Zimbabwe’s industrialisation agenda is gathering momentum, with the operationalisation of incentives for investors in Special Economic Zones (SEZs) attracting new investment, expanding production and creating employment.
The development is in line with President Emmerson Mnangagwa’s call for the Government to implement ease-of-doing-business reforms and accelerate industrialisation.
Government’s strategy of designating specific areas for specialised economic activities such as manufacturing, mining, agro-processing and tourism is recording positive results, with Sunway City in Harare, the Bulawayo Industrial Corridor, Masuwe State Land in Victoria Falls and Fernhill in Mutare among the designated SEZs.
SEZs provide businesses with special measures, including tax incentives, exemptions and favourable regulatory arrangements, to encourage investment, create employment and boost exports.
At Harare’s Sunway City Special Economic Zone, increased industrial investment has contributed to employment creation, with workers benefiting directly from the expansion of businesses operating under the incentive framework.
“I am formally employed here in this factory and it is a testimony of how incentives for business are translating to employment creation,” an employee said.
Industrialist Davison Norupiri said Government incentives had played a significant role in expanding his business and increasing investment in machinery.
“Indeed, this is one of the game changers for the economy because such a trend has enabled us to expand. Remember, it is through the current incentives that we have expanded our production base and broadened the scope of business,” he said.
“To me, it is all about the journey that I have travelled so far, where growth and massive investments in machinery have laid the real path to overall growth in the future,” Mr Norupiri added.
According to the Zimbabwe Investment and Development Agency (ZIDA), business interest in SEZs continues to increase, reflecting growing investor confidence in the country’s investment environment.
Industrialist Graeme Barr said the increased investment demonstrated that Zimbabwe was moving in the right direction.
“Indeed, what is happening in Zimbabwe is really interesting because this economy is on the right path to growth as reflected by massive investments that have opened up the scope of business in key economic sectors,” he said.
“From my own assessment, this is the way to go for the nation, as the private sector is confident of recovery in the near future,” Barr added.
In his State of the Nation Address, President Mnangagwa reaffirmed Government’s commitment to sustaining ease-of-doing-business reforms as part of efforts to attract investment and strengthen domestic industry.
“The manufacturing sector continues to register growth underpinned by value chain development, increases in capacity utilisation and overall productivity; these encompass iron and steel, cement, clinker as well as pharmacies among other sub-sectors,” President Mnangagwa said.
He added: “To further spur growth, Government has reviewed numerous licences, permits, levies, as well as multiple requirements; this will further enhance the ease-of-doing-business environment and improve the competitiveness of the local industry.”
Government describes SEZs as designated areas offering tax breaks, duty-free equipment and favourable regulations aimed at boosting exports, attracting investment and creating employment.
