adminTHE Ministry of Tourism and Hospitality has made a recommendation to the Ministry of Finance and Economic Development to ensure that Gwayi in Matabeleland North will be the first to be declared a Special Economic Zone to maximise on the tourism potential in the area.
The Government is working towards declaring certain parts of the country Special Economic Zones as a way of attracting investment and boosting economic growth.
Tourism and Hospitality Industry Minister Cde Walter Mzembi told Sunday Business last week that he foresaw tourism taking a leading role in Zimbabwe’s quest to achieve a $100 billion economy by 2040 hence the push to ensure maximum investment in areas with tourism potential.
“I have made a proposal which Minister of Finance Patrick Chinamasa has agreed to, that will look at three or four, Special Economic Zones for Zimbabwe going forward.
“The first one would start from Gwayi, in Matabeleland stretching to Victoria Falls. It will capture part of the land that we have acquired as a ministry, going to Binga, lower Zambezi into Kariba.That would be our first corridor.
“We intend to prescribe for this SPZ the back investment loss, the most attractive investment lost, so that we can attract domestic investment and foreign direct investment into this corridor,” he said.
He said the second corridor would be in Masvingo starting around Lake Mutirikwi going through to Tokwe Mukosi, then to Beitbridge.
“We envisage that as a special investment zone corridor, the natural one in the Eastern Highlands, lands itself naturally as the Special Economic Zone. But we will also pick areas like Bulawayo for example and parts of Harare and give them and designate them as Special Economic Zones depending on what will be presented to us,” said Cde Mzembi.
However, captains of industry have noted with concern that Government was taking long to set up the economic zones, a situation that has seen Gross Domestic Product failing to meet the average eight percent required to achieve the $100 billion economy.
KM Financial Solutions group chief executive officer Mr Kenias Mafukidze said to achieve a $100 billion economy, GDP growth had to be at least eight percent per annum and in the past couple of years the country had not been meeting this target.
“For as long as economic growth is under eight percent, it means we are falling behind in our time frame and it is now imperative to come up with ways of covering that gap. To achieve this vision we need to have sustained high levels of growth for long periods of time,” said Mr Mafukidze.
He said the country was about two to three years behind.
The GDP growth for this year is estimated to be around 3,1 percent, revised downwards from 6,1 percent.
“In a span of 40 years, all that it will take is an 11 percent growth and we will achieve the $100 billion economy. The problem is the deficit is at present building up due to the continued downward trend,” he said.
He, however, said the economic blueprint that the country has come up with, Zim Asset, if implemented and followed through, would help lay the groundwork for the success of the vision.
“All we need to do is walk that document,” said Mr Mafukidze.
Other economists said mathematically it might be possible to achieve the $100 billion economy but in reality it was not possible as the country lacked basic fundamentals like energy and investment.
Zimbabwe National Chamber of Commerce chief economist Mr Kipson Gundani said the prevailing situation in the country was not supportive of such levels of growth.
He said the average growth in Africa was 5 percent while in Sub Saharan Africa growth was mostly retarded.
“When you make estimations, you need to come up with assumptions which can be tested to see whether they hold. It is unlikely that this economy will grow by 8 percent as we do not have sufficient economic enablers,” said Mr Gundani.
According to the captains of industry advocating for a $100 billion economy by 2040, the country needs to position itself to attract investment from both the domestic and international markets to achieve the target.
Online Reporter