Investing in Zimbabwe

Zimbabwe offers both regulated securities and less formal investment paths. The regulated capital-market pathway covers equities, exchange-traded funds, real estate investment trusts, Treasury bills, government stocks and bonds, corporate bonds, debentures and notes. SECZ-licensed collective investment schemes and unit trusts provide pooled investment managed under an approved structure. Pension, provident-fund and insurance products can support retirement or protection goals. Gold-backed digital tokens were introduced through Reserve Bank of Zimbabwe (RBZ) programmes in 2023, but current availability is not established by the available research and should not be assumed. Property, private business equity, agriculture, mining, project finance, public-private partnerships and Special Economic Zone projects follow different legal and practical processes from ordinary securities. The Zimbabwe Stock Exchange has historically been the dominant securities market. VFEX provides a more USD-oriented exchange option, while other registered exchange structures may be available depending on the product and licence. Retail investors do not place trades directly on the exchanges. They normally use a broker licensed by SECZ, complete customer identification and anti-money-laundering checks, show an identity document or passport and proof of residence, and explain the source of funds. The broker or bank normally uses a Foreign Currency Account or another approved funding arrangement, and the required central securities depository record must exist before trading. ZSE Direct provides an online access option for eligible users. ZSE trading normally runs Monday to Friday, excluding public holidays. The published pre-open period is 09:00 to 09:30, regular trading is 09:30 to 13:00 and the post-close period is 13:00 to 14:30. ZSE uses pre-funding and delivery-versus-payment settlement on a rolling T+2 basis, meaning settlement generally completes two trading days after execution subject to the applicable rules. VFEX publishes the same trading hours. VFEX Direct uses FCA funding, has a stated minimum of USD 10 and also uses T+2 settlement. An order executes only when a matching bid or offer exists, so the displayed price may not be available in the required quantity. Thin order books, wide spreads and trading suspensions can make an apparently saleable asset difficult to exit. Investment goals differ. Shares or funds may provide dividends and capital growth. Government or corporate debt may provide coupon or interest income but carries issuer, maturity and repayment risk. Property can produce rent or appreciation but also requires title, maintenance, management and sale planning. Private businesses, agriculture, mining and project investments may offer direct participation or higher growth potential, but they depend on licences, operating performance, contracts, governance and a realistic exit plan. Retirement products are designed around long-term savings and may have access or transfer restrictions. Currency diversification can reduce dependence on one currency but does not remove exchange-rate, convertibility or policy risk. A long-term approach usually combines several securities or asset classes instead of relying on one issuer, sector or currency. A portfolio may use liquid listed securities, government debt, pension or insurance exposure as a core and keep project, private-business, property or other real assets to a proportion that matches the investor's ability to tolerate delay and loss. A liquidity reserve helps cover expenses without forcing a sale during a weak market. There is no established local benchmark or guaranteed return that can be inferred from the available research. Market timing also becomes difficult when liquidity is limited, so the planned holding period and exit plan deserve the same attention as the purchase price. Selection requires more than a company name or a quoted price. Review the issuer's reports, prospectus where applicable, cash flow, dividend or coupon record, valuation, order-book depth, spread, currency exposure, taxes and fees. Confirm that the broker, fund manager, custodian and exchange are properly authorised for the service offered. For a private asset, check ownership or title, the relevant licence, beneficial ownership, audited accounts, environmental and social permits, contracts and the legal process for selling or transferring the investment. Informal land claims, private schemes and unregulated solicitations generally lack SECZ or Investor Protection Fund protection and carry high fraud, title and liquidity risks. Securities are recorded through the applicable central securities depository or custodian. SECZ-listed custodial institutions include CABS Custodial Services, CBZ Bank, FBC Bank, Stanbic Bank Zimbabwe, First Capital Bank and ZB Bank. Depending on the arrangement, assets may sit in a broker-controlled trust account or with an independent custodian. The Investor Protection Fund (IPF) addresses defined losses caused by the