InvestorCare Services is one of the foremost independent foreign investment advisors in Zimbabwe. Operations commenced in 1991, and upon adopting the International InvestorCare identity in 1997, has grown to be a major provider of services to the foreign investment sector. Recently, products offered by the organisation have been substantially broadened so as to offer feasible solutions to many of the problems encountered in making investments into new regions.
Clients range from public quoted corporations to individuals with investment interests in many sectors including mining, manufacturing, tourism, software development and support, master franchises and communications. An area in which we foresee substantial growth in is the infrastructure sector, whilst we also believe that the establishment of Export Processing Zone industrial parks will have a positive effect on manufacturing investment.
Although we have attempted to outline the services we offer, we pride ourselves on being a flexible organisation able to alter our products to suit the needs of our clients. We feel that an essential part of our service is to provide introductions between foreign investors and providers of goods and services that are of an acceptable high standard.
This approach allows us to concentrate on our core functions, but enables us to assist investors in a wide range of areas through suitable suppliers. Furthermore we are not tied to any specific suppliers and can therefore make introductions of the basis of ability to provide on the part of the supplier, and on the defined need of the investor in a totally independent manner.
Investing in Zimbabwe
Zimbabwe has taken a number of measures to ensure that it is a major foreign investment destination in Southern Africa. Investment promotion is largely carried out by the Zimbabwe Investment Centre, which was set up by Act of Parliament in 1993. Promotional activities are also carried out by the Export Processing Zones Authority, the Zimbabwe Tourism Authority and a number of other organisations representing specific business sectors.
There are a number of incentives offered to foreign investors, including guarantees of repatriation of all capital and profits, and certain tax incentives. More importantly, Zimbabwe offers itself as an ideal location for establishing regional locations, being in the centre of the Southern African Sub Region, and having good communications, transport and other business infrastructure.
Zimbabwe Investment Centre
All new foreign investment that is not channelled through the stock market must receive the approval on the Zimbabwe Investment Centre. Certain sectors of the economy are reserved for domestic investors, mainly in the areas of farming, road transportation , personal services and wholesale and retail distribution. Foreign investment in these sectors is limited to 35% at present. Where considerations regarding work and resindece permits need to be made there are minimum investment levels of US$100 000 where at least 35% of the equity is taken by a foreign investor, and US$300 000 where the investment is to be more than 65% foreign.
InvestorCare Services can assist in all matters relating to obtaining an Investment Centre Licence and can provide detailed information and advice upon request.
Export Processing Zones Authority
Investors, both domestic and foreign, who wish to take advantage of the numerous benefits of commencing operations within an Export Processing Zone, must obtain approval from the Export Processing Zones Authority. Export Processing Zones may take the form of purpose-built industrial parks or demarcated areas within existing industrial complexes.
Not only can we provide assistance in making applications for approval of single EPZ projects, but we can also assist in applications for developers permits, and provide liaison between the existing EPZ park developers and investors.
Reserve Bank of Zimbabwe
All applications for the purchase or transfer of equity in existing businesses require the approval of the Reserve Bank of Zimbabwe. In conjunction with the commercial banks, we can assist in structuring applications that require to be submitted to the Reserve Bank. Generally approvals will only be granted where the level of investment in the existing operation does not exceed 40%, and where it can be shown that benefits will accrue to Zimbabwe in the form of technology transfer, improved competitiveness, increased employment levels and increased net foreign currency earnings.
Establishment of Local Representative Offices
As wholesale and retail operations, unless franchised, are reserved for domestic operators, these areas of business are not accessible to foreign investors by way of direct investment. The alternative system that allows for a local presence by a foreign operation wishing to trade with Zimbabwe is the operation of a Local Representative Office. Approval for this is still required from the Zimbabwe Investment Centre, but is rarely withheld.
Principally, a Local Representative Office may not trade within Zimbabwe. In effect it operates as a sales office, gathering orders for its parent company. Transactions that take place are directly between the customer and the foreign entity. All expenses of the Local Representative Office must be met by the parent company in foreign currency.
This arrangement facilitates the provision of sales and support services, but does have the significant disadvantage that every customer must be an importer or an importing agent.
InvestorCare can provide full assistance in making application for approval of a Local Representative Office and can provide assistance in all matters relating to the establishment of such an office.
Paracor Non-Executive Director Program
This programme has been established to assist both foreign and local investors to recruit locally experienced non-executive directors on to their boards. Non-executive directors provide valuable input in areas such as assessment of local conditions, interaction between management and workers, evaluation of local remuneration packages and experienced assessment of a socio-political environment.
Ancillary Services
A number of ancillary services are offered that assist in the establishment of a business in Zimbabwe. These include provision of registered office and local domiciliary services, remailing and refaxing services, arrangement of e-mail and Internet accounts and the establishment of bank and credit card accounts.
Additionally we provide a basic registration service where we undertake all of the necessary start-up registrations such as Sales Tax, PAYE, Social Security, Employment Councils and Customs. We also offer a legislation service where all the relevant business legislation is provided covering specific industries, taxes, customs tariffs etc.
The InvestorCare Supplier Accreditation Program allows for accreditation of certain suppliers of goods and services that conform to minimum service standards set by InvestorCare. These service standards relate to the quality of service provided, and require the supplier to make certain commitments regarding addressing unsatisfactory levels of service. Any supplier that can not maintain the high standards expected of them will be immediately dropped from the programme.
Project Implementation Program
Business start-ups are complicated in any country - there are always labour, tax and licensing regulations to consider as well as a multitude of commercial considerations - Where can we source materials from ? What levels of service are available and at what price? What problems should we anticipate and how do we counter them?
When starting up in a foreign country it is that much more complicated - answering the questions above can be difficult when you have an intimate knowledge of the local business scene - but when you do not the pitfalls can be far worse. To assist in this area, InvestorCare Services offers Project Implementation Guidance. For either a fixed fee or on a retainer basis, we will provide assistance in organising the implementation of a project. This assistance may vary from advice on location of business, to personnel salary structures to negotiating insurance packages, equipment acquisitions and financing arrangements.
Local Equity Particiation
Under certain circumstances, foreign investments are required to have local equity participation. Unfortunately, this requires to be established from the outset, at the time application is made to the Zimbabwe Investment Centre.
The practical issue that arises is the selection of that partner before committing to an investment project. As it is impractical to enter into a joint venture with an unknown partner the Local Equity Participation Trust has been set-up to hold shares in new investments until such time as a suitable local partner has been identified, vetted and that it has been established that a sustainable working relationship can be maintained.
Paracor Trust Administration Services (Pvt) Ltd, a wholly locally owned group company, administers the Local Equity Participation (Zimbabwe) Trust.
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