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Michael Tome Business Reporter
Government will continue to craft policies that promote the growth of companies and the ease of doing business, Industry and Commerce Minister Mangaliso Ndlovu has said.

This comes on the back of a three-company tour of Davipel, Pepsi and Delta Corporation by Minister Ndlovu last Friday where he monitored the companies’ performance as well as carrying out on-site appreciation of challenges encountered by firms in Special Economic Zones (in particular Davipel Holdings).

Speaking on the sidelines of the tour the minister underscored the need to address impediments hindering growth of exports so as to broaden the country’s revenue base.

Among other initiatives, Government is working towards advancement of growth of exports witnessed through a further 2,5 percent increase of the export incentive to 7,5 percent from 5 percent.

“We are focusing more on creating a good business environment for industry in terms of policy pronouncements that seek to promote their expansion.

“As Government, we increased export incentives through Presidential Proclamation by further 2,5 percent making it 7, percent, which shows how serious we are in encouraging exports,” said Minister Ndlovu.

Mr Davison Norupiri, the managing director of Davipel Holdings — which is located in the Sunway City a Special Economic Zone (SEZ) — highlighted that his company was facing perennial water challenges and electricity blackouts something not reflective of a proper SEZ.

Davipel was also applauded for winning the coveted Southern Africa Ernst and Young Entrepreneur of the Year award in Sandton Johannesburg last year.

However, the minister indicated that the purpose of his visit was to have on-site appreciation of challenges affecting the smooth running of the companies with a particular interest of those operating in the SEZs.

“We wanted to see the progress of companies in the Special Economic Zones and be able to appreciate challenges they are facing and monitor progress.

“They have power and water issues there which need to be sorted so that we have smooth production, but importantly they are on an expansion drive because demand is high,” he added.

Commenting on Delta Beverages Minister Ndlovu said Government will continue to find workable solutions to keep the blue-chip company afloat.

This comes on the backdrop of successful engagements between the company, central bank and Government, which is set to improve soft drinks supply this February as the company awaits a consignment of critical raw material (import).

Minister Ndlovu, however, encouraged firms to find methods of raising necessary capital, growing exports and ways to minimise the import bill.

“We are working with industry to come up with other means of raising funds, there are sources of funding we wish to unlock in the near future and we are quite confident we will get there,” he said.

Rounding up his tour, the Industry and Commerce Minister lauded Varun Beverages-owned Pepsi for making remarkable progress through creation of employment for 16 000 Zimbabweans in a space of less than one and half years as the company seeks to grow its local base.

“At Pepsi we saw phenomenal growth, in just about 15 months they are employing directly about 700 people and grows to 16 000 indirectly, that is the number they are impacting everyday and they are aiming to increase production in the next few months which phenomenal,” said the minister.

SEZs are areas in which business and trade laws are different from the rest of the country, and are aim at increasing trade, higher investment, job creation and effective administration.