ZIMBABWE

(a) BASIC STANCE

• According to the Economic Reform Programme document, the fundamental objective of Zimbabwe's economic reform programme is to improve living conditions, especially for the poor. This means increasing real incomes and lowering unemployment, by generating sustained higher economic growth. In order to achieve this primary objective, the economy needs to be transformed to make it more competitive and productive. This transformation entails moving away from highly regulated economy to one where market forces are allowed to play a more decisive role, while concurrently taking steps to alleviate the transitional social hardships which may arise from this transition.

The overall strategy will be through implementation of appropriate fiscal and monetary policies, and gradual liberalizaiton of the trade sector and progressive deregulation of domestic controls. These measures will be supported by active sectoral policies. 
• The Government recognizes the important developmental contribution that the private sector, both local and foreign, can make by increasing investment in Zimbabwe. Accordingly, it is Government policy to encourage an active and viable and strong private sector alongside the public sector. 
• Government expects local investors to play a leading role in investment, providing the base for economic development. However, Government also recognizes the important role that foreign investment can play in promoting investment and growth, particularly through the transfer of technology and skills and by providing access to foreign markets. 
• Certain areas in Zimbabwe have been designated by the Government as growth points for development purposes, Fiscal incentives are offered to mining projects, industries and other enterprises setting up in these areas and this is part of the strategy for urbanization and industrialization of rural areas. Further, the Government plans to construct infrastructural facilities such as industrial estates to support projects in these areas. 

The Government is reviewing the recent experiences of other developing countries in expanding export earnings through the establishment of Export Processing Zones and Bonded warehouses. This is being done with a view to the possible introduction of the legislative, institutional, and fiscal framework necessary for the operation of such EPZ and Bonded warehouses in Zimbabwe.