Ease of Doing Business Reforms in Zimbabwe Set to Attract Investors
Some economists have blamed Zimbabwe’s indigenization law, which compels foreign companies to part with majority shares, for scaring investors.
WASHINGTON DC — The Zimbabwe Investment Authority (ZIA) says the government’s plans to promulgate 13 laws to improve the ease of doing business by June is informed by World Bank reports. The chief secretary in the Office of the President and Cabinet, Dr. Misheck Sibanda, speaking at a cocktail organized by his office at the Zimbabwe International Trade Fair in Bulawayo, said the legislative reforms would include a Public Procurement Bill. In 2015, the World Bank ranked Zimbabwe number 153 out of 189 countries and this year Zimbabwe is ranked number 155. Economies are ranked on their ease of doing business, from 1–189. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm. The number one ranked country in the world is Singapore and in Africa it is Rwanda. Some economists have blamed Zimbabwe’s indigenization law for scaring investors. The law requires foreign companies with assets of more than 500 thousand to transfer or sell a 51 percent stake to indigenous Zimbabweans. Harare says the indigenization law is meant to correct colonial imbalances which marginalized black Zimbabweans. But analysts say that policy and others have sunk Zimbabwe’s economy to unprecedented lows. Chief Executive Officer of ZIA, Richard Mbaiwa, told VOA Studio 7 that the reforms are significant in attracting investment.