Gono on the spotlight

Source: Gono on the spotlight – DailyNews Live

John Kachembere      1 July 2017

HARARE – Former Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono’s
appointment as Special Economic Zones (SEZ) board chairperson has been
hailed by economic analysts, who said he has the requisite skills
necessary to attract foreign direct investment (FDI) into the country.

SEZ is mandated to come up with measures to drum up FDI that has been
declining in the past few years.

Zimbabwe’s FDI declined to $319 million last year from an all-time high of
$545 million in 2014, according to the World Investment Report.

Industrialist Callisto Jokonya said Gono was a qualified candidate for the
job, given his experience in the financial services sector.

“He is a banker by profession and he will know the tactics to negotiate
deals that might be required for the nation,” he said.

The former Confederation of Zimbabwe Industries president was, however,
quick to point out that Gono “needs support” from various stakeholders in
the country to make his job easier.

Former Finance minister Tendai Biti weighed in saying Gono “will
definitely deliver to the degree that those at the ministry of Finance
will be uncomfortable”.

The People’s Democratic Party leader, however, noted that Gono must
believe that there are policy reforms needed before the country can enjoy
more FDI inflows.

“The indigenisation policy must go and he needs to sweat the fiscal
authorities to be sober and persuade political authorities to implement
political and economic reforms necessary for the country to move forward,”
he said.

The indigenisation policy – which compels foreign-owned firms to cede at
least 51 percent of their shareholding to locals – has largely been blamed
for the wide berth Zimbabwe has been getting from foreign investors.

MDC spokesperson Obert Gutu also said “from a purely professional
perspective, there’s absolutely no denying the fact that Gideon Gono is a
hard worker, who, if given the latitude, will be able to deliver the goods
as the chairperson of the Special Economic Zones board”.

“Sometimes, we as politicians should learn to give credit where it
deserves. We might not agree with his brand of politics as a Zanu PF
activist, but it’s pretty clear that Gono is a turnaround specialist –
minus the politics, of course,” he added.

The latest development also comes at a time the country is implementing
various measures to attract investors and become a hub for
industrialisation, commerce and international trade.

Vice President Emmerson Mnangagwa this week said Zimbabwe has received
numerous inquiries from foreign investors after enacting the SEZ law.

“…ever since the signing into law of the Bill, we have had numerous
enquiries from investors who are interested in investing into various
sectors of the economy under the special economic zones facility.

SEZ are geographically defined areas that enjoy lower taxes or less
exacting regulation than the rest of a country.

The intention is to promote investment in deprived areas with incentives
that might be unaffordable, unpopular or unnecessary, if applied

First used in Ireland in 1959, they now number over 4 300 globally.

China’s incredible economic growth is also attributed to SEZ which were
introduced in the early 1980s when the Asian giant opened itself to the
rest of the world and cemented its place on the global stage as a major
economic player.