Under certain circumstances, foreign investments are required to have local equity participation. This requires to be established from the outset, at the time application is made to the Zimbabwe Investment Authority. The practical issue that arises is the selection of that partner before committing to an investment project.
As it is impractical to enter into a joint venture with an unknown partner, Virtual Corporate Service can assist in identification of suitable partners by conducting the necessary due diligence to establish the credibility and capacity of the potential local partners.
VCS can also assist by establishing a trust company that will hold shares in trust until such time as a suitable local partner has been identified, vetted and when it has been established that a sustainable working relationship can be maintained.