PHILLIMON MHLANGA
The Zimbabwe Investment Development Agency (ZIDA) says it is in advanced talks with Nestle Zimbabwe, for the food giant to anchor the proposed special economic zone manufacturing hub in Mutare, Business Times has learnt.
The government, in 2018, gazetted a Statutory Instrument 154 of 2018, granting special economic zone status to Mutare, Beitbridge and Victoria Falls.
More areas, including Bulawayo, Sunway City in Harare, Norton and Masvingo, were also granted SEZ status.
Now, ZIDA is planning to set up a manufacturing hub in the eastern border city. ZIDA chief executive officer, Doug Munatsi said Mutare provides competitive advantages including its proximity to the nearest sea port in Beira, Mozambique.
Discussions with Mutare City Council to avail land for the proposed manufacturing hub are underway, according to Munatsi.
The SEZ status is likely to create employment for locals as well as increasing the province’s gross domestic product.
Munatsi said to have a big player such as Nestle setting up a manufacturing plant in the designated area will bring confidence and lure other manufacturers in the area.
Nestle Zimbabwe is a unit of Swiss-based Nestle, the world’s largest food and beverages firm.
“We are in discussion with Manicaland Provincial Affairs Minister (Ellen) Gwarazimba and Mutare City Council for land to build a manufacturing hub in Mutare close to Beira.
The first company we have discussed is Nestle. So, we believe that for such a project, we need a big player to anchor this project,” Munatsi said.
In recent years, Swiss-based Nestle, has invested more than US$30m into its Zimbabwe unit, which was channelled into capital projects.
The government is pinning hopes on the SEZs concept to help Zimbabwe attract the much needed foreign direct investment, create jobs and increase exports.
President Emmerson Mnangagwa also created SEZs as part of efforts to restore the country’s capacity to produce goods competitively.
Companies that operate in SEZs are entitled to several fiscal incentives including lower taxation.
They also enjoy low electricity and water tariffs with a view to position the entities to be highly productive and competent.
The incentives enhance the projects’ viability.
