ZIMBABWE
Since March 2000
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Maximum foreign equity share
Postal and Telecommunications Act, [Chapter 12:05]
According to Section 36 of the Postal and Telecommunications Act, the Postal and Telecommunications Regulatory Authority issues telecommunications licenses only to legal entities in which Zimbabwean citizens hold a "controlling interest", directly or indirectly. However, a license may be issued to a legal entity without such a majority shareholding, provided that within a period set out in the license, one or more such persons acquire a majority shareholding. As established in the same article, a "controlling interest" in a legal entity means that any of the following conditions are met: holding a majority of the shares of the entity; the shares represent more than 50% of the share capital of the entity; the shares are worth more than 50% of the share capital of the entity; or the shares give their holders a majority or a preponderance of votes in the affairs of the entity.
Coverage Telecommunications sector
ZIMBABWE
Since February 2020
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Screening of investment and acquisitions
Zimbabwe Investment and Development Agency Act [Chapter 14:37] No. 10/2019
Zimbabwe screens FDI through the Zimbabwe Investment and Development Agency (ZIDA) in liaison with relevant line ministries to confirm compliance with the country’s laws. Section 3 of Act No. 10/2019 establishes the ZIDA as a legal person. The government created the ZIDA to oversee the licensing and implementation of investment projects in the country. Part V of Act No. 10/2019 provides investors with the ability to obtain investment licences. ZIDA has established a one-stop investment services centre (OSISC, section 5 of the Act), which houses several agencies that play a role in the licensing, establishment, and implementation of investment projects.
Coverage Horizontal
ZIMBABWE
Since June 1997
Pillar Intellectual Property Rights (IPRs) |
Indicator Participation in the Patent Cooperation Treaty (PCT)
Patent Cooperation Treaty (PCT)
Zimbabwe is a party to the Patent Cooperation Treaty (PCT).
Coverage Horizontal
ZIMBABWE
Since September 2004
Pillar Intellectual Property Rights (IPRs) |
Indicator Copyright law with clear exceptions
Copyright and Neighbouring Rights Act of 2004
Zimbabwe has a clear regime of copyright exceptions that follows the fair dealing model, which enables the lawful use of copyrighted work by others without obtaining permission. Part III of the Copyright and Neighbouring Rights Act lists the exceptions, which include the use with purposes of research or private study, educational use of copyright material, criticism, review, or news reporting, among others.
Coverage Horizontal
ZIMBABWE
Reported in 2018, last reported in 2023
Pillar Intellectual Property Rights (IPRs) |
Indicator Enforcement of copyright online
Inadequate enforcement of copyright online
It is reported that copyright is not adequately enforced online in Zimbabwe. Pirating of books, videos, music, and computer software is reported to be common in the country.
Coverage Software
ZIMBABWE
N/A
Pillar Intellectual Property Rights (IPRs) |
Indicator Adoption of the WIPO Copyright Treaty
Lack of signature of the WIPO Copyright Treaty
Zimbabwe has not signed the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal
ZIMBABWE
N/A
Pillar Intellectual Property Rights (IPRs) |
Indicator Adoption of the WIPO Performances and Phonograms Treaty
Lack of signature of the WIPO Performances and Phonograms Treaty
Zimbabwe has not signed the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.
Coverage Horizontal
ZIMBABWE
Since August 2007
Pillar Intellectual Property Rights (IPRs) |
Indicator Mandatory disclosure of business trade secrets such as algorithms or source code
Interception of Communications Act of 2007
Section 11 of the Interception of Communications Act allows security and law enforcement agencies to impose disclosure requirements in respect of encrypted information where they believe that a key to encrypted information is in the possession of that person and that a disclosure requirement is necessary in the interests of national security, to prevent or detect a serious criminal offence, or in the interests of the country’s economic well being. Failure to comply is a criminal offence punishable by imprisonment, a fine, or both.
Coverage Encrypted information
ZIMBABWE
N/A
Pillar Intellectual Property Rights (IPRs) |
Indicator Effective protection covering trade secrets
Lack of regulatory framework covering trade secrets
Zimbabwe has no rules applicable to the protection of trade secrets.
Coverage Horizontal
ZIMBABWE
N/A
Pillar Telecom infrastructure & competition |
Indicator Passive infrastructure sharing obligation
Requirement of passive infrastructure sharing
It is reported that there is an obligation for passive infrastructure sharing in Zimbabwe to deliver telecom services to end users. It is practised in both the mobile and fixed sectors based on commercial agreements.
Coverage Telecommunications sector
ZIMBABWE
Reported in 2020, last reported in 2023
Pillar Telecom infrastructure & competition |
Indicator Presence of shares owned by the government in telecom companies
Presence of shares owned by the government in the telecom market
In Zimbabwe, state-owned companies play a dominant role in the telecommunications sector. The government owns a significant stake in two of the three mobile service providers, including full ownership of NetOne and 60% of Telecel through Zimbabwe Academic Research and Education Network (ZARNet), a government-owned internet service provider and government agency. In addition, the state owns the only fixed-line service provider, TelOne. As for the main operators of the national network infrastructure, TelOne controls about 24% of the country's bandwidth capacity and about 23% of the revenues generated by the Internet. On the other hand, Powertel, belonging to the Zimbabwe Electricity Supply Authority, controlled 4.3% of the country's bandwidth capacity.
