Zimbabwe
Country information
The Zimbabwe economy is dominated by the agricultural sector, where in
good rainfall seasons the sector out-performances other sectors of the
economy (CSO, 2000). The agricultural sector is the largest employer of
labour (26%) in the formal economy and contributes around 21.6% to GDP
and 35% to export earnings. The large-scale sector contributes most to
output, but by 1986 communal farm (traditional village sector)
production had increased to 32% of total agricultural output (with 61%
of communal production being retained for own consumption) (Ashworth,
1990).
| Country Size: |
390 245 sqkm |
| Population: |
13 million (July 2004) |
| Currency: |
1ZW$ = 100 cents |
| Languages: |
English |
| Capital City: |
Harare |
| GDP (US$): |
24.03 billion (2004 est.) |
| Main Economic Sectors: |
Manufacturing, agriculture and mining. |
| Main Exports: |
Tobacco, gold, ferroalloys, textile and clothing. |
| Main Imports: |
Machinery and transport equipment, other manufactures, chemicals and fuel |
| Industry (Main Industries): |
Foodstuffs including stock feeds, followed by metals and metal products and chemicals and petroleum products are the biggest industrial sectors. |
| Natural Resources: |
Zimbabwe is mineral rich and has huge tracks of arable land. |
|
Agriculture
(Main Products):
|
Largest outputs of produce include maize, tobacco, cotton, wheat, sugar and oil seeds. |
| International Organization Member: |
SADC, COMESA, LOME CONVENTION, WTO, UN, WCO, ADB, WB, and AU |
| Infrastructure: |
Good quality roads and rail link all major cities and neighbouring countries and there are 3 international airports. There is adequate provision of electrical power (hydro and thermal), postal and telecommunication services, which are continually being up graded. |
Livestock
| Cattle Population: |
4.2 million (2002) |
| Sheep Population: |
3.9 million (2002) |
| Goat Population: |
0.3 million (2002) |
| Cattle Off Take Rates: |
10% |
| Sheep Off Take Rates: |
13% |
| Goat Off Take Rates: |
8% |
| Livestock Policy: |
Zimbabwe's livestock policy is covered under the Animal Health Act chapter 19:01 of 1996. |
| Slaughter Facilities: |
108 registered and operational. Note there are also several slaughter shades operational in rural areas. |
Industry profile
Hides and skins
Tanning
Footwear
Leather goods
SWOT analysis
Hides and skins
| Quantity Hides: |
550,000 |
| Quantity Sheep: |
90,000 |
| Quantity Goat: |
123,000 |
| Annual Collection Level Hides: |
482,000 |
| Annual Collection Level Sheep: |
71,000 |
| Annual Collection Level Goat: |
83,000 |
| Flaying Methods: |
Electric flaying knives / Ordinary flaying knives |
| Preservation Methods: |
Mainly wet salting. |
| Grading Systems, available grades and percentage of Each: |
Grade 1-10% / Grade 2-15% / Grade 3-35% / Grade4-30% / Rejects-10% |
| Hides & skins trade channels: |
There are basically 3 trading channels, which are as follows:
a. Farmer/butcher to local collector to established hides merchant to tannery
b. Slaughter house to tannery
c. Slaughter house to hides merchant to tannery |
| Market (%): |
Export of raw hides is banned.
Major Markets: Local |
| Annual Export Value (US$): |
Nil |
| Average market Bovine price: |
Grade 1: 0.10 / Grade 2: 0.10 / Grade 3: 0.07 |
| Average market Sheep price: |
Grade 1: 0.10 / Grade 2: 0.10 / Grade 3: 0.07 |
| Average market Goat price: |
Grade 1: 0.10 / Grade 2: 0.10 / Grade 3: 0.07 |
Tanning
| Number of Tanneries: |
15 |
| Installed tanning capacity: |
For different products: 600 000 hides |
| Tanneries in Operation: |
11 |
| Utilized capacity: |
40-70% |
| Output of the industry: |
Crust: combined output valued at ZW$188 221 000 (1997) |
| Number of employees: |
249 |
| Estimated Annual Export Value (US$): |
7.3 million |
Footwear
| Estimated Annual Export Value (US$): |
1,7 million |
Leather goods
| Number of Leather Goods and Garment Factories: |
15 |
| In Operation: |
12 |
| Market (%): |
Local 100% |
SWOT analysis
| Strengths: |
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. |
| Weaknesses: |
- European legislation for leather products has become increasingly tough during the last decade. For various chemicals found in finished leather goods, both the European Union and its Member States have set strict limits. These limits have caused major adjustment problems in some developing countries in the past.
