Doing Business in Zimbabwe

Other than direct exporting to Zimbabwe, virtually any form of doing business here (i.e., establishing a sales office or a service facility) is considered an investment and requires approval by the Zimbabwe Investment Centre (ZIC).

Local agents and distributors is common, with companies' selection of local representation often based on their existing distribution infrastructure and ability to provide after-sales service. In fact, because the unavailability of foreign exchange has required the utilization of plant and equipment far beyond its normal lifespan, it has been a supplier's ability to provide major service and spare parts that has been the single largest determinant of success over the years in the Zimbabwe market.

Franchising is only beginning to occur in Zimbabwe, primarily because until 1994 the government's controls on foreign exchange made it difficult for the francisee to remit payments to the franchisor abroad. However, now that the foreign exchange system has been liberalized, local interest for franchising exists in good proportion.