Industry upbeat on SEZs

Ngoni Dapira Business Correspondent
THE Confederation of Zimbabwe Industries Manicaland chapter has applauded the recent gazetting of the Special Economic Zones which it hopes will attract foreign investment and stimulate economic growth.

SEZs are geographically designated trade areas that are used to attract foreign investors and boost industrialisation.

They generally have trade laws that differ from the rest of the country and companies are offered tax incentives to set up operations.

CZI Manicaland chairman, Richard Chiwandire said given the liquidity constraints prevailing in the country, SEZs were the only quick-win solution given the country’s plentiful natural resources.

Government last week gazetted the Special Economic Zones Bill to attract foreign investment and stimulate economic growth.

The Bill will establish the Special Economic Zones Authority charged with the responsibility to ensure the project is a success.

It however awaits tabling before Parliament for debate and is expected to pass without much of a hassle.

The regulations are expected to go a long way in solving challenges affecting investors in setting up new projects within the country and play an integral role in reviving the economy.

Finance and Economic Development Minister Patrick Chinamasa is expected to administer the regulations if passed into law.

“In Manicaland our outcry has always been on capital intensive value additional projects that need multimillion investment deals.

“The natural resources are there and the human resource is there, it’s the capital that is lacking and SEZs are our best hope to realise this dream. The SEZs will also create a competitive advantage that can maximise potential local industry,” said Mr Chiwandire.

He cited zones manufacturing subsectors like timber processing, paper printing and publishing, car assembling while in mining gold and diamonds would be the key resources as well as zones in horticultural farming and tourism.

Mr Chiwandire however said Government must put in place incentives to attract SEZs capital to the country and take lessons from China.

He applauded Minister Chinamasa’s investment incentives in the 2016 national budget where all manufacturing equipment over $1 million can be brought into the country duty free, as positive development to lure investors.

China introduced SEZs in the 1970s as part of its policy to open up to international trade.

It has over the years grown to become the world’s second largest economy and has become Africa’s largest trading partner with foreign direct investment reaching US$2,52 billion from US$1,4 billion in 2009.

“China’s own experience in industrial development through the SEZs offers valuable lessons.

“For African countries, setting up SEZs can boost the diversification of our economies and promote manufacturing,” he said.

Affirmative Action Group Manicaland chairman Mr Fungai Chaeruka however called for inclusivity of Manicaland private sector on the SEZs board. He said a lot of zones would come from the province and it was only fair to have at least one member on the board to push regional interests.

Clause four of the Bill provides for the establishment of the Zimbabwe Special Economic Zones Board.

In terms of Clause Five, the board would be constituted with no more than 11 members, six of whom shall be appointed from the private sector and four from Government ministries and a chief executive officer who will be an ex-officio member.

Zimbabwe National Chamber of Commerce Manicaland chairperson Ms Molly Mupfunya said Zimbabwe was one of the richest countries in Africa in terms of natural resources, but a strong rapport between Government and businesses was needed to effectively tap the resources for economic growth.

“The national strategic plan on SEZs should have gender inclusivity and also look at investment in the education sector.

“Let us come out from our cocoon and be pragmatic in setting up the Zones because socio-economic development should be the primary concern,” said Ms Mupfunya.

She however expressed confidence that several investors would come in the country to invest in abundant natural resources once the SEZs Bill is enacted.

Last year alone in the absence of the SEZs, several countries, to mention a few, South Korea, Russia and China expressed great interest towards having more investment partnerships with Zimbabwe.