 RESTRICTED  
  
WT/TPR/G/ 398 
19 February  2020 
(20-1249) Page: 1/25 
Trade Policy Review Body  Original:  English  
 
  
TRADE POLICY  REVIEW  
REPORT  BY 
ZIMBABWE  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by 
Zimbabwe is attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Zimbabwe.  
  WT/TPR/ G/398 • Zimbabwe  
 
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  Contents  
1   INTRODUCTION  ................................ ................................ ................................ ..........  4 
2   ECONOMIC ENVIRON MENT  ................................ ................................ ..........................  4 
3   VISION 2030 AGEN DA ................................ ................................ ................................ . 5 
3.1   Progress in the Implementation of the TSP ................................ ................................ ..... 5 
3.2   Economic Outlook  ................................ ................................ ................................ ........  7 
4   OVERVIEW OF TRAD E POLICY AND TRADE P ERFORMANCE ................................ ..........  8 
4.1   Trade Policy Regime ................................ ................................ ................................ ..... 8 
4.2   Trade Performance  ................................ ................................ ................................ ...... 8 
5   MONETARY AND EXC HANGE RATE POLICIES  ................................ ...............................  9 
5.1   Interest Rate Regime  ................................ ................................ ................................ . 10 
5.2   Monetary Policy Regime  ................................ ................................ .............................  10 
5.3   Promotion of Mobile Money Use  ................................ ................................ ...................  10 
5.4   Exchange Rate Developments  ................................ ................................ .....................  10 
5.5   Balance of Payments  ................................ ................................ ................................ .. 10 
6   SECTORAL PERFORM ANCE  ................................ ................................ .........................  11 
6.1   Agriculture  ................................ ................................ ................................ ................  11 
6.2   Mining  ................................ ................................ ................................ ......................  11 
6.3   Manufacturing Sector  ................................ ................................ ................................ . 12 
6.3.1    Analysis of Manufacturing Sector Performance  ................................ ............................  12 
6.4   Industrial Policy Since  2011 ................................ ................................ ........................  13 
6.5   Measures Introduced Since  2011 to Assist I ndustry  ................................ .......................  13 
7   SERVICES SECTOR  ................................ ................................ ................................ ..... 13 
7.1   Insurance  ................................ ................................ ................................ .................  13 
7.2   Zimbabwe Stock Exchange  ................................ ................................ .........................  14 
7.3   Banking Services  ................................ ................................ ................................ ....... 14 
7.4   Tourism  ................................ ................................ ................................ ....................  14 
7.5   Energy Related Services  ................................ ................................ .............................  16 
8   INVESTMENT ENVIR ONMENT AND POLICY  ................................ ................................  16 
8.1   Measures to improve the Investment Environment  ................................ ........................  17 
8.1.1    Ease of Doing Business Initiative  ................................ ................................ ..............  17 
8.1.2    Amendment of Indig enisation Legislation  ................................ ................................ ... 17 
8.1.3    One Stop Investment Services Centre  ................................ ................................ ....... 17 
9   ADMINISTRATION O F STANDARDS AND QUAL ITY ................................ .....................  17 
10   CONSUMER PROTEC TION  ................................ ................................ ........................  18 
11   INSTITUTIONAL A ND STRUCTURAL REFORM S ................................ .........................  18 
11.1   Trade Facilitation Initiatives  ................................ ................................ ......................  18 
11.2   Public Procurement  ................................ ................................ ................................ .. 18 
11.3   State Enterprises and Parastatals Reform  ................................ ................................ ... 18 
12   TRADE POLICIES AND PRACTICES  ................................ ................................ ...........  19 WT/TPR/ G/398 • Zimbabwe  
 
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  12.1   Export -Led Production and Industrialisation  ................................ ................................  19 
12.2   Trade Development Strategies  ................................ ................................ ..................  20 
12.3   Competition Policy  ................................ ................................ ................................ ... 20 
12.4   Imports and Tariff Regime  ................................ ................................ ........................  20 
12.5   Export Taxes  ................................ ................................ ................................ ...........  21 
12.6   Rules of Origin ................................ ................................ ................................ .........  21 
12.7   Standards and Quality  ................................ ................................ ..............................  21 
12.8   Trade Promotion  ................................ ................................ ................................ ...... 21 
12.9   Brand Zimbabwe Promotion  ................................ ................................ ......................  22 
12.10    Ease of Doing Business Reforms  ................................ ................................ ..............  22 
12.11    Intellectual Property Rights (IPRs)  ................................ ................................ ...........  22 
13   MULTILATERAL TR ADE AND REGIONAL AGR EEMENTS  ................................ .............  22 
13.1   World Trade Organisation (WTO)  ................................ ................................ ...............  22 
13.2   Trade Remedies  ................................ ................................ ................................ ....... 22 
13.3   Regional Trade  ................................ ................................ ................................ ........  23 
13.4   Southern African Development Community  ................................ ................................ . 23 
13.5   COMESA Free Trade Area  ................................ ................................ ..........................  23 
13.5.1    Zimbabwe's Trade Performance in COMESA  ................................ ..............................  23 
13.6   COMESA -EAC-SADC Tripartite Free Trade Area  ................................ ............................  24 
13.7   African Continental Free Trade Area (AfCFTA)  ................................ ..............................  24 
13.8   Interim Economic Partnership Agreement with the European Union  ................................  25 
 
  WT/TPR/ G/398 • Zimbabwe  
 
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  1  INTRODUCTION  
The past two decades have seen Zimbabwe going through unstable socio -economic instability 
due to a number of internal and external factors, which have continued to affect Zimbabwe’s 
economic recovery efforts and have impacted on both the formulation and ap plication of the national 
trade policy. Chief among the factors include the continued imposition of illegal sanctions on 
Zimbabwe by some members of the international community following the historic Land Reform 
Programme implemented in year 2000.  
The san ctions have affected access to finance for development and credit lines from the 
multilateral financial institutions. This has constrained the country’s capacity to meaningfully invest 
in the productive sectors of the economy, power generation, food securi ty, water and sanitation, 
healthcare and job creation.  
Zimbabwe’s recovery efforts have also been affected over the years by natural disasters as 
climate change takes its toll, including devastating floods such as the most recent Cyclone Idai and 
recurren t severe droughts which have affected the food security situation  in the country.  
Zimbabwe under the new government is currently undergoing socio -political and economic 
transformation and has set out a long -term strategic vision of transforming the countr y, “Towards a 
Prosperous and Empowered Upper Middle Income Society by 2030.”  Zimbabwe recognises the 
essential role of both domestic and foreign investment in advancing transfer of modern technology 
and know -how for developing and creating business linkage s which stimulate sectoral wide 
productive capacities across enterprises and other economic activities, and in the  process generating 
employment.  
Accordingly, attracting and retaining investment has been placed at the core of the national 
developmental age nda, given its pivotal role to sustaining economic development and alleviating 
poverty. This will ensure successful attainment of Zimbabwe’s vision and the UN Sustainable 
Development Goals by 2030.  
Despite all the challenges, Zimbabwe is resolute to implem ent all the key reforms necessary 
and open up the country for business.  The new National Investment Policy unveiled in August 2019 
to facilitate investment into the various sectors of the economy signals Zimbabwe’s  commitment to 
investment promotion and in vestor protection.  
2  ECONOMIC ENVIRONMENT  
Zimbabwe’s economy is estimated to have underperformed by as much as -6.5% in 2019, after 
registering nascent growth between 2015 and 2018. The country’s growth was weighed down by 
severe exogenous shocks related to  climate change that resulted in the El -Nino induced drought and 
Cyclone Idai which compromised agricultural activities and electricity generation with extended 
effects on other sectors, pushing  the economy into a recession. The situation was exacerbated b y 
foreign currency shortages and constrained spending being imposed by the ongoing fiscal reforms. 
In addition, the economy suffered from depressed demand for the country’s exports emanating from 
the slowdown in the growth of the global economy.  
Table 2.1 Key economic indicators,  2015 -2019  
 2015  2016  2017  2018  2019  
GDP (USD bn) market 
prices  19,963.0  20,549.0  22,041.0  19,067.8  20,738.6  
Real GDP growth (%)  1.8 0.8 4.7 3.4 -6.5 
Headline inflation (%)  -2.4 -1.6 0.9 10.6 109.01 
Overall budget 
deficit/GDP (%)  -1.0 -6.9 -11.7 -5.3 -4.0 
General Government 
debt/GDP (%)  54.1 58.4 68.5 76.1 43.4 
Tax revenue/ GDP (%)  18.4 16.4 16.9 21.0 19.7 
 
1 Annual Average up to July 2019. Publication of Annual inflation statistics has been suspended since 
then. WT/TPR/ G/398 • Zimbabwe  
 
