Ashly DhaniBusiness Writer
The realisation of Zimbabwe’s Special Economic Zones (SEZs) is being hampered by a critical shortage of infrastructure, particularly in publicly owned zones, according to the Zimbabwe Investment and Development Agency (ZIDA).
While privately owned SEZs have seen swifter progress in attracting investment, their publicly owned counterparts have lagged behind due to the absence of essential infrastructure such as water, sewerage, electricity and factory shells.
SEZs are considered critical models for attracting both domestic and foreign direct investment. During the second of this year, ZIDA has reviewed or assessed projects valued at approximately US$1,2 billion within these zones.
They are generally classified into publicly and privately owned. Most of the publicly owned zones in the country were designated prior to the establishment of ZIDA in 2018 and 2019 and the pace of investment uptake has generally been quicker in the privately owned SEZs compared to the publicly owned zones.
“To operate efficiently and attract investment, an SEZ must have working infrastructure,” said Noel Mahombera, ZIDA chief business development officer said.
“We are working tirelessly with key stakeholders to unlock funding for infrastructure development in these zones through Public-Private Partnerships (PPPs) and other financial avenues. This will pave the way for the development and full operationalisation of our SEZs.”
He, however, noted that SEZs were making strides, with several projects at various stages of development.
Sunway City SEZ has already attracted investors and is partially operational.
Another promising development is the construction of a US$4 million cricket stadium at Masuwe SEZ, set to be completed in time for the 2026 Cricket World Cup. While still in the early stages, two additional investors have expressed interest in Masuwe.
Beitbridge SEZ has also garnered investor attention, with negotiations currently underway for a potential investment.
Since the promulgation of SEZ regulations, ZIDA has designated three new zones: Green Fuel in Chisumbanje, already operational; Xintai Resources’ Beitbridge – Power and Metallurgical zone, currently under construction and Goromonzi Agro Industrial Company’s SEZ, set to commence development in early 2025.
The Beitbridge-Power and Metallurgical zone is making significant headway, with key infrastructure like a crushing station, brick plant and oxygen plant already operational. Construction of the core ferrochrome plant is in progress and expected to be completed by the end of 2024.
The Goromonzi Agro Industrial Company SEZ has already secured US$5 million in expressions of interest, signaling potential for future growth.
Mahombera said the developments highlight the growing interest in Zimbabwe’s SEZs and their potential to drive economic growth and job creation.
“It can be observed that there has been notable investor interest in the SEZ programme recently. However, we would like to acknowledge that realising the full potential of SEZs will take time,” said Mahombera.
“As part of our commitment to creating an enabling framework to accelerate the operationalisation of SEZs, the agency has been engaging with key stakeholders to develop an appropriate SEZ model for Zimbabwe. We are confident that with the right policies and support, we can achieve our goals for these zones.”
Mahombera has also clarified that its reported 30 percent implementation rate for SEZ projects approved in 2022 refers to projects that are fully operational. The agency emphasised that this figure is based solely on projects that have submitted progress reports.
He acknowledged that some operational projects may not be included in the statistics due to a lack of updates as many others are at different stages of development. The agency highlighted the varied timelines for different sectors, with projects like solar power plants requiring extensive approvals and documentation.
Despite the challenges, ZIDA views the 30 percent implementation rate as a positive.
Online Reporter