Govt Unveils Investor Grievance System to Safeguard Business Confidence
The government has introduced the Investor Grievance Response Mechanism (IGRM) to enhance investor protections and prevent disputes from escalating into legal battles.
Spearheaded by the Zimbabwe Investment and Development Agency (ZIDA), the mechanism provides a structured process for resolving investment-related concerns, reinforcing the Second Republic’s commitment to fostering a business-friendly environment.
In a statement, ZIDA emphasized the significance of timely dispute resolution, stating:
“Over the past four years, following the promulgation of the Zimbabwe Investment and Development Agency [Chapter 14:38] (ZIDA Act), investing in Zimbabwe has been an increasingly promising and fruitful endeavour.”
The agency highlighted that similar grievance mechanisms in other nations have been instrumental in retaining investments by addressing disputes early.
Zimbabwe now stands among the few African countries to implement a formal investor grievance framework.
According to The Herald, this policy shift aligns with global best practices, strengthening Zimbabwe’s reputation as a stable investment destination.
ZIDA outlined that the IGRM emphasizes early-stage resolution, ensuring grievances do not escalate into complex legal disputes that could disrupt business operations.
“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 that lead to operational disruptions and financial losses,” ZIDA stated.
The launch of the IGRM follows ongoing improvements in Zimbabwe’s investment framework.
In December 2023, ZIDA introduced the General Investments Regulations (GI Regulations) to streamline licensing processes and formally embed the grievance response system within the country’s investment laws.
By facilitating direct communication between investors and government ministries, the grievance mechanism aims to boost investor confidence and maintain a stable business environment.