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   2015  2016  2017  2018  2019  
Government capital 
Investment /Tax 
revenue (%)  11.0 27.0 30.0 51.1 39.9 
External reserves 
(Months of Imports)  0.9 1.0 0.7 0.5 0.8 
Central Bank credit to 
Government  
(% of previous year's 
tax revenue)  33.9 63.4 103.5  127.2  91.1 
Source:  Ministry of Finance & Economic Development and Zimbabwe National Statistics Agency  
The country’s headline inflation, which averaged -1.0% between 2015 and 2017, increased to 
10.6% in 2018 and to 10 .9% in July 2019, mainly on account of continued increases in the parallel 
market exchange rate premium, growth in reserve money and adverse inflation expectations. In 
response, the Authorities are implementing a tighter monetary policy stance in the form of a Re serve 
Money targeting framework.  
While the country is in a debt overhang mainly due to continued accumulatio n of external 
payment arrears, Government  is reengaging the international community with a view to come up 
with a strategy to clear the arrears and as such, Government debt is expected to decline to 
sustainable levels given that GDP will be growing, agains t limited external borrowing.  
The country’s reserve adequacy, in the form of months of imports, is low given the country’s 
high import dependency on account of supply gaps of basic commodities in the economy as well as 
loss of export competitiveness of dom estic products. Government is in the process of putting in place 
measures to build -up reserves as the trade balance improves.  
3  VISION 2030 AGENDA   
The ushering in of a new dispensation on 24 November 2017 marked the dawn of a new era of 
renewed hope for a better life for all Zimbabweans premised on a Vision for realisation  of economic 
growth and development. The Government of Zimbabwe set out a long -term strategic vision to 
transform Zimbabwe towards an Upper -Middle -Income Society by 2030. The Zimbabwe Vision 2030 
will be realised through five strategic pillars, namely; governance; macro -economic stability and 
financial re -engagement; inclusive growth ; infrastructure and utilities development; and social 
development.  
To achieve Vision 2030, Zimbabwe developed a short -term stabilisation strategy, the 
Transitional Stabilisation Programme (TSP), which has been under implementation from 
October  2018 to De cember 2020. The TSP’s main thrust is macro -economic and fiscal stabilisation 
and laying a solid foundation for two successor five -year National Development Plans to run from 
2021-2025 and 2026 -2030.  
The major objective of the TSP has, therefore, been to stabilise the macro -economy and the 
financial sector, attract foreign investment and lay the foundation for shared, strong and sustained 
growth in the medium - to long -term.  
3.1  Progress in the Implementation of the TSP  
Progress in the implementation of the Tr ansitional Stabilisation Programme has been achieved 
in the following areas:  
Fiscal Discipline  
The Government managed to control expenditure with the monthly budget deficit declining 
from USD 242 million in November 2017 to a surplus of USD733 million in December 2018. 
Government is now spending within its means and within the budget. Government man aged the 
unsustainable practice of issuing Treasury Bills to finance the deficit. Government has also managed 
to contain the public wage bill. This fiscal discipline has managed to curtail the budget deficit. 
The new trend of budget surpluses is projected to continue and resources there -from used to WT/TPR/ G/398 • Zimbabwe  
 
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  finance more public services such as healthcare facilities, schools, roads and related projects 
with a direct impact on the people’s well -being.  
Fighting Inflationary Pressures  
Government has stopped deficit fi nancing through overdrafts at the Central Bank and has 
reduced money supply growth. This policy thrust of tight fiscal and monetary policies will be 
maintained until the economy fully stabilises and inflation is firmly under control.  
Currency Reforms  
Government is tackling the currency problem which had become a thorny issue in destabilising 
the economy. Zimbabwe moved away from a multi -currency regime on 24 June 2019 to a single 
local currency system, where the Zimbabwean dollar is now the legal tender f or most domestic 
transactions. It had become clear that the prolonged use of the US dollar had actually done more 
harm than good to the performance of the productive and the export sectors. It had become very 
difficult to export Zimbabwe products and servi ces in the region and beyond as they were 
uncompetitive. At the same time, because of using foreign currency, the domestic market had 
become a highly lucrative destination of other countries’ exports into the market, posing a serious 
challenge on Zimbabwe’ s terms of trade.  
The economy was facing imminent and accelerating re -dollarisation hence the introduction of 
Statutory Instrument 142 of 2019 which was designed to address that untenable situation. The 
instrument abolished the multi -currency system and r e-introduced the local Zimbabwe dollar. We 
are now able to manage this local unit of currency in the best interests of the economy unlike the 
monetary incapacitation we were faced with under the US -dollar dominated multi -currency system. 
We are glad to not e that many companies in Zimbabwe have now started to gain competitive edge 
in the export markets by virtue of being able to produce in local currency.  
Current Account Improvement  
Following the introduction of the local currency, the country’s Current Acc ount has improved 
from minus USD 1.4 billion in 2018, to minus USD 323 million in 2019. With the local currency, 
competitiveness of industry has improved as a result, and in 2020, the current account is poised to 
further improve on the back of improved exp ort performance and a shift of demand towards locally 
produced goods.  
Foreign Exchange Liberalisation  
Measures were adopted to improve on foreign currency generation by establishing an efficient 
and optimal mechanism for foreign currency allocation through  the market -based Inter -Bank Market.  
Fighting Corruption  
Government has been fighting corruption which continues to be one of the major threats to 
efforts to stabilise the economy. Corruption had become a huge cost to business and therefore 
Government has declared war on any form of corruption, and arrests of alleged perpetrators is 
continuing through the Zimbabwe Anti -Corruption Corruption Commission (ZACC). The ZACC is now 
fully capacitated to be able to deliver on its mandate to fight corr uption and has been given arresting 
powers. In addition, an Anti -Corruption Unit was established in the Office of the President and 
Cabinet to enhance the fight against corruption.  
Ease of Doing Business Reforms  
Zimbabwe’s policy thrust is to open up and facilitate investment -led economic recovery. 
Government is taking drastic measures to reform the investment climate and business operating 
environment to ensure that indeed Zimbabwe is Open for Business.  WT/TPR/ G/398 • Zimbabwe  
 
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  Indigenisation Policy   
Among the major reforms impl emented is the review of the indigenisation policy which  has 
been controversial over the past years. Investors can now come and do business in Zimbabwe in 
any sector or sub -sector with up to 100% foreign ownership. S hareholding is actually an outcome 
of negotiations between interested parties.  This means that all foreign investors are free to choose 
their investment partners regardless of nationality and can have 100 % foreign shareholding in their 
companies.   
Safety of Investments  
Government has adopted a  policy of non -discrimination between foreign and domestic 
investors. The new National Investment Policy adopted in August 2019, provides that all investors 
are treated equally in the establishment, expansion, operation, and protection of their investments . 
The Constitution of Zimbabwe also protects and guarantees property rights as well as investment 
protection. The safety of investments in Zimbabwe is guaranteed, and investors are free to approach 
the courts for any dispute resolution, free from governmen t influence.  
Repatriation of Dividends  
Zimbabwe continues to face an acute foreign currency shortage. However, foreign investors 
are allowed to remit shareholder dividends through the financial system in Zimbabwe.  
Zimbabwe Investment Development Agency ( ZIDA)  
Government is intensifying efforts to address the ease of doing business in Zimbabwe by 
addressing regulatory bottlenecks and streamlining bureaucratic processes that have been impeding 
on investment and doing business. The One Stop Investment Servi ces Centre was established as a 
precursor to the Zimbabwe Investment Development Agency (ZIDA). The ZIDA Bill was approved 
by Parliament in December 2019 following extensive stakeholder consultations. ZIDA is expected to 
be fully functional in 2020. ZIDA w ill review and remove all cumbersome administrative procedures 
that have hampered the ease of doing business in Zimbabwe over the years.  
Special Economic Zones (SEZs)  
 Special Economic Zones are now incorporated into the ZIDA Act, and are an important to ol 
for industrialisation  strategy to accelerate Foreign Direct Investment.  A number of areas have 
already been identified and designated as SEZs around the country. Investment proposals are being 
considered from investors who want to invest in the country,  and such investments can apply for 
special economic zones status. All Special Economic Zones have attractive incentives that include 
tax holidays and duty exemption on imports of capital equipment and inputs. In addition, a new 
Companies Act to govern the  operations of companies and private business corporations has 
replaced the 1951 Companies Act, and streamlined company registration. The new Act will 
immensely reduce the time it takes to register a company and get an investment license  
3.2  Economic Outlook  
In terms of the economic outlook , 2020 will be the year of higher productivity, economic 
growth, job creation and satisfying the needs of the people. The fiscal policy objective in 2020 
is directed at managing spending within the Budget, through non -inflationary financing and 
complemented by a tight monetary policy.  
Government is determined to ensure zero tolerance on expenditures outside the Budget. 
Government is aiming for a low budget deficit of around 1.5% of GDP in 2020, such that little 
additional len ding will be necessary. Infrastructure development including social sectors investments 
will also be prioritised.  
Zimbabwe’s economic recovery prospects are bright, with projected GDP growth of 3% in 
2020 premised on the following:  
• increased use of irrigation to sustain agricultural activities;  WT/TPR/ G/398 • Zimbabwe  
 
