UNIVERSITY OF ZIMBABWE

FACULTY OF LAW

DEPARTMENT OF POSTGRADUATE STUDIES

NAME : YEUKAI MAFUMHE CHIGODORA

MODULE : LLM MINERAL RESOURCES LAW

REGISTRATION NUMBER : R041741A

LECTURER : DR TSABORA

QUESTION

Examine the legal regime for financing of mining investment and remedies thereof
It is crucial for law students to learn the skill of correct, thorough, and precise
critical evaluation and analysis. What you need to do is to critically evaluate and
analyse those cases and statute sections to develop a thorough understanding
related to why they were introduced and what could've been some possible
alternatives. Instead of just accepting what's in front of you, you need to perform
a critical analysis so you are in a position to defend the law. You will find many
instances where the law is inadequate and has weaknesses. You can propose in
your law essay how that particular law can be improved on. Everything said and
done, the idea is to brainstorm and think critically about the laws that you are
studying instead of just accepting them as they are. You need to build the ability
to think for yourself and have an opinion on every case and statute, which you can
defend with solid arguments. You need to develop a thorough understanding of
the law in terms of its value, contextual history, and current relevance.

The following are a few questions and aspects that you need to cover when
critically evaluating in your law essays:

 Always think about the underlying reason. Why was this particular law
introduced? For example, was introducing a particular statute section
necessary or could any other section have been used to handle this
particular issue? If the law is changed or removed, what could be the
potential consequences?

 The next aspect of any law you need to critically evaluate is whether it does
its job. Does the law help the justice system address the issue? Does it fulfil
the objective for which it was introduced? If not, what sort of amendments
can be made to make it more relevant and well-rounded?

 Another factor that you need to take into consideration is the quality of the
law. Think about whether it is a good or bad law? There can be numerous
aspects that you can take into account in terms of judging the quality of the
law, including its scope, the ability to address a certain case or issue, and
how adequately it deals with the said issue.

 You cannot just write your opinion based on your emotional response or
what you think is 'morally' right. You need to come up with a rational and
logical argument to support your opinions - something that's strong and
compelling enough to be taken seriously in court. It is recommended that
you make a bullet point list mentioning the pros and cons of the law so you
 can critically evaluate whether it's good or bad law when you consider all
the factors.

 Then you need to think about the situations and issues where the law falls
short and fails to address the situation. You may be able to find a few cases
where that particular law wasn't able to deal with the issue and resulted in
an unfair judgment. Add your opinion about how you think the law can be
improved to enhance its functional and legal scope and reduce its
weaknesses.

That's why it is critical that you know what questions need to be answered and
what's the central argument in your essay. In order to do this right, you need to
read the topic of your essay carefully and thoroughly so you know that you are
answering the right question. Once you understand the question that you need to
answer, ask yourself that question in relation to every single case and statute
section you are going to talk about in your essay. This will help you produce a
more critical essay, as you will be studying and thinking about the law from
different perspectives instead of just a single one.

INTRODUCTION

Zimbabwe is richly endowed with natural resources which include renewables and
non-renewables. The exploitation of these natural resources present immense
opportunities to sustain high levels of income based resource rents. 1 Zimbabwe is well
known as home to commercial plantations of pine timber and hardwood that can be
used for structural purposes in building and construction, treated and untreated poles
for transmission lines, hardwood for furniture manufacturing and industrial wood for
packaging, pallets, and cable drums.2 This is due to the fact that local Zimbabwean

The Zimbabwe Investment and Development Agency (ZIDA), is an investment agency

responsible for promoting and facilitation of both local and foreign investment in the country.
It came up as an integration of three investment authorities, which were previously housed in
different Government Ministries and Departments. The promulgation of the ZIDA Act, which
repealed the Zimbabwe Investment Authority, the Zimbabwe Special Economic Zones
Authority and the Joint Ventures Act, provides a clear, comprehensive and binding legal and
regulatory framework for conducting investment activities, by both domestic and foreign

