Zimbabwe has started modernising the registration and management of companies through the new Companies Act that was gazetted last month.

An industrialist Dr Abel Mubango said guidelines within the new companies and other business entities act that seek to ensure transparency on shareholding regulations are critical in protecting the interest of investors.

“It is a good piece of legislation but the spotlight is basically over implementation,”  Dr Mubango said.

Insolvency and Restructuring Association of Zimbabwe President, Claudious Nhemwa said the new act has also set modalities for rescuing ailing companies.

“The interest is there and it is on how the entire process can then in the future unlock value to the growth of firms,” he said.

Although reservations are also being raised on the positive effects of the new act, Safari Operators Association of Zimbabwe President, Dr Emmanuel Fundira said modernisation of regulations paves way for a positive global perception on local businesses.

‘It is all about the perception that is critical in shaping the destiny of businesses,” Dr Fundira said.

The new Companies Act was gazetted last month, replacing an outdated piece of legislation which has been operational since 1951.