Since the departure of the Mugabe clan, there has been a progressive shift towards growth for all Zimbabweans, opposed to the "grace and favour" approach. While the oil and gas sector will be a new sector for Zimbabwe, its extensive experience in natural resources makes is ideally suited to promoting growth.
February 1, 2024
Africa - South
Southern Africa, north of South Africa, between Zambia and Botswana to the west and Mozambique to the east
No formal taxation regime for Zimbabwe has been disclosed, but OGA believes that it will follow the same format as for the more established mining sector. A profit tax of 15 - 24% is expected to be imposed, following the application of depreciation. Special rates may be provided to nurture the nascent industry, however, which could see tax rates fall to zero for a initial period.
Zimbabwe’s skilled labour, high literacy rate (89%) and mineral wealth have traditionally presented significant commercial opportunity for foreign firms. Recent changes have made investment more attractive, with the removal of local ownership requirements for foreign direct investment and the creation of special economic zones to offer incentives to attract investment. Nevertheless, the Zimbabwean economy is characterized by instability and policy volatility, which are hallmarks of excessive government interference and mismanagement. The fragile economic infrastructure has crumbled after years of neglect. The impact of years of hyperinflation continues to impede entrepreneurial activity. A corrupt and inefficient judicial system seriously increases entrepreneurial risk.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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