1
Enhancing natural resource management in Zimbabwe: case studies of mineral exploration; forestry
management; wild life management and solar energy, Zimbabwe Economic Policy Analysis and Research Unit.
March 2019 page 1
2
ZIMTRADE Development and Promotion Organisation of Zimbabwe , Zimbabwe timber exports faring well in
the region, By Shamiso Masoka July 29, 2022
investors in the country. ZIDA operates a One Stop Investment Services Centre (OSISC), which
provides investment services ranging from investment analysis, company registration, tax
registration and clearance, licencing, connecting to all necessary utilities, investment
promotions, public relations and aftercare services. These services were previously provided
by different entities scattered all over the place. Furthermore, the Joint Ventures Unity and
PPPs previously operating in the Ministry of Finance and Economic Development will now be
under the dispensation of ZIDA. The entities had diverse administrative systems and
procedures. ZIDA has thus significantly integrated and abridged the procedures thereby
reducing the turnaround time for investing in the country. In order to expedite approval
decisions from the cabinet, ZIDA is headed by Chief Executive Officer, who reports directly to
His Excellency, the President. The Agency will also be supported by the necessary corporate
governance structures.

 Stakeholder Management – liaising with foreign and local investors, communicating with
government departments and international organizations  Information dissemination to and
from foreign corporates and diplomats  Events management – coordinating corporate
functions  Management of print and social media platforms  Corporate messaging, branding
and image management  Report writing

The mining sector is popular among investors as it produces a steady stream of both precious
and industrial-use metals and other raw materials.
Mining companies are exposed to several unique risks including fluctuations in commodities
prices, geopolitical factors where mines are located, and finding lucrative geological areas to
stake a claim.
We generally stay away from mining companies operating in insecure and politically unstable
regions such as Venezuela, or in countries with little respect for property rights and the rule
of law, like Russia or Mongolia. Mining is inherently a politically vulnerable business; you can’t
move the mine to another country, and local citizens sometimes believe that a foreign mining
company is robbing them of their birthright, even though they rely on the foreign company’s
capital and expertise to get any value out of the ground.3

Mining is the major attraction in the country with over 60 international tradeable minerals.
Zimbabwe has the second highest deposits of platinum in the world. Major mineral belts
include: The Great Dyke belt (P.G.Ms., chrome, gold etc.), Coal field include Beit Bridge-
Gokwe-Hwange belt and the Marange diamond fields.

3
Investing in mining stocks? Follow these 20 Successful Investor tips November 10, 2022|by Pat McKeough
ACCESSED ON https://www.tsinetwork.ca/daily-advice/mining-stocks/20-tips-successful-investing-mining-stocks/
#:~:text=Although%20investing%20in%20mining%20stocks,whole%2C%20for%20years%20or%20decades.
Foreign investors are free to invest in the mining value chain which includes provision of
finance and technical services, exploration, extraction, logistics, beneficiation and value
edition.
Foreign investors are allowed to own 100% shareholding for mining operations in all other
minerals except for platinum and diamonds which the foreign investor is expected to jointly
own with the Government on a 49/51 basis in favor of Govt. 4

4
http://www.zimfa.gov.zw/index.php/trade-and-investment/mining-sector
5
Page 4 Investment guidelines and opportunities in Zimbabwe, January 2018
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The mining sector has been the cornerstone of economic growth in Zimbabwe hence
funding becomes very crucial to resuscitate the economy. 20
Minerals and minerals exploration and extractions have gained momentum over the past
decade in Southern African. This saw investment by domestic, regional and international
investors reaching high levels. The investment is mainly driven by booming commodity
prices, high demand for commodities with China emerging as one of the largest consumers,
and the need to revive economies, with some economies basing on natural mineral
resources,21
18
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19
Page 31
20
Page 57 Assessing Funding Mechanism Available for Mining Companies in Zimbabwe
Nyasha Kaseke Gift Mapakame : Journal of Economics and Behavioral Studies (ISSN: 2220-6140) Vol. 13, No. 1,
pp.57-68, February 2021

