FINANCE minister Patrick Chinamasa says he will in the coming few weeks present a dossier on Special Economic Zones (SEZ) to Cabinet for approval as part of government efforts to attract foreign direct investment (FDI). Victoria Mtomba BUSINESS REPORTER
Presenting his 2015 National Budget recently, Chinamasa said industries countrywide were facing formidable challenges which required substantial investment injection.
“In the coming week, I will be presenting Special Economic Zones proposals to Cabinet for approval,” Chinamasa said during the budget presentation last week.
He said work on SEZ was at an advanced stage and government was working on a hybrid approach in which several models were being pursued.
These include single factor, product specific, industrial parks, knowledge-based service, multi-sectoral wide area models among others.
Chinamasa said the models would take into account the economic situation, sources of comparative advantage and practical considerations.
“Once these processes are complete, I will be tabling the Special Economic Zones Bill for consideration by honourable members by mid-2015,” he said.
A SEZ is a geographical region that is designed to export goods, generate employment and provide special trade incentives to stimulate local and direct foreign investment.
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Government says the SEZ would be developed using models cited in China, India, South Korea, Malaysia, Singapore and Dubai.
For the past five years, Zimbabwe has attracted FDIs amounting to $1,45 billion which is below what its regional counterparts have attracted during the same period.
The country has not been attracting FDI due to the indigenisation policy which tended to scare away foreign investors as it requires that foreign firms cede 51% shareholdings to locals.
