THE Zimbabwe Investment Authority (ZIA) says the recently gazetted Statutory Instrument (SI) 59 of 2017 will attract investment provided that it is among “other fiscal incentives”.
BY TATIRA ZWINOIRA
ZIA chief executive officer, Richard Mbaiwa told NewsDay yesterday that any incentive that could go against the status quo would go a long way in terms of making the country an attractive investment destination.
“We think that obviously it (SI 59 of 2017) will incentivise investors to actually want to invest in this new frame work of SEZs [Special Economic Zones],” he said.
“There is now a legal framework in place that is now provided for in SI 59 of 2017. I think it will give comfort to people seeking to invest in SEZs to know that they will get these rebates obviously among other fiscal incentives applicable in the special economic zones.”
The government recently gazetted SI 59 of 2017, where rebates on raw materials, intermediate products and machinery imported for use in SEZs has been granted.
Keep Reading
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
“I think, on the whole, the rebates are to ensure that goods are actually going into the SEZs production,” Mbaiwa said.
“They want to make sure that only qualified projects shall be granted that rebate and ensure that the rebate is used according to the intended purpose. So we think it is a good incentive to motivate investment.”
This comes as the Macroeconomic Planning and Investment Promotion ministry has been actively advertising SEZs to investors to try and bring in the much needed investment.
Under section 4 of the SI, only investors with a valid investment licence issued in terms of the Special Economic Act can benefit from the legislation.
Further, the investor must provide evidence that the particular SEZ they will be operating under is not in an industrial park.
However, experts say that SI 59 of 2017’s effectiveness can only succeed if it works in tandem with other incentives.
ZIA recorded a drop of over $1 billion in projects approved in 2016 from a high of $3 billion recorded in the previous year.
In November 2016, President Robert Mugabe signed the Special Economic Zones Act into law.