adminwhen the Zimbabwe Investment Act is fully implemented, a senior official said yesterday.
SEZs are geographical areas governed by one oversight management body that offers special trade incentives to firms that choose to locate themselves within the zones.
The zones are set up to meet fiscal, social and infrastructure policy rationales to facilitate economic growth through the use of reduced tariffs and more efficient controls.
Bulawayo, Beitbridge, Mutare, and Norton are set to be declared Special Economic Zones.
Permanent Secretary in the Ministry of Economic Planning and Investment Promotion Dr Desire Sibanda said the amendment of the Investment Act entails the creation of SEZs.
“The Government is amending the Zimbabwe Investment Authority Act. The principles of the amendment have already gone through Cabinet and are expected to go through the Cabinet Committee on Legislation and Parliament so that the amended Act is in place hopefully before the end of 2013,” he said.
Dr Sibanda said the purpose of the economic zones was to increase investment inflows into Zimbabwe.
“Currently, Zambia is attracting over $1 billion in Foreign Direct Investment which is four times ours as a result of the SEZs.”
He said Government in recent years adopted the “Look East Policy” with countries in Asia such as China requiring that Zimbabwe should develop SEZs to promote investment.
Dr Sibanda said the economic zones would be used as a special purpose vehicle to attract industrial parks and the development of export-led companies.
He said the zones would also be used to create a conducive environment for industrial growth and development by focusing on fostering exports that provide FDI.
“The formation of Special Economic Zones is in line with our Medium Term Plan (MTP) which seeks to increase investment by about 25 percent of the Gross Domestic Product.
“Through the economic zones and in line with the MTP we want to export finished products.”
He said through the MTP, Government seeks to promote value addition as more than 90 percent of the minerals were being exported in raw form.
Economic zones, he said, would provide incentives for the export industry and ensure economic growth in line with objectives of the MTP.
One of the major thrust of the MTP is to ensure a 7 percent economic growth trajectory between 2011 and 2015 in order to create employment at competitive levels.
Online Reporter