Zimbabwe - Joint Ventures/LicensingZimbabwe - Joint Ventures/Licensing
The government encourages joint ventures. Zimbabwe has not agreed to abide by the WTO Government Procurement Agreement. For most of Zimbabwe’s post-independence history, joint ventures were the primary means of investing in the country. However, experience has shown that a joint venture can easily result in the foreign partner meeting all the costs despite not owning all of the business. Careful examination of the assets and track records of local partners is highly recommended. Zimbabwe also practices licensing although it is not widespread. The scarcity and cost of capital are often significant obstacles to a successful business relationship. In 2018, the government partially repealed the Indigenization and Economic Empowerment Act which required firms to maintain majority ownership by indigenous black Zimbabweans. These restrictions now only apply to diamond and platinum firms.