Zida to replace ZIA

Published: 04 May 2019

THE Zimbabwe Investment and Development Agency (Zida) Bill, a major component of the government's "ease of doing business" reforms to attract both foreign and domestic investors will replace, and take over the functions presently entrusted to, the Zimbabwe Investment Authority (ZIA) and the Special Economic Zones Authority.

The Bill was gazetted on April 5, 2019 is expected to become law on the day it is gazetted as an Act. The agency will enable the processing of investment approvals within a day, significantly improving the investment climate.

According to the Bill, the primary function of the agency is to facilitate entry and implementation of investment projects, as well as to coordinate investment programmes and strategies.

"Zida will replace, and take over the functions presently entrusted to, the ZIA and the Special Economic Zones Authority, both statutory corporations and the Joint Venture Unit in the ministry of Finance and Economic Development, which advises government on public private partnerships.

"If duly enacted by Parliament and assented to by the President, the Bill will become law on the day it is gazetted as an Act. There is no provision for its date of commencement to be fixed by the President by statutory instrument," Veritas Zimbabwe said in a statement.

The Bill's 10 parts include parts dealing with: the establishment, management and finances of the new Zimbabwe Investment and Development Agency and its One Stop Investment Services Centre, investor guarantees and nondiscriminatory treatment; investor obligations, including social responsibility; provisions common to investors in and outside Special Economic Zones; investment and other activities in Special Economic Zones; public private partnerships and dispute settlement.

According to Veritas, government will have to repeal ZIA Act, Special Economic Zones Act and the Joint Venture Act. There is also need to amend the Procurement and Disposal of Public Assets Act to align it with the new arrangements for public private partnerships.

"Transitional provisions are also necessary to provide for the succession of Zida to the bodies it will replace and to their assets and obligations. Clause 47 provides for this and will also continue in force directions or orders given, regulations made and licences issued under the Acts to be repealed."

The Bill also establishes a board that shall control the agency including appointment of a chief executive officer and other staff of the Agency.

"There is no provision obliging the responsible minister to appoint outgoing board members of the ZIA and Special Economic Zones Authority board members to the Zida board," Veritas said.

The Bill, Clause 48 permits Zida to offer employment to civil servants from the Joint Venture Unit, and to employees of the Zimbabwe Investment Authority and Special Economic Zones Authority, without imposing any obligation on the new body to do so.
- dailynews

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