ZIMBABWE IN BRIEF

Zimbabwe is unique and fascinating holiday destination, blessed with a landscape of extra ordinary beauty, rich and diverse tropical wildlife. Unspoilt by mass tourism, it has something to offer everyone – from quiet and spacious haven to a land of thrilling adventure, through white - water rafting and traditional dance to birding safaris and contemporary music. For anyone who wants to experience the best that Africa has to offer, Zimbabwe is the ideal destination.

Situated on a high plateau in Southern Africa, between the Zambezi and the Limpopo rivers, Zimbabwe is landlocked, bounded by Zambia, Mozambique, South Africa and Botswana. Zimbabwe covers an area of 390 245 km², equal to the state of California. Most parts lie more than 300 metres above sea level. At the end of 2001, the Zimbabwean population was about 13 500 000.

The climate is warm without being oppressive, with a daily sunshine average of seven hours all year round. Generally, days are bright and sunny nights clear and cool. Within the country, temperatures and rainfall are directly influenced by altitude. The highveld and Eastern highlands are cooler and the lowveld and the Zambezi Valley hotter, with summer temperatures often soaring to over 35°C, well above the highveld average of 28°C. November to April are the rainy summer months, with the dry winter temperatures range from 13°C to 20°C but can fall to -5°C at night. The August to October period is particularly hot and dry.

Equally warm are the Zimbabwean people, renowned for their friendliness and hospitality. Zimbabwe is a multi - racial society where people of all nationalities live in harmony. Although people living in urban areas have adopted a westernised lifestyle, in the country areas many African traditions have been preserved. English is the official language with the other widely-spoken languages being Chishona and Sindebele. Other minority languages include Sotho, Venda, Tonga and Kalanga.

ECONOMIC OVERVIEW

Zimbabwe is well-endowed with natural resources including minerals, arable land and wild life. The country has a relatively sophisticated and advanced financial system and the second largest stock exchange in Sub-Sahara Africa, after the Johannesburg Stock Exchange.

Agriculture is the mainstay of the country’s economy with a variety of crops such as tobacco, sugar, cotton, tea and maize. There is also a large livestock industry which exports high grade beef. The second largest sector is mining, with many important minerals like gold, nickel, asbestos and ferro - alloys being important exports. It has a well developed, diversified industrial base.

AGRICULTURE

The country produces such main food crops as maize, soya beans, oilseeds, fruit, vegetables, and sugar. Major export crops are tobacco and horticulture. Other crops like sugar, tea, coffee, cotton, seeds, maize, small grains and oilseeds are also exported.

Horticulture

The horticultural sector continues to expand, producing flowers, fruits, vegetables, herbs, spices, essential oils and tree nuts for export. Zimbabwe’s diverse subtropical climate and soil types facilitate the production of tropical and temperate crops, and fruits and vegetables organically and of excellent quality.

In addition to fresh produce, Zimbabwe also exports frozen vegetables and fruits.

INDUSTRY

The sector is an important contributor to the country’s export activities with markets in America, Europe, Africa and the Far East. The sector’s exports are a reflection of the agricultural and mining base of the economy and the extent to which manufacturing beneficiates products from the extractive sector. The principal manufactured exports include ferro-alloys, clothing, metal products, chemicals, plastics and cotton-lint.

It is the leading sector in terms of contribution to GDP, accounting for about 25 percent of GDP and employing 17 percent of the labour force.

INVESTMENTS

Zimbabwe welcomes foreign investment especially in priority sectors like manufacturing, mining, quarrying and mineral exploration and development of infrastructure for tourism. In these sectors investors are free to take 100% ownership of their ventures. In services sectors including areas such as management consultancy and construction, foreign investors may take up to 70% shareholding. The government has reserved other sectors for local investment. A foreign investor can participate in the reserved sector by entering into a joint-venture with a local citizen, with the foreign partner taking a maximum of 35% of shareholding.

All new foreign investment into Zimbabwe has to be registered with and approved by the Zimbabwe Investment Centre. Foreign Investment into existing companies with foreign holding are entitled to remit 100% after tax profits that are due to their foreign shareholders.

Investment Guarantees

Zimbabwe guarantees legal protection for all its investors through its constitution which guarantees the right to private property and prohibits expropriation of private property without adequate compensation.

Zimbabwe is a signatory to the Multilateral Investment Guarantee Agency (MIGA), the Overseas Private Investment Corporation (OPIC), and the International Convention for Settlement of Investment Disputes (ISCID), the New York Convention on the enforcement of Foreign Arbitral Awards, and the United Nations Convention on the International Trade Law.

Zimbabwe has also signed Bilateral Investment Protection Agreements with 17 countries. Additional bilateral treaties are currently under negotiation with other countries.

MINING

Zimbabwe is richly endowed with mineral resources. Over 40 different types of minerals are mined in the country including some of which provide strategic materials such as chromite, lithium, nickel and ferro-chrome. Mining contributes 6 percent of GDP, employs 7 percent of the country’s labour force and earns 40 percent of the foreign exchange. Mines and smelters purchase about one third of all of Zimbabwe’s electrical energy supplies.

The mining sector has great potential for investment with huge unexplored deposits on the Great Dyke. The major minerals are gold, chrome, asbestos, coal, iron ore, nickel, copper, diamonds and platinum.

At present a few large multinational mining groups and locally owned enterprises produce the bulk of the mineral output. There are approximately 1 000 ‘operating mines’ (mainly gold) worked by small companies, syndicates and individuals. Gold contributes about half the value of annual mineral production.