Online Reporter
Business Reporter
The Zimbabwe Investment and Development Agency intends to designate portions of Joina City as a Special Economic Zone to position Zimbabwe as a competitive hub for global service exports and high-end digital labour.
In a public notice inviting potential objections to the proposal, ZIDA chief executive Mr Tafadzwa Chinamo said the designated area would be specifically reserved for Business and Knowledge Process Outsourcing (BKPO) activities.
“It is hereby notified that ZIDA intends to designate a certain building known as Joina City Business District, measuring 15 000 square meters, as Business and Knowledge Process Outsourcing Special Economic Zones,” said Mr Chinamo.
Investors operating within the Joina City SEZ are expected to benefit from specialised fiscal incentives, including tax breaks and duty-free importation of technical equipment.
Joina City is among several high-profile buildings targeted for designation as BKPO hubs.
ZIDA’s initiative seeks to leverage the building’s existing modern infrastructure to drive youth employment and increase foreign currency inflows through international service contracts.
The agency has invited stakeholders and the general public to submit any representations or objections regarding the proposed designation of the high-rise commercial centre.
Once finalised, the move will transform Joina City from a traditional retail and office complex into a technological nerve hub for the nation’s growing digital economy.
ZIDA has since unveiled an operational framework for BKPO, which introduces a facility-based SEZ model where specific buildings, rather than entire geographic districts, are designated as high-tech hubs for service exports.
Under the new framework, eligibility for lucrative tax and investment incentives is strictly location-based, requiring companies to be physically operational within a designated building to qualify.
ZIDA has said the virtual, remote, or dispersed operations conducted outside these designated premises will not be eligible for SEZ benefits to prevent “incentive leakage.”
The initiative specifically targets high-value sectors, including software development, Artificial Intelligence data annotation, financial analytics, medical transcription, and engineering design.
According to the framework, the model is anchored in Finance Act Number 7 of 2025, which defines BKPO services as routine or specialised tasks performed in Zimbabwe on behalf of offshore entities.
To ensure strict regulatory oversight, the agency will implement a four-tier licensing structure covering building owners, developers, operators, and the actual BKPO tenants.
Building owners must first apply for Tier 1 Zone designation, demonstrating their facilities meet prescribed infrastructure standards for Information, Communication, Technology (ICT) readiness and accessibility.
Tier 2 developers are responsible for upgrading ICT infrastructure and installing backup power, while Tier 3 operators manage day-to-day facility administration and tenant onboarding.
Tier 4 SEZ Investor Licences will be issued to the tenant firms that physically occupy the space and deliver qualifying outsourcing services to international markets.
The strategic expansion aims to facilitate large-scale youth employment, enhance foreign currency generation, and attract global digital service providers to Zimbabwe.
ZIDA says while the framework prioritises the service-export ecosystem, it will not limit the continued application of traditional manufacturing-based SEZs under existing laws.c
