ZIMBABWE

(b) LEGAL FRAMEWORK

Constitutional and Legal Protection of Investment 

The Government recognizes the importance that investors, and particularly foreign investors, attach to fair and stable standards for the treatment of investment. In the light of this recognition, government undertakes to maintain a legal framework that gives due protection to investment in Zimbabwe, whether local or foreign. The legal system and independent judiciary of Zimbabwe give protection to provide property rights. Beyond the ordinary law of the land, the Constitution of Zimbabwe accords special protection against deprivation of property. 

Section 16 of the Constitution of Zimbabwe prohibits the compulsory acquisition of private property without compensation. No property may be compulsorily acquired except under the authority of a law fulfilling certain specific conditions listed in Section 16(1) of the Constitution.

Treaty Protection for foreign Investment 
Government is committed to maintaining the legal protection of private property. Moreover, as far as foreign investment is concerned, it will endeavour to accord further protection to it by entering into appropriate bilateral and multilateral investment protection or guarantee treaties. 
In this connection, the Government has acceded to membership of the Multilateral Investment Guarantee Agency established by the Convention which was opened for signature by the Board of Governors of the World Bank on October 11,1985. Furthermore, the Government is willing to negotiate mutually satisfactory terms to be embodied in bilateral investment treaties with those Governments whose nationals are like to invest in Zimbabwe. To date the Government has concluded such treaties with the Overseas Private Investment Corporation (OPlC) of the U.S.A. and a similar one with the Republic of Mozambique. 

By committing itself to a framework of bilateral and multilateral treaties protecting foreign investment, the Government of Zimbabwe wishes to demonstrate its determination to maintain a healthy investment climate, with fair, stable and equitable treatment for foreign investment.

Settlement of Investment Disputes 
Quite apart from the substantive rules determining the rights and obligations of foreign investors, the Government is fully aware of the importance attached by foreign investors to the procedures to be followed in the resolution of investment disputes that may arise between the investors and host governments. In this respect also, the Government has decided to enhance investor confidence by agreeing to international arbitration of any disputes that may arise between it and foreign investors. To this end, Government has acceded to the 1965 Convention on the Settlement of Investment Disputes between States and Nationals of Other States and to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. In addition to arbitration under the former of these two Conventions, Government will agree alternatively to submit disputes for settlement by arbitration under the rules and procedures of the United Nations Commission on International Trade Law (UNClTRAL).