Insights

For in-house lawyers working across Africa the message is clear: you are at the forefront of a revolution.

Introduction When US President Joe Biden, announced the ending of the Zimbabwe sanctions program, a wave of euphoria quickly spread across the country. The lifting of sanctions provided renewable energy investors with access to the previously closed international capital markets. Many projects were struggling to reach financial close as funders were unwilling to risk inadvertently violating US sanctions by financing Zimbabwean projects. While sanctions opened up international markets, Basel III Endgame could spoil the party for the over 100 Independent Power Producers (“IPP”), who are licensed to generate electricity in the country but are failing to obtain financing.

This article discusses the Domestic Minimum Top Up Tax (DMTT) introduced into Zimbabwe’s tax legislation in 2024. It considers the impact of the DMTT on multi-national companies operating in Zimbabwe and its implications on foreign investment.

Across the African continent, a transformative wave of policy changes is reshaping the mining sector. Nations such as Zimbabwe, the Democratic Republic of Congo (DRC), and Namibia are implementing bans on the export of unprocessed minerals, advocating for local processing prior to export. This strategic shift towards value addition, motivated by the aspiration to secure a larger portion of profits from their abundant resources, prompts an essential inquiry: Is Africa prepared for this transition?

The Zimbabwe Investment and Development Agency (“ZIDA”) has introduced new requirements for Special Economic Zone (“SEZ”) designation. These requirements are outlined in the ZIDA (General Investments) regulations, Statutory Instrument 227 of 2023. The regulations provide for both investor licensing and registration, which are two separate processes.