-
Lack of business contacts in Europe are an obstacle for the smaller companies.
-
Lack of knowledge on environmental trends in the European export market.
-
Poor co-operation between companies and between companies and their support institutions.
-
Some of the machinery are out dated
|
| Opportunities: |
- A modern agricultural industry supplies ample raw materials to footwear sub sectors
-
Emerging market for eco-leather products considering the environmental quality of the finished products only, it makes certification affordable, even for exporters from developing countries and it is large enough to offer good business opportunities for Zimbabwean exporters - growing business opportunities in COMESA and SADC
|
| Threats: |
- Competition in terms of price and quality with the Asian exporters.
-
Outbreak of Foot and Mouth Disease
-
Foreign currency shortage
-
HIV and Aids
|
Government policy
| Fiscal Policies: |
- VAT- 17.5%
- Export levies - N/A
- Corporate taxation – 30%
|
| Monetary Regulations: |
Under the current
Exchange Control guidelines, profits and dividends from foreign
investment have 100% remittability rights. By nature of the status of
the foreign currency holdings of non-resident Zimbabweans, which are
"free funds", profits and dividends in respect of investments by
non-resident Zimbabweans would be, with effect from 1 August, 2004,
accorded the same status as that of foreign investors and, would be
freely remittable. Access to auction funds should also be allowed for
dividend remittances arising from investments funded through foreign
exchange injection from the Diaspora.The Monetary Policy Review
Statement of 21 April, 2004 reaffirmed that Zimbabweans, within and
outside the country, are free to operate individual foreign currency
accounts (FCAs). his relaxation of capital controls is also expected to
encourage some non-resident Zimbabweans to internalize their investment
income – by depositing their profits and dividends in foreign currency
accounts (FCAS) with local Authorized Dealers. |
| Trade regulations: |
In order to encourage
exports Zimbabwe allows duty free importation of raw materials meant
for manufacture of goods for export. This is done through the duty
export draw back and Inward Processing Schemes. Export drawback is a
claim for refund of import dues when qualifying goods is exported from
Zimbabwe. Qualifying goods is defined as any goods exported unused upon
which import dues (custom duty, surtax and import tax) were originally
paid. This includes goods processed or manufactured in Zimbabwe which
contains imported materials upon which the import dues were paid.Inward
Processing Rebate is a claim for refund that applies to processing or
repair of imported goods for re-export. The applicant must be involved
in processing or repairing of imported goods for re-export. Inward
Processing means the processing or repair of imported goods for
re-exportation. While processing means the manufacture of goods and
includes any one or more of the following operations:
- fitting or assembling
- industrial packaging or re-packaging
- use of agents such as catalysts, accelerators or retarders of chemical
reactions which disappear entirely or partially in the course of
production and are thereafter indistinguishable in the goods produced
- mixing and blending
IMPORT / EXPORT LICENCES:
After
Zimbabwe’s successful trade liberalization programme importers are no
longer required to obtain import licenses except for a very limited
range of commodities. This relates to such items as arms and armaments,
radioactive materials, toxic waste etc. Export licenses are also only
required for a limited range of items mainly strategic agricultural
commodities. These are obtainable from the Ministry of Lands and
Agriculture. |
Investment environment
| Requirements For Foreign Investment / Joint ventures: |
All new foreign investment into Zimbabwe has to be registered / approved by the Zimbabwe investment Committee through an application that is done by applying for the investment certificate. Foreign investment into existing companies requires reserve bank approval. This approval is obtained by submitting an application to the exchange control department of the reserve bank of Zimbabwe through the investor company's commercial bank or merchant (Authorised dealer).
The Zimbabwe investment centre Act stipulates that within 45 days after receiving an application, the investment committee shall consider the application, reach a decision thereon and cause the applicant to be notified of its decision.
However registration/approval by the Zimbabwe Investment Centre may take between 48 hours and ten working days depending on the nature of the project.
