Reserve Bank of Zimbabwe assures European investors

THE Reserve Bank of Zimbabwe (RBZ) has given European investors confidence-boosting assurance, after the monetary authorities guaranteed the ease of repatriating business profits, dividends and disinvestment.

This commitment is meant to alleviate concerns about potential constraints from foreign exchange controls.

The central bank pledged the Government’s commitment to a secure business environment for EU investors in Zimbabwe. The RBZ’s assurance seeks to boost investor confidence and attract more foreign direct investment into the country.

The incumbent Government, led by President Mnangagwa, has been promoting the open for business mantra since coming to power in 2018.

Reserve Bank of Zimbabwe
The Government has already put in place several incentives, including tax breaks, reduced corporate tax rates, duty exemptions and capital allowances, among others, to promote investment.

It has also worked tirelessly to engage and re-engage the international community under its economic diplomacy policy agenda to grow trade and investment in the country, while several economic reforms have been instituted to improve the business environment.

Representing the RBZ at the inaugural three-day EU-Zim Business Forum, which ends today, RBZ Deputy Governor Dr Innocent Matshe, advised prospective investors to ensure regulatory compliance before trying to repatriate their funds.

Dr Matshe said this was critical for smooth transactions, enabling foreign investors to navigate Zimbabwe’s financial landscape with greater ease.

“One thing that is key for foreign investors to know is the need to register their investment, because we have seen a situation where an unregistered investor comes, either through Zimbabwe Investment and Development Agency (Zida) or through the local banks, and try to remit their dividend, or even loan payments, repayments.

President Mnangagwa
“It is important that these investments be registered and once that is done, there is absolutely no issue in remitting your profit, dividends and disinvestments,” said Dr Matshe.

He stressed RBZ’s strictness on regulatory compliance, given the country’s growing need to build and promote confidence in the local financial systems.

Speaking at the same event, NMB chief executive officer Mr Gerald Gore echoed similar sentiments, saying the repatriations have become efficient, calling on investors to have confidence in the regulatory authorities.

“As banks, we are authorised dealers, who talk to RBZ Exchange control, whether it is foreign investment or local, they have to be registered, and we do the legwork to facilitate that registration.

“Once the investment is registered, at the point where you want to repatriate, whether it’s dividends, interest, or the actual disinvestment, we do facilitate those remittances. “And so far, I can confirm that it has been working smoothly.

We have been able to pay dividends to our customers without any problems. So, I can confirm that the process is working,” said Mr Gore.

Mr Gerald Gore
However, the vice president of the Bankers Association of Zimbabwe, Dr Sibongile Moyo, highlighted that the country’s legacy debts from blocked funds remained a significant burden that needed to be addressed urgently.

She said the issue required immediate attention and resolution to free Zimbabwe from the weight of its debt obligations, allowing the country to move forward with economic growth and development.

“Legacy debt overhang is an albatross to the local economy and needs to be dealt with as soon as possible,” said Dr Moyo.

Dr Moyo noted that tackling the debt challenge head-on would unlock new opportunities for the country.
Organised by the EU Delegation to Zimbabwe, in partnership with the Zimbabwe Investment and Development Agency (Zida), ZimTrade and the Confederation of Zimbabwe Industries (CZI), the forum is being held under the theme: “Unlocking Trade and Investment under the Global Gateway Initiative.”

Under the umbrella of the inaugural E-Zimbabwe Business Forum, participants went on field visits to horticulture farms, agri-processing plants, solar farms and mine processing plants, marking a milestone in efforts to strengthen trade and investment ties between the European Union and Zimbabwe.-herald