21
Page 57 Assessing Funding Mechanism Available for Mining Companies in Zimbabwe
Governments have also supported the growth in investment through facilitating
explorations, liberalizations of mining investment and privatization of state-owned
mining companies. Zimbabwe with its vast mineral deposits, being a high ferrochrome
producer, high concentration of platinum deposits, and one of the African gold high
producers,have to increase production to achieve economic growth as targeted. These
mineral deposits are supported by relatively good infrastructure, a large pool of skills
and relatively favorable policies which seemto be advancing mineral extraction in Zimbabwe.
However, in Zimbabwe, a lot of mining companies are failing to re-start operations or revamp
key projects due to funding constraints that have impaired the sector and economy as a
whole. The complete annihilation of output in this key sector has shown significant
improvement.The mining sector is capital-intensive and is associated with high risk (both
technical and economic).
Afew resuscitated gold operations, improved platinum operations (new and
existingmines) and diamond operations resulted in the country thriving in commodity
markets.These characteristics present obstacles for many mining companies in terms of
raising capital,especially for start-ups as there area limited number of financiers who
are willing to finance such Greenfield investments. Therefore, these challenges limitthe
sources of finance for mining investors in Zimbabwe and even in the region. In the
past, the mining sector used to be financed through shareholder equity, debt financing,
structured financing and syndicated loans but due to Zimbabwe’s status as a struggling
economy, characterized by limited Gross Domestic Product, budget deficits, negative current
account, an underperforming banking sector and frail policy framework, the size of
traditional investment in the mining sector has severely contracted (Zimbabwe
Mining Development Company, 2015). There are conflicting expectations for the mining
sector in Zimbabwe; on one hand,the mining sector is associated with high risk,
limited production, low economic growth in the country, capital intensity of the sector
and changing policies; and on the other hand,there is need to boost mining sector
production, extensively exploit the mineral resourcesfor growth and development. To
22

achieve the latter, there is a need to increase investment by both the private sector and
government in mineral extraction.
hidhakwa (2016) affirmed that robust institutionalization of mining laws and
competitive mining legislative framework iscritical for local and international investors.
These provide a conducive investment environment, simultaneously curtailing prejudice
to national budget demands for investment funds. What investors want is a conducive
environment and it can act as an incentive for investors even where there is no
government support or incentives. The government must endeavor to promote efficient
transactions by clearly stipulating,in black and white,what is acceptable and what is
not. The government is a key player in motivating investment in the mining sector.
Mothomogolo (2012) states that the government motivates investment through fast-

Nyasha Kaseke Gift Mapakame : Journal of Economics and Behavioral Studies (ISSN: 2220-6140) Vol. 13, No. 1,
pp.57-68, February 2021

22
Page 58 Journal of Economics and Behavioral Studies (ISSN: 2220-6140)Vol. 13, No. 1, pp. 57-68, February 2021
58
tracking mining rights application process, providing investor conducive business
economic empowerment policies, offering the security of tenure and transfer of title,
refining royal tax and offering venture capital investments to allow the investor to claim
funds.23

That, and the hindrances of “erratic power supply … exchange rate volatility and foreign
exchange restraints”, are preventing the country from benefiting from “favourable
commodity prices”.

The track record suggests Zimbabwe is a place where mining companies can have some
success if they have a commodity the market views favourably. But the converse is also true.
Fundamental hindrances undermine its reputation, such as its currency problems.

These include the reintroduction of the Zimbabwe dollar three years ago after the (US)
‘dollarisation’ of the economy. As part of this, exporters have to “give up” 40% of their
export proceeds, which have to be paid in Zimbabwe dollars. “The Zimbabwe dollar relative
to the US dollar has been inflationary,” says an industry source. “The differential between
official rates and unofficial rates shows there’s a lack of faith in the local currency, in what it
can buy and what its value is.”