Government Organizations & Other Agencies Related to Foreign Investment |
| Tax Incentives: |
General Incentives
-
Dividend remittance threshold for companies established prior to 1979 has been increased from 25% to 50% of net after tax profits, through the inter bank market;
-
Dividend remittance for companies set up after 1 May 1993, is now 100% and payment is effected through the inter bank market;
-
Foreign investors may hold up to 100% equity in companies operating in preferred sectors of the economy, i.e. those sectors other than specified in 51108 of 1994;
-
Foreign investors may hold up to 35% equity in companies which are in reserved areas as specified in 51108 of 1994;
-
In construction and specialized services, foreign investors may hold up to 70% equity;
-
Exporters are entitled to retain 100% of their export proceeds with authorized dealers in corporate Foreign Currency Accounts (FCAs);
-
Investment inflows and capital transfers are eligible for 100% deposits into FCAs;
-
Exemptions from import tax (sales tax), surtax and customs duty on equipment an machinery imported for productive purposes;
-
Surtax has been reduced from 15 to 10%;
-
No restriction on local borrowing;
-
Flexibility in recruitment and engagement of expatriate personnel with maximum contract periods of up to five years;
-
Investors investing significant sums in ZIC approved projects are eligible to acquire permanent residency, depending on amounts involved; and
-
25% Special Initial Allowance on cost of industrial and commercial buildings and machinery is granted as a rebate for the first four years.
|
| Free Trade Zones: |
Free Zones in Zimbabwe are referred to as Export Processing Zones and there are several companies operating on this basis, one of them is Royal Ostrindo, which is involved in the tanning of exotic leather for example ostrich and elephant skins. |
Institutional support
Institute Name
Leather Institute of Zimbabwe (LIZ)
Zimbabwe Investment Centre
Export Processing Zones Authority (EPZ)
Confederation of Zimbabwe Industries (CZI)
Zimbabwe National Chamber of Commerce
Mupfure Self Help College
Leather Institute of Zimbabwe (LIZ)
| Contact Name: |
Ms. Mhare |
| Job Title: |
Office Administrator |
| Institute Name: |
Leather Institute of Zimbabwe (LIZ) |
| Address : |
20 Coventry Street, Belmont |
| P.O.Box: |
2324 |
|
|
| City: |
Bulaway |
| Country: |
Zimbabwe |
| Phone1: |
263-09-882 752 |
Phone2: |
263-09-882 760 |
| Fax: |
263-09-882 757 |
|
|
|
| Email: |
liz@netconnect.co.zw |
| Activity: |
 Association |
|
| Presentation of the institute: |
The
Leather Institute of Zimbabwe was formed in January 1985 to provide
training and technical support for the improvement of the hides and
skins produced in Zimbabwe. Today it stands as the prime technical
institution for training, testing and quality improvement of hides,
leather and related leather products. |
Zimbabwe Investment Centre
| Contact Name: |
Mr. Mubaiwa |
| Job Title: |
Acting Director |
| Institute Name: |
Zimbabwe Investment Centre |
| Address 1: |
Investment House |
| Address 2: |
109 Rotten Row |
| P.O.Box: |
5950 |
Zip: |
|
| City: |
Harare |
| Country: |
Zimbabwe |
| Phone1: |
263-4-757 931 |
Phone2: |
263-4-759 911 |
| Fax1: |
263 -4-757 937 |
Fax2: |
263-4-759 917 |
|
| Email: |
info@zic.co.zw |
| Website: |
http://www.zic.co.zw |
| Activity: |
|
Other Government body |
|
| Presentation of the institute: |
Zimbabwe
Investment centre (ZIC) is Zimbabwe’s prime investment promotion
agency. It was established by an Act of Parliament in 1993 and tasked
with the following functions:
- Co-ordinate and facilitate non-resident investment proposals for acceptance;
- Promote and facilitate investment by both domestic and foreign investors;
- Promote joint ventures between local and foreign investors;
- Promote decentralisation of investment;
- Advise government on policies that relate to private sector.
