GOVERNMENT has announced an Incremental Export Incentive Scheme and additional fiscal enhancement measures for investors to buttress the ongoing ease of doing business reforms aimed at promoting robust export-led productive growth and diversification of the economy.
The interventions entail fine-tuning the policy on the export receipts retention threshold so that the benefits accrue directly to the exporters of goods and services.
This will see producers mainly in mining and manufacturing sectors as well as those businesses operating under the Special Economic Zones (SEZs) model benefiting more.
The move follows wide consultations with exporters and key economic stakeholders on the need to motivate exporters and investors through scaling up doing business reforms to achieve desired competitiveness levels.
With the coming in of the African Continental Free Trade Area (AfCFTA) and guided by the ambitious focus of the National Development Strategy 1 (NDS1:2021-2025), Zimbabwe is driving at creating new and accelerated domestic industrial value chains.
The ultimate being to achieve both import substitution and export growth through innovative incentive growth and supportive regulatory frameworks.
Such interventions are critical as the country pursues the vision of achieving an upper middle-income economy by 2030, said Finance and Economic Development Minister, Professor Mthuli Ncube.
“Government is putting in place export and investment incentives to promote economic growth by driving export growth, diversification and competitiveness,” he said in a statement late Monday.
“Going forward, as we pursue the ideals of Vision 2030, and the objectives or the NDS-1, export growth will play a major role in the economic development of Zimbabwe.
“Higher exports will earn foreign currency remittances; create higher quality and higher productivity jobs and lower the current account deficit hence improve the overall economic growth of the country.”
In this regard, Prof Ncube said putting in place incentives to motivate exporters and investors was paramount in order to stimulate incremental exports.