There are workarounds, such as a company securing a special mining lease, but issues around
currency are just the tip of the iceberg for investors. Another problem is that it’s difficult to
import capital goods. Electricity supply is also unreliable. 24

The historical change which occurred in Zimbabwe in November 2017, with President
Emmerson Mnangagwa succeeding to the premiership of the country, has led to waves of
confidence around the potential for genuine change. When combined with the accepted
prospective nature of the country’s geology this could well be an interesting time for the
development of the mining industry.25
By far the most touted mantra at the conference was “Zimbabwe is Open for Business”. An
easy phrase to say but one which requires significant detail and planning for implementation,
particularly in a jurisdiction such as Zimbabwe where root and branch reform is required. The
three key components to the development of a mining industry are prospective geology,
23
Page 61
24
The revolving door of Zimbabwe’s mining investment keeps on spinning By David McKay -Sep 6, 2022 accessed
on https://www.miningmx.com/news/markets/50629-the-revolving-door-of-zimbabwes-mining-investment-
keeps-on-spinning/
25
Financing the Zimbabwe Mining Sector: Has the Time Arrived? By Ian R. Coles May 17, 2020 accessed on
https://miningdigital.com/supply-chain-and-operations/financing-zimbabwe-mining-sector-has-time-arrived
Human Resources and capital. It is widely accepted that Zimbabwe has the first two. There
remains a chronic lack of capital though, particular from international sources. 26
Commentators at the conference pointed to the multiple issues which needed to be dealt
with and underscored that substantive progress would need to be seen in dealing with those
issues before the investment tap would be turned on. Beyond endemic historical issues around
corruption more tangible factors such as an out of date mining code and uncertainties over
the fiscal regime needed to be addressed. The widely acknowledged disorganisation in
government regulation also needed to be dealt with. The presentation by one mining
company already operating in Zimbabwe listed the need for such companies to deal with 35
Acts of Parliament, 45 Statutory Instruments and 15 Ministries. The presentations by various
government representatives, including in particular the new Minister of Mines pointed to a
determination to deal with this but clearly it will take time. 27

Mining accounts for about 16% of the country’s GDP, 5% of employment (50 000 jobs), and 56%
of total foreign exchange earnings (USD45m/week). The sector has immense opportunities for
investment as the country is endowed with a vast range of mineral resources. 28

ASSGM sector is not yet recognised under the Mines and Minerals Act and Gold Trade Act
which is responsible for the production and sale of gold (African Mining Vision, 2017). Even
International Journal of Economics, Commerce and Management, United Kingdom Licensed
under Creative Common Page 377 though this sector is still to be recognised, the Ministry of
mines has created a loan fund specifically for this sector.29 The ASSGM sector remain one of
the sectors which is contributing immensely to the economy of Zimbabwe. Even though the
ASSGM sector is important to the economy of Zimbabwe, it has few financing options. The
research revealed several financing options which are availed to the ASSGM sector of
Zimbabwe and most of them has shown little success. Apart from showing little success, the
financing option availed to the ASSGM sector are not covering the whole sector. Lack of
formalisation of the ASSGM sector is causing this sector to remain very risk and most financial
institutions are not offering funding to this sector.30
26
Financing the Zimbabwe Mining Sector: Has the Time Arrived? By Ian R. Coles May 17, 2020 accessed on
https://miningdigital.com/supply-chain-and-operations/financing-zimbabwe-mining-sector-has-time-arrived
27
As above
28
Stanbic - The mining sector's bank of choice accessed on
https://www.stanbicbank.co.zw/zimbabwe/personal/About-us/Press-Releases/Stanbic-%E2%80%93-The-mining-
sector%27s-bank-of-choice
29
Page 376 FINANCING THE ARTISANAL AND SMALL-SCALE GOLD MINING SECTOR OF ZIMBABWE: A REVIEW OF
OPTIONS, international Journal of Economics, Commerce and Management, United Kingdom ISSN 2348 0386 Vol.
IX, Issue 11, Nov 2021
30
Page 384 FINANCING THE ARTISANAL AND SMALL-SCALE GOLD MINING SECTOR OF ZIMBABWE: A REVIEW OF
OPTIONS, international Journal of Economics, Commerce and Management, United Kingdom ISSN 2348 0386 Vol.
IX, Issue 11, Nov 2021
Under clause 6 [Strategic minerals] it is proposed that the Minister should have power, after
consultation with the Mining Affairs Board, to declare any mineral to be a “strategic mineral”.
The declaration means that any proposed miner of the strategic (iii) Mines and Minerals iv
mineral must enter into a prior agreement with the State which, among other things, may
require any or all of the following: a commitment to invest at least US$1 000 000; the
formation of a company or other special investment vehicle in which the State has an
interest; and other undertakings relating to environmental protection and corporate social
responsibility. The form of title under which a strategic mineral may be exploited shall be a
mining lease or special grant. Where the Minister makes an order specifying that the
designation of a mineral as a strategic mineral applies only to a defined area of Zimbabwe,
the Minister may in addition do the following: (1) at the same time or at any time after the
designation of the strategic mineral, cause the defined area to which the order relates to be
reserved against prospecting and pegging in terms of clause 40 (“Reservations against
prospecting and pegging”); and (2) invite bids (in accordance with the provisions of the
Zimbabwe Investment and Development Agency Act, 2019 relating to public private
partnerships) from potential investors interested in mining the strategic mineral. 31

