Zimbabwe Economy Overview

Currency

Zimbabwean dollar (CWD)

Working hours

40 hours/week

Public/bank holidays

7 public holidays

Capital

Harare

Languages

English, Shona, Ndebele & 13  more

Population

16.67 million

Minimum hourly salary

$25 – $85 depending on the sector and qualifications

Tax year

1st Jan – 31st Dec

Date format

YYYY/MM/DD

Misclassification penalties

Penalties for misclassification may include back-payment of minimum wage, overtime, paid vacation, pension and employment insurance contributions. Interest of 10% or 20% may be applied, as well as punitive damages in seriouss cases. 

Fun fact

Zimbabwe is home to a diverse range of wildlife, including the Big Five and over 400 bird species. It’s a popular destination for safaris. 

Zimbabwe is a smaller country in Southern Africa, and its capital is Harare. Landlocked, it’s cut off from the ocean and surrounded by its neighbors Mozambique, South Africa, Botswana, and Zambia. This territory was part of the Kingdom of Zimbabwe for centuries before becoming a British possession, then Rhodesia, before finally becoming the independent Republic of Zimbabwe in 1980. Since that time, the country’s population has grown from just over 7 million to over 17 million in 2025.

The Zimbabwean economy has also grown significantly despite political fluctuations and global events. Zimbabwe’s GDP reached 35.92 billion in 2024 and is expected to continue increasing by an impressive 6.0% in 2025. While Zimbabwe is classified as a lower-middle-income by the World Bank, it has a wealth of natural resources and great potential to grow in the future.

If you’re thinking about doing business in Zimbabwe, this guide will let you know about the current climate and the possibilities you have for entering this dynamic market.

Overview of Zimbabwe’s Economy

Zimbabwe has had a challenge with confidence in its currency since the 2008 hyperinflation of the previously used Zimbabwean dollar. Since that time, multiple currencies have been introduced and the US dollar is also widely used as a stable currency. In June 2024, the country’s new currency, the Zimbabwe Gold (ZWG), was officially accepted and now trades at roughly 1 USD = 26 ZWG. The country’s GDP is expected to reach 985 billion ZWG or 36.93 billion USD in 2025. It should be noted that Zimbabweans now use digital transfers through phone networks for most daily transactions rather than physical currencies. 

Zimbabwe is rich in natural resources, including wildlife, farmland, and minerals and therefore presents investors with lots of opportunities. Agriculture, tourism, and mining as well as their related services, are all expected to grow in the future. In 2022, agriculture provided for only 7.19% of the country’s GDP, however. Industry contributed 40.81% and services 40.74%. Some of the currently growing industries in the country include agriculture, biotech, construction, energy, health, and tourism. Infrastructure and mining development also offer promising opportunities for investors.

Zimbabwe’s agricultural production is based on both subsistence growing of grains and starches as well as cash crops like tobacco, cotton, coffee, peanuts, and fruit. The country’s main industrial products include steel, wood products, clothing, and, most especially, mining products. Zimbabwe hosts important deposits of gold, iron, coal, platinum, copper, chromite, and nickel as well as some of the world’s largest diamond deposits. The country’s most critical exports include gold, nickel, tobacco, iron alloys, and diamonds which it exports to the UAE, South Africa, China, Belgium, and Mozambique. Zimbabwe imports petroleum, trucks, soybean oil, electricity, and fertilizers from South Africa, China, Singapore, the UAE, and Mozambique.

Each person’s share of the country’s economy, its per capita GDP, is set to reach 2,130 USD/year in 2025. Based on this low figure, it’s no surprise that workers in Zimbabwe can be highly affordable for foreign employers. While Zimbabwe has had a minimum wage in the past, currency changes have made maintaining one challenging, and there is no currently mandated minimum in place. In 2022, the government proposed 77 USD/month, but unions demanded 400 USD/month, and no agreement was reached. A living wage is estimated at 247 USD/month. Employers must also pay 8% of workers’ salaries for social schemes. Taken together, these figures show that the cost of hiring workers can be quite low. 

