Zimbabwe’s Special Economic Zone (SEZ) incentives have reduced machinery acquisition costs by approximately 40%, supporting a US$12 million agro-processing investment by Davipel Holdings at Sunway City.
In a statement, yesterday, the company’s Chief Executive Officer, Davison Norupiri, said tax incentives should prioritise lowering the cost of industrial equipment to encourage production, investment and economic growth, rather than focusing mainly on rewarding profits.
“Let us incentivise the machine, let’s not incentivise the profit. When we reduce the cost of acquiring machinery, we make it easier for businesses to invest in production, establish manufacturing operations and expand their industrial capacity.
The focus should be on enabling companies to acquire the equipment they need to produce goods, add value to local resources and contribute to economic growth,” Norupiri said.
He said the incentives available to investors operating under the SEZ framework had significantly reduced the cost of acquiring equipment, helping make capital-intensive industrial projects more viable.
“The reduction in machinery acquisition costs by approximately 40% demonstrates how targeted incentives can support investment in productive capacity,” Norupiri said.
Davipel Holdings’ US$12 million investment in agro processing at Sunway City illustrates the potential role of investment incentives in supporting value addition and industrial development.
Agro processing enables agricultural produce to be transformed into finished or semi-finished products, creating opportunities for manufacturing, employment and stronger links between agriculture and industry.
