ZIMBABWE

(d) TARGET SECTORS

Foreign Investment in Various Sectors 
Foreign share holding in various sectors is provided for as follows: 

Up to 100% Foreign Ownership
This is allowed in the following priority sectors: 

  • Manufacturing 
  • Mining, quarrying and mineral exploration 
  • Development of hotels for tourism 
    • Up to 70% Foreign Share holding 
    This is permitted in spedialized services such as management consultancy and construction, etc. 

    A Maximum of 35% Foreign Ownership 
    This is allowed in selected sectors where foreign investors wishing to participate can only do so in joint venture partnerships with Zimbabwean firms or individuals. 

    Sectors Reserved for Domestic Investors 
    In order to provide opportunity for domestic investors, the Government has, in terms of Statutory Instrument 108 of 1994, put in place a reserved list as a means to encourage joint ventures between foreign and local partners. The joint venture should assist the local partner to access foreign capital expertise and technology. 

    The reserve list is as follows: 

    Agriculture Forestry 

  • Primary production of food and cash crops
  • Primary horticulture 
  • Game, wildlife ranching and livestock development 
  • Forestry 
  • Fishing and fish farming 
  • Poultry farming (excluding processing) 
    • Transport services excluding air 
  • Road haulage
  • Passenger bus, taxi and car hire service 
  • Tourist transportation 
    • Retail of wholesale trade 
  • Barbershops, hairdressing and beauty salons 
  • Commercial photography 
  • Employment agencies 
  • Estate agencies 
  • Armaments manufacture, marketing and distribution 
  • Public water provision for domestic and industrial purposes 
  • Rail operations except on a Build, Operate & Transfer basis 
  • Bakeries and grain milling 
  • Sugar products 
  • Tobacco, packaging and grading, tobacco products 
    • Investment Opportunities 
    The manufacturing sector is very diversified. This is its source of strength. Linkages are well-developed within the sector itself and with other leading sectors. The machinery, however, are old. Therein lie the opportunities for new investors to partner existing ones on the basis of retooling and expansion projects. There is scope for green field projects, relying on the inherent possibilities for technological and product change and production processes that do not exist in the country. Some of the sectors need new equity injections. Investment to improve quality and competitiveness are well-rewarded. 

    The metals and metal product subsector has the greatest linkages of all sectors. A significant proportion of its inputs are imported (Zimbabwe's industry generally relies on imported inputs of up to SO per cent). It has linkages with at least two other sectors that rely on local assembly kits and imported components, the electronics subsector and the motor vehicle assembly industry. 

    These sectors offer opportunities for the production of local components. 

  • In the electronics subsector semiconductor manufacture for local industry and for the regional market including South Africa is a possibility. 
  • The motor vehicle industry has reached quality standards which would allow it to compete regionally if trade barriers were lifted. The production of quality local components will further enhance competitiveness in the industry and would be good candidates for Export processing Zone production. 
  • A modern agricultural industry supplies ample raw materials to the food, drink and tobacco subsectors and the textiles, clothing and footwear subsectors. Zimbabwe's tobacco and hand-picked cotton are world renowned for their quality. But they are largely exported in raw form or semi-processed, offering scope for greater bonification of lint and tobacco products. There are also plenty of opportunities for new entrants in the manufacturing of clothing, footwear and tobacco itself. 
  • Agro-based industries and industries providing agricultural inputs and machinery have unlimited potential. Zimbabwe has responsibility for food security in SADC. Projects have been mooted to enhance and modernize fertilizer production. There is growing demand for other agricultural chemicals and pesticides. The chemicals subsector can rely on the abundant mineral resources available. 
  • Increasing attention is being paid to the creation of small and medium sized businesses. The establishment of Export Processing Zones has opened up additional avenues for investing in export oriented manufacturing activities and services. 

    • Handicrafts is another export growth sector, with many small exporters and cooperatives lready exporting to overseas markets. Zimbabwe boasts renowned sculptors whose works of art are found in many galleries throughout the world. Other craft items include pottery, basket weaving, crochet, copper and silver wares.