Taxes

Employer Tax: 20% – 23%

Pension Plan

16%, depending on the province

Unemployment Insurance

0.5% – 2%

Medical Insurance

6% – 12%, depending on the region

Employee Tax: 3% – 45%

Pension Insurance

Around 8%

Unemployment Insurance

0.5%

Medical insurance 

Around 2% +a fixed additional fee

Gross Income (ZWL)

Up to 300,000

300,001 to 720,000

720,001 to 1,440,000

1,440,001 to 2,880,000

2,880,001 to 6,000,000

More than 6,000,001 

Tax Rate

0%

0 + 20% for each ZWL above 300,000

84,000 + 25% for each ZWL above 720,000

264,000 + 30% for each ZWL above 1,440,000

696,000 + 35% for each ZWL above 2,880,000

1,788,000 + 40% for each ZWL above 6,000,000

Business Regulation in Zimbabwe

While it has not been very open to foreign investment in the past, Zimbabwe has changed in recent years, and its business climate is now quite welcoming. The government has even set up Special Economic Zones (SEZs), providing incentives to investors.

If you want to do business in Zimbabwe, here are some of the main rules and regulations you need to know about:

Business Registration and Compliance

The normal choices for foreign investors to register entities include limited liability companies (LLCs) and public limited companies (PLCs). Branch and representative offices are also commonly used entities. To set up an LLC, you only need one shareholder and one director of any nationality, and no minimum share capital is required by law. This is the same for a PLC, except two shareholders are required, and a $5 fee is paid for every $100 of registered share capital. Both LLCs and PLCs can be entirely foreign-owned.

However, the process of incorporation can take time, and the World Bank gives Zimbabwe a score of 72% for ease of entity setup. It can take as many as 27 days to register an LLC in Harare, for example, and nine procedural steps, including:

  • Reserving a company name
  • Filing articles of association with the Registrar of Companies
  • Opening a bank account
  • Registering with the Zimbabwe Revenue Agency (ZIMRA) for CIT, VAT, and pay-as-you-earn (PAYE) tax
  • Registering with the National Social Security Authority
  • Registering with the Manpower Development Fund
  • Submitting a license application to the City Health Department
  • Applying for a business license from the Harare Municipality
  • Receiving a worksite inspection from the Harare Municipality

In Zimbabwe, businesses generally pay a corporate income tax (CIT) of 25.75% (the 0.75% is an AIDS levy). There are no local or provincial income taxes levied on businesses. Capital gains tax is 20% on net gains and 1.5% on shares held longer than six months. VAT (value-added tax) is 15% on most transactions. Employers are required to pay 4.5% of workers’ salaries toward social security, 1% toward the Manpower Levy, 2-11% for worker’s compensation, and 0.5% to the Standards Development Fund for a total of at least 8%. Workers also pay 4.5% of their salaries to social security schemes. 

At the same time, companies that set up in Zimbabwe’s six Special Economic Zones receive a five-year exemption on CIT and an exemption on customs duty for imported raw materials, machinery, and equipment. They are also exempt from the need to obtain import/export permits and to pay withholding taxes on royalties and dividends.

Employment Laws

Employees are protected by the Constitution of Zimbabwe and the Labor Act, among other statutes. They work 8.5 hours a day and 44 hours a week, and any hours over this are considered overtime and should be paid at 150% of their normal wages. Zimbabweans receive 22 working days per year of paid annual leave as well as 11 paid public holidays.

Mothers are granted maternity leave of 98 days and are fully paid during this period through social security. They are covered for up to three maternity leaves with the same employer. Fathers aren’t specifically entitled to paternity leave but may use up to 12 days of unpaid family leave for this purpose.

Terminated workers should receive between one day and three months, depending on the type and period of their contract. Severance pay is only given to workers dismissed for economic reasons, normally at the rate of three months’ wages.

Intellectual Property (IP) Rights

Trademarks in Zimbabwe can be registered for ten years and renewed for ten-year periods. Copyrights last for the lifetime of the author plus another 50 years. Patents are protected for 20 years and can be renewed.

