‘Put time limits for SEZs’

Bianca Mlilo Business Reporter—
THE Public Policy Research Institute of Zimbabwe has advised the government to set specific time lines for the implementation of Special Economic Zones (SEZs), viewed as a sustainable strategy to industry turnaround. Special Economic Zones (SEZs) are an important pillar of Zimbabwe’s development strategy as enunciated in the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset).

The successful development of SEZs is expected to contribute immensely to Zimbabwe’s development goals. In its submission during a public hearing on the proposed Special Economic Zones Bill and the Public Finance Management Act in Bulawayo last week, the institute said the crafting of the SEZs Bill should give impetus to the speedy implementation of SEZs.

“It’s important to have special economic zones and we’re saying a one size fits all model will not work. Bulawayo has been designated for a clothing and leather zone and it would be better to have thorough input from stakeholders so that the model is accepted by people,” PPRIZ executive director, Samukele Hadebe, said.

“SEZ couldn’t have happened without an enabling legislation. We’re saying there are best practises that we need to draw from to try and attract increased investment.

“There are a lot of advantages to derive from this policy and since we’ve taken this direction let’s ensure we make it the best model and reduce chances of failure.” Industry has bemoaned delays in the implementation of the policy. PPRI said there should be a time limit under which all entities would be required to submit their financials.

“The PFMA should demand the timely submission of businesses in special economic zones, for instance quarterly and annual reports should be submitted 21 days after the end of the business period so that a report can be compiled on time and recommendations implemented in 21 days as well,” said the institute.

The Zimbabwe Congress of Trade Unions proposed that the police and Anti-Corruption Commission be involved in deliberations by the Parliamentary Portfolio Committee so that investigations can be immediately instituted in case of anomalies.

Other participants demanded that the committee put a clause that mandates all companies operating in SEZs to hold accounts with the Reserve Bank of Zimbabwe. A suggested provision to accompany this clause was that all funds collected should be deposited within five days to curb cases of misappropriation of funds.

The SEZ Bill seeks to create an enabling environment for the development of all aspects of special economic zones that include development of infrastructural facilities, creation of incentives for economic and business activities in designated areas, removal of barriers that negatively affect operations, the regulation as well as transparency and compliance with regulatory requirements.

Parliament has said the Public Finance Management Amendment Bill was mainly targeted at bringing sanity to the public enterprise sector, which has persistently drained the fiscus of scarce resources through poor corporate governance practices, rampant abuse and theft of public funds and assets.

The Public Finance Management Bill seeks among other things to address conflict of interest in the supervisory functions of line ministries over public entities. The Parliamentary Portfolio Committee on Finance and Economic Development led by Mutoko South MP David Chapfika held nationwide consultations on the SEZ and PFMA Amendment bills with the public and stakeholders last week.

Both bills were gazetted last November. Zimbabwe intends to establish SEZs, which are geographical areas governed by one oversight management body that offers special trade incentives to companies that establish themselves in the designated zones.