Login

Lost your password?

Sign Up

Register

Login

Login

Lost your password?

Register

Monday, August 8, 2022
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion

Africa's
Investment
Gateway

The Exchange
  • Login
  • Register
Subscribe
This Month's Edition
Previous Editions
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
LOGIN
Special-Economic-Zone-in-Zimbabwe-The-Exchange

A Special Economic Zone in Zimbabwe

Understanding: Special Economic Zones in Zimbabwe

Special Economic Zones exist to attract investments in particular regions of a country.

by furtherafrica.com
August 20, 2019
in Africa's Development, Investing
0
Share on FacebookShare on LinkedIn

Special Economic Zones is a concept still in its infancy yet progressive in Zimbabwe. In general, Special Economic Zones exist to attract investments in particular regions of a country.

In which, those investing in SEZs benefit from several fiscal and non-fiscal incentives established by the government of that particular country.

In the passages to follow, I intend to outline the incentives for operating in Zimbabwe’s SEZs as well as, explaining the finer details of regulation and bodies which govern these zones.

To begin with, the Special Zones Act was enacted in November 2016 as part of the government’s efforts to engage foreign investors and, reversing the country’s economic decline.

Through this Act, the Zimbabwe Special Economic Zones Authority was established to oversee and assist companies/investors keen to conduct business in these areas.

The main functions of the Authority include administering and controlling SEZs, granting investment licences, and monitoring activities of approved investments.

At this point, some may wonder how Special Economic Zones differ from operating in well-known industrial sites or business complexes.

The answer is that domestic trade and business law does not apply to Special Economic Zones whereas, companies operating outside these zones must comply with the laws.

Also, as mentioned earlier, investors conducting business these areas receive incentives from the government.

Companies operating outside Special Economic Zones are subject to 25% corporate tax whereas, companies within the Zones pay nothing for the first 5 years and 15% thereafter.

The tax rate remains the same for as long as a company continue to operate within the Zones or unless government policy changes.

For companies outside Special Economic Zones, the rates for Withholding Tax on dividends and fees normally depend on whether the parent company or investor is based in a country which has signed Double Taxation Agreements with Zimbabwe.

In principal, tax treaties exist between countries to reduce the amount of tax paid by companies or investors. Generally, withholding tax rates are significantly high for investors in countries that Zimbabwe has not signed an agreement with.

However, companies or investors in Special Economic Zones are not obliged to pay any tax on dividends distributed to foreign shareholders nor on services provided by the parent company.

Also, another major factor is that companies outside SEZs face an import duty fee on all capital equipment used in daily operations of the business.

In contrast, companies in SEZs can import equipment duty free but must prove that the equipment will be utilized in SEZs.

The Zimbabwe government gazetted the Statutory Instrument (SI) 154 of 2018 in August 2018 effectively bringing Special Economic Zones into full operation.

Companies such as Iron Steel Company of Zimbabwe, Bernard Development Corporation and Afrochine Pvt Ltd have been granted SEZ status, to mention a few.

In Zimbabwe’s case, the concept of Special Economic Zones is to re-engage with the international business community, job creation and increase exports.

The latest SEZ regulation requires companies operating within the zones to sell only 20% of their output on the domestic market and export the rest.

This is mainly because the country’s exports declined massively in recent years and impacted the inflow of foreign currency.

Tags: Afrochine Pvt LtdBernard Development CorporationIron Steel Company of ZimbabweSpecial Economic Zones (SEZs)zimbabwe

STATE OF ECONOMY - GET THE REPORT

ASSESSING EAST AFRICA

Loading...

furtherafrica.com

FurtherAfrica is an online platform centralising news and content on the development and growth story of Africa. Content Syndication is done in partnership with The Exchange. The platform focuses on Southern Africa with an interest in economic growth, investment opportunities, financials and everything else in between.

Related Posts

NBK gets $10 million investment for onward lending
Business

Kenya: NBK gets $10 million investment for onward lending to water utility companies, MSMEs

August 6, 2022
Most business executives in Kenya expect a stable economy after the August 9 general elections
Business

KEPSA: Business executives expect stable economy after general election

August 5, 2022
CIC Insurance's gross profit
Business

CIC Insurance’s gross profit rise by 38% as premiums surge

August 5, 2022
Next Post
SGR Tanzania

Tanzania’s Standard Gauge Railway: Vital Driver to Magufuli’s Industrialization Ambition

More than 66 per cent of total employment is Sub-Saharan Africa is from the informal sector, the International Labour Organization (ILO) has revealed, the biggest provider of employment in Africa.

Boost for trade as EABC secures US$ 3.2 million to address barriers

UABA will train Africans in blockchain technology - The Exchange

South Africa based UABA to train a million Africans on blockchain




This months edition

Features

The leaders of the BRICS nations meet at the group’s summit in Osaka in June 2019. Concerns are India might pull out of the group over tensions with China. (Photo/ Reuters)
Countries

What does Russia’s invasion of Ukraine mean for Southern Africa?

by Albert Nangara
August 3, 2022
0

When the United Nations General Assembly voted overwhelmingly on March 2 to condemn Russia’s invasion of Ukraine, African countries accounted...

Read more
Logistics and transport startups will play a major role in enabling Africa’s largest free-trade area (Photo/ Quartz Africa)
Industry and Trade

Trends shaping the future of logistics in African markets

by Albert Nangara
August 3, 2022
0

Digitization of logistics and compliance with sustainability policies will shape the future of logistics in African markets. Digitalization involves the...

Read more
Biometric systems are expected to lead the market for airport security systems in growth over the next five years, as the market increases at an 8 per cent CAGR through 2024 (Photo/ Biometric Updates).
Tech & Business

Machine learning, Artificial Intelligence changing Africa’s Airports

by Albert Nangara
August 2, 2022
0

According to Frontiers, AI has been recognized to have a wide potential to reduce human workload or increase human capabilities...

Read more
www.theexchange.africa/
Investing

ESG global mining and the social license

by Laurence Sithole
August 2, 2022
0

In terms of achieving net zero carbon emissions, the largest mining companies in the world have several options – each...

Read more
Some of the group members learning the components of the new briquette making machine. The machine can produce 500 briquettes per day. www.theexchange.africa
Investing

Reusable, organic charcoal: Answer to Africa’s cooking fuel challenges

by Njenga Hakeenah
August 2, 2022
0

United for Green is working to ensure that Africans do not get to these extremes. By empowering women, the plan...

Read more

News

Banking
Industry & Trade
Investing
Money Deals
Regional Markets
Tech & Biz
Opinion

Countries

Kenya
Tanzania
Uganda
Burundi
Rwanda
Southern Africa
Ethiopia

More

My Account
Contact us
Advertise
About us
Help Center

Subscribers Center

E-paper
Premium Stories
Education Rates
Corporate Subscriptions
Weekely Newsletter

  • My account
  • About us
  • Advertise
  • Contact
  • Privacy Policy
  • Refund Policy – The Exchange
  • Sitemap

No Result
View All Result
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
  • Login
  • Sign Up
  • Cart

© 2021 The Exchange - Powered by MediapixManaged by Supported by Digihandler,

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In