adminPamela Shumba Senior Reporter
GOVERNMENT is considering granting tax breaks to foreign investors and awarding them duty-free import certificates for vital equipment as part of incentives meant to attract investment into the country, a Cabinet Minister said yesterday.Industry and Commerce Minister Mike Bimha told captains of industry during a Confederation of Zimbabwe Industries (CZI) meeting in Bulawayo that giving incentives to investors was in line with the establishment of special economic zones.
He said a special package of incentives would lure investors and help revive the country’s ailing firms, which is at the heart of the new economic blue-print, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset).
“Government plans to declare different parts of the country special economic zones and there is a need to introduce incentives such as exempting investors from paying tax, exempting them from paying duty and coming with a flexible labour legislation that will achieve good results,” said Bima.
“Bulawayo, Beitbridge, Mutare, Norton and Victoria Falls are the towns that are earmarked to be declared special economic zones.”
Bimha said experience had shown government that the only way to lure investors into the country was to create an investor friendly environment and introduce attractive incentives.
“There must be a reason why investors prefer to bring their businesses to Bulawayo for us to successfully turnaround the economy. When we come up with the incentives, we will look at what we want to achieve for the country and for the people in those particular areas,” said Bima.
He added: “Government is cognisant of the level of de-industrialisation that has taken place in Bulawayo over the past decade. The situation is sad and deplorable and I believe that the establishment of special economic zones will improve investment in Bulawayo.”
Bimha said government was working on sourcing funding at regional and international level to support ailing firms to operate at full throttle.
He said efforts were under way to engage the Diaspora to invest in the country. Bimha said an arrangement had been made with the Indian government for local companies to import equipment and machinery from that country on favourable terms.
He said under the deal, the Indian government would pay the suppliers for the equipment in support of the economic turnaround of the country.
Bimha said Zim-Asset remained flexible and open to new ideas in its implementation. The participants said the country should address corruption to restore investor confidence, decentralise government services and establish a Zim-Asset implementation and impact monitoring strategy.
Online Reporter