climate, opportunities, incentives and challenges for investors.Zimbabwe Rising Conference 2010- Hon. Minister Tapiwa Mashakada: Doing Business in Zimbabwe - A critical assessment of the investment climate, opportunities, incentives and challenges for investors.

1. ZIMBABWE ZIMBABWE RISING CONFERENCE 2010, THE MAY FAIR HOTEL LONDON 3-4 DECEMBER DOING BUSINESS IN ZIMBABWE: A CRITICAL ASSESSMENT OF THE INVESTMENT CLIMATE, OPPORTUNITIES, INCENTIVES and CHALLENGES FOR THE INVESTOR BY HONOURABLE TAPIWA MASHAKADA, MP MINISTER OF ECONOMIC PLANNING AND INVESTMENT PROMOTION REPUBLIC OF ZIMBABWE. EMAIL: mashakadat@parliament.gov.zw

3. The Social Cluster , which focused on the rehabilitation of social services (education, health, humanitarian crisis)

4. The Rights Cluster, which focused on Governance issues, especially legal and institutional reforms to democratize the country

5. The Infrastructure Cluster, which focused on the reconstruction development of infrastructureInternational Engagement, which focused on the initiation of dialogue between Zimbabwe, the EU and the USA on the need to normalize the frosty relations

8. In terms of international engagement, several meetings were held in Brussels and the dialogue is on going between Zimbabwe and the European Union.

11. To restore the Education and Health Sectors to their pre-2000 levels and improve the same

12. To increase domestic and foreign Investment and Savings

13. To rehabilitate and develop infrastructure through PPPs

14. To increase volumes of exports through trade development

15. To reduce the Public Debt and link debt to development

18. Zimbabwe’s Economic Performance in 2010 surpassed the average growth rate of Sub-Saharan African countries. TABLE 2: COMPARATIVE GROWTH RATES Source: Ministry of Finance, GoZ I n terms of revenue performance, the country has improved its annual cash flows to nearly US$2.5 billion in 2010 up from US$1 billion in 2009. The country’s total GDP is USD 6 billion. However, this figure is now believed to be grossly understated in view of the fact that about 75% of the economy is informal. In terms of the structure of the economy, the country heavily depends on imports. The value of Imports increased from US$3.2 billion in 2009 to US$3.6 billion in 2010.

21. Competition from cheap imports;

22. Electricity outage;

23. De-Industrialisation; and

24. Lack of Credit Lines.The Manufacturing Sector requires Lines of Credit estimated at USD10 billion in the next 5 years in order to increase capacity utilization to 90%.

27. Immigration

28. Zimbabwe Revenue Authority

29. Registrar of Companies

30. Ministry of Industry and Commerce

31. Ministry of Youth Development, Indigenization and Economic Empowerment

32. Ministry of Labour and Social Welfare

33. Environmental Management Agency (EMA)

34. Attorney General

35. Ministry of Local Government

36. Ministry of Transport, Communications and Infrastructural Development

37. Ministry of Mines

39. Export promotion;

40. Employment creation and skills transfer;

41. Small business development;

42. Industrial development; and

44. Reduced tax rates; and

45. Accelerated depreciation.These incentives vary depending on sector, type of activity and geographical location of investment.

52. ICT

53. Water

54. Roads (road, rail, air)

55. Construction

58. Paris Club US$0,386 billion

62. Japanese Delegation

63. Swedish Delegation

64. South Korean Delegation

65. Indian Delegation

66. Antwerp Diamond Dealers’ Delegation

67. South African Business DelegationClearly the message sent is that Investors are keen to invest in Zimbabwe. END