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Senior Business Reporter
Zimbabwean manufacturing firms stand to become global players by snapping up export opportunities availed by the Mauritian free port zones, the Confederation of Zimbabwe Industries (CZI) has observed.
In a report titled Internationalisation of Zimbabwe Firms, the Mauritius Free Port Opportunity, dated 29 March, the lobby group said it recently participated in an information dissemination webinar where an invitation was extended to the Zimbabwean manufacturing firms to export using the Mauritian free port zones.
The offer avails an opportunity to manufacturing firms to become global companies and export their products through a cost-effective logistics platform.
The arrangement allows production to be done in Zimbabwe up to 70 percent and the remaining 30 percent value addition will be done in Mauritius.
The lobby group said Mauritius Free Port Zone is now a global brand and has gained momentum over the past few years worldwide.
“Zimbabwean manufacturing companies have been invited to register as a Global Business Company (GBC), a business that engages in qualified international trade, operates in Mauritius with personnel who are all non-Mauritians, and transacts in a currency other than the Mauritian rupee as specified by the Financial Services Act of Mauritius.
“The invitation extended to Zimbabwe to become a GBC and export using the Mauritius free port zones is likely to have an impact to the business and the economy of Zimbabwe access to markets .
“Zimbabwean business will be exposed to nearly 70 percent of the world’s population through the Mauritius bilateral and multilateral trade agreements, gain competitiveness due to logistics cost reduction, a favourable business environment with fiscal incentives in Mauritius,” reads part of the CZI report.
It added that local manufacturing firms can take advantage of bilateral and multilateral trade agreements such as Comprehensive Economic Cooperation and Partnership Agreemen (CECPA) with India, Free Trade Agreement (FTA) with China, African Continental Free Trade Area (AfCFTA), COMESA, Sadc, African Growth and Opportunity Act (AGOA) in order to tap into a market of nearly 70 percent of the world’s population, at the same time benefiting from fiscal incentives such as duty free and VAT free for goods and equipment imported into freeport zones.
Other benefits include preferential market access, above 75 percent foreign ownership and free repatriation of profits.
Added to that, CZI said there are no foreign exchange controls, reduced port handling charges and eight-year income tax holiday to new Freeport Operators or Private Freeport Developer making an investment of at least USD $1 086 876 subject to conditions.
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