NewZimbabwe.com has invited Mr. Vengai Madzima, the Senior Partner at Madzima Chidyausiku Museta Legal Practitioners (MCM Legal), to discuss with us legal issues that affect Zimbabweans living in the diaspora. The discussions are of a general nature and those seeking specific legal advice should contact their lawyer.
Reporter: Welcome back, Mr Madzima. We understand that you are a speaker at the UK-Zimbabwe Business Expo, scheduled for October 2–4, 2025, in Birmingham. We want to pick your brain on multi-jurisdictional trade and investment by the diaspora, although we understand that you are going to speak in more detail at the conference. In your view, does the citizenship affect how their investment is treated or play any role?.
VM: Thank you
It is common knowledge that a significant number of our diaspora community have taken up different citizenship or nationalities. It is also commonly accepted that the taking up of such citizenship was mainly on economic grounds and for ease of movement. Our recent history, coupled with sanctions imposed on the country, has limited economic growth and made it extremely difficult for Zimbabweans to travel and fully express their economic potential in Zimbabwe and across the world.
That being said, our constitution permits citizens by birth to hold dual citizenship. Dual citizenship has the same benefit as if the holder is a local with Zimbabwean citizenship only. Citizens by registration are generally restricted from holding dual citizenship.
We also have as part of the diaspora community, citizens who acquired citizenship of other countries before the current constitution of 2013. These members of the diaspora community could not hold dual citizen and had to renounce their Zimbabwean citizenship, in most instances, unwillingly.
This community may, if they so wish, make applications for restoration of citizenship in terms of the new Act.
It is worth pointing out, however, that in terms of our ZIDA Act, foreign investors must be accorded the same treatment as domestic investors and must not be treated less favourably. Provisions in our law that favoured local citizens,for example as contained in the Indigenisation and Economic Empowerment Act, have been suspended and superseded by the ZIDA Act
Reporter: What will the diaspora investor need to qualify for protection under the ZIDA Act and what protections does it offer?
VM: The Diaspora investor will be required to register the investment with the Zimbabwe Investment Development Agency. Registration may be made by a foreign or citizen investor.
The aim is to ensure that the investment benefits from statutory protections.
To the foreign investor, such registration affords the investment protection from nationalisation or expropriation. This is key for the foreign investor, as our country suffered bad publicity in this area. Should there be any expropriation for a public purpose, the investor is assured of quick and adequate compensation.
I however, think that for the diaspora investor, the key protection has to do with the ability to repatriate capital and profits. This area has been a thorn in the past.
What is required is that the investment is registered, capital flows through official channels like banks and the profits, dividends and capital may be inversely repatriated through authorised channels like the banks after payment of local taxes.
Reporter: Having opted to invest in the country, what are the best vehicles for the diaspora to house their investment in?
VM: To a legal mind like myself, the words ‘limited liability’ have a certain appeal to them. With that in mind, am inclined to recommend that the opening of a private limited company or a private business corporation, as they shield the acts of the company from the other personal wealth of the investor.
Only in extreme cases do our courts pierce the corporate veil to make the members of a company liable for the acts of the company.
Should the investor already be operating another similar business in a different jurisdiction, they may consider opening and registering a branch in Zimbabwe, with the head office being located in a different jurisdiction.
Reporter: Because of our time, may you kindly explain what happens if a diaspora dies with different properties in different jurisdictions?
VM: Well, this really depends on whether or not the diaspora had a will. In terms of our laws, all immovable property is governed by the laws where the property is situate, and all movable property is governed by the law where the deceased was domiciled at the time of death. An estate registered in another country with letters of administration of that country may be recognised and registered in Zimbabwe, subject to compliance issues.
It is worth noting that wills have to be compliant with Zimbabwe law formalities, and property that is not governed by a will may be subject to our intestate laws.
Reporter: Thank you, Mr. Madzima we have to end here, because of our time.
VM: Thank you.
You can contact Vengai Madzima on vengai@mcmlegal.co.zw or at www.mcmlegal.co.zw
