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THE decision by the Bulawayo City Council to come up with a raft of measures aimed at attracting investment to the city is a step in the right direction and dovetails with Government efforts to revive industries in the country’s second capital. According to a council finance committee report made available to our sister paper, Sunday News, the BCC has managed to push through a new policy to award industries in the city incentives which include a partial writing off of bills. The incentives were formulated after a study into commerce and industry in the city and are meant to show appreciation and offer incentives to companies that are supporting Bulawayo. The local authority will now give first preference to products made in the city and companies from Bulawayo —an idea borrowed from the much vaunted South African Black Economic Empowerment model.
“The committee recommends the cancellation of water penalties incurred by non-domestic consumers since January 2012, when the new penalty tariff of $2,63 was implemented, to April 2013.
“The recommendation is based on business operations being linked to water usage and there being a probability of incurring penalties, this will result in council writing off $4 628 494,” reads the report.
To add on to the writing off of these penalties, the local authority will also forgo interest charges on all non-domestic users.
Council will also offer a 50 percent discount on rates clearance for obligations above $10 000 for individuals interested in purchasing industrial properties in the city. This incentive comes with an obligation that the new investors employ locals in the city.
There will also be the reviewing of the water penalty to $1,50 per kilolitre, based on the April 2013 figure of 159 859 kilolitres over usage by business and commerce. Council will forgo income of $180 640 per month.
The local authority will discount outstanding balances by 50 percent upon settling the account, with the non-domestic users owing $33 781 797 and 51 percent paying their accounts regularly the discount can amount to $10 million.
BCC will now also offer land to the business community on lease with an option to purchase. This will see the local authority forgoing the 25 percent down payment plus full Value Added Tax.
“Historically this is how Bulawayo industry came into existence, council will be providing a financial lifeline for business to develop,” the report reads. We commend the BCC for easing the burden on local industries and complementing Government efforts to revive industries.
The city desperately needs new investment and these incentives will go a long way towards attracting both local and Foreign Direct Investment. Weekend reports said Zimbabwe had the potential to become the fastest growing in Africa and the sixth fastest in the world by 2020, according to a recent research by an internationally acclaimed Harvard University scholar.
The research findings projected that the economic boom would be driven by the exploitation of the country’s vast mineral deposits, especially diamonds, and the country’s impressive level of productive knowledge. Government is doing its part in reviving industries and laying the ground for the resuscitation of the economy and the soon to be launched Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim Asset) policy blueprint will anchor this economic transformation.
This shows that Bulawayo and the entire country stand on the threshold of a change of fortunes and the city’s latest move positions it in good stead for the economic revival.
Council should go further and accelerate the marketing of the city to outside investors through attending international trade conferences and other such fora. By taking the lead in attracting investment to the city, the local authority has shown great foresight and should be commended.
Online Reporter