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  • better planning for agriculture production;  
• improved electricity supply through imports and other alternative sources of energy e.  g 
solar;  
• improved macro -economic environment;  
• fiscal incentives to various sec tors of the economy;  
• improving investments by both public and private sector.  
Re-engagement and Arrears Clearance Program - The continuous accumulation of arrears 
remains a major setback on Zimbabwe’s development agenda, hence, Zimbabwe is pursuing re -
engagement program with the international development partners for arrears clearance and debt 
relief. As a signal to its commitment to the re -engagement process, Government resumed quarterly 
token payments to Multilateral Development Banks in April 2019.  
As pa rt of the roadmap to arrears clearance, Government signed a Staff Monitored Program 
(SMP) with the International Monetary Fund (IMF) covering the period May 15, 2019 to March 15, 
2020 with quarterly performance reviews. The SMP seeks to assist Zimbabwe imp lement key reforms 
as outlined in the Transitional Stabilisation Programme (TSP) and build a track record of 
implementing sound economic policies as it seeks to normalise relations with the international 
community.  
Successful implementation of the SMP, in  conjunction with reforms in the TSP is key in the 
mobilization of critical support from Development Partners for a comprehensive arrears clearance 
and debt relief program.  
4  OVERVIEW OF TRADE POLICY AND TR ADE PERFORMANCE  
4.1  Trade Policy Regime  
The unstable ma croeconomic environment that Zimbabwe continues to experience since 2000 
has resulted in Zimbabwe adopting an inward -looking trade policy. The tariff regime and import 
management measures that evolved over the years have been influenced by Government's nee d to 
respond to national developmental needs under a very difficult operating environment.  
4.2  Trade Performance  
Zimbabwe's National Trade Policy (2012 -2016) framework targeted to facilitate increase in 
export earnings by at least 10% annually from USD4.3  billion in 2011 to USD7  billion in 2016. The 
projections were premised on the remarkable rebound in exports that was experienced after the 
dollarisation of the economy in 2009. However, this was not achieved as exports remained subdued.  
The exports declined by  20% from USD 3.6  billion in 2011 to USD 2.7  billion in 2015. In 2016, 
on the back of a resurgence in international mineral prices, exports recorded a 5% growth and this 
trend was expected to continue in the medium term. The import bill reduced cumulativel y by 33% 
from USD 8.9  billion in 2011 to USD 6  billion in 2015. In 2016 alone, imports declined by 13% to 
USD 5.2  billion due to shortage of foreign currency and import control measures effected through 
Statutory Instrument 64 of 2016. This resulted in sig nificant improvement in the balance of trade 
whose deficit reduced to USD 2.4  billion in 2016 from USD 3.6  billion in 2012. The trade deficit 
continued to exert pressure on the tight liquidity situation, the country's foreign exchange reserves 
and the bala nce of payments position.  
During the period 2016 -2018 total exports of goods (excluding services) grew by 21.2% from 
USD 3.3  billion in 2016 to USD 4  billion in 2018. The trade deficit worsened from USD 1.9  billion in 
2016 to USD 2.2  billion in 2018. Zimba bwe's total imports of goods from the rest of the world 
increased by 26% from USD 4.96  billion in 2017 to USD 6.26  billion 2018.  
Major export products during the period 2009 -2018 consisted of minerals (gold, nickel, 
ferro-chromium and industrial diamonds),  sugar, tobacco and black tea. Zimbabwe's exports have 
continued to be dominated by primary commodities (which expose the country to commodity price 
fluctuations) as opposed to value -added manufactured products and services. On the other hand, 
imports have  largely been made up of consumer goods as opposed to capital equipment and/or WT/TPR/ G/398 • Zimbabwe  
 
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  inputs in the productive sector. Primary exports predominate value -added manufactured exports 
while imports are concentrated on manufactured consumer goods and fuels.  
The share of manufactured exports decreased from a high of 27.8% in 2011 to a low of 8.7% 
in 2016. This was largely a result of challenges related to antiquated equipment, shortage of 
affordable capital, low aggregate demand, liquidity constraints, high costs of uti lities, and unfair 
competition from imports. This trend was, however, reversed in 2017 to 15.8% and to an estimate 
of 15.3% in 2018. The rebound in manufacturing sector export in 2017 was on the back of increased 
ferro-chrome and pure manufactures exports.  
Ferro-chrome exports increased by 191.7% in 2017 following increased production triggered 
by increase in chrome as several firms which had stopped production resumed operations in 2017 
in response to higher prices. The 55.3% increase in pure manufactures for 2017 was mainly on 
account of increase in exports of beverages, textiles, clothing, apparel and jewellery as well as wood 
manufactures.  
In 2018, South Africa remained the largest market for Zimbabwean products, absorbing 
51,47% of total exports, follow ed by the United Arab Emirates (UAE) (18.08%), Mozambique 
(14,86%), Zambia (9.71%), Belgium (1.73%) and China (1,04%), among others. On the other 
hand, major source markets in the same year (2018), were South Africa (39.29%), Singapore 
(21.72%), China (5.7 %), U.K (4.31%) and Japan (3.51%).  
5  MONETARY AND EXCHANG E RATE  POLICIES  
For the period February  2009 to February  2019, Zimbabwe operated a multi - currency regime 
with the US dollar as the principal currency and unit of account.  
The RBZ introduced the bond notes in October  2016 which were backed by an Afreximbank 
loan of USD200  million as an export incentive to help ease the foreign currency shortages, as well 
as to deal with the physical cash shortage of US dollars in the economy.  
With regards to foreign cu rrency retention, manufacturing enterprises currently retain 80% of 
their export proceeds in foreign currency for thirty (30) days, while 20% of the receipts are 
surrendered to the RBZ. Specifically, the foreign currency surrender regime requires exporters  to 
utilise their retained export receipts in Nostro FCAs within 30 days from the date of receipt, or all 
unutilised balances are sold by the Reserve Bank of Zimbabwe on the interbank market. Large -scale 
tobacco growers (with more than 2 hectares of land) are allowed 180 days to use their foreign 
currency proceeds.  
In February  2018, the Reserve Bank of Zimbabwe introduced a policy that required banks to 
ring-fence foreign currency for foreign exchange earners that included international organizations, 
diaspora remittances, free funds, export retention proceeds and loan proceeds. The Bank 
subsequently directed all authorised dealers to operationalise the ring -fencing policy on Nostro 
foreign currency accounts by separating foreign currency  accounts (FCAs) by October  2018 into 
two categories, namely Nostro FCAs and RTGS FCAs. This policy measure was meant to eliminate 
the dilution effect of RTGS balances on Nostro foreign currency accounts. The separation of accounts 
resulted in exporters an d other earners of foreign currency being able to readily access foreign 
currency in order to meet their foreign currency needs.  
On 24  June 2019, the Government abolished the multi -currency system and re -introduced 
Zimbabwe dollar as sole legal tender (Sta tutory Instrument 142 of 2019). RTGS  dollars, Bond notes, 
and Bond coins were converted at par into (new) Zimbabwe dollars.  
The Reserve Bank also guaranteed the exchange rate, at par, of foreign currency "legacy debts" 
(debts incurred by private companies  in foreign currencies at an expected 1:1  exchange rate 
between RTGS dollar and US dollar). This applied to pending application for foreign currency for 
purposes of settling obligations incurred before the introduction of the exchange rate in 
February  2019. Banks were directed to submit application to exchange control for verification and 
to ascertain the correct amount of the legacy debt.  WT/TPR/ G/398 • Zimbabwe  
 
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Since 24  June 2019, foreign currencies are not allowed for most of the local transactions, but 
there are exceptions. Fi rst, certain taxes continue to be payable in foreign currency. 
Second,  transactions in foreign currencies from Nostro FCAs continue to be permitted. Third, the 
payment of international airlines services in foreign currency is permitted. All other domestic 
transactions are settled in local currency.  
5.1  Interest Rate Regime  
While the Reserve Bank of Zimbabwe lost its monetary policy autonomy after 2009, the bank 
managed through moral suasion to influence interest rates. The bank negotiated with banks to bring 
down interest rates from as high as 35% per annum in 2009 to 6% to 12% by 2018, in order to 
stimulate economic activity. The economy, however, continued to experience liquidity shortages as 
the country mainly depended on its ability to generate foreign curre ncy through exports, remittances 
and foreign investment.  
5.2  Monetary Policy Regime  
The Reserve Bank of Zimbabwe put in place measures to establish confidence in the new 
domestic currency and achieve low and stable inflation. The Bank adopted a monetary targe ting 
framework that aimed at reducing money supply growth to 8 -10% by end -2019.  
The RBZ increased the overnight interest rate for banks from 50% to 70% with effect from 
September  2019 to discourage borrowing for speculative reasons such as buying foreign currency. 
In addition, a 5% reserve requirement for banks was introduced in 2018 as a way of mopping -up 
excess liquidity in the economy.  
5.3  Promotion of Mobile Money Use  
Most domestic transactions (53.5% of the values and 0.29% of the transactions volumes in 
2018) were done on the RTGS system. The value of Mobile Financial Services (MFS) transactions for 
the year 2018 stood at USD 44  billion, an increase of 144.95% from the USD 18  billion recorded in 
2017. MFS transactions also increased by 121.32% to USD 1,67 0 million in 2018 from the 
USD 754.7  million recorded in 2017. Mobile banking access devices (mobile banking agents) and 
channels (active subscribers) grew by 31% from 2015 to 2018 whilst card access devices (Point of 
Sale) and channels (active cards) grew  by 511% and 101%, respectively, from 2015 to 2018.  
Mobile money continued to deepen financial inclusion, with the number of registered 
subscribers to mobile financial services increasing to 10.9  million in 2018 from 9.5  million in 2017 
representing a 19% increase. Mobile transactions values retained their proportion of above 80% in 
terms of volumes whilst gaining market share as consumers migrated from mere person to person 
payments to person to business payments where values are higher.  
5.4  Exchange Rate Deve lopments  
The interbank foreign exchange market introduced in February  2019 was to address price 
distortions in the foreign exchange market, improve export competitiveness and strengthen demand 
for domestic forms of payment and preserve forex for external p ayments. At end of February  2019 
at the time of floating, the RTGS dollar started being traded at RTGS$ 2.50 per US dollar and 
depreciated to about RTGS$8.84 per US dollar by mid -July 2019 and to about RTGS$16.00 per 
US dollar by December 20 19. 
5.5  Balance of Payments  
Current and Capital Account Liberalization  
The current account has been fully liberalised since 2009 while the capital account has been 
partially liberalised. For example, external loans below USD 20  million require registration by an 
Authorised d ealer while those above USD 20  million are subject to exchange control approval. 
Dividends and disinvestment proceeds are however freely remittal.  WT/TPR/ G/398 • Zimbabwe  
 
