6 Hectare Industrial Park Kadoma Paper Mills | 7 Warehouses | Water Treatment Plant

No. Prior to 2026, acquiring an operational industrial business and its physical premises as a "going concern" was zero-rated for VAT. Under the Finance Act of 2026, the government completely repealed this general relief.

If you buy an operational factory, manufacturing plant, or logistics hub today, you are immediately hit with a 15.5% VAT charge on the transaction. You must aggressively factor this massive tax liability into your acquisition capital upfront, as ZIMRA will block the Deeds Office transfer until the VAT and Capital Gains Tax are fully cleared.

This is a defunct and highly dangerous strategy. Historically, investors bought the shares of the corporate entity owning the warehouse to bypass the 3% Deeds Office Stamp Duty. As of January 2026, ZIMRA aggressively closed this loophole.

Section 30C of the Finance Act now imposes a punitive 20% Special Capital Gains Tax (SCGT) on the transfer of shares in any "land-holding entity." This tax is payable in hard foreign currency within 30 days of the transaction. Before attempting a corporate buyout, your commercial lawyer must calculate whether a direct asset transfer (paying standard Stamp Duty) is now actually cheaper than inheriting the corporate entity.

Zimbabwe's environmental laws hold the current property owner strictly liable for remediation, regardless of who caused the pollution. Established heavy industrial nodes like Msasa, Workington, and Willowvale have decades of legacy groundwater contamination, chemical spills, and unlined effluent pits.

If you acquire an industrial property without commissioning an independent environmental audit, EMA can issue immediate operational shutdown orders and multi-million-dollar remediation fines for toxic waste buried by a tenant a decade ago. Never sign an Offer to Purchase without a certified EMA clearance report.

Because inner-city industrial zones are congested, developers are rapidly subdividing land into new logistics and warehousing hubs on the peri-urban fringes (e.g., along the Harare-Masvingo or Mutare corridors). However, the government recently triggered the restitution of 67 commercial farms to foreign investors under BIPPA (Bilateral Investment Promotion and Protection Agreement) treaties.

If the new industrial stand you are buying sits on a recently subdivided peri-urban farm that falls under these historical restitution claims, your title is legally radioactive and could be expropriated without compensation. Your conveyancer must perform a historic Deeds Office trace to clear the land of any BIPPA claims before you deploy capital.

An industrial warehouse without dedicated, high-voltage power sovereignty is an operationally dead asset. Do not rely on an agent's promise of "ZESA proximity."

Your technical audit must confirm the property has a legally registered, dedicated three-phase ZESA transformer and that the seller's commercial ZESA account has zero historical arrears. Furthermore, the property must possess heavy-duty industrial diesel generators, and you must verify that the bulk fuel storage tanks comply with the latest Harare City Council Fire Safety protocols. If the fire suppression and fuel storage are non-compliant, the council will deny your business operating license upon transfer.

The only secure, bankable form of ownership in Zimbabwe is a registered Deed of Transfer (or Deed of Grant) recorded at the Deeds Office. However, the regulatory landscape has recently shifted. Under Statutory Instrument (SI) 76 of 2025, all traditional paper title deeds are undergoing a compulsory digital validation process. Before purchasing, your conveyancer must now verify that the seller’s paper deed has been validated or converted to a secure digital deed to prevent forged-document fraud.

The Cession Trap: Many new cluster developments and high-density stands are sold under "Cession." This means the developer or local council holds the master Title Deed, and you only own a contractual right to the property. You do not own the land. If the developer goes bankrupt or used the master deed as collateral for a bank loan that defaults, your property is at risk. Never buy a high-value property on cession without a conveyancer reviewing the developer's master title and subdivision permits.

Under the Regional, Town and Country Planning Act, a property’s zoning dictates its maximum yield, but the real market value is driven by commercial conversion potential and densification.

Commercial Conversions: Suburbs bordering the CBD (such as Eastlea, Milton Park, and Belvedere) command massive premiums because residential properties are being converted to commercial offices. However, operating a business on a residentially zoned stand without applying for "Special Consent" or a formal rezoning permit from the City of Harare is illegal. The council can issue enforcement orders forcing you to shut down. Do not pay a "commercial premium" for a residential property unless the agent can provide the approved commercial use permit.

Cluster Densification: In northern suburbs (Borrowdale, Highlands), large low-density stands are being bought for cluster housing. A seller cannot simply carve off a piece of their garden and sell it to you. A legal subdivision requires a Dispensation Certificate and a Certificate of Registered Title. If you buy an "unapproved subdivision," you will not be able to get a Title Deed or build legally.