Companies wanting to
build new warehouses in
Zimbabwe need to have
long planning horizons
and be prepared for a
range of costs in addition
to land, materials and
labour, according to the
2016 World Bank Doing
Business report for the
country.
Property transfers
are relatively quick –
Zimbabwe stands at 114
in the ranking of 189
economies on the ease
of registering property
(South Africa is 101).
According to Doing
Business registering a
property there requires
five procedures, takes 36
days and costs 7.6% of the
property value.
However, on average it
requires 10 procedures and
takes 448 days to obtain
a construction permit,
which adds up to 25.2% of
the total warehouse cost.
Financing the
investment is a challenge
as Zimbabwe stands at
79 in the ranking of 189
economies on the ease of
getting credit.
Despite the Zimbabwean
credit crunch this is above
the average sub-Saharan
Africa rating of 118.
South Africa and
Namibia are ranked 59th,
followed by Swaziland and
Botswana (70th) and then
Zimbabwe.
In terms of security of
investment, Zimbabwe is
ranked 81st on the strength
of minority investor
protection index.
This is fourth in sub-
Saharan Africa after SA
(14), Namibia (66) and
Angola (66).
The biggest challenge
– and ongoing cost – will
be providing power to the
warehouse.
Power failures are
common, and operators
need to be able to produce
their own power through
solar or generators – or
both.
Investors will also be
forewarned that there
is a risk that customers
will not honour their
agreements. Zimbabwe
stands at 166 in the
ranking on the ease of
enforcing contracts.
South Africa is 119th.
Administratively, on
average companies make
49 tax payments a year,
spend 242 hours a year
filing, preparing and
paying taxes and pay total
taxes amounting to 32.8%
of profit.
Zimbabwe is ranked 145th
on the ease of paying taxes
(South Africa is 20th).
Zim warehouse operators need money and patience
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