4 Functions of Agency (1) The functions of the Agency shall be— (a) to promote, plan and
implement investment promotion strategies for the purpose of encouraging investment by
domestic and foreign investors; (b) to promote the decentralisation of investment activities;
(c) to implement and coordinate investment programmes and investment promotion related
activities; (d) to facilitate entry and implementation of investment projects; (e) to assist
investors in all appropriate investment-related support that may be required; (f) to work with
Government and interested stakeholders in using modern communications methods to
promote Zimbabwe as an attractive investment destination; (g) to facilitate, across all sectors
of the economy, dialogue and other consultations between the public and private sectors to
improve the investment climate for domestic and foreign investment; (h) to establish and
regulate special economic zones; (i) to appraise and recommend the approval of Public
Private Partnerships with the State to the Cabinet; (j) to deliver investor aftercare services,
including but not limited to postestablishment facilitation services that support investment
retention and expansion; 505 No. 10/2019 Cap. 14:37 506 Zimbabwe Investment and
Development Agency (k) where appropriate, to monitor the operations of registered
investments; (l) to maintain recordsrelated to investment certificates, work permits, visas
and any other documents pertaining to the licensed investor; (m) to advise the Minister on all
matters relating to investment in Zimbabwe; and (n) to perform such other functions as may
be assigned by the Minister from time to time. (2) TheAgency shall exercise
itsfunctionsimpartially and without fear, favour or prejudice and shall conduct all its
activities in a clear and open manner to give the fullest effect to the objectives of this Act.

31
Mining and mineral bill
Zimbabwe is OPEN FOR BUSINESS is a call by the President to Investors and Traders or
Business Entities, both Local and International, to take up abundant opportunities in the
country. 32
ZIMBABWE’s top envoys in various capitals across the globe have pledged to harness the
government’s mantra of “friend to all and enemy to none” to exploit investment
opportunities for the country’s economy.33

