Zimbabwe – An Unfriendly Investment Destination

Best Doroh, World Bank Finance and Private Sector Development Specialist said at a press conference in Harare, Zimbabwe’s neighbour Zambia had come out better off at number 76.

The World Bank titled “Doing Business 2011” was done for the period from June 2009 to 2010.

“Zambia performed much better. Our (Zimbabwe) business environment, our laws have remained unreformed for the past year,” Doroh said.

It takes about 90 days to complete all the stages of registering and starting up a business in Zimbabwe. The country has been making plans to set up a one stop shop for setting up a company through the Zimbabwe Investment Agency (ZIA) but this has not materialised.

Out of 183 countries Zimbabwe has been 128 in terms of businesses access to credit lines and number 143 out of 183 in terms of starting a business.

Indigenisation regulations have scared investors away in the past months after the government led by President Robert Mugabe moved to implement empowerment regulations that will see all foreign firms worth more than US 500 000 dollars lose 51 percent stake to locals.

Foreign companies are still submitting their proposals to the Indigenisation ministry.

The World Bank said their report “analyses regulations that apply to an economy’s businesses during their lifecycle, including start-up and operations, trading across borders, paying taxes and closing a business.”