GOVERNMENT is putting in place export and investment incentives to promote economic growth through driving exports growth, diversification and competitiveness, Finance Minister Professor Mthuli Ncube said.
This comes as the country is implementing the National Development Strategy 1 (NDS1), which seeks among other things to create new and accelerate the domestication of existing value chains to drive both import substitution and export growth through innovative incentive and regulatory frameworks.
“Going forward, as we pursue the ideals of Vision 2030, and the objectives of the NDS1, export growth will play a major role in the economic development of Zimbabwe. Higher exports will earn foreign currency remittances; create higher quality and higher productivity jobs; and lower the current account deficit; hence, improve the overall economic growth of the country. In this regard, the Government is now putting in place incentives to motivate exporters and investors in order to stimulate incremental exports,” said Minister Mthuli in a statement.
He said in pursuance of the need to reform trade systems and create a conducive environment through diversifying of production and exports and move away from the export of unprocessed products, Government through the Reserve Bank of Zimbabwe (RBZ), has put in place an incremental export incentive scheme that seeks to boost productivity by firms currently engaged in exporting business as well as encourage entities that are not exporting so that they may venture into the exporting business.
The incentives will also result in sustainable growth in export revenue, fine-tuning of the policy on the export receipts retention threshold so that the benefits accrue directly to the exporters of goods and services and encourage listing and participation of firms on the Victoria Falls Stock Exchange (VFEX) and Victorian Falls Offshore Financial Centre.
“In order to encourage gold production and deliveries to Fidelity Printers and Refiners (FPR), gold producers who deliver gold quantities above their average monthly deliveries shall be entitled to a retention level of 80% on the incremental portion of the gold delivered to FPR.
“Those companies listed on the Victoria Falls Stock Exchange will be entitled to a 100% retention level of their incremental exports.
“Furthermore, large-scale gold producers that qualify for the 80% retention threshold, shall also be entitled to directly export the incremental portion of the gold to enable them to secure funding and gold loans to enhance their gold production. FPR will facilitate the exportation process for the qualifying gold producers under the scheme.
“Government is also putting in place measures to rejuvenate the gold sector through putting in place a Statutory Instrument that recognises artisanal gold miners and ensures that they enhance their gold production,” the Minister said.
Prof Ncube said the Government has taken a number of steps to promote exports and to enhance the ease of doing export business as it seeks to assist exporters in mitigating against the risks associated with the spread of the Covid-19 pandemic through digitalisation of export documentation.
A number of the fiscal incentives that are aimed at promoting exports and investment include, tax holidays, Duty Free Importation Schemes, Export Drawback Scheme, Inward Processing Rebate Scheme among other measures.