THE Zimbabwe Investment and Development Agency (Zida) has unveiled a new platform on which investors air their grievances — a key building block in making the country an investment destination of choice.
The new platform, Investor Grievance Response Mechanism (IGRM), was unveiled on Wednesday as Zida pulls out all stops to lure investment.
IGRM is a formal process designed to address grievances arising directly from a government ministry, agency or department (MDA) action and or policy changes that may negatively impact an existing investment project. Whether an investor faces adverse regulatory changes, contract breaches or other investment-related challenges, this mechanism provides a direct and structured avenue for resolution.
IGRM emphasises early-stage resolution, meaning that grievances are not allowed to fester or escalate to larger, more complex issues that can jeopardise investment.
By encouraging our investors to report grievances as soon as they arise and dedicating a team to investigate the matter, the agency will prevent minor issues from escalating to significant legal disputes that lead to operational disruptions and financial losses, Zida said.
IGRM could not have come at a better time than now when there is increased interest from investors, which has seen a jump in licences issued in the first quarter of the year.
Data fom Zida show that 207 investment licences were issued in the first quarter of the year with a total projected investment value of US$4,74 billion, up from 143 licences and a total projected investment value of US$622,18 million in the same period last year, attributed to a faster digital process and continued investor interest in opportunities in the country.
Countries are putting in place platforms to address the concerns of investors as they push to be the go-to destination for foreign direct investments (FDI).
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Ethiopia has an investor grievance mechanism meant to retain investment and reduce multiple reporting places.
According to the World Bank, the unit had registered 12 grievances and resolved five as of December 2020.
The timely resolution of grievances led to the retention of about US$231,8 million in investment and 590 jobs.
Brazil, one of the largest destinations of FDI in the world, established the Direct Investment Ombudsman, which has a grievance tracking tool.
The tool follows up on all investors’ grievances from the time they are submitted by investors to their resolution.
Between April 2019 and November 2021, 25 cases were received (13 consultations for information and 12 investor grievances).
As of March 2020, 13 cases had been resolved, amounting to US$591 million in FDI, with approximately 3 400 new jobs expected to be generated, according to the World Bank.
For Zimbabwe, IGRM shows that it is embracing international best practice.
Countries are jostling for FDIs.
There have been reports of government officials demanding bribes from potential investors to oil the wheels of bureaucracy. Some have paid facilitation fees, while others have packed their bags and are looking for a safe destination for their capital.
While there appears to be increased investor interest, events on the ground paint a different picture, showing that more needs to be done. The IGRM platform could be just what the doctor ordered.