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  6  SECTORAL PERFORMANCE  
6.1  Agriculture  
Agriculture remains a major driver of growth, and is projected to expand by 5% in 2020, on 
the back of increased public/private sector investment in the sector. Government is also embracing 
Climate Smart Agriculture (CSA) which harmonises agriculture development with environment 
protection and reduction in vulnerabilities to clima te change. In line with this thrust, emphasis will 
be on better planning, shared financing burden between government and private players, 
productivity which also relies on irrigation and marketing systems which guarantee farmer viability. 
Irrigation develo pment is receiving top priority in order to guarantee food security in the country. 
Government will, therefore, target enough irrigable hecta rage for support to guarantee grain 
production of around 1.8  million tonnes, enough for human and livestock consumption. For this 
purpose, capable farmers with irrigation facilities will be identified with a view of contracting and 
supporting them to produce required grains specifically for food security.  
The 200 hectares per district irrigation progra mme will be supported, taking advantage of 
Smart Agriculture, which also promotes solar irrigation systems. The private sector is also invited to 
contribute in irrigation and other related infrastructure development initiatives for agriculture. This 
includ es investments in de -siltation of rivers and dams to restore the water system.  
Financing commercial agriculture, including Command Agriculture, is moving from being 
Government -led to bank -led, with Government providing guarantees to banks. In the same vein , 
resolution of the bankable 99 Year Leases will gradually remove the necessity of the Government 
guarantees. Ultimately, direct financing support by Government will be targeted at vulnerable 
households as a social protection activity. Similarly, the 2020 Budget provision for this subsidy takes 
cognisance of rising prices for inputs.  
6.2  Mining  
Zimbabwe's mining sector recorded exceptionally strong performance in the first eight months 
of 2019. However, ongoing shortage of foreign currency, working capital and rising production input 
costs threaten the growth of the sector.  
The mining sector is designated to drive short to medium -term economic growth for Zimbabwe. 
The mining sector in Zimbabwe is projec ted to develop and grow to a USD 12 billion industry by 
2023 in contribution to the attainment of the Zimbabwe Vision 2030 goals.  
Growth in output was across minerals with diamonds jumping by 22 % to 2,2 million  carats, 
lithium skipped 45 % to 49 360 tonnes, granite rose 46 %, coal grew 4 % to 2,4  million tonnes while  
platinum group metals (PGMs) surged 1 %. As for gold, as at September  2018, that is 9 months 
period, deliveries to Fidelity Printers and Refiners were 28,2 tonnes, a 54 % increase compared to 
18,2 tonnes recorded in the same period last year.  
Mining generates over 60  per cent of Zimbabwe's export earnings. It is estimated the sector 
accounts for between 12  per cent and 16  per cent of the GDP. Government wants mining to anchor 
economic growth and transformation towards its Vision 2030 of making Zimbabw e a middle -income 
country.  
Working capital and foreign currency constraints, increases in production input costs from the 
domestic market and the high cost of electricity, threatened strong performance of the sector to the 
end of 2018. Government is workin g on amending Mines and Minerals Amendment Bill, the 
development of the Minerals Development Policy and specific mineral strategies on gold, platinum 
and lithium and was part of the process to review the ease of doing business. In addition, mining 
fiscal r egime was reviewed by the finance ministry.  
Investment agreements in platinum, gold and chrome, which have been concluded, are 
expected to boost output in the sector. Furthermore, capacitation programme being managed by 
Fidelity Printers and Refiners, Mini stry of Mines and Mining Development and other development 
partners will support small scale miners with appropriate skills, equipment and modern technologies 
in mineral recoveries from ores.  WT/TPR/ G/398 • Zimbabwe  
 
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Minerals Marketing Corporation of Zimbabwe will be supported thr ough a credit guarantee 
scheme to provide funding and support to non -gold sector. Other interventions on improving 
production and transparency in the mining sector include the following: Enforcement of the "use it 
or lose it" principle to prevent speculati ve hoarding of claims across all minerals; Finalising the 
amendments to Mines and Minerals Act; Operationalising the automated mining cadastre information 
system and Rolling out of gold service centres in all major production centres. Accordingly, 
Governme nt will capacitate the sector in the areas of planning, exploration, data capture and 
automation, among others.  
In addition, with the increased call for transparency and accountability in the sector, 
discussions are underway with various stakeholders on jo ining the Extractive Industry Transparency 
Initiative (EITI), which will be pursued in 2020. Mineral exports remain the major sources of foreign 
currency, especially gold. However, mineral leakages have been on the rise, depriving the country 
of foreign cu rrency earnings. Government is reviewing and tightening the Gold Trade Act and 
capacitating the Gold Mobilisation Unit.  
6.3  Manufacturing Sector  
Zimbabwe has a diversified manufacturing sector, with an important agro -industry (based on 
sugar, oilseeds; grains and cereals; dairy; beverages and horticulture); industries in clothing and 
textiles; leather and leather products; pharmaceuticals, fertilizers, cement and chemicals; rubber 
and related articles; soaps and detergents; iron or steel; motor vehicle assembly , furniture and 
timber; plastics, printing and packaging.  
The sector is very important to the economy as it provides employment to many people and 
has potential to grow significantly. Currently, depressed levels of capacity utilization indicate that 
the se ctor has potential to contribute much more in terms of GDP, employment and export growth.  
During the period under review, capacity utilisation reached a peak of 57.2% in 2011. In 
2018, it was 48.2% and projected at 30% in 2019. At peak, between 1980 and 19 90, the 
manufacturing sector contributed 25% to the country's Gross Domestic Product. Currently, this 
contribution is 10.6%. In 2018, the sector accounted for 92 000 workers out of a total formal 
workforce of 863 300 thus giving a proportion of 11.2%. The sector's exports were USD  226 million 
in 2018 while its import requirements amounted to over USD  1 billion.  
6.3.1   Analysis of Manufacturing Sector Performance  
The spike in the manufacturing sector growth rate and capacity utilization post dollarisation 
was due t o growth in GDP and increased production in other sectors, mining, agriculture, and 
tourism. This was also due to inflows of funding from development cooperation partners that led to 
surge in aggregate demand. Monetary stability following dollarisation in 2009 was also a contributing 
factor that led to higher confidence and enabled businesses to invest.  
The fall in the sector's growth witnessed from 2012 to 2014 was a result of the foreign 
currency liquidity crunch as firms could not access funding for raw materials and capital goods. This 
was due to lack of access to credit lines, sanctions and low domestic savings. Recovery in 2016 and 
maintenance of Capacity Utilization from 2016 -2018 in the 45 -50% range is due largely, to the 
impact of the Import Managem ent programme by way of SI 64 of 2016 and later, SI 122 of 2017.  
Sectors that registered positive performance are wood and furniture, foodstuffs and 
non-metallic mineral products (fertilizers, cement etc). This can be attributed to impact of SI 64 of 
2016,  and other policy interventions. Poor performance was noted in the metals and metallic 
products and transport and transport equipment sub -sectors. This can be attributed to low demand 
for domestic products and the limited impact of policy interventions. Do mestic production capacity 
is also limited for these sectors which require significant investment.  
Beginning September  2018, the manufacturing sector capacity utilisation and output 
experienced a sharp decline. This can be attributed to the downscaling of the import management 
programme through the promulgation of SI 237A of 2018. The sector has also been affected by the 
2018/19 drought and power shortages that have arisen in large part, due to the drought. Low WT/TPR/ G/398 • Zimbabwe  
 
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  aggregate demand as a result of low disposable  incomes and a generally tough macro -economic 
environment have contributed to increasingly depressed industrial activity.  
6.4  Industrial Policy Since  2011  
The Industrial Development Policy (2012 -16) could not yield sustained growth for the 
industrial sector. T his was due to several challenges which include, high utility costs, an inadequate 
rail transport system, reliance on antiquated plant and equipment and overreliance on imported 
inputs in production. In addition, a high appetite for imported products restr icted industry from 
attaining significant growth.  
The Zimbabwe National Industrial Development Policy (ZNIDP) 2019 -2023, launched as the 
successor to the IDP (2012 -16) seeks to overcome some of the structural factors that inhibited the 
realization of envis aged benefits under the previous industrial policy framework. To this end, the 
ZNIDP prioritises areas such as infrastructure development, value chain development, renewable 
energy. It advocates for an industrial development path anchored on innovation, in vestment and 
export growth. The ZNIDP further recognises the need for domestic industry to embrace the fourth 
industrial revolution and latest technologies in manufacturing.  
The ZNIDP targets for the manufacturing sector to achieve a minimum annual growth rate of 
2% throughout the period of the policy. This is against growth rates in recent years of 1.3% (2018) 
and 1% (2017).  
6.5  Measures Introduced Since  2011 to Assist Industry  
In 2011, Zimbabwe launched the Distressed and Marginalized Areas Fund (DiMAF) in 20 11 
which assisted in financing distressed companies most affected by the economic challenges through 
concessionary loans.  
In 2016, Statutory Instrument 6 of 2016 provided for rebates of customs duties for companies 
on importation of industrial, mining, agr icultural and energy equipment. The statutory instruments 
placed several goods on the Import Management programme. In addition, the following Statutory 
Instruments (SIs) were put in place to manage imports of selected products into Zimbabwe - 
S.I. 126 of 2 014, S.I. 18 of 2016, S.I. 19 of 2016, S.I. 20 of 2016 and S.I. 64 of 2016, all of which 
were consolidated in 2017 into S.I. 122 of 2017.  
Government financially capacitated the Industrial Development Corporation of Zimbabwe 
(IDCZ) to act as a Development Financial Institution starting in 2019, to provide funding for industry 
for retooling and working capital support.  
7  SERVICES SECTOR  
7.1  Insurance  
Government is reviewing the current regulatory insurance framework with a view of 
consolidating all insurance, medi cal aid schemes, legal aid societies and pension funds including the 
National Social Security Authority under a single regulator – Insurance and Pensions Commission 
(IPEC).  
The obtaining macro -economic environment, has resulted in revaluation gains on assets 
supporting liabilities to shareholders and not the policyholders and pension scheme members. In 
order to restore confidence in the pension and insurance business, IPEC will provide guidelines on 
industry wide conversion process to retain some value in their policies and pension accumulations.  
Following the review of the minimum prescribed asset thresholds for the insurance and 
pensions industry in the 2019 National Budget Statement, most industry players are not compliant 
with the revised minimum pre scribed asset thresholds as at 30  September  2019.  WT/TPR/ G/398 • Zimbabwe  
 
