ZIDA launches grievance response mechanism

In a landmark move aimed at enhancing Zimbabwe's investment climate, the Zimbabwe Investment and Development Agency (ZIDA) has launched the Investor Grievance Response Mechanism (IGRM) - a formal system designed to swiftly address complaints raised by investors, in line with the Second Republic's ease of doing business reforms.

The IGRM is tailored to handle grievances stemming from actions or policy changes by Government Ministries, Departments, or Agencies (MDAs) that may negatively affect existing investment projects.

With this step, Zimbabwe joins a select group of African countries with structured investor grievance mechanisms, giving aggrieved investors a clear pathway to justice and dispute resolution.

In a press release, ZIDA said the mechanism is a proactive response tool intended to prevent minor disputes from snowballing into major legal and financial challenges.

"The aim of the IGRM is for grievances to be addressed promptly and effectively before they escalate," said ZIDA.

The agency stressed that similar frameworks adopted internationally have proven critical in retaining investments by ensuring early-stage resolutions and preventing costly business interruptions.

The IGRM was officially introduced under the Zimbabwe Investment and Development Agency (General Investments) Regulations, published as Statutory Instrument 227 of 2023.

"Over the past four years, following the promulgation of the ZIDA Act [Chapter 14:38], investing in Zimbabwe has been an increasingly promising and fruitful endeavour," the agency noted.

"The ZIDA Act has been pivotal in affording investors with guarantees and protections, while outlining their rights and obligations."

ZIDA highlighted that the newly adopted mechanism complements the broader legal and regulatory framework aimed at simplifying licensing procedures and improving investor relations.

ZIDA believes the IGRM will serve as a confidence-building tool by ensuring transparency, fairness, and timely communication between investors and the state.

"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 into significant legal disputes," ZIDA said.

"A transparent and efficient grievance resolution process such as this, which is aligned with international best practice for investment retention and expansion, fosters trust between investors and the State."

The IGRM is expected to further entrench Zimbabwe's appeal as a secure and predictable investment destination, particularly for both local and foreign investors concerned about policy stability and enforcement.

ZIDA pledged to facilitate direct communication between investors and responsible government entities to ensure the swift and fair resolution of issues.

As Zimbabwe continues to pursue reforms under President Emmerson Mnangagwa's administration, the launch of the IGRM represents another strategic effort to align local investment policy with global best practices, support economic growth, and signal a more responsive and investor-friendly state apparatus.