Special Economic Zones take shape

11 Dec, 2016 - 00:12 0 Views
Special Economic Zones take shape

The Sunday Mail

Kuda Bwititi Chief Reporter —
Local and international investors are submitting applications for various Special Economic Zone projects that begin in Zimbabwe early 2017, a senior Government official has said.

In an interview with The Sunday Mail, Secretary for Macro-Economic Planning and Investment Promotion Dr Desire Sibanda said Russian, Indian, Chinese, South African and Kenyan investors are among the applicants being assessed by authorities.

He said major projects under the SEZ model include tourism (Victoria Falls), Sunway City Industrial Park and Technological Hub, leather and textile manufacturing (Bulawayo), diamond-cutting and polishing (Mutare and Harare) and chemical manufacturing (Lupane).

“Already, the ministry is in receipt of applications for consideration into SEZs.

“This shows the level of readiness and confidence that developers and investors have in our zones.

“Now that most of the fundamentals necessary for the implementation of SEZs are in place, the SEZs Board is expected to be appointed early next year along with the setting up of the SEZs Authority.”

Government, Dr Sibanda said, would implement the SEZs programme with technical assistance from China’s National Development and Reform Commission and the Japanese International Cooperation Agency.

“Partners could support the development of SEZs through lines of credit or technical support.

“The Government could then repay the loans from the proceeds of SEZ licensing, rentals and toll fees.

“Jica and NDRC-sponsored experts were in the country recently in an endeavour to assist sensitise stakeholders on the necessary preparations required to take advantage of SEZs.

“Experiences of the Economic Processing Zones programme show that SEZs can be used to solve specific national problems such as unemployment, low FDI, low export earnings and low value addition and beneficiation.

“During the lifespan of Zimbabwe’s EPZ programme, 205 companies were established, generating an estimated US$172 million worth of investment while creating 32 512 jobs and generating a cumulative US$1,15 billion in export earnings.”

In his 2017 National Budget Statement last Thursday, Finance and Economic Development Minister Patrick Chinamasa said SEZs investors would receive incentives such as corporate tax exemption, special initial allowance on capital equipment at 50 percent, duty-free imports for raw materials not produced locally and free duty on capital equipment.

President Mugabe signed the Special Economic Zones Act into law recently, paving way for the model’s implementation. The SEZ framework involves creating a selected number of geographical areas that are endowed with economic potential to become industrial growth centres.

It has been successful in countries like China where cities such as Guangzhou, Shanghai, Shenzhen and many others have become major economic centres.

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