Abstract:
The deterioration of Zimbabwe`s infrastructure is evident after decades of far-reaching domestic reforms, a period of hyper-inflation, the effects of sanctions and difficulties to obtain long-term financing due to arrears with the international financing institutions. Additionally, populist policies held back necessary tariff increases meant to generate cash for infrastructure maintenance resulting in an erosion of productive value of existing assets. Important to note is the relationship between infrastructure and mining that brings about public infrastructure development as down-stream linkage would come about through good governance and judicious allocation of mining revenues.
There is an increasingly growing consensus that both government and private sector have a shared responsibility for mining infrastructure development, though the latter has a compelling case to lead as an investor.
Over the past two decades, Zimbabwe`s regulatory framework has undergone through immense reforms and adjustments that have impacted negatively to the business environment is concerned.
This study established that, there is an apparent lack of predictability, consistency and certainty on Legal framework1 which makes Zimbabwean jurisdiction an unsafe capital destination for the investors. Unless the legal and regulatory landscape takes a paradigm shift and transits towards a trajectory of best practices in terms of democracy and good governance, conformity to the rule of law and consistence in the formulation of policies, uncertainty will remain a huge challenge to MID.
This study sought to analyse the measures of mitigating uncertainty caused by legal risk to MID in Zimbabwe`s extractive industries. The study established a three thronged approach to provide a framework to mitigate uncertainty to MID. The approach outlines measures that the private sector and the public sector may take as measures to mitigate uncertainty. Further, this study also highlighted the international law aspects that are available to investors in MID.