Benefits of Doing Business in Zimbabwe

Many foreign investors discover multiple advantages when they do business in Zimbabwe, including:

  • Rich natural resources
  • Skilled labor
  • 100% foreign ownership of companies possible
  • Special Economic Zones offering multiple incentives
  • Regional trade opportunities

Downsides of Doing Business in Zimbabwe

As with any investment opportunity, there can also be disadvantages to doing business in Zimbabwe, including:

  • Economic instability
  • Challenges with confidence in and stability of the new currency
  • Regulatory unpredictability
  • Infrastructure gaps

Business Expansion Options in Zimbabwe

Moving into the Zimbabwean market or hiring workers in the country can be done in many ways. There are also several different types of service providers that can help you with your expansion into Zimbabwe. Your many options include:

Zimbabwe Employer of Record (EOR)

If you want to hire Zimbabwean workers but don’t own an entity in the country, you can engage an Employer of Record to hire them for you. The EOR uses its own entity to contract your workers and also manages their HR needs including payroll, benefits, and leaves. This can be a useful option to help you test the waters before committing to incorporating an entity in Zimbabwe.

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Recruitment Agencies

A Zimbabwe recruitment agency can help you source employees in Zimbabwe quickly and cost-effectively. Zimbabwean recruiters often work in tandem with Professional Employer Organizations or Employers of Record to ensure that your Zimbabwean team is hired and paid in full compliance with local laws. 

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Zimbabwe Professional Employer Organization (PEO)

A Professional Employment Organization can help you manage local employees if you’ve already incorporated an entity in Zimbabwe. These service providers manage all HR concerns for your local staff and maintain compliance with all Zimbabwean tax and labor laws.

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Subsidiary Incorporation

Setting up your own entity in Zimbabwe can help you get started working in the local market and allows you to legally hire local workers. Foreign investors can incorporate and completely own LLCs and PLCs. There are also opportunities to set up SZEs to take advantage of many incentives like tax holidays and duty exemptions.

Branch Office / Representative Office Registration

If you already have an entity registered in another part of the world, that parent company can register a branch office in Zimbabwe. A branch can also be entirely foreign-owned by its parent, and that parent is liable for all debts and losses incurred in Zimbabwe. 

Foreign companies can also set up representative offices in Zimbabwe to help them enter this market. They can’t make any sales for profit and therefore don’t pay local taxes. Representative offices are restricted to only market research and business promotion activities.

Business Opportunities in Zimbabwe

Expanding business into Zimbabwe presents both opportunities and challenges. With its abundant natural resources, skilled workforce, and emerging market potential, the country offers a promising environment for businesses willing to navigate its complexities. However, factors such as currency fluctuations, regulatory requirements, and economic stability must be carefully considered.

Business OpportunityReason
Agriculture and Agro-ProcessingZimbabwe’s agricultural base remains strong. Demand for processed goods like cooking oil, dairy, and grain products continues to rise, making value-addition highly lucrative.
Mining and Mineral ServicesThe country holds vast deposits of gold, platinum, lithium, and chrome. Companies that provide mining services, equipment, or processing solutions can earn substantial returns.
Renewable Energy SolutionsFrequent power shortages create a high demand for solar systems, backup power units, and energy-efficient technologies. Investors can tap into a growing consumer and commercial market.
Tourism and HospitalityWith attractions like Victoria Falls, national parks, and cultural sites, tourism presents opportunities for lodges, tour operations, and niche travel experiences.
Logistics and Transport ServicesGrowing cross-border trade increases the need for reliable transport, warehousing, and distribution services. Businesses that streamline supply chains can thrive quickly.

By understanding the local business landscape and working with the right partners, companies can successfully establish and grow their presence in Zimbabwe. Whether you’re hiring talent, setting up operations, or ensuring compliance, having expert support can make all the difference in achieving long-term success.

Zimbabwe’s resources present lucrative opportunities for international businesses. Partner with Remote People for smooth market entry and workforce management.