Reserve Bank of Zimbabwe (RBZ) governor John Mangudya says production-based incentives will lure investments and drive economic growth.
Source: Production incentives lure investors: Mangudya – NewsDay Zimbabwe November 15, 2016
BY BUSINESS REPORTER
Zimbabwe has been lagging behind regional neighbours in attracting foreign direct investment (FDI) due to unfavourable policies. FDI into Zimbabwe last year dropped 23% to $421 million from $545 million in 2014.
In an interview with NewsDay last week, Mangudya said the incentives would change the theme to production from consumption.
“Production requires a conducive investment climate. If you charge 1,2% on EMA [Environment Management Act] with a cap of $2 million who will invest? We need ease of doing business to ensure that incentives are given to investment,” Mangudya said.
He said the incentives would spur more exports, generate employment and give Treasury more fiscal space.
Mangudya said Zimbabwe has to give national project status to investments. Last week, government announced it would forgo duty fees and other taxes after giving TradeKing’s $50 million project national project status.
He said the 5% export incentive scheme would change the narrative to production. The incentive is coming under the $200 million facility guaranteed by the African Export-Import Bank. Qualifying exporters will be paid an additional 5%, but in bond notes. This has raised fears that government wants to revive the Zimbabwean dollar, decommissioned last year which would trigger inflation.
Mangudya said the bond notes would be released in drips and act as a cushion to exporters against falling prices on the international market.
COMMENTS
Investment will not come until ZANU is gone. This sounds like a scheme to hand out free money to ZANU aligned persons in the guise that they are “businessmen”
Yeah right, this idiot believes in miracles, he & his useless party & government never cease to amaze with the Bs that comes out from their mouths . No one will invest in a dying economy with worthless money (bond notes).
It’s just more irrelevant drivel from an unintelligent person.
So how is the importer going to pay for goods – with bond notes dream on! Would I export x to be paid out in a sour worthless lemon? This is the biggest scam going with all the US$ going into back pockets.
The black market in currency must be rubbing their hands with glee!
In no time, this note will not even be worth the paper it is printed on.
I now have the privilege of seeing buffoonery at it’s best that would make a clown look clever!
So, keep hold of your hard currency and accumulate it and pay your bills and taxes in bond notes – Oh, I forgot and the Zrp road blocks – then we will see who is smiling!
Are you out of your mind you stupid fool Mangudya. How on earth will bond notes lure investments. They are useless monopoly money. No one in their right mind would want them.