The Sunday News
Dumisani Nsingo Senior Business Reporter
GOVERNMENT is still working on identifying the specific areas to be declared Special Economic Zones and assessing the feasibility of the process in helping to turn around the economy, a Cabinet minister has said.
In an interview in Bulawayo on Thursday, Industry and Commerce Minister Mike Bimha said Government, working with local and international experts, was still engaged in consultations and finding which areas and what value the zones would bring.
“The setting up of SEZs is still work in progress. It’s something which needs a lot of discussion and soul searching, even for those (countries) who have done it. They will tell you that it started off more as an experiment.
“China was successful in implementing it and it’s one of the factors that has led to the phenomenal growth of its economy. In Africa it has been done in some West African countries and has been a success although not to the extent of China and in some of the countries it has failed,” Minister Bimha said.
The term special economic zone is commonly used as a generic term to refer to any modern economic zone.
In these zones business and trade laws differ from the rest of the country.
The aims of the zones include: increased trade, increased investment, job creation and effective administration.
To encourage businesses to set up in the zone, financially libertarian policies are introduced. There policies typically regard investing, taxation, trading, quotas, customs and labour regulations. Additionally, companies may be offered tax holidays.
Minister Bimha said areas that would be targeted to be established as special economic zones should be those that are endowed with resources but were failing to grow economically due to lack of credit lines or foreign direct investment.
Bulawayo and Victoria Falls have been identified as some of the areas earmarked for declaration as economic zones.
“The issue is not to copy from other countries but to find areas which are critical and come up with incentives to attract both local and foreign investors.
“The areas might be selected because of their geographical location or it might be due to the presence of a certain product,” he said.
Confederation of Zimbabwe Industries president Mr Charles Msipa said the creation of the zones needed concerted efforts by various stakeholders.
“What is important is for stakeholders to agree on time frame for the implementation of key economic policies such as the creation of special economic zones which are important for the revival of a subdued economy like ours,” he said.
Association for Business in Zimbabwe chief executive officer Dr Lucky Mlilo said there was a need for Government to expedite the creation of SEZs so as to accelerate the growth of the country’s economy.
“SEZs are important, it’s something that businesses have been talking about for some time and we don’t know what is stalling the process of setting them up. They should be introduced as soon as possible.
“Once an area is declared a special economic zone there will be a lot of incentives that will be awarded to those that will invest there and this brings about development and economic turnaround,” he said.
