Why investors are rushing to Zimbabwe’s Special Economic Zones

• Zimbabwe flags SEZs as key to future growth.
• The South African country attracted over $1.4 billion in new investments in 2025.
• We are now open for business, states Zimbabwe authorities. 

Zimbabwe’s Special Economic Zones (SEZs) represent the future of industrialization in the country serving as a catalyst to development in the selected key regions. With special economic provisions, SEZs in Zimbabwe are pitched to be the driving force of the country’s development.

According to the Zimbabwe Finance, Economic Development and Investment Promotion Minister Mthuli Ncube, SEZs are already paying dividend evident in the fact that the country attracted over $1.4 billion in new investments last year.

Notably, it is the manufacturing sector under the SEZs that has emerged as Zimbabwe’s top contributor to the Gross Domestic Product, accounting for 15.3 per cent of the GDP in 2024, the minister highlighted.

Zimbabwe SEZs evolved from the earlier Export Processing Zones that were ended after the relevant Act was repealed in 2007.

Even though the EPZs gave investors a 5-year zero-rated corporate tax and 100 per cent customs duty rebates on materials among other incentives, they failed to meet Zimbabwe’s growth intentions.

“In Zimbabwe we are more inclined to the multi-sector Special Economic Zone approach as opposed to single entity operations with an inclination towards export processing zones,” Minister Ncube adds.

“As such, we encourage designation of muti-sectoral zones which can accommodate more players across all value chains,” the executive explains.

As such, the EPZ framework was merged into the Special Economic Zones development strategy under the Zimbabwe Investment Authority Act of 2007. The SEZs are handled by the Zimbabwe Investment Development Agency with fees starting from $500 for applications and $4500 upon approval.

“We have special regulations for the SEZs… they are designed specifically to promote economic development in a given specific region that is classified as a Special Economic Zone,” Ncube explains.

According to Ncube, the SEZs investment framework is inline with the Zimbabwe current open door policy that is designed to attract foreign investors. Complete with tax incentives and eased regulations, SEZ status empowers investors to conduct business under minimum cost and lesser regulations.

Projects that are entitled to benefit under the SEZ provisions include manufacturing and industrial investments in tourism and hospitality and information technology projects.

The minister also points out that SEZs status is also awarded to projects that have 100 per cent for export purposes. Zimbabwe SEZ special provisions for foreigners in the financial sector are detailed in a report titled ‘Understanding Special Economic Zones for Foreign Investors.’

Published earlier this year by the Counsel at Centuria, a leading Zimbabwe investment firm, the report highlights incentives afforded to foreign players can be seen in the Reserve Bank of Zimbabwe Foreign Investment and Trade Framework.

“It allows licenced foreign investors to enjoy 100 per cent repatriation of disinvestment proceeds and 100 per cent remittance of dividends as well as permits the Operation of Foreign Currency Accounts (FCAs),” the report reveals.

These are special provisions since most other countries have strict limitations for their financial services sector. For instance, Mauritius has banned companies offering financial services or any sector that requires licensing from the Financial Services Commission from being awarded the Special Economic Zone status.

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Zimbabwe’s Special Economic Zones

To attract investors, the Zimbabwe SEZs provides import duty rebate on Capital Equipment, offers zero-rated Corporate Income Tax for the first 5 years of operation, and affords exemption from non-residents tax on fees for services that are not locally available.

“We do not extend import duty rebate for locally available goods… the rationale is to promote investment without necessarily downplaying the local industry,” explains Raj Modi, Zimbabwe’s Industry and Commerce Deputy Minister.

Furthermore, foreign investors, including Zimbabweans in the diaspora, enjoy zero restrictions on imports of their choice. Additionally, they enjoy 100 per cent remittance of dividends to home country without restriction, and they are also permitted to borrow working capital from local financial institutions.

Other provisions include 100 per cent repatriation of disinvestment proceeds. Notably, there is no restriction on the amount of foreign currency that can be brought into the country and investors are permitted to operate Local Foreign Currency Accounts.

Speaking at the Bulawayo Business Buy and Sell Exhibition, Modi said locally incorporated companies are allowed to borrow from domestic sources as well as offshore sources to finance operations in Zimbabwe.

He adds that foreign investors are permitted to remit their capital plus the related appreciation upon disinvestment. “These special provisions provide security for their investment,” Modi reassures investors.

Current Zimbabwe SEZs, name, location, sector

Here are some of the Zimbabwe SEZs and the special provisions afforded in each area, as presented by the Zimbabwe Special Economic Zones Authority (Zimseza) technical head, Mr. Wilfred Motsi.

The Bulawayo Industrial Hub in Bulawayo offers incentives for investment in leather, textile, pharmaceutical, steel fabrication, and engineering. The hub affords investors 100 per cent customs duty rebate on all imported raw materials, equipment, and machinery as well as exemption from non-residents withholding tax on royalties to mention but a few incentives.

Then there is the 1,090 hactare Sunway City industrial park in the capital, Harare, that specializes in technology and manufacturing investments. Victoria Falls SEZ in Masuwe has been  specially designed for investment in tourism, financial services, and hospitality.

The Beitbridge & Fern Hill SEZ in Mutare area is about to get a further appeal with the construction of an international airport. This site is structured to handle investments in mining processing, including coal, gold and diamond. This centre is also ideal for agricultural processing, and manufacturing, especially the processing of citrus fruits.

The Umvumela SEZ (186 hactares) is a designated industrial and investment zone that is also within Bulawayo, Zimbabwe’s second-largest city. Belmont/Donnington/Kelvin humongous 3000 hactare SEZ  is pitched to handle leather and meat processing, textiles, mining, agricultural equipment and pharmaceuticals.

Zimbabwe SEZs, to boost manufacturing sector?

The establishment of SEZ across Zimbabwe has paid off and the booming manufacturing sector is evidence enough. In it’s last economic development report, Zimbabwe’s manufacturing sector surpassed almost all traditional big GDP contributors.

During the period under focus, manufacturing recorded 15.3 percent growth followed by mining (14.5 per cent), wholesale and retail trade (11.9 per cent), financial services (10.8 per cent) and agriculture (9.3 per cent).

The manufacturing sector features key infrastructure complimentary products such as steel and cement, and also covers pharmaceuticals and food processing as its key planks.

“The wave of industrial activity signals renewed confidence in Zimbabwe’s economic reforms and the success of the country’s industrialisation agenda,” reasons the rightfully proud Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube.

“These investments are driving structural transformation, import substitution and job creation as the nation accelerates towards Vision 2030,” he sums up.

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