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Business Editor
THE government plans to set up a Special Economic Zones Authority which will spearhead the implementation of the special economic zones concept that is expected to drive industrial growth and job creation.
Finance and Economic Development Minister Patrick Chinamasa said this on Thursday when the Special Economic Zones Bill was read for the second time in Parliament.
Parliament would this week conduct public hearings on the proposed Bill, which will pave way for its adoption and implementation.
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 will “contribute to Zimbabwe’s development goals”, said Chinamasa adding this would also facilitate the utilisation of resources in the most efficient and cost effective way.
He said the Bill seeks to create an enabling environment for the development of all aspects of Special Economic Zones. These include development of infrastructural facilities, creation of incentives for economic and business activities in designated special economic zones, removal of barriers that negatively affect operations, the regulation and administration of activities within the SEZs as well as transparency and compliance with regulatory requirements.
“Clause three creates an institutional framework in terms of which the Zimbabwe Special Economic Zones Authority is established. The authority’s operations shall be controlled and managed by a board consisting of men and women with diverse skills and experience from both the private and public sectors in line with Clause five,” said Chinamasa.
He said Clauses six to 17 deals with various procedural matters relating to board members, including vacation of office by a member, meetings and procedures of meetings and disclosure of interest of members of the board.
“Clause 18 sets out the functions of the Authority which shall include the establishment of SEZs in which export-oriented industrial activities will take place whether by way of manufacturing, processing or assembling of goods or providing services for the purpose of selling domestically or exporting such goods and services,” he explained.
The minister also said the Bill, once approved, would assist in attracting foreign direct investment into SEZs and granting investment licences for investment in SEZs.
“The authority will also have function to grant permits to developers of Special Economic Zones areas for infrastructure development including road works, information and communication technology works, water and electricity works.
“It’ll also create or be enabled to create a single institution through which applications for the approval of investment in Special Economic Zones shall be made and through all necessary approvals, licences and permits may be granted or issued in respect of approved investments,” Chinamasa said.
The new authority, he said, would also have the function to monitor and evaluate the implementation of approved investments in SEZs.
In terms of Clause 20, Chinamasa said, the authority may declare any area or premises to be a special economic zone.
He said any person who wishes to obtain approval to invest in a SEZ or for his or her business to be approved as an activity in a SEZ, shall submit an application to the authority.
Chinamasa said the authority shall, within five working days be required to approve or refuse to approve any application for an investment licence and keep a register of all investment licences.
Its operations are expected to minimise dependency on budgetary support hence the Bill in Clause 46 provides for the authority to levy some fees that will help finance its operations.
The Bill would provide for general fiscal and non-fiscal incentives to licensed investors operating in an SEZ to be prescribed in accordance with Clause 58.
Online Reporter