Proposed govt law to bring clarity on forex repatriation fears

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By Staff Reporter

PRESIDENT Emmerson Mnangagwa’s government is in the process of formulating a law that would spell out how foreign investors can repatriate their profits from Zimbabwe, a country facing foreign currency shortages.

This was revealed Wednesday by Justice Minister Ziyambi Ziyambi while addressing backbenchers in parliament.

Ziyambi was responding to a question by Kwekwe Central MP, Masango Matambanadzo who had asked what government policy was on foreign investors who find themselves failing to repatriate funds to their home countries to repay bank loans they would have taken to finance their business ventures.

In his response, Ziyambi, who was speaking as leader of the house, said government was in the middle of creating a law that would help solve the dilemma.

“Government is in the process of coming up with a Bill called the Zimbabwe Investments Development Agency Bill where issues such as capital that would have been invested in Zimbabwe is explained, how they are going to be allowed to repatriate that money,” Ziyambi said.

He added, “The Bill was gazetted and is going to be brought before this House. We will have a time to debate the clauses relating to the provisions that deal with the issue of investor freedom to be able to repatriate their investments.”

Mnangagwa is keen to see the return of foreign direct investment into a country that has been ditched by investors from beyond the country’s borders due to policy uncertainties and lately, the cash crunch.

The country is battling cash shortages of both forex and its own currency.

The operating environment for both local and foreign businesses has been made tougher through government tax regimes and policy inconsistencies.

President Mnangagwa has tried to woo back foreign capital through continued assurances “Zimbabwe is open for business”.

However, recent killings on civilians by the military has spotlighted on the Zanu PF led regime’s sincerity or lack of, to reform.