HARARE- The Zimbabwe Investment and Development Agency (ZIDA) has launched a groundbreaking investor grievance response mechanism, marking a significant step towards improving Zimbabwe’s investment climate.
This innovative platform is designed to swiftly address investor concerns stemming from government actions or policy changes that may impact existing projects and by providing a direct and structured avenue for resolution, the mechanism aims to tackle challenges such as adverse regulatory changes, contract breaches, and other investment-related issues before they escalate.
With similar mechanisms in other countries having proven effective in retaining investments by resolving disputes early, Zimbabwe is poised to enhance its attractiveness to investors and foster a more favorable business environment.
The IGRM prioritizes swift resolution, addressing issues promptly to prevent them from escalating into major problems. By encouraging early reporting and dedicating a team to investigate grievances, ZIDA aims to resolve minor issues before they become costly disputes.
This transparent and efficient process, aligned with international best practices, builds trust between investors and the government. With a reliable system in place, investors can confidently commit resources, knowing their concerns will be addressed fairly and promptly. Through the IGRM, ZIDA facilitates direct communication between investors and government agencies, ensuring timely resolution of grievances and fostering a stable investment climate.
The IGRM has four (4) key stages, which include:
- Submission of a Grievance: If an investor encounters a challenge arising from actions of any MDA that jeopardizes the continuation of its project or affects its rights, the investor can submit the grievance through the ZIDA Investment Grievance Form, ensuring a swift initiation of the resolution process. This online step reduces administrative burdens and allows for real-time tracking of the grievance status, enabling both investors and ZIDA to monitor progress.
- Review and Assessment: The grievance will be reviewed by ZIDA, and an assessment will be conducted to determine its impact and urgency. This assessment will take into consideration the nature of the grievance, the severity of the grievance, the potential financial implications and project impediments, as well as the extent to which immediate divestment is a threat.”
The third stage is Engagement with Relevant Authorities: ZIDA will coordinate with the relevant MDAs to address and resolve the issue effectively. Once a grievance is forwarded to the MDA, it is required to respond within five (5) days, ensuring timely feedback. Investors have up to thirty (30) days to submit any additional information needed to complete the grievance assessment, allowing them sufficient time to provide clarifications or supporting documents.
The final stage is Resolution and Feedback: A resolution will be provided, and the investor will receive feedback on the actions taken to address their grievance. If the situation requires further discussion, ZIDA may arrange a meeting between the investor and the relevant MDA to facilitate a mutually agreeable solution.
The agency was established under the ZIDA Act (Chapter 14:38), and is responsible for attracting and protecting investments while providing aftercare services to ensure investor satisfaction and long-term success.
ZIDA drives investment growth through key focus areas, including investment promotion and retention, investment facilitation through its One Stop Investment Services Centre, establishment and regulation of special economic zones (SEZs), facilitation of public-private partnerships (PPPs), and investor aftercare.