insolvency or malpractice of a licensed contributor. It does not cover market losses, poor performance or ordinary price declines. The maximum payout at one time is limited to 10% of the Fund's assets, and claims generally need to be made within 12 months. Transaction costs can materially reduce short-term returns. The ZSE Investment Guide 2024 gives reference charges for equities, exchange-traded funds and real estate investment trusts of 1.693% on purchase, 5.443% on sale within 180 days and 2.943% on sale after at least 180 days under the cited holding-period treatment. The corresponding combined purchase-and-sale references are 7.136% and 4.636%. Debt securities carry a cited purchase and sale charge of 0.10975% each. These figures are reference values, not a substitute for the current tariff. Broker, adviser, fund-management, custody, account, property, project and transfer costs may be added. Zimbabwe Revenue Authority (ZIMRA) guidance lists individual trade or investment income at 25%, company and trust income at 25%, pension-fund investment income at 15% and dividends from foreign companies at 20%. Capital gains tax is generally stated at 20% for assets acquired after 22 February 2019, while listed-security withholding figures in the ZSE guide are historical references. Current Finance Act and ZIMRA treatment should be checked before a transaction because the applicable result depends on the asset, taxpayer, holding period, income type and current law. Immovable property and marketable securities are among the specified assets identified in the guidance. A property disposal requires title or cession documents, proof of payment and ZIMRA capital-gains clearance. The RBZ foreign-exchange framework recognises the Zimbabwe Gold currency, commonly called ZiG, alongside the US dollar and other foreign currencies as legal tender through 31 December 2030, with gradual de-dollarisation directed towards 1 January 2031. Foreign-exchange dealing is restricted to authorised dealers and authorised dealer bureaux. Foreign Currency Accounts for individuals and local or foreign companies remain subject to customer identification and anti-money-laundering controls. The investment source category may need to be documented. ZiG depreciation, inflation, exchange-rate changes, convertibility limits, repatriation restrictions and policy changes can affect both local-currency and foreign-currency investments. Direct investment is different from foreign portfolio investment. A foreign portfolio investment normally buys securities without operating the underlying business. A direct investment involves a project, company or operating activity and can require a ZIDA process, sector approval or a Special Economic Zone process. Under the ZIDA framework, a general investment licence can support protection, services, incentives or Special Economic Zone participation. For a complete application, the stated decision target is seven days; the licence is valid for two years, project implementation is expected within 12 months, renewal should be requested at least three months before expiry, and a new licence is targeted within 30 working days. The cited fee schedule lists USD 500 for a foreign application and USD 4,500 for issuance, or the local equivalent at the interbank rate. Licensed investors must submit annual returns, follow domestic law, preserve the environment, keep independent accounts and records, meet applicable standards and protect local heritage. Mining, property and private projects require sector-specific checks. The Ministry of Mines identifies gold, platinum-group metals, chrome, coal, lithium and diamonds among Zimbabwe's major minerals, but a mining investment needs the relevant title, permit, ownership review and environmental assessment. Transfers of mining titles can carry special capital-gains consequences. Property investment depends on valid title or cession, payment evidence, tax clearance and a practical way to rent or resell the asset. Agriculture, infrastructure and other projects depend on contracts, permits, funding, project execution and counterparties. A business name, bank account, land claim or online offer does not by itself prove ownership, regulatory approval or investment safety. The main risks include currency and inflation exposure, regulatory or tax change, low liquidity, large spreads, suspension or delisting, issuer default, counterparty failure, custody and settlement problems, poor governance, fraud, concentration, property-title disputes, mining-licence problems, environmental liabilities, project delays and difficulty repatriating money across borders. Banking is relevant only as an access and funding prerequisite here; borrowing belongs to debt rather than investing. Investment fees and taxes belong to the investment decision, while general household costs do not. Keep transaction, custody, tax and licensing records and use the relevant SECZ, ZSE, RBZ, ZIMRA, ZIDA or sector-authority complaint or verification channel when a provider, product or project is unclear.