Special economic zones sezs could boost zimbabwes sluggish economic growth by increasing foreign investment but need to be developed diligently, a leading local think tank has said. Special economic zones not an easy project the zimbabwe. The role of special economic zones in improving effectiveness of greater mekong subregion economic corridors although this risks identifying each special zone as different and obscuring the common features of successful sezsabonyi. A special economic zone sez is an area in which the business and trade laws are different from the rest of the country. The zones are managed by the zimbabwe special economic zones authority zimseza, but there has been no movement in these zones as investors do not see any real benefits of moving to those. Zones can be categorized into public or private zones owned or managed, and highend or lowend. Here is short snippet of issues that are addressed in the special economic zones act in zimbabwe. The sez act envisages public private partnerships in the development and operation of special economic zones. Jamaica special economic zones authority facilitating. Lovemore chikova assistant editor special economic zones are an important part of the investment strategy being pursued by the new dispensation through the zimbabwe investment development agency zida. Licensed entities under the seza will be able to bene. The sez act looks to establish a zimbabwe special economic zones authority, which will be the operative vehicle, and the special economic zones those guaranteed by the constitution and by the labour act of zimbabwe 1992 and the apposite ilo conventions that the government has ratified. To create economies of scale good enough for the locator of the proposed sezs to.
Special economic zones sezs are generally defined as geographically delimited areas administered by a single body, offering certain incentives dutyfree importing and streamlined customs procedures, for instance to businesses that physically locate within the zone. To enhance the attractiveness of the special economic zones sez, the minister has proposed the following tax incentives for entities designated as sez s. In addition, as well as to operationalise the sezs, the board has been constituted, however, on a parttime basis with modest remuneration allowances to avoid becoming an additional burden on the budget, finance minister patrick chinamasa said in the 2018 national budget. Chapter 4 chinas investment in special economic zones in africa 69. Aug 20, 2015 this week we will focus on harares special economic zone, the sunway city integrated park. The impacts of special economic zones evans school of. Invest in zimbabwe through our special economic zones that are overseen by zimbabwe special economic zones authority zimseza. Special economic zones could boost zimbabwes economy. Special economic zones act chapter 1434 an act to provide for the establishment of the zimbabwe special economic zones authority and to provide for the functions thereof. An act to provide for the establishment of the zimbabwe special economic. An act to provide for the establishment of the zimbabwe special economic zones. How can africa ensure success for special economic zones. The world economic forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas. Zim understudies special economic zones zimbabwe situation.
This week we will focus on harares special economic zone, the sunway city integrated park. The act provides for the establishment of sezs, their administration, control and regulatory measures and incentives to be offered. Section 2, 3 and 4 deals with who we are and how we are constituted. Nairobi ministry of industrialization and enterprise. The act will come into operation on 15th december, 2015. In particular section 4 puts the responsibility on the special economic zones authority zimseza to run the operations and management of sezs. Strengthening the implementation of the integrated results based management system in zimbabwe zimbabwe s development trajectory is guided by the blue print known as the zimbabwe agenda for sustainable socio economic transformation zim asset. Special economic zone, industrial park, industrial development, industrialization. Leigh anderson prepared for the agricultural policy and statistics division of the bill and melinda gates foundation evans school policy analysis and research epar professor leigh anderson, pi and lead faculty. Special economic zones open knowledge repository world.
Zimbabwe selects three locations for special economic zones. To restore the economys capacity to produce goods and services competitively. This shall be done through special arrangements such as laws that apply differently to the rest of zimbabwe. Lessons from the international experience and implications for tourism zone development.
Historical development of free zones in honduras 48 performance 49 key success factors 54 challenges for the future 61 conclusion 65 notes 67 references 68. Sunway city was established by the industrial development corporation of zimbabwe idcz in partnership with sunway city malaysia in 1996, but the deal failed to take off following the financial turmoil in most asian countries then. Reports definition of special economic zone 11 structure of the report chapter 2. Jun 20, 2019 lovemore chikova assistant editor special economic zones are an important part of the investment strategy being pursued by the new dispensation through the zimbabwe investment development agency zida. Zimbabwes special economic zones are being established to fulfil the following objectives. How to make special economic zones work the zimbabwe. Sezs are located within a countrys national borders, and their aims include increased trade balance, employment, increased investment, job creation and. To date, government has designated a number of sites as special economic zones. The two laws that the potential investors should acquaint themselves with are the special economic zones act and the zimbabwe investment. Special economic zones sezs geographically delimited areas within which governments. President signs special economic zones bill the herald.
Special economic zones act 16 of 2014 south african government. Special economic zone board means the board of directors of an individual special economic zone entity appointed in terms of section 255. Zimbabwe has touted sezs as a key pillar in attracting scarce foreign direct investment and creating employment in an economy where independent analysts estimate that between 80. The zones are managed by the zimbabwe special economic zones authority zimseza, which was established by the government last year. Nov 21, 2018 to begin with, the special zones act was enacted in november 2016 as part of the governments efforts to engage foreign investors and, reversing the countrys economic decline.