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  7.2  Zimbabwe Stock Exchange  
Foreign investors' participation at the Zimbabwe Stock Exchange remained subdued mainly 
due to challenges faced in repatriation of profits and capital in terms of acquiring for the r equisite 
foreign currency. In order to stimulate investment diversity and drive financial inclusion in small 
enterprises and retail customers, the amendment to Collective Investment Schemes will pave way 
for investments in real estate investments trust sch emes, property fund, commodity fund, exchange 
traded funds, private equity fund and venture capital funds, among others. The venture capital funds 
will utilise the existing Alternative Trading Platform (ATP) or exchange to list shares of companies 
financed  by venture capital funds.  
7.3  Banking Services  
Zimbabwe's banking sector at end September  2019 consisted of 18 banking institutions 
(excluding the Post Office), down from 24 in 2010; and 205 microfinance institutions, up from 114 
in 2010, and 213 in 2005.  
The RBZ is responsible for the regulation and supervision of banking institutions under the 
Banking Act [Chapter 24:20], Building Societies under Building Societies Act [Chapter 24:02] and 
Microfinance Institutions under the Microfinance Act [Chapter 24:29].  Foreign -owned banks may 
operate in Zimbabwe as locally incorporated subsidiaries of their foreign parent institutions and are 
subject to the same supervisory requirements as domestic banks. There are no foreign 
representative offices in Zimbabwe. Foreign branches are not allowed to operate in Zimbabwe.  
In July  2014, the RBZ came up with three segments, namely Tier I, Tier II and Tier  III for 
banking institutions' compliance with minimum capital requirements. Tier I segment comprises of 
large indigenous commercial banks and all foreign banks. These will conduct their core banking 
activities, and in addition, be eligible to offer other activities such as mortgage lending, leasing and 
hire purchase that have longer term maturities as well as othe r sophisticated products. In 
September  2019, the Reserve Bank increased the minimum capital for Tier I banks, effective 
January  2020.  
The Tier II segment comprises of commercial banks, merchant banks, building societies, 
development banks, finance houses a nd discount houses that will only conduct their core banking 
activities. The Tier III segment comprises of deposit -taking microfinance institutions.  
The RBZ is in the process of operationalizing the Movable Property Security Interests Act 
[Chapter 14:35]. The Act of July  2017 establishes a Collateral Registry and the registration of 
security interests in movable assets, except for marine vessels and aircraft. It also provides for 
administration of the registry by the RBZ. The process of procuring a suitable  system commenced 
during the second quarter of 2019. The Collateral Registry Regulations to operationalize the Movable 
Property and Security Interests Act have been drafted and circulated to stakeholders for comments. 
The Regulations will be finalised in l ine with operational specifications of the deployed Collateral 
Registry system.  
7.4  Tourism  
The National Tourism Policy was developed and launched in 2014 and currently under review. 
The sector developed the National Tourism Masterplan (NTMP) in 2016 and craft ed a National 
Tourism Sector Strategy (NTSS) in 2018 to promote tourism growth.  
The tourism sector has experienced a mixed performance since 2011, although it's worth 
noting that there has been a general growth trajectory in both arrivals and receipts sinc e the year 
2012 until 2018. Whilst the tourism sector has experienced an average growth rate in arrivals of 6% 
over the past 5 years, growing from a USD 200  million sector in 2009 to a USD 1.3  billion in 2018, 
there is consensus that the negative perceptio ns that followed Zimbabwe's economic challenges 
since the year 2000, have negatively affected tourism and restricted Zimbabwe from experiencing 
exponential growth in the tourism sector.  
In 2019, however, the operating environment continues to impede the gr owth of the tourism 
sector against a backdrop of cash shortages, rising prices, low disposable incomes, as well as fuel WT/TPR/ G/398 • Zimbabwe  
 
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  and electricity shortages. The persistent shortages of fuel also continue to impact negatively on the 
sector as both local and foreign t ourists find it difficult to be assured of reaching destinations across 
the country.  
The current power outages have also resulted in increased operating costs, which are 
ultimately are passed on to customers, making the destination expensive and less comp etitive. 
Nevertheless, the sector contributes over 7% to GDP, with 2.6  million tourists generating revenues 
of nearly USD  1.4 billion.  Whilst growth in the tourism sector has been modest, the country remains 
largely an add -on destination packaged with Bots wana (55.3%), South Africa (50.3%) and Namibia 
(21.7% ). In addition, 30.4% of the visitors on holiday/leisure package do not spend a night in 
Zimbabwe while 58.9% of those who stay spend just 2 to 3 nights in the country. Meanwhile, 
international tourists into Zimbabwe on average spend more (USD 1,250) than their regional counter 
parts (USD 250).  
To improve accuracy of data captured, Zimbabwe has made strides in the setting up of the 
Tourism Satellite Account (TSA). The Tourism sector has scored major miles tones b oth locally and 
internationally.  
To enhance the destination marketing and image transformation efforts, the Zimbabwe 
Tourism Authority also launched the Harare International Carnival in 2013, with the vision of growing 
it into a viable economic ente rprise for the nation through employment and wealth creation, foreign 
revenue generation, industry expansion, tourism infrastructure development and social goodwill 
thereby improving the livelihoods of the people. The Carnival was hosted for 4 editions i.e ., 2013, 
2014 2016 and 2017, before being suspended in 2018.  
For the purposes of promoting tourism development, Victoria Falls was declared as a Tourism 
Special Economic Zone and the planning process is now at an advanced stage. Developers in the 
SEZ enjoy s an array of investment incentives from which they benefit from. Some of the incentives 
include but not limited to corporate tax, employees' tax, residents tax and customs duty on raw 
materials tax.  
Zimbabwe has less diversified tourism product base and i s underinvested in terms of:  
• accommodation - ranging from low cost to luxury (lodges, hotels, etc) ; 
• activity based facilities (such as amusement parks, entertainment facili ties, even 
shopping malls, etc);  
• integrated Resorts, Golf Estates and Casinos, Recre ation Facilities, Restaurants ; 
• multi-purpose Convention and/ or exhibition facilit ies; 
• tourism transport  
Conferencing facilities, just as in accommodation has a huge gap compared to demand. In 
fact, Zimbabwe does not have modern and proper or multi -purpose  convention and/or exhibition 
centres. The deficit of facilities has seen many big conferences or conventions being done in marques 
and a case in point is the 2013 UNWTO General Assembly which was held in a marque due to lack 
of appropriate facilities. The se and many others are vast investment opportunities waiting to be 
explored.  
The new -look Victoria Falls International Airport has begun to bear fruits with the resort 
destination gaining confidence in the aviation industry . 
Tourism Revolving Fund, which c aters for registered operators, has been set -up since 
March  2017, to help upgrade brownfield (existing) tourism development products. The Fund started 
with USD  15 million, funded by the RBZ.  
Five countries in the regional grouping, namely. Angola, Botswana , Namibia, Zambia and 
Zimbabwe agreed to have a common Visa, the KAZA UNIVISA in 2012.  
The ultimate goal of the KAZA UNIVISA is to establish a common visa for these five, Kavango 
Zambezi (KAZA) Trans -Frontier Conservation Area (TFCA) partner, countries. It is projected that 
eventually the common visa would spread to the entire SADC region and accessible at all ports of 
entries.  WT/TPR/ G/398 • Zimbabwe  
 
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To promote inflows of tourists into the country in September  2016, the Government of 
Zimbabwe relaxed visa requirement s for selected countries through re -classifications, which should 
increase socio -economic benefits from the SADC and other source markets.  
The E -Visa was also introduced in 2018 for ease of travel following concerns about the length 
of time visitors were s pending queuing at ports to gain authorization to enter.  
The country is looking forward to the opening up of new areas for tourism development such 
as Kanyemba, Tugwi Mukosi, Mt Hampden (New City), Binga, Mazowe and Masuwe in Victoria Falls. 
The country in tends to unlock more investment sites in National Parks and Forest areas. Provide 
incentives on re -opening of closed hotels and tourism facilities e.g. in Kariba, Nyanga, Beitbridge, 
Chivero, Mazvikadei, Bulawayo and Harare. Engagement of Local Authorities  to mainstream tourism 
planning and unlock more land for tourism investments.  
Enforce the 'Use it or lose it policy' for tourism sites and concessions. Development of new 
tourism products. Grant duty rebates and other incentives for the sector for the next  5 years. 
Investment in MICE (Meetings, Incentives, Conferences and Exhibitions and Events) infrastructure 
e.g. convention centres and exhibition parks. Diversified Product Development Grow special interest 
market segments such as sports tourism, religious  tourism, educational tourism, volunteer tourism 
etc. 
7.5  Energy Related Services  
Zimbabwe has been facing power shortages due to limited electricity generation capacity at 
Kariba Hydro Power station due to low water levels attributed to drought, and also limi ted output at 
Hwange Thermal Power Station. Plans to add more than 2200 MW of generation capacity which will 
make uninterrupted power supply within the next 3 -5 years are under way. The Batoka Gorge Hydro 
Power Project and the Hwange 7 & 8 Thermal Expansio n Power Project are being rolled out. 
Opportunities for investment in the energy sector are available including other renewable energy 
sources such as wind and solar.  
8  INVESTMENT ENVIRONME NT AND POLICY  
Zimbabwe has abundant investment opportunities in state  enterprises and parastatals, 
including in key enabler entities providing infrastructure and utility services, ranging from power, 
transport, ICT, mining, agriculture and financial services.  
The pursuit of natural resource -seeking investments, had over the  years, resulted in very little 
developmental impact on the economy, as most of them were merely focused on the extraction and 
exporting of non - beneficiated and non -value added commodities.  
Anchoring the facilitation of investment into the country is the  Zimbabwe Investment and 
Development Agency (ZIDA), which draws its mandate to administer investment in the country from 
a landmark piece of legislation, and guided by the over -arching new National Investment Policy. The 
Zimbabwe Investment and Development  Agency Act provides a clear, comprehensive and binding 
legal and regulatory framework for the conduct of investment activities, by both domestic and fo reign 
investors in the country.  
The ZIDA Act establishing the country’s investment promotion and facilit ation body, the 
Zimbabwe Investment and Development Agency, repealed and amalgamated the Acts governing the 
Zimbabwe Investment Authority, the Zimbabwe Special Economic Zones (SEZ) Authority, and the 
Joint Venture Unit. The latter operated previously as a Department under the Ministry of Finance 
and Economic Development. The consolidation of the above pieces of legislation allowed for the 
introduction of a more facilitative and investor friendly One Stop Investment Services Centre for 
investment promotion a nd facilitation.  
Under the SEZs , Zimbabwe has so far designated 6 public special economic zones,  8 private 
special economic zones and  licensed 3 investors in 3 different public zones . 
 Special Economic Zones offer a cocktail of incentives to value -adding industries situated in 
those zones. The Granting of National Project Status is offered to investors establishing significant WT/TPR/ G/398 • Zimbabwe  
 
