By Shepherd Kembo
HOW and where does one start when intending to run a business in Zimbabwe? I have been inundated with calls and requests on the above subject matter. Many people normally pass through our offices seeking to consult on the above subject. In this week’s instalment, we seek to debunk the myth that it is difficult to start and run a business in Zimbabwe, let alone struggle to locate and position your crystallised business idea.
Starting a business in Zimbabwe presents a unique set of opportunities and challenges. The country’s diverse economic sectors ranging from agriculture, mining, and manufacturing to tourism and technology, offer huge room for entrepreneurial growth. However, navigating the regulatory, financial, and operational landscape requires strategic planning and informed decision-making.
A careful, deliberate, and strategic pursuance of a wish to start and run a business in Zimbabwe will help you come up with a practical business idea that can eventually be consummated into a viable business operation. This article provides a detailed step-by-step guide on how and where to start a business in Zimbabwe.
Conduct Market Research and Feasibility Study
When contemplating starting a business, it is crucial and important to start with market research and a detailed practical feasibility study of whatever business idea you have in mind. Start by identifying existing market gaps and demand levels. Every business idea that is conceptualised and crystallised may not succeed if the critical question of market size and demand is not analysed carefully and sufficiently addressed. One should not start and run a business based on personal needs and preferences but on the customer’s needs and preferences. Always seek to understand customer needs and preferences. To succeed in whatever business endeavour, one needs to understand the competition. Analyse and seek to understand competitors and pricing structures.
How does one go about doing the Market Research and Feasibility study?
More often the question has been asked: how does one go about carrying out market research and a feasibility study? Aspiring businesspeople may make use of surveys, focusing on various groups, and various industry reports in line with the sector of interest. One may also make use of various available research findings. One can research local economic reports from various institutions like the Confederation of Zimbabwe Industries (CZI), the Zimbabwe National Chamber of Commerce (ZNCC), the Zimbabwe National Statistics Agency (ZIMSTAT), and the Reserve Bank of Zimbabwe (RBZ), among many other authoritative business statistics reports. Also important is to research demand in key cities such as Harare, Bulawayo, Mutare, and Gweru for regional business viability.
Choose a Profitable Business Idea
A question more often asked by many is: how does one choose a profitable business idea? Briefly below we explore such:
Zimbabwe remains a capital destination of choice for many local, diaspora, and foreign investors. The Zimbabwean economic landscape is ripe with opportunities in the following sectors: Mining, Agriculture (horticulture, poultry, agro-processing), Retail and E-commerce, Transport and Logistics, Construction and Real Estate, Renewable Energy, ICT and Fintech, Tourism and Hospitality.
Always select a business aligned with your skill set, exposure, expertise, risk appetite, resources, and market demand.
Create a Comprehensive Business Plan
A lot of people skip this critical stage of coming up with a business roadmap or business plan. One should always draw up a business plan, benchmarked with the following signposts: a clear, brief Executive Summary, a business description, a well-detailed and researched Market Analysis with a Marketing & Sales Strategy, and an Organisational Structure. A business plan should also contain within it a practical Operations Plan, detailed Financial Projections, and a Risk Assessment.
Why does a business plan matter? A detailed business plan is critical and essential for funding, strategic direction, and investor confidence.
Choose a Business Structure
After one has come up with the above, it is time to crystallise the business idea and form or register a business or company formally. In Zimbabwe, the most common business structures include: Private Limited Company (Pvt Ltd) most common for SMEs, Public Limited Company, Partnership, Sole Proprietorship, Cooperative, NGO or Trust (for non-profits), and Private Voluntary Organisation (PVO). It should be noted that the choice made affects taxation, liability, and compliance.
Register Your Business
The legitimate and legal company registration in Zimbabwe involves the following registration process:
- Reserve Company Name
- Register through the Companies and Intellectual Property Office (CIPO) or via the ZIMRA e-services portal.
- Name reservation takes 1–2 working days.
- Company Registration
- Submit incorporation documents (Memorandum and Articles of Association, CR6, CR5, etc.)
- Pay statutory fees (~USD 100–300 depending on structure).
- Obtain a Tax Identification Number (TIN) from ZIMRA.