ADR gives parties in dispute the opportunity to work through disputed issues with the help of
a neutral third party. It is generally faster and less expensive than going to court.
When used appropriately, ADR can:
 save a lot of time by allowing resolution in weeks or months, compared to court,
which can take years
 save a lot of money, including fees for lawyers and experts, and work time lost
 put the parties in control (instead of their lawyers or the court) by giving them an
opportunity to tell their side of the story and have a say in the final decision
 focus on the issues that are important to the people in dispute instead of just their
legal rights and obligations
produce good results, for example settlement rates of up to 85 per cent
reduce stress from court appearances, time and cost
keep private disputes private - only people who are invited can attend an ADR session, unlike
court, where the proceedings are usually on the public record and others, including the
media, can attend
These are some things to take into account when considering whether to use ADR and which
type is most appropriate for you:
 ADR may not be suitable for every dispute, for example if the dispute involves a
matter of public interest, it may be more appropriate to have a court judgment to set
a precedent.
 Where a binding agreement is made (for example through negotiations or use of ADR),
parties normally give up the right to go back to court about the same matter.
Similarly, an award made at arbitration is generally binding and cannot appealed
except in limited circumstances.
 Some agreements made at ADR may not be as easy to enforce as a court or tribunal
order. In some cases this can be addressed by having the terms of an agreement made
into orders by consent by a court or tribunal. You can also get legal advice or further
information about other ways of making ADR agreements and decisions binding.
32
http://www.zim.gov.zw/index.php/en/my-government/government-ministries/national-symbols/9-
uncategorised/381-zimbabwe-is-open-for-business
33
As above
  If ADR is not successful and you have to go to court in the end, trying ADR first might
add to your legal costs. However, in general, ADR has very high rates of success. 34
Arbitration is mostly referred to as contradictory to litigation. Under the process of
Arbitration the use of a neutral third party or panel of third parties known as Arbitrator(s)
is hired to settle the dispute between parties in conflict, it is a process of resolving the
dispute outside the court. The arbitrators listen to the arguments made by the parties in
conflict and on the basis of that they make a unbiased decision beneficial for both the
parties.Generally people prefer arbitration over litigation because it is less expensive,
quicker, secure and offers more privacy to the parties. And among its different benefits
most distinguishable benefit of arbitration over litigation is its cost and time efficacy 35
Many business owners and construction industry entities prefer Arbitration as dispute
resolution process because of their reputation and goodwill in the market. Arbitration is also
suitable in international cases where parties cannot agree on the appropriate jurisdiction. It
is also preferred in cases where one or both of the parties aspire to have a final decision with
no probability of further appeal. However, in some cases where matter is too complicated to
be sorted out in one meeting or there are more than two parties involved  arbitration should
not be opted as a measure to seek resolution.36
Advantages of Arbitration:
1. Arbitration is considered to be more flexible than Litigation. Laws related to the
process of litigation are more complex as compared to arbitration, litigation must
follow law of civil court, it involves following CPR rule book whereas Arbitration rules
are much more simple and small in number. In arbitration there is no code of
procedure, it is agreed by the parties, they can agree and settle to whatever they
want.
2. Arbitration can provide better quality justice than many courts of the country as they
already overloaded with cases. Arbitration in international disputes also provide better
quality decision as compared to domestic courts.
3. Arbitration as compared to litigation is less time consuming as well as less
expensive. Arbitration aims at providing expeditious resolution than the normal court
proceedings, Similarly, it is less costly than the court proceedings.
4. Arbitrators tend to provide greater level of expertise as compared to a judge,
because Arbitrators are appointed from the bunch of the professionals who have
specialized knowledge of particular trade or business thereby boosting confidence and
trust of businessmen in proceedings and the resulting award -
- likely in insurance disputes where arbitrators chosen in that field.
-rather than more general judges.

34
https://www.localcourt.nsw.gov.au/local-court/alternative-dispute-resolution/benefits-of-alternative-dispute-
resolution.html#:~:text=ADR%20gives%20parties%20in%20dispute,court%2C%20which%20can%20take%20years
35
https://viamediationcentre.org/readnews/Mjcz/Advantages-of-Arbitration-over-Litigation#:~:text=Arbitration
%20can%20provide%20better%20quality,as%20well%20as%20less%20expensive.
36
As above
 5. An Arbitration award is ultimate and permanent , and there are very limited chances
of further appeal, even if the arbitrator makes a error of fact or mistake of law.
International Commercial arbitration is also unbiased plus arbitration also guarantees
privacy and confidentiality of the matter in dispute and unlike court proceedings
does not disclose the identity of the parties involved in it.
Though arbitration has many advantages, it is wise to consider all of the options when
preparing to begin arbitration. Knowing the major differences between arbitration and
litigation can be a valuable asset and a great time and money saver.
 Meaning of Arbitration
 In which cases Arbitration suits the most
 Advantages of Arbitration37