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  projects in the country.  Rebates of Duty are granted to faci litate duty -free importation of capital 
equipment for use in manufacturing, mining, agriculture and energy.  
Zimbabwe’s new National Investment Policy unveiled in 2019, seeks to increase the share of 
private sector investment to upwards of 25  per cent of GD P by 2030, restore and sustain investor 
confidence through guarantees over investment protection, policy consistency, and transparency 
throughout the entire investment management cycle.  
8.1  Measures to i mprove the Investment Environment  
8.1.1   Ease of Doing Business Initiative   
– the Government has put in place, new institutional systems, streamlined procedures, legal 
and regulatory amendments to enhance the country's image and attractiveness as an investment 
destination of choice. The measures have borne fruit as evi denced by Zimbabwe moving 15 places 
from being ranked number 155 in 2018, to being ranked 140 in 2019, out of 190 countries on the 
World Bank Ease of Doing Business index.  
8.1.2   Amendment of Indigenisation Legislation  
 – In 2018, the Government amended Indigenis ation laws through the Finance Act, 2018 
(No. 1 of 2018). The previous requirement that businesses have 51% local shareholding was scraped 
with foreigners being allowed to hold as much shareholding as desired in all sectors except for 
diamond and platinum mining. The 2018 Finance Amendment Bill further amended indigenisation 
laws to remove the requirement of 51% shareholding by Zimbabweans in the diamond and platinum 
mining sectors.  
8.1.3   One Stop Investment Services Centre  
- Zimbabwe Investment and Development Agency (ZIDA) has been established to operate as 
an effective one stop investment centre incorporating under one roof, with the regulatory Agencies 
and Ministries that deal directly with investors.   
9  ADMINISTRATION OF ST ANDARDS AND QUALITY  
In 2015, the Gove rnment established a Standards and Quality Assurance Department in the 
Ministry of Industry and Commerce. The core functions of the department are to monitor products 
imported into the country and exported for compliance with quality, safety, health and en vironmental 
standards in line with World Trade Organization (WTO) agreements. Overall, the objective is to 
protect consumers, animals and the environment from harmful and substandard products that may 
be imported into the country as well as those locally p roduced for consumption and export. Another 
objective is to assist exporters to understand the need to know in advance standards that are 
required in the export market and obtain the requisite certification before shipment of the goods. 
This is necessary t o avoid rejection of exports at the point of entry. The department also negotiates 
regional standards as well as domesticates them.  
Zimbabwe is currently developing the National Quality Policy which will promote the 
development and sustenance of quality i nfrastructure in the country. Zimbabwe is also finalising the 
Compulsory Specifications Bill that seeks to outlaw importation and distribution of sub -standard 
products. This will also make adherence to currently voluntary standards that are pertinent to hu man 
health and the environment, compulsory  
Zimbabwe also implements the Consignment Based Conformity Assessment Programme 
(CBCA) which involves pre -export verification of about 12,5% of the goods in the tariff handbook. 
The CBCA is conducted under the auspices of Statutory Instrument 132 of 2015. Of the goods under 
the CBCA programme only goods accompanied by a conformity assessment certificate may be 
imported into the country. To date compliance rates in excess of 90% are being recorded.   WT/TPR/ G/398 • Zimbabwe  
 
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  10  CONSUMER PROT ECTION  
In order to improve consumer welfare and industrial competitiveness, Zimbabwe established 
the National Competitiveness Commission (NCC) in 2017. Furthermore , Zimbabwe enacted the 
Consumer Protection Bill in November 2019 . The Bill seeks to empower a nd protect the consumer 
from being short changed by suppliers of goods and services.  
11  INSTITUTIONAL AND STRUCTURAL  REFORMS  
11.1  Trade Facilitation Initiatives   
ZIMRA has a mission to promote economic development through efficient revenue generation 
and trade fac ilitation and has thus put in place client -centric strategies for the convenience of the 
transacting public.  
In this regard, more inland stations and border posts have been opened nationwide since the 
establishment of the organization in 2001, these inclu ded Mlambapeli (border with Botswana), 
Gwanda Customs House, Bindura, Chinhoyi and Rutenga. Operational hours at some ports of 
entry/exit have also been extended, with the busiest border post, Beitbridge operating 24 hours for 
the convenience of the public , and the operating hours at Chirundu, Victoria Falls, Plumtree and 
Forbes Border posts also being extended for the convenience of clients.  
As trade facilitation initiatives, measures which have been implemented include risk 
management, pre -clearance faci lity, use of scanners, post -importation audits and verifications, 
introduction of dog detector unit, e -payment platforms, automation of customs processes (including 
e-Temporary Import Permits for motor vehicles), Authorised Economic O perator program, and 
electronic licensing of clearing agents/brokers. A One Stop Border Post at Chirundu with Zambia, 
which was officially opened on the 5th December 2005 by the Heads of State of the two countries.  
The Authority is using ASYCUDA World which is internet based a nd allows our registered 
traders and clearing brokers to lodge bills of entry on line from anywhere which was initially 
implemented in 2009 at selected ports and in 2011 to all ports. The system was upgraded in May 
2018. Border patrols, electronic cargo tr acking system, client awareness programmes, use of close 
circuit television systems and cargo monitoring have been put in place in order to fight underhand 
dealings and smuggling of goods.  
11.2  Public Procurement  
The Public Procurement and Disposal of Public As sets Act [Cap 22:23] came into force on 
1 January  2018, replacing the 1999 Procurement Act. The new Act covers all publicly owned 
companies in which the state has a controlling interest at central and sub -central level If one of its 
provisions conflicts wi th an obligation of Zimbabwe under or arising out of any convention, treaty or 
agreement between Zimbabwe and one or more foreign States or governments; or one or more 
international financial organizations; the requirements of the convention, treaty or agr eement shall 
prevail (section 3 of the Act).  
11.3  State Enterprises and Parastatals Reform  
Efforts are currently underway to reform State Owned Enterprises (SOEs) which have been 
under -performing for decades and draining the fiscus. A reform framework for 43 s tate enterprises 
and parastatals, aimed at making them fully accountable and economically viable is now in place. 
Some of the SOEs will be partially privatised through the engagement of strategic partners and/or 
listing on the Zimbabwe Stock Exchange, whil e others will be merged, fully privatised and/or 
liquidated. In 2019, we enacted the State Public Entities Corporate Governance Act which is intended 
to strengthen the management and governance of State Owned Enterprises so that they contribute 
to economic  growth and development. State -owned enterprises in the past contributed over 40% to 
GDP and this has gone down to less than 10%.  WT/TPR/ G/398 • Zimbabwe  
 
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  12  TRADE POLICIES AND PRACTICES  
The Zimbabwe National Trade Policy Vision and Export Strategy towards the National Vision 
2030 A genda envisages a transformed, dynamic and internationally -competitive economy, driven 
by robust domestic and international trade.  
The trade policies and export strategies are articulated in the National Trade Policy 
(2019 --2023) and the National Export S trategy (2019 -2013), which are anchored on the Zimbabwe 
National Industrial Development Policy (2019 -2023) whose main thrust is advancing Zimbabwe’s 
export -led industrialisation agenda.  
The National Trade Policy (2019 -2023) seeks to reform and open up Zim babwe for free and 
fair trade in line with the multilateral trading system. Thrust will also be put on export development 
and promotion; diversification of export products and export markets; and market access at 
negotiations at bilateral, regional and mul tilateral levels. The strategic goal is to facilitate the growth 
of national exports of goods and services by at least 10% annually from USD 4.5 billion in 2018 to 
USD 7 billion in 2023, and USD 14 billion by 2030. These are the 7/14 Export Targets Towards  Vision 
2030.  
Essentially, the National Trade Policy (2019 -2023) responds to key issues that affect the 
competitiveness of Zimbabwe businesses at international, national and individual enterprise levels.  
This National Trade Policy identifies and proposes solutions to the associated challenges at 
the border, behind the border and beyond the border in the export markets. The policy outlines 
measures to be used to tackle these problems at every stage of production and distribution of goods 
and services for ex port. 
12.1  Export -Led Production and Industrialisation  
The main thrust of Government policy is to nurture a culture of producing for export which is 
essential for firms to attain international competitiveness and benefit from economies of scale. 
Government, through ZimTrade (the national trade development and promotion organisation) will 
nurture a culture of exporting in local enterprises through training and capacity building, export 
awareness and recognition of consistent exporters in the econom y. 
In line with the emergence of regional and global value chains Government has identified and 
prioritised the following sectors; tourism, horticulture, leather and leather products, food and 
beverages, textiles and clothing, wood and furniture, arts and crafts, as well as mineral beneficiation 
and trade in services.  
As part of the export -led industrialisation and trade policy, Special Economic Zones are 
intended to address slow growth in FDI, disinvestment, decline in export growth and export earnings, 
and job losses. Government has already identified areas for SEZ development and incentives are 
being offered to attract local and foreign investment into the SEZs. Public Private Partnerships (PPPs) 
will be adopted to support the development of necessary inf rastructure in the zones.  
Government recognises the importance of promoting the establishment of export -oriented 
value chains and clusters around large exporting firms and coordination of linkages between SMEs 
and large firms as a strategy for promoting tr ade and transfer of expertise. The establishment of 
such clusters will be spearheaded through promoting supply contracts and other sub -contracting 
activities, using state procurement and promoting joint ventures with a view to encouraging SMEs 
to enter int o the export business.  
To support the transformation of informal businesses into formal SMEs Government 
recognises the need to continuously improve the environment for private sector in particular SMEs 
development as the basis for export -led development. I nitiatives to improve access to finance, 
technology for SMEs and export marketing training programmes will be pursued while existing 
structures and platforms for effective public -private -sector dialogue will be strengthened. 
Programmes directed at strength ening capacity of intermediary organisations to render effective 
services to private sector will be strengthened.  WT/TPR/ G/398 • Zimbabwe  
 
