SEZs the panacea to Zim economy

Brian Mudumi and Takudzwanashe Mundenga
Special Economic Zones (SEZs) could be a panacea to Zimbabwe’s socio-economic rigidities. These incentive-packed, geographically designated areas can restore Zimbabwe’s economy that has been emaciated by both internal and external economic challenges to its status as the “breadbasket of Africa” once again. Drawing conspicuous lessons from the Look East policy, it is crucial to pinpoint the successful footprints of the Asian dragon in the quest to transform this Southern African country. If Zimbabwe is to explore its potential economically, it would be advisable to start with Norton as a SEZ experiment.

Meanwhile, Zimbabwe is pursuing the Look East policy; creating special ties with Asian countries and deepening economic relations with China which has opened its market to the outside world. To help quicken the pace of modernisation, the state in China has encouraged foreign investment and the import of advanced technology. In 1980, China began establishing special zones for foreign investment.

The original four were called Special Economic Zones (SEZs) and consisted of Shenzhen, Zhuhai, Shandou, and Xiamen, all in southeastern China. By the late 1990s a variety of similar types of zones had been added, including a fifth SEZ, Hainan Island.

Most zones are located in urban economic centres, particularly coastal cities; cities along the Yangtze River, provincial capitals, and cities and towns along China’s borders. To have China as an exemplary pacesetter in development means Zimbabwe as an emerging economy has a lot to learn from its Far East counterpart.

Currently, Zambia is reaping over US$1 billion worth of FDI, which is four times what Zimbabwe is earning as a result of the SEZs. In 2013, our Ministry of Economic Planning and Investment Promotion reported that the amendment of the Investment Act legislation entailed the creation of SEZs. That’s when the government handpicked Bulawayo, Beitbridge, Mutare and Norton as set to be declared Special Economic Zones.

The applicability of an area or a region for the establishment of a SEZ is more related to its geographical suitability and resourcefulness. Norton passes the litmus tests. Norton is a small town situated in Chegutu rural, Mashonaland West Province. It is located 40 kilometres south-west of Harare along the highway and railway line connecting Harare and Bulawayo. Making the town a SEZ will be an “early bird” initiative to kickstart Zimbabwe’s national economic revitalisation.

Irrefutably, the area has tantalising agricultural and mining prospects being positioned next to the Great Dyke with its chrome and PGMs as well as considerable gold deposits. It is possible for Norton to become the Jewel City of Zimbabwe.

The former Ambassador to China, Cde Christopher Mutsvangwa, who also happens to be the Norton MP, envisioned that with Norton as a SEZ, it will grow to become a bustling town pulsating with activity with ambitions to topple Harare as the largest city in Zimbabwe.

Norton has well watered fertile soils that can provide wheat, soya and maize which can supplement grazing grass to raise premium beef cattle. The bountiful lands in the hinterland were the envy of British colonial nobility as demonstrated by the forfeited Kentyre Estates of British Royalty. These abundantly rewarding soils that were the backbone of thriving indigenous communities enticed the Pioneer Column to lay permanent occupational to this region. Colcom Triple C already owns a world-class pig processing facility in the town.

The farmers in the hinterland are also engaged in commercial poultry production. There is also a mothballed tomato processing factory in the town, justifying the production of vegetables in the urban periphery. All these agro-industrial enterprises can form a core of a very successful food processing base that harnesses the fresh energy of the new farmers who benefited from the land reform programme.

The town already has infrastructural advantages of plenty water for irrigation, domestic and industrial purposes from Lake Chivero and Darwendale Dam, which can make fisheries the main source of employment in the informal sector. The two lakes are also responsible for supplying 80% of Harare’s water needs. Norton’s proximity to two aerial hubs, the Harare International Airport and the private Charles Prince Airport places it at a logistical advantage to convey agro-products to regional and global markets.