Online Reporter
Judith Phiri [email protected]
Bulawayo-based clothing manufacturing company, TICOZ Enterprise is seeking a special economic zones (SEZ) status which offers substantial tax breaks, duty-free importing and streamlined regulations to stimulate investment, job creation and exports.
A SEZ is a geographically demarcated and secured area within which multi-sectoral business investments are conducted under a liberal legislative framework, enjoying certain fiscal and non-fiscal incentives. The Zimbabwe Investment and Development Agency (Zida) is mandated to establish and regulate SEZs in Zimbabwe.
In an interview after the tour of their manufacturing factory by the Minister of State for Bulawayo Provincial Affairs and Devolution, Judith Ncube on Wednesday, TICOZ Enterprise Operations Dircetor, Ms Tafadzwa Zimbudzana said they were seeking they SEZ status considering the work that they were doing despite having low export volumes.
“We have tried to engage Zida and they are saying for us to qualify to be a SEZ we have to export 80 to 100 percent of our products, which we currently cannot do at the most as we are focused on supplying the local market.
“However, on other areas we do tick the boxes, we are employing locally and young people as well, we are doing corporate social responsibility (CSR) and we have been in business for years, so at least if we can benefit from the subsidies that would come with the SEZs,” she said.
“They say Belmont is in a SEZ but it is only a few companies benefiting. So, that is a challenge because when you now look at our rates, they are extremely high and there is no ease of doing business for us.”
She said if they could be able to get at least subsidies that come with the SEZ status, they would be to increase and expand their business.
Ms Zimbudzana said they were manufacturing for some big clothing retail chains and Government institutions, while they were seeking their market further.
“Our main customers include Edgars, Jet and we have started engaging Hwange Colliery and Tongaat Hulett, but if we also got support in terms of orders as well from the Government then we can increase our expansion, we can hire more people because we make loads.
“These include uniforms, corporate wear, regalia and promotional information is stuff that we could also make here and then by default it would increase as well our productivity and increase our ability to be able to hire people,” she said.
She said currently they were operating with 200 employees which was about 35 to 40 percent as their capacity could go up to 650 people in their premise.
Ms Zimbudzana said they import most of their raw materials from China and per month they were producing 18 000 to 20 000 unit, while they had capacity to produce more if they could get orders.
Minister Ncube was accompanied by a delegation comprising Joint Operations Command (JOC) members, Government officials and stakeholders from various sectors who were on a two-day tour of key development and legacy projects in Bulawayo.
The visits form part of Government efforts to gain a clearer understanding of the scope, implementation status and challenges affecting strategic projects across the city, while identifying interventions required to ensure their timely completion.
