The Sunday Mail
Dr Gideon Gono
The Zimbabwe Special Economic Zones Authority is a brand new institution. Section 22 of the Act requires us to carry out this function as soon as possible after the setting up of the board.
The vision of the Zimbabwe Special Economic Zones Authority board is captured in the SEZ Act, but more importantly, it is derived from Point 10 of President Mugabe’s 10-Point Plan for Economic Growth and the accelerated Zim-Asset programme.
We were birthed as an authority to give impetus to attracting foreign direct investment into geographically delimited areas, separate customs areas or special enclaves whose occupants enjoy duty-free status and other fiscal benefits not enjoyed by economic players outside the zone or sectors of the economy.
With this background in mind, the objectives of the SEZ are to accelerate the country’s industrialisation and with it, modernise our industrial base, drive exports generation, create employment for our people, reduce our dependence on imported goods and services, among other deliverables.
Launch preps
Government designated three specific areas before the board was put in place; namely, Sunway City in Ruwa, Bulawayo and Victoria Falls.
We are preparing to gazette the three areas through a Statutory Instrument, which will give the designations legal effect in terms of Section 20 of the SEZ Act (Chapter14:34).
Before giving notice in the Government Gazette, the SEZ board needs to inspect any area, including those so far proposed, to check and ensure the said areas already have or are capable of creating such imperatives as adequate and uninterrupted power, proper road/rail access, sufficient water and other requirements.
That process is underway.
Our vision is to create as many SEZs as possible across the breadth and length of this country; provided each creation makes economic sense in terms of the deliverables I referred to earlier.
These deliverables include: Exports, jobs, liquidity, value-addition and financial stability. The number of SEZs to be created is, therefore, a function of the above.
SEZs focus
Based on the concept of comparative advantage, beneficiation, proposed economies of scale and benefits to local industries, we aspire to create local sectoral enclaves depending on the predominant activities of the area.
An example is diamond polishing that must, naturally, be set up in Manicaland; tourism around Victoria Falls through to Hwange, Kariba, Mana Pools, the Eastern Highlands, Great Zimbabwe in Masvingo, Matopos in Bulawayo and so forth.
Leather and other industrial enclaves in Bulawayo, Harare, Gweru, Kwekwe, Kadoma, Chegutu, Norton, Chinhoyi, Bindura, Marondera and other cities or towns.
The whole country is our playground and open for designation as Special Economic Zones depending on justifications.
Investor interest
The interest has been tremendous so far, but we have not yet approved any (investments). First things first; physical planning, the availability of infrastructure and services are key to the success of the SEZ concept.
We must integrate each SEZ to a local master plan, and we are engaging local and international experts for this pre-investment stage.
Infrastructure is a prerequisite to attracting quality investors sustainably. Singapore is one such illustrious country that we have engaged regarding SEZs planning and infrastructure development.
They are doing wonders in Rwanda, China, India, the Middle East and other places. We are talking to the Chinese, Indians, Isle Man, Japan, South Korea, South Africa, the US and others.
Soon, we shall publicly welcome the SEZs and experts from these countries as we forge necessary strategic alliances towards our vision. Planning must always precede implementation, and that is our roadmap to operationalising the SEZ Act.
Section 26 of the Act requires us, the Authority, to approve or refuse to approve any application for investment licence submitted in terms of Section 23 of the Act.
Now, that’s a tall order, unless people who occupy key positions in Government, local authorities and parastatals change their ways of thinking — and doing. A serious mindset has to emerge: It cannot be business as usual.
In our interactions with various and key position holders in Government and parastatals, we are both alarmed and disappointed by the lackadaisical attitude displayed by some senior officials who actually determine whether this country moves forward or remains stagnant.
There is no enthusiasm to change and move with speed. The concentration is on why we cannot do this, than why and how we can do it.
We believe that the Chief Secretary to the President and Cabinet and his team at the Office of the President and Cabinet will be acting on our observations soon because we want to achieve our targets sooner rather than later.
Policy inconsistency
Policy discord, contradictions and inconsistencies have hitherto been a drawback to attracting investment to the country: It’s an undeniable fact. But that’s in the nature of economic developments the world over.
No country has ever succeeded without making mistakes. No individual has ever lived his/her life without making mistakes, some of which are fatal.
But like Nelson Mandela, Winston Churchill, our own President and others said, it is not about falling down which matters but whether one remains down or gets up.
Success consists of going from failure to failure without loss of enthusiasm. Our past mistakes or shortcomings will not deter us from getting up to get going or to lose our enthusiasm to get on with it.
By establishing SEZS, Government is creating laboratories for economic trials and success. Fortunately, there are over 1 000 SEZS in the world that have been created and are succeeding and on the shoulders of these, we shall triumph despite our failures of the past.
As for investment protection, never before has any investor been more protected than the protection now offered to investors coming into our SEZs.
Section 35 of the Act protects investors and their investment from compulsory acquisition of their property and links such protection to our supreme Law, the Constitution of the Republic of Zimbabwe.
“Except in accordance with the law which complies in all respects with Section 71 of the Constitution, no property or interest or right therein of a licenced investor to whom an investment licence has been issued in terms of this Act shall be compulsorily acquired.”
Section 56 of the Act also exempts application of the Indigenisation Act Chapter 14:33: “The Indigenisation and Economic Empowerment Act (Chapter 14:33) shall not apply in relation to licensed investors operating in a Special Economic Zone.”
Against the above two provisions, we are determined to see that all investors are secure and economically free to operate in this country.
Diaspora
The SEZs offer — for the first time in the country’s history — preferential platforms for investment where they can bring their expertise and capital for not just their own benefit, but for the benefit of the country regardless of one’s political, ethnic, religious or other forms of persuasion.
The economy and its performance must be one area where we, as Zimbabweans, find unity of purpose amongst ourselves and with the global economic community.
The Diaspora has very important skills, capital and access to markets which can be exploited to its and the country’s benefit regardless of actual or perceived differences of any nature.
Our SEZS offer that platform. They can invite and join hands with any investor from any part of the world.
“St Mark”
Gideon Gono and the rest of the board members did not appoint themselves.
Those envious of the appointed position or positions I hold should approach the appointing ministers, the vetting Office of the President and Cabinet and His Excellency the President himself, and ask them why they appointed “such a bad person like Gono to this or that position instead of themselves as direct descendants of Saint Peter or Mark”.
The Zimbabwe Special Economic Zones Authority is a brand new institution. Section 22 of the Act requires us to carry out this function as soon as possible after the setting up of the Board.
And 45 days into office, we are there.
We are not executive directors; therefore, we must get a truly qualified man or woman into an executive position to lead the execution of our mandate.
I promised that we would get institutional set-up done within 90 days of our appointment (end of June 2017) and we are determined to achieve that within that time-frame.
Dr Gideon Gono is the Board Chairperson of the Zimbabwe Special Economic Zones Authority. He was speaking to The Sunday Mail’s Senior Reporter Lincoln Towindo in Harare last week