“Arbitration is a process whereby the parties to the dispute enter into a formal agreement
than an independent and impartial third party, the arbitrator, chosen directly or indirectly
by the parties, will hear both sides of the dispute and make an award which the parties
undertake through the agreement to accept as final and binding.” Peter Ramsden, The Law
of Arbitration p5
good contract should contain a dispute resolution clause. This clause spells out how disputes
will be resolved as and when they arise. Most disputes including commercial disputes are
referred to courts of law for adjudication. This is inspite of the fact that arbitration is
another mechanism which parties can use to resolve disputes. In Zimbabwe, Section 4 (1) of
the Arbitration Act (Chapter 7:15) provides that:
“Subject to this section, any dispute which the parties have agreed to submit to arbitration
may be determined by arbitration.”
Section 4 (2) of the aforesaid Act provides that, the following matters shall not be capable of
determination by arbitration:
(a) An Agreement that is contrary to public policy; or
(b) A dispute which, in terms of any law, may not be determined by arbitration, or
(c) A criminal case; or
(d) A matrimonial cause or a matter relating to status, unless the High Court gives leave for it
to be determined by arbitration, or
(e) A matter affecting the interests of a minor or an individual under a legal disability, unless
the High Court gives leave for it to be determined by arbitration, or

37
https://viamediationcentre.org/readnews/Mjcz/Advantages-of-Arbitration-over-Litigation#:~:text=Arbitration
%20can%20provide%20better%20quality,as%20well%20as%20less%20expensive
(f) A matter concerning a consumer contract as defined in the Consumer Contracts Act
(Chapter 8:03) unless the consumer has by separate agreement agreed thereto 38.
Disputes and conflicts are the most prominent characteristics of human existence since time
immemorial. It is this inevitability of disputes that calls for measures to be put in place so as
to effectively and efficiently resolve them in order to manage the employment relationship.
History is sated with records of conflicts at various levels of human relations whether at inter-
personal, inter-group, intra-group and intra-national or international arenas, conflicts have
been found recurring in social relations. It then follows thatconflict is also an inevitable
characteristic and perspective in employment relations.39

This study was prompted by the inevitability of these class disputes, which was further
polarised by the advent of Industrialisation, and the need for the state to design dispute
resolution mechanisms in place that are effective and efficient to enable an environment that
breeds productivity and enable business.40
The Zimbabwean Courts have been characterised by back logs in labour cases taking more
than 5 years to resolve and finalise and a result an alternative to the court system has been
established in order to counter the challenges associated with the court litigation route. The
Zimbabwean legal structure is critical and of paramount importance as it provides the
provisions within which the Conciliation and Arbitration derives its legal standing.It is of
paramount importance to note at this stage that conciliation and arbitration are employed as
alternative dispute resolution mechanism to the traditionally used cumbersome litigation
process. The litigation process is usually long and cumbersome and the parties have little or
no influence to the process in terms of speed.41

Bilateral Investment Treaties (BITs) Total: 2856 ,Total in force: 2243

Treaties with Investment Provisions (TIPs),Total: 439 Total in force: 36042
Bit An agreement made between two countries containing reciprocal undertakings for the
promotion and protection of private investments made by nationals of the signatories in each
other's territories. These agreements establish the terms and conditions under which
nationals of one country invest in the other, including their rights and protections.
BITs provide protection against illegal nationalisation and expropriation of foreign assets and
other actions by a signatory of the BIT that may undermine the ownership or economic
interest of a national of the other signatory. As BITs are negotiated agreements between the
signatory parties, their terms vary. One of the main protections under a BIT is that it allows

38
https://www.irglobal.com/article/arbitration-in-zimbabwe-811c/
39
Page 65, The dark side of arbitration and Conciliation in Zimbabwe Mildred Mahapa1 & Watadza Christopher,
Journal of Human Resources Management and Labor Studies December 2015, Vol. 3, No. 2,
40
As above
41
Page 66
42
https://investmentpolicy.unctad.org/international-investment-agreements/countries/233/zimbabwe
foreign investors to sue states directly by submitting claims for breach of the BIT to
arbitration rather than to local courts. 43

43
https://uk.practicallaw.thomsonreuters.com/4-502-2491?
transitionType=Default&contextData=(sc.Default)&firstPage=true#:~:text=An%20agreement%20made
%20between%20two,signatories%20in%20each%20other's%20territories.