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  12.2  Trade Development Strategies  
To support manufactured export growth, Government will pursue effective and 
comprehensive trade development strat egies to buttress export -led production and industrialisation. 
This will be achieved through export diversification and provision of trade finance, trade incentives 
and export credit guarantee insurance.  
In 2016, Zimbabwe acceded to and became a full member of the African Trade Insurance 
Agency (ATI), a COMESA institution which provides export credit insurance, political risk insurance 
and investment guarantees. Zimbabwe's membership is expected to go a long way in facilitating 
Zimbabwe's trade with th e rest of the world and attract the much -needed FDI to drive the country's 
industrialisation agenda and infrastructure development. Government will continue to encourage 
enterprises to continuously engage with the ATI and derive maximum benefits from their  insurance 
products and services.  
12.3  Competition Policy  
The Competition and Tariff Commission is responsible for the promotion and maintenance of 
fair and unfettered competition in all sectors of the economy. This is achieved through regulation of 
mergers and  acquisitions, prevention and control of restrictive practices, prohibition of abuse of 
monopoly situations.  
Zimbabwe recognises the importance of effective implementation of competition law in 
achieving inclusive economic growth. Therefore, the country en gaged in legislative reform which 
gave birth to the revision of the Competition Act. The amendments seek to ensure effective 
deterrence of antitrust violations hence the Act will provide for appropriate sanctions for procedural 
and substantive competition violations. The Commission, for infringements including cartelisation 
and abuse of dominance, will henceforth levy punitive administrative penalties based on turnovers 
of offenders.  
In its quest to create an enabling environment for fair competition, the C ommission also 
developed a Competition Assessment Toolkit in order to have a mechanism to review the 
harmonisation of Policies Laws, Government and Business Actions in relation to their effect on 
competition and subsequently on industrialisation. This Comp etition Assessment Toolkit provides a 
sieving mechanism to ensure that there is sufficient coherence with competition rules and principles 
thereby building a competition culture in the country.  
The Commission has started engaging on advocacy campaigns with  policy makers to ensure 
harmonisation of laws as well as elimination of laws or regulations, which have an effect of promoting 
anti-competitive behaviours.  
12.4  Imports and Tariff Regime  
Zimbabwe's imports are governed by the Open General Import License (OGIL)  where imports 
are exempted from licenses. Certain products, however, require import licenses which are 
administered by the Ministry of Industry and Commerce, through the Control of Goods Act. 
Zimbabwe requires permits for selected agricultural imports and  these are granted by the Ministry 
of Agriculture, Mechanisation and Irrigation Development. Some animal products require a separate 
permit under the Animal Health (Import) Regulations to comply with Sanitary and Phytosanitary 
regulations. The purpose of l icensing is for Sanitary and Phytosanitary requirements and statistical 
purposes.  
Government will implement a tariff policy aimed at enabling the importation of raw materials 
and capital goods to stimulate production and export of value -added goods. The ta riff policy will also 
be one of the measures that will be utilized to encourage investment in prioritised sectors, strengthen 
value chains, and enhance local industry competitiveness.  
The Zimbabwe tariff structure consists of 9 bands namely; 0%, 5%, 10%, 1 5%, 20%, 25%, 
40% and 60%. The tariff regime also consists of specific duty and combination rates of duty on 
products such as clothing, footwear and travel bags.  WT/TPR/ G/398 • Zimbabwe  
 
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The country's successive tariff rationalisation over the years has produced a cascading tariff  
structure categorized into raw materials and capital goods with low duties, intermediate goods with 
moderate duties and final goods with relatively high duty rates. The adopted tariff structure takes 
into consideration the value addition processes obtaini ng in the economy. The categories and tariff 
bands are as reflected in the following table:  
Table 12.1 Tariff structure by product category  
Category  Tariff Bands  
Raw materials  0-5% 
Capital goods  0-5% 
Intermediate goods  5-25% 
Finished goods  <40%  
Sensitive goods  >40%  
Source:  ZIMRA 
In addition to the 40% customs duty, clothing, and some travel goods attract specific 
charges as measured by weight in kilogrammes and in respect of footwear per number of pairs.  
The above duty structure applies to commercial importations, whereas, private importations 
by individuals are subject to flat rates of duty at 40% for other goods and 55% for electrical goods 
like Television sets and Radios.  
The tariff reg ime that has evolved over the past decade is a reflection of the Government's 
response to address national needs under difficult environmental circumstances.  
12.5  Export Taxes  
Government will, as a temporary measure, introduce export taxes on primary commoditie s 
where value -addition options are readily available in order to promote exports of value -added goods.  
12.6  Rules of Origin  
Government will participate in the rules of origin development and review process being 
undertaken in the region to make them simple and industry friendly. Capacity building workshops 
will be conducted to train customs, investment, industry, and trade officials, together with the 
private sector, on the rules of origin applicable in existing trade agreements and certification 
mechanisms.  
12.7  Standards and Quality  
Government policy seeks to implement internationally accepted quality standards and 
accreditation programs to develop local standards based on internationally accepted standards. This 
will be done by developing a national policy on stand ards and quality assurance which would ensure 
adherence to the World Trade Organisation Sanitary and Phytosanitary (SPS) and Technical Barriers 
to Trade (TBT) agreements, among other international standards agreements. Government will put 
in place legislat ion which will make it mandatory for companies to comply with specified national 
and international standards on both imports and exports.  
12.8  Trade Promotion  
The Trade Balance for Zimbabwe has been negative over a long period of time. This reflects 
the country  continues to import more than it exports it is therefore critical to ensure the country 
comes up with ways that can reduce the negative trade balance.  
Key trade promotion institutions that include ZimTrade, Zimbabwe International Trade Fair 
(ZITF) Company  and Zimbabwe Tourism Authority (ZTA) will be adequately resourced and 
capacitated to effectively deliver on their mandates. Efforts will be made to ensure increased 
participation at regional and international trade fairs, buyer and seller trade missions, deployment 
of Trade Promotion Officers (TPOs) in strategic and potential markets, increased publicity campaigns 
and expanding the scope of the country's premier international trade promotion events such as the WT/TPR/ G/398 • Zimbabwe  
 
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  Zimbabwe International Trade Fair (ZITF), Zimb abwe Agricultural Show (ZAS) and the Sanganayi / 
Hlanganani World Tourism Expo. Awareness campaigns on the trade agreements signed by the 
country will also be utilised.  
12.9  Brand Zimbabwe Promotion  
Government will enhance the 'Nation Branding Project' to joint ly promote the national brand 
from the tourism, investment and trade perspectives – the 'Visit -Invest -Trade' concept. The main 
objectives of the project are to transform and manage a positive country image locally, regionally 
and internationally; improve t he country's attractiveness to tourists, investors, trading partners and 
local consumers; and create a National Brand to identify quality products produced in Zimbabwe for 
the exports markets.  
12.10   Ease of Doing Business Reforms  
In the 2020 World Bank Ease of d oing business survey Zimbabwe ranked 140 with a doing 
business score of 54.5 (Ease of Doing Business Report October 2019). This is attributed to the Ease 
of doing business reforms being spearheaded by the Office of the President and Cabinet. The National 
Trade Policy interventions will be targeted on indicators that directly affect the Trading across 
Borders index ranking.  
12.11   Intellectual Property Rights (IPRs)  
Government is strengthening intellectual property rights through capacitating the respective 
institu tions mandated to protect patent innovative products including trademarks and copyrights. 
This gives exclusive rights, commercialize the invention enabling SME to obtain higher returns on 
their investments.  
13  MULTILATERAL TRADE A ND REGIONAL AGREEMEN TS 
13.1  World Trade Organisation (WTO)  
Zimbabwe has commitments at the WTO in the agricultural, industrial and services sectors. 
The simple average of bound duties in agriculture is 25%, and 14% in industrial goods. In the 
services sector, Zimbabwe has scheduled commitm ents in telecommunications, financial services 
and tourism.  
Zimbabwe is committed in its implementation of the Uruguay Round Agreements. In order to 
increase transparency in the trade regime, Zimbabwe has to a greater extent responded to 
notification oblig ations. Trade policy formulation is undertaken in consultation with various 
stakeholders both from the public and private sector. In addition, the enquiry points for sanitary and 
phytosanitary measures (SPS), technical barriers to trade (TBT) and Trade in Services have been 
operational sin ce 1995.  
Zimbabwe actively participated at the 9th Ministerial Conference that resulted in the adoption 
of the Trade Facilitation Agreement (TFA) in 2011. The country has established a national trade 
facilitation committee  (NTFC) in line with the (TFA). Zimbabwe continues to actively participate in 
the Doha Development Round negotiations including the post –Bali issues  
13.2  Trade Remedies  
Zimbabwe has in place national legislation on dumping and subsidisation enacted in 2002 as 
Statutory Instrument 266, Competition (Anti -dumping and Countervailing Duty) (Investigation) 
Regulations, 2002), which is meant to counter unfair trade practices resulting from dumping and 
subsidisation. These regulations have been notified to the WTO. It also has in place the national 
legislation on Safeguards namely the Competition (Safeguards) (Investigation) Regulations, 2006, 
Statutory Instrument No.  217 of 22  September  2006, which is meant to counter surges in imports 
that cause or threaten to cause s erious injury to the local industry. These regulations have been 
notified to the WTO and are administered by the Competition and Tariff Commission.  WT/TPR/ G/398 • Zimbabwe  
 