Coverage Telecommunications sector
Sources
- https://web.archive.org/web/20230211202937/https://www.netone.co.zw/#/history
- https://web.archive.org/web/20240719234519/https://www.paynow.co.zw/blog/who-owns-telecel-zimbabwe/
- https://web.archive.org/web/20230626095327/https://www.telone.co.zw/Content/Uploads/reports/c4dee6b5-00c2-46c6-97b0-d419b133d7cc.pdf
- https://www.wto.org/english/tratop_e/tpr_e/tp498_e.htm
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ZIMBABWE
Since January 2018, last amended in 2020
Pillar Public procurement of ICT goods and online services |
Indicator Exclusion from public procurement
Public Procurement and Disposal of Public Assets (General) Regulations of 2018
According to Art. 10.3 of the Public Procurement and Disposal of Public Property (General) Regulations 2018, foreign bidders must be invited when the value of the procurement requirement exceeds USD 300,000 for goods or USD 200,000 for consultancy and non-consultancy services. Below these thresholds, procuring entities may invite bids exclusively from Zimbabwean suppliers.
Coverage Horizontal
ZIMBABWE
N/A
Pillar Telecom infrastructure & competition |
Indicator Functional/accounting separation for operators with significant market power
Lack of mandatory functional separation for dominant network operators
It is reported that Zimbabwe does not mandate functional separation for operators with significant market power (SMP) in the telecom market. However, there is an obligation of accounting separation.
Coverage Telecommunications sector
ZIMBABWE
Since October 2022
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
National ICT Policy 2022-2027
Section 3.8 (Content and Applications) of the National ICT Policy 2022–2027 stipulates that the government should ensure that a minimum of 30% of ICT software and applications utilised by government institutions are developed locally, encompassing all national languages. This policy was also articulated in Section 9 (Content) of the National ICT Policy 2016, which has since been superseded by the National ICT Policy 2022–2027.
Coverage ICT software and applications
ZIMBABWE
Since March 2000
Since March 2001, last amended in June 2023
Since March 2001, last amended in June 2023
Pillar Telecom infrastructure & competition |
Indicator Licensing restrictions to operate in the telecom market
Postal and Telecommunications Act, [Chapter 12:05]
Postal and Telecommunications (Licensing, Registration and Certification) Regulations, 2001
Postal and Telecommunications (Licensing, Registration and Certification) Regulations, 2001
The Postal and Telecommunications Regulatory Authority, according to Section 36 of the Postal and Telecommunications Act, only issues telecommunications licenses to legal entities in which Zimbabwean citizens hold a "controlling interest", directly or indirectly. However, a license may be issued to a legal entity without such a majority shareholding, provided that within a time period set out in the license, one or more such persons acquire a majority shareholding. A "controlling interest" means that any of the following conditions are met: holding a majority of the shares of the entity; the shares represent more than 50% of the share capital of the entity; the shares are worth more than half of the share capital of the entity; or the shares give their holders a majority or a preponderance of votes in the affairs of the entity.
In addition, the Postal and Telecommunications (Licensing, Registration and Certification) Regulations mandate that Public Licensees with foreign shareholding pay initial license fees in USD proportionate to the foreign shareholding percentage (Subitem 12 in second schedule-Part I). This is in contrast to the fixed scheduled initial fees payable by public licensees without foreign shareholding. By implication, the higher the shareholding proportion by foreigners, the higher the initial fees. Furthermore, the Regulations establish two categories for internet service providers in Zimbabwe. Class A is permitted to offer services like international bandwidth sales, VOIP, and video, while Class B is responsible for nationwide Internet provision. Applicants for Class A licenses are required to pay a registration fee of USD 5.5 million, as increased under the 2020 amendment of the Regulations, while the fee for Class B licenses is set at USD 2.75 million. Licenses for cell phone services involve significantly higher costs, with an establishment fee of USD 137.5 million.
In addition, the Postal and Telecommunications (Licensing, Registration and Certification) Regulations mandate that Public Licensees with foreign shareholding pay initial license fees in USD proportionate to the foreign shareholding percentage (Subitem 12 in second schedule-Part I). This is in contrast to the fixed scheduled initial fees payable by public licensees without foreign shareholding. By implication, the higher the shareholding proportion by foreigners, the higher the initial fees. Furthermore, the Regulations establish two categories for internet service providers in Zimbabwe. Class A is permitted to offer services like international bandwidth sales, VOIP, and video, while Class B is responsible for nationwide Internet provision. Applicants for Class A licenses are required to pay a registration fee of USD 5.5 million, as increased under the 2020 amendment of the Regulations, while the fee for Class B licenses is set at USD 2.75 million. Licenses for cell phone services involve significantly higher costs, with an establishment fee of USD 137.5 million.
Coverage Telecommunications sector
Sources
- https://web.archive.org/web/20230415222605/https://old.zimlii.org/zw/legislation/num-act/2000/4/Postal_Act.pdf
- https://www.potraz.gov.zw/wp-content/uploads/2015/04/STATUTORY_INSTRUMENT_11A_of_2001-Licensing_Registration_and_Certification.pdf
- https://web.archive.org/web/20220718210712/https://www.potraz.gov.zw/?p=73
- https://www.jsc.org.zw/upload/Gazette/S.I.%20110%20of%202023%20Postal%20and%20Telecommunications%20(Postal%20Services)%20(Amendment)%20Norm.pdf
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