via MPs divided on economic zones | The Herald January 28, 2015 by Zvamaida Murwira
Members of the National Assembly were yesterday divided on a motion calling for the establishment of special economic zones as a key policy instrument in boosting economic growth and development.
The motion, moved by Chegutu West constituency representative, Cde Dexter Nduna (zanu-pf) and was supported by zanu-pf legislators, saw MDC-T MPs being divided as some supported it while others did not.
Bulawayo South MP, Mr Eddie Cross (MDC-T), who seconded the motion threw his weight behind it and gave examples of China whose economy he said boomed on the back of special economic zones. Legislators from his party, however, did not support it saying that could not be used as a panacea to address economic challenges.
In his contribution, Cde Nduna said special economic zones were increasingly becoming a strategic tool of choice for governments in attaining local and foreign direct investment.
He gave examples of some Sadc countries such as Zambia, South Africa, Mozambique and Mauritius that he said developed vibrant policies on special economic zones. “Foreign Direct Investment will lead to job creation. We need tax laws that encourage investment like giving tax holidays to investors,” said Cde Nduna.
Mberengwa East MP Cde Makhosini Hlongwane (zanu-pf) said countries like Botswana had developed to be middle income earning countries riding on special economic zones.
He said a country could not rely on commodities like minerals alone because they were at the mercy of global price fluctuations.
“Your system should allow production…Special economic zones are the way to go,” he said.
He said some of the benefits include skills and technological transfer to citizens.
Cde Hlongwane said addressing issues like ease of doing business was crucial to enhance investment.
He said registering a company in Zimbabwe took months while in other countries it was done in a few hours.
Bikita West MP Dr Munyaradzi Kereke, said while it was prudent to set up special economic zones there was need to address other issues like infrastructure as espoused by Zim-Asset.
Uzumba MP Cde Simba Mudarikwa (zanu-pf) said there were several bureaucratic obstacles like many legislation that one needed to comply with when one wanted to invest could act as a barrier.
These, he said, were some of the issues that needed to be addressed.
Meanwhile, second reading debate on the Reserve Bank of Zimbabwe Debt Assumption Bill was deferred to today to allow the portfolio committee on Budget and Finance to present a report on its views about the Bill.
Committee chairperson Cde David Chapfika, requested Finance and Economic Development Minister Patrick Chinamasa to defer debate so that they finalise their report.
The Bill seeks to have Government assume the $1,2 billion debt incurred by the central bank.
In his second reading speech, Minister Chinamasa said settlement of each claim would be subject to validation and reconciliation.
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