Should i invest in zimbabwe currency

Zimbabwe has the second largest reserves in the world of platinum and equivalently large diamond reserves. Gold and coal prospects are nothing to ignore. The capital requirements are too big for some investors while the typical politics of extractive industries confound other investors.

The reality of the on-ground situation is less tricky than international news sources paint it. But capitalizing on such opportunities still requires a short stop in Harare and understanding the politics. For those investors fearful of entering the extractive processes, there is value-add potential in downstream manufacturing, for example, with jewellery.

Investors may continue to avoid the farming sector until the dust settles on the direction of land tenure laws in Zimbabwe. But agro-processing is surely not the sector to avoid. Local packaging and branding of agriculture products have great potential where import prices can be high.

Sourcing from small-scale farmers eliminates land tenure concerns but poses the potential challenge of inconsistency in quality supply. Few local companies have managed to source a mix of majority local agricultural product and source the remaining externally if needed without a drop in quality.

This can be improved. Still, the potential of farming in Zimbabwe must be addressed. The order can be placed on the phone or in person, for example "buy shares of Delta Beverages at the current market price". After the purchase, an electronic share certificate is issued that will be sent to your custodian.

An investor who wishes to stay in Zimbabwe after he has invested in the country can apply for a residential permit with Immigration of Zimbabwe. He can do this after he has obtained an investment licence from either the Zimbabwe Investment Authority or the Special Economic Zones Board.

The laws of Zimbabwe require every person conducting a business to register for tax. Registration is done by the Zimbabwe Revenue Authority. After an investor has obtained an investment license, they can approach the Zimbabwe Revenue Authority for tax registration. All clients, including individuals, companies, partnerships and co-operatives who want to venture into any business are required to register with ZIMRA online and comply with all obligations as stipulated in the legislation.

With regards income tax, there is no regulated time in which you are supposed to register for it. Companies are supposed to register for income tax when they start receiving income. To register, clients are required to have a bank account among other requirements. In instances where you make money that exceeds the threshold for the first month and there is a likelihood that you will exceed the threshold you should register.

That is called compulsory registration. Voluntary Registration is when you can register for VAT even if you don't meet the threshold. As for PAYE tax pay as you earn you should register within 14 days after you have become an employer.

Every business person who becomes an employer is required to apply to the Commissioner General for registration within 14 days of becoming an employer. If you intend to import goods, you are still required to register with ZIMRA so that you have the BP number that will identify you as an importer. The Minister responsible for investment has a mandate to publish guidelines for investment that provide for investment incentives that apply to all investments including those in the Special Economic Zones.

These incentives which were published by the Minister in January in an article called the Investment Guidelines and Opportunities in Zimbabwe are part of the economic reform packages being rolled out to attract investment.

They comprise of fiscal and non-fiscal incentives for investors. The main regulator in Zimbabwe when investment security is concerned is the Securities and Exchange Commission. Section 3 of the Act provides for the establishment of the Commission which is the regulatory body for the securities and capital markets in Zimbabwe. Commissioners were appointed on 1 September whilst the Secretariat was established in Amongst its key functions, the commission regulates the exchange of securities, the licensing of approved dealers and promoting investor education.

One of the significant measures that have been put in place to secure an investors investment is:. In terms of the Securities Act Chapter the Securities and Exchange Commission was obliged to create the Investor Protection Fund, for the purpose of providing compensation to investors for losses suffered as a direct result of a financial collapse of a market player licensed by the Commission for being unable to meet its liabilities through insolvency, malpractice or other causes.

An investor will therefore have recourse to the Fund where a licensed entity is unable, or likely to be unable, to pay its liabilities, in the event of a cessation of trading, or b such firm having insufficient assets to meet its liabilities or c insolvency declared by a competent court in Zimbabwe. Zimbabwe is also a signatory to a number of bilateral and international agreements that guarantee investment security to all investors in accordance with international best practices.

These include:. ICSID is an international arbitration institution established in for legal dispute resolution and conciliation between international. It is an autonomous, multilateral specialized institution that encourages the international flow of investment and mitigates non-commercial risks by a treaty drafted by the International Bank for Reconstruction and Development 's executive directors and signed by member countries.

Its decisions are final and binding. Zimbabwe became a member of the World Trade Organization in March The WTO's role is to facilitate international trade in goods by progressively and eliminating national governmental issues that are restrictive to trade.

Its purpose is to provide legal rules for international commerce that will facilitate the smooth operation of international trade. By virtue of being a member of the WTO the principles and agreements that are comprised are legally binding on all members of the WTO. The MFN enables the nationals of the contracting parties to benefit from favorable treatment that may be given to nationals of 3rd states. When a favorable treatment is extended to one state by way of its citizens who engage in goods, citizens of a 3rd state engaging in trade of the same goods are entitled to claim the same treatment.

It entitles the foreign investors to be treated the same way the national investors are treated. It encourages that a foreign investor and its investments are accorded treatment no less favorable than that which the local investors are given by the State. Investors and lenders in today's dynamic investment climate understand the potential benefits of investing in emerging markets.

They also understand the critical importance of addressing the political risks that may accompany an investment in such markets. By virtue of being a member of this organization Zimbabwe guarantees security for all trading deals investments. MIGA helps investors and lenders deal with risks by insuring eligible projects against losses relating to:.

MIGA provides political risk insurance guarantees for projects in a broad range of sectors in developing member countries, covering all regions of the world. MIGA guarantees offer much more than just the assurance that losses will be recovered. The Insurance also benefits investors and lenders by:. New York Arbitration Convention" or the "New York Convention", is one of the key instruments in international arbitration.

The New York Convention applies to the recognition and enforcement of foreign arbitral awards and the referral by a court to arbitration. The denomination is too small, we needed something that is of value. You will need a whole load to buy something substantial. We have gone the wrong way. We should have gone for higher denominations. Robertson called for policy changes to curb the rising cost of living and slow down inflation.

Economic fortunes have worsened during the Covid pandemic which according to the World Bank plunged 7. When he returned to Britain he gave some to a financial company he works with. He would then sell them on for several times the price.

He talked his father into a joint venture. Vishal is responsible for the listing, photographs, posting, packing and advertising, while father John supplies the goods.

Their profits are shared Business is good. In an extraordinary irony, the trillion dollar note — a symbol of financial mismanagement on a colossal scale — has turned into one of the best-performing asset classes of recent years.