|
Export Processing Zones Authority (EPZ)
| Contact Name: |
Walter Chidhakwa |
| Job Title: |
General Manager |
| Address : |
Kopje |
| P.O.Box: |
661484 |
|
|
| City: |
Harare |
| Country: |
Zimbabwe |
| Phone1: |
263-04-780 147 |
Phone2: |
263-04-759 918 |
|
| Email: |
info@epz.co.zw |
| Activity: |
|
Other Government body |
|
| Presentation of the institute: |
The
EPZ Authority is the first port of call for any investor wishing to
invest in Export Processing Zones. It has been tasked by Government to
promote zone development and the carrying and the promotion of export
oriented activities in these zones.Its highly streamlined investment
facilitation framework allows an investor to set up operations without
unnecessary delays. Its business is to help Zimbabwe develop into a
value added, technology driven export oriented economy. |
Confederation of Zimbabwe Industries (CZI)
| Contact Name: |
Farai Zizhou |
| Job Title: |
Chief Executive |
| Address : |
CZI Head Office, 31 Josiah Chinamano Avenue |
| City: |
Harare |
| Country: |
Zimbabwe |
| Phone1: |
263-04-251 490 |
Phone2: |
263-04-251 496 |
| Fax: |
263-04-252 424 |
|
|
|
| Email: |
info@mail.co.zw |
| Activity: |
|
Chamber of Commerce |
|
| Presentation of the institute: |
The
apex organisation for industry in Zimbabwe the Confederation of
Zimbabwe Industries has been in existence since 1923. It is an
independent, self financed, legally constituted organisation that
represents and serves interests of members in a wide array of matters
affecting their viability. |
Zimbabwe National Chamber of Commerce
| Address 1: |
Head Office, ZNCC Business House |
| Address 2: |
42 Harare Street |
| P.O.Box: |
1934 |
|
|
| City: |
Harare |
| Country: |
Zimbabwe |
| Phone1: |
263-04-749 335 |
Phone2: |
263-04-749 337 |
| Fax: |
263-04-749 737 |
|
|
|
| Email: |
info@zncchq.co.zw |
| Activity: |
|
Chamber of Commerce |
|
| Presentation of the institute: |
The
Zimbabwe National Chamber of Commerce (ZNCC) is the primary business
association in Zimbabwe representing enterprises of every size and kind
through out the country. ZNCC is an independent, voluntary, non-profit
making and non political organisation. |
Mupfure Self Help College
| Contact Name: |
A. Machipisa |
| Job Title: |
Head of Department of leatherwork |
| P.O.Box: |
347 |
|
|
| City: |
Chinhoyi |
| Country: |
Zimbabwe |
| Phone1: |
263-053-2863 |
Phone2: |
263-053-276 73 |
| Fax: |
263-053-276 78 |
|
|
|
| Presentation of the institute: |
Mupfure
Self Help College is a vocational training institute whose main
objective is to equip students with technical skills in various fields,
which includes leather technology i.e. tanning and manufacturing of
leather products. |
Trade statistics
| Product: |
Footwear with outer soles of rubber, plastics, leather or composition leather |
| Year: |
2004 |
| Exports (quantity): |
349,554 |
| Exports (in USD): |
2,565,385 |
Technical cooperation projects
Adding value to African leather
| Duration: |
2 years |
| Status: |
Completed |
| Description: |
The project is aiming at improving the quality of footwear and other leather products. |
Commercialisation of hides and skins from Small holder farming system by improving quality and quantity
| Duration: |
3 years |
| Status: |
Ongoing |
| Description: |
The project is
aimed at improving the quality and collection of hides and skins,
through training in flaying and preservation techniques, awareness and
provision of flaying tools. |
Surveys and reports
Zimbabwe e-readiness Survey Report
| Corporate Author(s): |
The Department of
Science and Technology Development in the Office of the President and
Cabinet - Consultants: The National University of Science and
Technology, Bulawayo |
| Year of Publication: |
2005 |
| Number of pages: |
210 pages |
| Language(s): |
English |
| Also availabe at: |
http://www.ict.org.zw/Draft_e-Readiness_Survey_Report.pdf
|
| Abstract: |
Zimbabwe does not
have an integrated and coherent national Information and Communication
Technologies (ICT) policy. the Government of Zimbabwe, in conjunction
with the National Economic Consultative Forum and with support from the
United Nations Development Programme (UNDP), commissioned an e-Readiness
survey whose purpose was to assess the country’s readiness to become a
knowledge society/economy.A diagnostic survey using both quantitative
and qualitative methods was conducted. The main variables the survey
sought to determine were availability of ICT access (with teledensity,
infrastructure availability and capacity as main indicators),
affordability, usage, policy environment, uptake of ICTs in the sectors
defined below and barriers to increasing access. The sectors covered
were: agriculture, commerce, education and training, government,
governance, health, manufacturing, mining, tourism, Informationand
Communication Technologies and cross-cutting issues of gender, youths,
disabled,Small and Medium Enterprises (SMEs) and the aged. |
| Publisher: |
UNDP |
| Type of Document/Material: |
Web document |
Company profiles