Sunway City targets 70% growth in five years

Sunway City, one of Zimbabwe's flagship special economic zones (SEZs) and a major smart city development project, is aiming to reach at least 70 percent completion within the next five years as part of broader efforts to accelerate the country's industrialisation and expand access to affordable housing.

Currently developed to around 35 to 40 percent of its total capacity, the project forms part of the government's National Development Strategy 1 (NDS1) and already hosts over 36 local and international investors who collectively employ more than 1,000 people. Positioned along Mutare Road and spanning 1,559 hectares, Sunway City is being developed as a fully integrated smart city with industrial, residential, institutional, and commercial components.

The origins of Sunway City trace back to the 1990s, when a partnership between the then Malaysian Prime Minister Dr Mahathir Mohamad and the late Zimbabwean President Robert Mugabe was struck. The name itself blends Harare's "Sunshine City" identity with Malaysia's "Sungwei" export processing zone, reflecting its ambition to become a regional economic hub.

Sunway City CEO Mr Collin Mutingwende said the project remains on a strong growth trajectory, buoyed by investor confidence and continued government support. "Currently developed at 35 to 40 percent of its total capacity, Sunway City aims to reach at least 70 percent development within the next five years. The project currently hosts approximately 36 investors and continues to attract both local and foreign investment," he said.

Mutingwende underscored the importance of local investor participation in strengthening the economy, particularly through import substitution strategies that help preserve scarce foreign currency. The SEZ model underpinning Sunway City offers attractive incentives, including zero corporate tax for the first five years of operation and duty-free importation of capital equipment for qualifying investors.

Job creation is another major focus of the development. While Sunway City itself directly employs around 30 staff members, the companies operating within the zone have become key contributors to employment, with some entering joint ventures with Sunway City to deepen local economic integration.

The development's master plan includes designated industrial zones for manufacturing and value addition of local raw materials, as well as high-, medium- and low-density residential areas. It also envisions educational institutions, hospitals, a regional shopping mall, a solar power park, and high-rise apartments designed to accommodate the workforce.

However, the project has not been without challenges. A major hurdle remains the unreliable municipal water supply, which currently forces most businesses in the area to rely on boreholes. "Water is only available once or twice a month from municipal sources," Mutingwende noted.

Historical sanctions on the Industrial Development Corporation of Zimbabwe (IDCZ), which owns Sunway City under the Mutapa Investment Fund, have also constrained funding efforts. Nonetheless, support from institutions such as the African Development Bank, the Industrial Development Corporation of South Africa, and various local banks has helped to keep the project on course.

Mutingwende reaffirmed the project's commitment to sustainable development. "Sunway City's mandate is to develop eco-friendly, world-class integrated industrial, commercial, institutional and residential parks to facilitate industrialisation and economic growth," he said.

As Zimbabwe continues to position itself as an emerging investment destination, Sunway City is expected to play a vital role in transforming the nation's urban and industrial landscape.