An act to provide for the establishment of the zimbabwe special economic zones authority and to provide for the functions. Chitambara is a development macroeconomist based in harare. Zimbabwe is strategically located at the heart of southern africa, making it land linked through the northsouth corridor which connects the southern african countries. Zimbabwe has selected three locations for setting up pilot special economic zones sezs as the country seeks to reawaken investor interest after a dearth in foreign direct investment, a government minister said yesterday. Zim understudies special economic zones dailynews live business writer 21 november 2017. To enhance the attractiveness of the special economic zones sez, the minister has proposed. The term, special economic zones sezs refers to free trade zones, free ports, export processing zones, industrial parks, and economic cooperative zones see annex 1 for a comprehensive list of most common types. Special economic zones act 16 of 2014 south african.
Experience gained in the development of chinas special economic zones, china development bank continued from page 1 existing sezs in china in 2014, there were 6 sezs, 14 open coastal cities, 4 pilot free trade areas and five financial reform pilot areas. Dr z tambudzai1 and dr o chikuta2 paper presented at stthe midlands state university 1 international. The concept is not new to the country, with the special economic zones act having been passed in 2016. Special economic zones sezs or industrial parks can be an effective. Progress, emerging challenges, and future directions. Through this act, the zimbabwe special economic zones authority was established to oversee and assist companiesinvestors keen to conduct business in these areas. These point to the processes that the investors have to follow for them to operate in zimbabwe. In addition, as well as to operationalise the sezs, the board has been constituted, however, on a parttime basis with modest remuneration allowances to avoid becoming an additional burden on the budget. Sep 15, 2017 there is need for highlevel political support and broad commitment to ensure the successful implementation of sezs in zimbabwe.
Special economic zones sezs emerged internationally as a policy to support industrial development in particular by providing for the introduction of targeted incentives and infrastructure. Dr z tambudzai1 and dr o chikuta2 paper presented at stthe midlands state university 1 international research conference. Let us briefly look at the major provision of the special economic zones act. Given longer term funding constraints, the sez act and the sez draft strategy encourages the private sector to play an active role in the south african special economic zones programme. Download special economic zones act chapter 1434 veritas 1. Zimbabwe s bill on special economic zones sezs proposes to exempt businesses from restrictions imposed by the countrys labour and local ownership as the government tries to court investors, but labour unions argue the move would undermine workers rights. Legislation online veritas, zimbabwe pdf consulted on 20170526 abstractcitation. The jamaica special economic zones authority jseza is the agency of the government of jamaica responsible for facilitating the development of and promotion investments in special economic zones sezs in jamaica. Jul, 2018 the zones are managed by the zimbabwe special economic zones authority zimseza, which was established by the government last year. This has made the country a regional logistics hub supported by railways, roads, power and telecommunications.
The operations of the authority shall, subject to this act. Incorporated as a notforprofit foundation in 1971, and headquartered in geneva, switzerland, the forum is tied to no political, partisan or national. The sez will be governed by the special economic zones authority authority whose roles shall be. Felex share senior reporter president mugabe yesterday finally signed into law the special economic zones bill in a move that is expected to see the country. The concept of sez is described by different countries of the world is no less than 19 different terms, such as free trade zone ftz, industrial zone singapore. Special economic zones for agricultural production and. There proceedings of the international multiconference of engineers and computer scientists 2014 vol ii, imecs 2014, march 12 14, 2014, hong kong isbn. The main objectives of the sez act, 2005 8 include. Quick wins for zimbabwe to attract fdi inflows newsday.
Harare zimbabwe has begun understudying various countries that successfully implemented the special economic zones sezs concept as part of strategies to have greater understanding of the notion, businessdaily has established. They are designated areas where economic regulations are different from those of the rest of the. The special economic zones sezs act was promulgated into law in october 2016, largely to attract foreign direct investment fdi inflows, generate employment and promote exports. Special economic zones act chapter 1434 zimbabwe congress. How to make special economic zones special zimbabwe. The latter distinction refers to the range of quality of management, facilities and services provided by the zone and therefore, the type of firms populating it. The geographic designation of special economic zones wendy nyakabawo november 2014 abstract. Proposed tax incentives for investors in special economic zones the special economic zones act chapter 14. How to make special economic zones special zimbabwe situation. Exemption from corporate income tax for the first 5 years, thereafter 15%.
Promoting and marketing sezs to potential developers. Be it enacted by parliament in the fiftysixth year of the republic of india as follows. An act to provide for the establishment of the zimbabwe special economic zones authority and to provide for the functions thereof. The jseza was established in 2016 under the special economic zones act. Felex share senior reporter president mugabe yesterday finally signed into law the special economic zones bill.
The geographic designation of special economic zones. Results based management zimbabwe government portal. Should you require any further clarification, please do not hesitate to contact us. Special economic zones sezs or industrial parks can be an effective instrument to promote industrialization if implemented properly in the right context, as shown in some of the emerging countries, particularly those in east asia. A special economic zone sez refers to designated areas in countries with special economic regulations that differ from other areas in the same country. Zimbabwe to exempt special economic zones from labour and. Sezs are located within a countrys national borders, and their aims include increased trade balance, employment, increased investment, job creation and effective administration. Part iitiie special economic zones 4declaration of special economic zones.
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