Agriculture

(Main Products):

• 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

• 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

• Competition in terms of price and quality with the Asian exporters.
• Outbreak of Foot and Mouth Disease
• Foreign currency shortage
• HIV and Aids

• 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.