Govt Unveils Another Business Law: Joint Venture Act Gazetted
Published: 2016 June 01 04:10:03 (5417 Views)
THE Joint Venture Act, expected to promote major investment across economic sectors, came into force last week after the gazetting of a Statutory Instrument to operationalise it.
Through SI 53 /2016, May 27 was fixed as the date of commencement of the legislation. The objectives of the JVA include providing for the implementation of joint venture agreements, establishing governing rules for the public-private procurement process, establishing governing rules for public-private partnerships and supporting major investments across all sectors, particularly infrastructural projects.
Categories of joint ventures under the JVA include build and transfer, build, lease and transfer, build, own and operate, build, own, operate and transfer, build, transfer and operate, contract, add and operate as well as develop, operate and transfer.
Analysts say the Act provides a clear legal framework for participation of the private sector in national projects.
“With all other initiatives that the Government is working on to improve the investment climate, the legislation has come at an appropriate time. It is also critical to note that PPPs are important in reviving the underperforming public corporations,” said an economist with a research firm.
Some analysts say Zimbabwe’s infrastructure deficit would require significant capital, which can be attracted through joint ventures. While there had been keen interest from investors to invest in infrastructure, lack of legal framework for public, private partnerships has inhibited the flow of capital into critical national projects.
The approval of JV agreements will be the preserve of the Cabinet after recommendations from the committee.
This will ensure transparency and that the Government and the investment partner are not prejudiced.
The secretary for Finance and Economic Development will chair the Joint Venture Committee comprising secretaries for the ministries of Industry and Commerce, Transport and Infrastructural Development, Energy and Power Development, Local Government, Public Works and National Housing and Justice, Legal and Parliamentary Affairs.
The committee will be responsible for assisting the minister of Finance to formulate policy guidelines on joint ventures and to ensure that all projects are consistent with national priorities.
The JVU will be responsible for considering project proposals and assess if they are affordable to the Government or any of its parastatals or enterprises seeking such JVs.
- Herald
Through SI 53 /2016, May 27 was fixed as the date of commencement of the legislation. The objectives of the JVA include providing for the implementation of joint venture agreements, establishing governing rules for the public-private procurement process, establishing governing rules for public-private partnerships and supporting major investments across all sectors, particularly infrastructural projects.
Categories of joint ventures under the JVA include build and transfer, build, lease and transfer, build, own and operate, build, own, operate and transfer, build, transfer and operate, contract, add and operate as well as develop, operate and transfer.
Analysts say the Act provides a clear legal framework for participation of the private sector in national projects.
“With all other initiatives that the Government is working on to improve the investment climate, the legislation has come at an appropriate time. It is also critical to note that PPPs are important in reviving the underperforming public corporations,” said an economist with a research firm.
Some analysts say Zimbabwe’s infrastructure deficit would require significant capital, which can be attracted through joint ventures. While there had been keen interest from investors to invest in infrastructure, lack of legal framework for public, private partnerships has inhibited the flow of capital into critical national projects.
The approval of JV agreements will be the preserve of the Cabinet after recommendations from the committee.
This will ensure transparency and that the Government and the investment partner are not prejudiced.
The secretary for Finance and Economic Development will chair the Joint Venture Committee comprising secretaries for the ministries of Industry and Commerce, Transport and Infrastructural Development, Energy and Power Development, Local Government, Public Works and National Housing and Justice, Legal and Parliamentary Affairs.
The committee will be responsible for assisting the minister of Finance to formulate policy guidelines on joint ventures and to ensure that all projects are consistent with national priorities.
The JVU will be responsible for considering project proposals and assess if they are affordable to the Government or any of its parastatals or enterprises seeking such JVs.
- Herald
0
You May Like These Videos
WATCH: Victims Narrate Ordeal After Being Clobbered By Riot Cops
FLASHBACK: Morgan Tsvangirai Won't Resign Despite Illness 
Police Violently Beat Harare Protesters 
Zimbabwean Man Who Was Shot By Tswana Employer Appeals For HelpComments
There are no comments.
Get Zim Metro Updates Alerts
Big Reads
Schoolgirl drops out after continuous 'sexual abuse' by teacher
by Staff Reporter | 2019 August 13 07:42:33
Mugabe Knows Nothing About The Zimbabwe Constitution: MP
by Staff Reporter | 2016 October 01 08:12:02
Zim's Protesting Graduates Risk Losing Degrees For Expressing Anger Against Mugabe
by Staff Reporter | 2016 October 01 07:57:08
Troubled Harare Giants Dynamos Falls Into Another Deep Crisis
by Own Correspondent | 2016 October 01 07:49:17
Grace Mugabe Grovels At Mnangagwa, Says I Did Not Ask Ubaba To Fire You
by Staff Reporter | 2016 October 01 07:31:48
Mugabe Attacks Mawarire, Claims The Exiled Pastor Failed To Divide Zimbabwe
by Staff Reporter | 2016 October 01 07:19:13
Shock As Local Bank Denies 'Rich' Mugabe's Son Heifty Credit
by Own Correspondent | 2016 September 30 19:14:54Trouble For Police Officers Who Have Been Mercilessly Bludgeoning Protesters
by Staff Reporter | 2016 October 01 07:20:19
Mugabe "Home Coming" And "Thank You" Rally On Cards
by Own Correspondent | 2016 September 23 06:48:24
Prof Moyo Was Dumped By Western Embassies, Claims Mutsvangwa
by Staff Reporter | 2016 September 22 10:08:07Broke RBZ Tracks Down Zimbabweans Living Outside The Country Over Taxi
by Staff Reporter | 2016 September 22 09:16:20
You Are Too Old To Lead, Aging Zim President Mugabe Told
by Own Correspondent | 2016 September 22 07:19:25
Anti-Corruption Commission Loses Property In Failed Probe
by Own Correspondent | 2016 September 20 03:18:19
.jpg)
SHOCKING:14 Year Old HIV-Positive Boy Rapes 7 Pupils
by Own Correspondent | 2016 September 20 00:04:55
