Bulawayo to wait longer for Special Economic Zone status

BULAWAYO has to wait a little longer for Government to declare the city a Special Economic Zone as there are researches that are still being done to determine its feasibility, an official has said.

Minister of Industry and Commerce Mike Bimha said it had proven a difficult task to set up the economic zones at a time captains of industry were grumbling over delays.

Bulawayo and some of the towns that include Beitbridge, Mutare and Norton had been earmarked by the Government to be declared SEZs in an effort to attract investors.

In an interview Bimha said coming up with SEZs was a daunting task that required due diligence.

"It's not easy to just come up with special economic zones just because we have mentioned it. A lot of studies and discussions have to go into it. I have always said it does not matter that it is said three times or 300 000 times, what is important is that when it does come, it's something that we all had an input into and something that will have a desired effect," he said.

Bimha said discussions were still going on to ensure that they come up with a perfect arrangement.

"There have to be discussions at high level and there have to be more studies further to be done and I believe we will come up with a formula that works for us and it's an issue that the Government is very much seized with at the moment so it is just a matter of time we will be able to see some models of SEZ in place," said the minister.

In interview, economist Mr Prosper Chitambara said there was a need for the Government to take a cautious approach before it starts coming up with SEZs as failure to do that they would also fail.

"The Government is taking time to set up the SEZs but what is important is that it should remove the bottlenecks that may impede the coming of FDIs," said Mr Chitambara and added that investors wanted to invest in a country that poses less risk.

He said if the local investors were not investing in the country, FDIs would also become low.

"If the local investment is low FDIs also become low. FDIs come to complement local investments," said Mr Chitambara.

The economist added that the country should also tackle the high costs of doing business.

"Currently there is a challenge of shortage of water, electricity and very few foreign investors would want to invest in such a country. They would rather go elsewhere where they can get these utilities easily," said Mr Chitambara.

Matabeleland Chamber of Industries chairman Mr Busisa Moyo said Bulawayo continued to suffer and business had gone down by between 10 and 30 percent in the first quarter of the year.

He said captains of industry in the city were not happy with a number of issues among them availability and cost of services.

"We need to sit down with the council and Zesa to discuss the issue of water and electricity. The cost, the availability and all these have to be addressed to promote local companies."

These are some of the issues that must be addressed first when an area must be declared a special economic zone.

Bimha also said Government was still fine-tuning the takeover of Ziscosteel by Essar.

This is also one of the projects that has worried the business community as it has taken long to be implemented.

"The ESSAR deal is still in progress and it's on course and it's a very big project as you know and there are a number of issues that we continue to polish up but the issue is still on course," he said.

He also said although the deal had taken long to be sealed, he was optimistic that it would be concluded soon.

"Yes, it has taken long time but you also know that even if you start a project there are a number of environmental factors that do affect its implementation and what is important is that the Government and the investor is still committed and we are working very hard to make sure that we fine tune all those loopholes that we need to and I am happy that this is taking place and that its still on course as I said and we will appraise you," said the minister.

Economists have always noted that Zimbabwe was slow and sometimes indecisive in implementing business deals and transactions further denting the country's ranking of ease of doing business.

Some of the projects and ideas end up being overtaken by events or being stolen by other countries who quickly implement them.