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The Economy

Zimbabwe is well-endowed with mineral, agricultural and other natural resources. This has created great oppurtunities for the growth of resource based industrial activities. The major productive sectors are manufacturing, agriculture and mining which together account for almost 50% of GDP. Zimbabwe has one of the most advanced economies by sub-Saharan standards with an industrial base only second to South Africa.

Under a comprehensive reform programme started in 1990, the country has sought to create a deregulated market driven economy by freeing interest and exchange rates, liberalising foreign currency regulations, and restructuring its expenditures.




      
    
 GDP per Sector


    
(Z$ million)



    Agriculture and forestry 
    
 3,798



    Mining 
    
936



    Manufacturing 
    
3,875



    Construction 
    
 638



    Transport and Communications 
    
 1,803



    Finance, insurance and real estate 
    
 2,493



    Electricity and water 
    
 469



    Public administration 
    
 2,767

1996 Figures

About one-third of Zimbabwe's exports are destined for regional markets comprising SADC countries, South Africa in particular, and countries that are members of COMESA. The remaining share is divided equally between the European Union and the rest of the world. The pattern is relatively similar for imports to Zimbabwe, with some 48% originating from the region. The main exports include unprocessed tobacco, ferro-alloys, gold, nickel, cotton lint, manufactural and horticultural products. Main import goods are machinery and transport equipment, manufactured goods, chemicals and fuel.




      
    
 Imports


    
(Z$ million)

    
 Exports


    
(Z$ million)

    United Kingdom 
    
 6,705.7

    
 2,112.8



    Germany 
    
1,365.0

    
1,669.8

    Japan 
    
1,442.7

    
 1,067.5



    United States 
    
1,406.9

    
 1,399.8

    South Africa 
    
 10,767.3

    
 2,025.0

1996 Figures

Investment incentives:

- Investment allowance of 15% in the year of purchase for industrial and commercial buildings, staff housing, implements and machinery

- Investment allowance of 50% in the year of purchase for training buildings and equipment

- Exemptions from import tax, surtax and customs duty on equipment and machinery imported for productive purposes

- Investors investing significant sums in projects approved by the ZIC are eligible to acquire permanent residency depending on amounts involved

- 25% special initial allowance on cost of industrial buildings, and commercial buildings in growth point areas, and machinery is granted as a rebate for the first four years

- Special mining lease entitles the holder to specific incentive packages, to be negotiated with the Ministry of Mines

Export incentives for Export processing zones:

- Exemption from: witholding taxes on dividends and royaltie fees; duty for goods imported into EPZ's; captial gains tax, surtax and sales tax on goods and services; fringe benefits tax for employees of EPZ's companies

- Five year tax holiday and 15% corporate tax thereafter

- Permission for foreign companies to borrow locally

 

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