Byo avails incentives for SEZs Mr Christopher Dube
Mr Christopher Dube

Mr Christopher Dube

Prosper Ndlovu, Business Editor
THE Bulawayo City Council has come up with a package of incentives to catalyse the implementation of special economic zones (SEZs).

The model is expected to attract increased investment in Bulawayo and help restore the city’s manufacturing hub status.

A SEZ is an area in which business and trade laws are different from rest of the country. SEZs are located within a country’s national borders, and their aims include: increased trade, increased investment, job creation and effective administration.

Bulawayo had been granted a SEZ status specifically in the leather and textiles sectors in terms of the Special Economic Zones Act (Chapter 14:34) that was gazetted recently. The Government has since appointed an 11-member board led by Dr Gideon Gono to spearhead the implementation of SEZs.

Bulawayo Town Clerk, Mr Christopher Dube, who is part of the SEZ board, indicated in the latest council report issued yesterday that the local authority has already identified four sites and came up with a package of incentives in an endeavour to position the city as an attractive destination for investment.

“Four sites have since been identified to be set aside for SEZ operations. A further option was the closed factories that offer fully serviced and ready accommodation where the owners had the opportunity to put to good use otherwise idle accommodation that risked being derelict through partnerships arrangements,” said Mr Dube.

He reported that council has been holding meetings with central Government in preparation for the rollout of the concept and applauded Government for taking the lead in availing several incentives for SEZs investors.

These have been categorised into four: fiscal incentives (corporate taxes, customs duty and so forth), non-fiscal incentives (work permits and ownership), monetary incentives (repatriation of dividends and borrowings) and incentives for SEZs developers that include land tenure, local government taxes and levies.

As such, Mr Dube said council has considered it necessary to cascade these down to the local level by coming up with its own package of incentives.

The proposed council incentives include; industrial park developers who will be awarded initial five-years of zero percent on rates, 50 percent rates reprieve for five years on exporters on stand-alone stands and those employing more than 100 workers while industrial stands are to be allocated on lease with option to purchase.

The Chamber Secretary’s valuation section has suggested among others; 100 rebate for five years on development effected within the first year, 80 percent rebate for four years on development effected within the second year, 60 percent rebate for three years and 40 percent rebate for four years in that order up to the fifth year.

Mr Dube said the percentage discounts could be further adjusted either way depending on what was agreeable.

The Health Services Directorate also added that the payment of the balance of the deposit should be spread over 24 months instead of 18 months to give the developer breathing space.

Meanwhile, the Matabeleland Chamber of Industries has been tasked to come up with proposals that would enhance SEZ operations from an industry perspective, which would be submitted direct to the Ministry of Industry and Commerce.

The Mayor, Councillor Martin Moyo, also applauded the SEZ model and hoped developers and other investors would be encouraged by the incentives.

Mr Dube explained that SEZ would not be limited to leather and textile business only. He added that so far four areas had been designated and that applications had been received on various industries for the SEZ.

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