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GOVERNMENT is set to establish Special Economic Zones in seven destinations as part of efforts to attract foreign direct investment, Finance Minister and Economic Development Patrick Chinamasa has said. “The Government has targeted industry and zones for SEZs in Bulawayo (leather and textiles); petro-chemicals, Lupane; tourism, the swathe of territory or corridor stretching from Victoria Falls-Gwayi–Binga–Kariba; finance, Victoria Falls; technology hub, Sunway City; and diamond cutting, Harare and Mutare,” he said.
Special Economic Zones are demarcated geographical areas within a country’s national boundaries where the regulation of firms’ activity and the dedicated policies are differentiated from those applied to firms outside the zone. The regulations are aimed at creating a policy environment and associated infrastructures that are exporter friendly, for both domestic and foreign producers.
The zones will offer investors tax and administrative advantages. It is anticipated that the SEZ will help promote value addition and product beneficiation in line with Zim-Asset, the country’s medium-term economic blue print as well as regional industrialisation initiatives under the Southern Africa Development Community and all umbrellas.
“Successful implementation of Special Economic Zones will attract increased foreign direct investment, that way increasing capacity utilisation in the economy,” he said.
Zimbabwe requires FDI to stimulate the economy and enhance competiveness. China, the world’s second largest economy after the US introduced SEZs in the 1970s as part of its policy to open up to international trade.
Online Reporter