Zimbabwe is another country altogether when it comes to doing business.
First, registering a company isn’t straightforward. You often have to pay agents up to $150 just to navigate the bureaucracy. But once you finally register, you then need a ZIMRA bank clearance letter to open a business bank account. That process is notorious for corruption — many people end up bribing ZIMRA officials just to get permission to pay taxes. Think about how absurd that is: you are literally bribing someone so you can be allowed to pay tax!
As if that isn’t enough, once you have your tax clearance, some banks will still block you. They “vet” you and refuse to open your account if they don’t understand where your startup funds come from. To them, it seems impossible for anyone to start a business with zero capital, to sell goods on commission, or to offer consulting services.
And even if you get through all that, bank charges are outrageous — up to 3.5% per transfer or cash withdrawal, eating away at any profit before you even grow.
Then there’s the problem of premises. Landlords want a three-month bank statement and surety. Think about that: they basically want to run a business with no risk, while you shoulder all of it.
These are exactly the reasons why so many Zimbabweans choose to operate informally. In fact, it is easier for a Zimbabwean without papers to open a business and a bank account in South Africa than in their own country. That is a devastating indictment of our system.