ZIMBABWE

(iii) OTHERS

Remittance of Dividends and Profits

Companies with foreign shareholding are entitled to remit 100% of after tax profits due to foreign shareholders. Foreign investors are also permitted without restriction as long as this is done after a period of two years from the date the investment was made in Zimbabwe. However, investors who are permanent residents of Zimbabwe cannot remit their dividends without prior approval of the Exchange Control authorities.

Borrowing

Local Borrowing

Local companies with foreign shareholding are allowed to borrow for working capital on the local market without restriction, while capital projects can only be financed from funds injected from outside Zimbabwe or firm the company’s retained earnings.

External Borrowing
 

• All companies operating in Zimbabwe are free to borrow off-shore for export related business as long as this is carried out through commercial banks who can arrange external loans of up to US$5 million per loan without having to apply for approval from government. Loans exceeding this amount require prior approval by the External Loans Co~ordinating Committee (ELCC).