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  13.3  Regional Trade  
Zimbabwe is Party to a number of bilateral and regional trading arrangements. At the bilateral 
level, Zimbabwe entered into Bilateral Trade Agreements (BTAs) encompassing both Preferential 
Trade Agreements (PTAs) and Most Favoured Nations (MFN) agreements with over forty countries 
across the globe. These agreements are aimed at broadening the scope for market access and 
facilitating trade on the basis of reciprocity.  
The Government of Zimbabwe has been reviewing the existing Bilateral Trade Agreements 
with a view to assess their relevance and to accommodate developments at the national, reg ional 
and multilateral trading systems. Some of the agreements have proved to be deficient in respect of 
areas such as rules of origin and other trade support mechanisms to facilitate trade and foster 
economic co -operation.  
A deliberate strategy has also b een adopted by Government to enter into Memoranda of 
Understanding on Economic, Trade and Investment Cooperation with key partner countries as 
general frameworks to promote and facilitate enhanced economic cooperation, bilateral trade and 
cross border inve stments.  
Zimbabwe is a member of the Common Market for Eastern and Southern Africa (COMESA) 
and the Southern African Development Community (SADC) Free Trade Protocols in support of the 
regional integration agenda. The Free Trade Area (FTA) Protocols provid e for duty -free quota -free 
trade in goods for COMESA and SADC member states, provided such goods meet set criteria on the 
rules of origin. The low levels of competitiveness faced by local industry resulted in Government in 
some instances adopting measures inconsistent with original national commitments at regional level.  
13.4  Southern African Development  Community  
Zimbabwe is participating in the SADC free trade area under the Protocol on Trade. The 
country has liberalised 84% of the tariff hand book with the re maining 16% being classified as 
sensitive subject to liberalisation at a later stage. Zimbabwe's trade is mostly concentrated in the 
SADC region with South Africa constituting the largest share of both imports and exports for the 
country.  
The region has ad opted a comprehensive Trade Facilitation programme aimed at easing flow 
of goods and services within the region. The programme draws from the WTO Trade Facilitation 
Agreement and aims to help member states implement the provisions of the Agreement.  
Zimbabw e has also received support from the European Union to effectively implement the 
SADC Protocol on Trade mainly in capacitating the area of quality infrastructure of the country. The 
support is under the Trade Related Facility meant to assist local industry  to increase exports by 
meeting international standards.  
The SADC region also adopted its Protocol on Trade in Services and concluded phase 
1 negotiations on six priority services sectors of Communication, Construction, Energy Related, 
Financial, Tourism a nd Transport sectors. Schedules of specific commitments for the six sectors were 
adopted and preparations for implementation are underway..  
13.5  COMESA Free Trade Area  
Zimbabwe is a founder member of the COMESA Free Trade Area (FTA) established in 
October  2000.  
13.5.1   Zimbabwe's Trade Performance in COMESA  
In 2018, Zimbabwe's exports to the COMESA region increased from USD 84  million in 2017 
to USD 92  million in 2018, representing a 10% increase in exports to the region.  
Zimbabwe's imports from COMESA also increased be tween 2017 and 2018 by 56%, from 
USD 309  million in 2017 to USD 480  million in 2018, in value terms.  WT/TPR/ G/398 • Zimbabwe  
 
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  Table 13.1 Zimbabwe's Trade with COMESA, value in USD (millions)  
Flow  2010  2011  2012  2013  2014  2015  2016  2017  2018  
Exports  253.8  136.8  108.3  129.7  105.7  96.0 87.3 83.6 92.0 
Re-Exports  13.2 13.9 12.6 5.7 8.2 5.4 2.5 2.4 5.9 
Total Exports  267.0  150.7  120.9  135.4  113.9  101.4  89.8 86.0 97.9 
Imports  271.2  462.1  641.2  416.4  340.6  435.8  364.1  308.6  480.0  
Trade 
Balance  -4.2 -311.3  -520.2  -281.1  -226.7  -334.4  -274.3  -222.6  -382.1  
Source:  COMSTAT Database  
Zimbabwe's major exports destinations in the region in 2018 were Zambia, Kenya, Malawi 
and Congo DR  Zimbabwe's top export products to Zambia in 2018 were fish, electric storage 
batteries, tea, deep -freezers, articles for the conveyance/packing of goods, electric generating sets, 
microwave oven, tobacco, wood, orange juice, fibreboard of wood, waters, cartons, boxes & cases 
and cane sugar all worth USD 32  million. The main export product to Kenya was Cane sugar valued 
at USD 23  million. Export products to Malawi were electric generating sets, seeds fruit & spore s, 
fish, electric storage batteries, cartons, boxes & cases, microwave oven, margarine and fertilizers 
all valued at USD 5  million.  
Zimbabwe's exported products to COMESA in 2018 were led by Cane sugar (22%) followed 
by Fish (5%), articles for the conveyan ce/packing of goods (4%), Electric generating sets 
(4%) Electric storage batteries (3%), other black tea (3%) and Deep -freezers, household -type 
(3%).  
In 2018, Zimbabwe's top imports from COMESA were from Mauritius with a value of 
USD 198 million, Zambia US D 178  million, Malawi USD 33  million, Eswatini USD 30  million, Egypt 
USD 22  million and Kenya USD 17  million. Top Import products from Mauritius were soya bean oil, 
broken rice, fertilizers, flours & meals of oil -seeds, insecticides and medicaments. Produc ts imported 
from Zambia were petroleum oils, Oilcakes, waters, tobacco and flours & meals of oil -seeds . 
In 2018, Zimbabwe's top import products from the COMESA region were Petroleum oils 
(9.5%), Oilcake (4.9%), Mixtures of odoriferous substances (4.7%), So ya bean oil (4.3%) followed 
by Ammonia phosphate and Tobacco accounting for 4.1% and 4%, respectively.  
13.6  COMESA -EAC-SADC Tripartite  Free Trade Area  
Zimbabwe is also participating in the COMESA -EAC-SADC Tripartite negotiations which are 
aimed at harmonizing trade regimes, free movement of business persons, joint implementation of 
regional infrastructure projects and programmes, and legal and institutional arrangements for 
regional cooperation within the three Regional Economic Communities (RECs). Zimbabwe is among 
the 23 Member/Partner States that have signed the Tripartite Free Trade Area (TFTA) Agreement. 
The Agreement will enter into force upon ratification by 14 Member/Partner States. Currently, 7 
countries have ratified the Agreement. Zimbabwe is in the p rocess of ratifying the Agreement.  
13.7  African Continental Free Trade Area (Af CFTA ) 
Zimbabwe is a State Party to the African Continental Free Trade Area (AfCFTA) which will 
bring together 55 Member States of the African Union covering a market of more than 
1.2 billion  people. The Agreement entered into force on 30  May 2019 and Zimbabwe was the 24th 
country to deposit its instrument of ratification. As at 5  December  2019, 29 countries had ratified 
the Agreement.  
The Agreement Establishing the Continental Free Trade Area (AfCFTA) aims at creating a 
single Market for Goods, Services, facilitated by movement of Persons in order to deepen the 
economic integration of the African Continent and in accordance with the Pan African Vision of "An 
integrat ed, prosperous and peaceful Africa" enshrined in Agenda 2063.  
The operational phase of the Agreement was launched on 7  July 2019 and trading will 
commence on 1  July 2019.  WT/TPR/ G/398 • Zimbabwe  
 
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Zimbabwe's positions in the AfCFTA are based on positions and provisions in the RECs that 
the country is Party to, in order to ensure harmonisation of the country's positions at regional and 
continental level.  
13.8  Interim Economic  Partnership Agreement w ith the European Union  
Zimbabwe has been implementing the Interim Economic Partnership Agre ement (iEPA) with 
the European Union (EU) since May  2012. The Agreement provides for duty - free quota - free market 
access for its exports into the EU market. Zimbabwe will gradually liberalise 80% of its imports from 
the EU within 10 years (2013 -2022). Th e ESA – EU iEPA was concluded as a package including 
provisions on Trade in goods and Market Access, Fisheries and Economic Development Cooperation.  
Zimbabwe together with other ESA Signatory states are now engaged in negotiations with 
the European Union o n the deepening of the iEPA. The negotiations are being conducted in the spirit 
of Article 53 of the iEPA which provides for the continuation of negotiations with a view to concluding 
a full and comprehensive EPA. The areas to be covered by the full EPA go  beyond trade in goods and 
will include Services and Investment, and Trade -Related Areas such as Sustainable Development, 
Competition, Customs and Trade Facilitation as well as further improvement in Trade in Goods and 
Rules of Origin.  
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