- Register for VAT (if expected annual turnover exceeds the ZWL threshold).
- Register with NSSA (National Social Security Authority) for employee contributions.
- Local Authority Licensing
- Apply for business licences from city councils (Harare City Council, Bulawayo Council, and other towns).
- You may also need sector-specific licences (e.g., Tourism Authority, Medicines Control Authority).
Open a Corporate Bank Account
The next step would require opening a business bank account with a registered bank in Zimbabwe. This process has recently become mandatory due to government intervention on Point of Sale (POS) machines, which makes it difficult if not impossible to acquire other regulatory licences for operation without POS machines. The normal bank account opening requirements typically include: Company registration documents, Directors’ IDs, Proof of residence, and a Resolution to open an account.
Secure Capital and Funding
The most critical and often-asked question is: where does one access seed or start-up capital? Without going into detail, the following are available options for funding your capital requirements: Personal savings, Microfinance institutions, Bank loans, Venture capital / angel investors, Youth Empowerment or SME loans from government programmes, Development partners, and NGOs. Always remember to prepare a solid pitch and financial plan to improve your chances of securing funding.
Set Up Physical or Virtual Premises
The next critical and important aspect is that of setting up or finding a place to operate from. One should always choose a location based on customer accessibility and infrastructure. Virtual offices or premises may be ideal for e-commerce or remote businesses, though I must hasten to mention that in Zimbabwe’s corporate culture, the idea of virtual offices has not yet been fully embraced. Businesses should always secure long leases, always pay for utilities, and ensure zoning compliance.
Hire and Train Staff
The next step is to hire talent with requisite skills. The process involves defining job roles and responsibilities. To get the best skills, one should advertise via local job recruitment processes including, but not limited to, social media or recruitment agencies. In all this human resource securing process, one should make sure they comply with Zimbabwean labour laws. The start-up business must always provide for staff training and operate with clear employment contracts.
Launch and Market Your Business
A business without demand and a market for its products and/or services will soon close shop. A business must always come up with a market strategy that includes the following marketing strategies and tactics: Leverage various social media platforms including Facebook, WhatsApp, LinkedIn, Twitter/X, use of local influencers, radio, or flyers for community reach. Other effective ways include networking through trade fairs and SME expos, creating a website, and setting up mobile payment options including EcoCash, OneMoney, ZIPIT.
Stay Compliant and Scale Strategically
Most small businesses fail to scale up or maintain focus, or keeping the business momentum becomes a challenge. To ensure strategic scale-up of the business and keeping momentum, the following must be strictly adhered to: Up-to-date tax filings, Annual returns to CIPO, Employee benefits and NSSA obligations, carry out and observe sector-specific audits if required, and be a regular member of business bodies and/or business associations.
Plan for Growth: A business without a clearly laid down growth strategy will soon stagnate, face decline, or fold. To ensure growth, the following must be observed: Reinvest profits, consider the possibility of regional expansion, seek and consider possible partnerships, and consider investing in automation and digital transformation.
Where to Start a Business in Zimbabwe
Another frequently asked question by many aspiring entrepreneurs is about strategic geographical location, where and what business may one consider based on their residential location. The following may help guide most people to make decisions as we indicate what would likely thrive in the location:
Harare; Finance, Retail, Tech, Services Capital city, largest market.
Bulawayo; Manufacturing, Transport Industrial hub, near Botswana and South Africa.
Mutare; Tourism, Agriculture Near Mozambican border, green economy.
Gweru; Real Estate, Education, Central location, strategic for logistics.
Victoria Falls; Hospitality, Tourism High tourist traffic.
Chitungwiza & Ruwa; Retail, SMEs High population density, affordable land.
Conclusion
In conclusion, it is important to understand that Zimbabwe offers promising opportunities for entrepreneurs ready to navigate its complex and dynamic economic terrain. With careful planning, legal compliance, and strategic execution, businesses can not only survive but thrive in the growing Zimbabwean market. One can start by choosing the right business idea, registering it properly, securing funding, and positioning the business in a high market-potential location.
(These opinions belong to Shephard Kembo is a Managing Partner at Globavel International (Pvt)LTd)
