Business / Local
Bulawayo industries revival efforts stepped up
19 Jan 2014 at 13:21hrs | Views
The government is forging ahead with the setting up of the Bulawayo Special Economic Zone, amid revelations that the process of amending legislation for the initiative to take effect has started.
The development is in line with the provisions of government's economic blueprint, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZIM ASSET).
The Zimbabwe Investment Act does not provide for a special economic zone, thereby creating the need for the amendment.
Acting Permanent Secretary for Industry and Commerce, Mr Stanicilous Mangoma told the Parliamentary Portfolio Committee for Industry and Commerce last week that special economic zones impact on the labour and tax laws hence the need for amendment of legislation for it to be legally set up.
An economic analyst, Mr Godfrey Dupwa said there seems to be political will from the government to make the special economic zones a reality, contrary to past experiences when the zones never materialised.
"This is true reflection of the sincerity of the government. The advantages of the special economic zone are that there will be more intense concentration of industries and more resources will be channeled there, not only in the form of money but capital equipment," he said.
The establishment of the zone is expected to revive Bulawayo as the hub of industrial activity in the country following the closure and relocation of several companies over the past few years.
Special economic zones are designated areas that have special economic status, enjoy lower taxes and duty free importation of raw materials, among other incentives, to create an investor-friendly environment.
The development is in line with the provisions of government's economic blueprint, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZIM ASSET).
The Zimbabwe Investment Act does not provide for a special economic zone, thereby creating the need for the amendment.
Acting Permanent Secretary for Industry and Commerce, Mr Stanicilous Mangoma told the Parliamentary Portfolio Committee for Industry and Commerce last week that special economic zones impact on the labour and tax laws hence the need for amendment of legislation for it to be legally set up.
An economic analyst, Mr Godfrey Dupwa said there seems to be political will from the government to make the special economic zones a reality, contrary to past experiences when the zones never materialised.
"This is true reflection of the sincerity of the government. The advantages of the special economic zone are that there will be more intense concentration of industries and more resources will be channeled there, not only in the form of money but capital equipment," he said.
The establishment of the zone is expected to revive Bulawayo as the hub of industrial activity in the country following the closure and relocation of several companies over the past few years.
Special economic zones are designated areas that have special economic status, enjoy lower taxes and duty free importation of raw materials, among other incentives, to create an investor-friendly environment.
Source - zbc
