CTPD concerned implementation of MFEZ plan is poor, slow

The Centre for Trade Policy and Development (CTPD) has expressed concern that the implementation of Multi Facility Economic Zones (MFEZ) plan has been painstakingly poor and slow.

Speaking during the launch of the study report on Multi Facility Economic Zones and Tax Incentives, CTPD head of programs and research, Brian Mwiinga says even though there is some level of progress that has been attained in as far as attracting investors is concerned in the Zones, the pace is painstakingly slow.

Mr. Mwiinga has also noted the absence of a legal framework to govern the operations of the Zones and lack of a well-defined mechanism for monitoring and evaluating the performance of the zones that have been set up.

He adds that the job creation which was envisaged through the establishment of the MFEZs has also not been fully actualized and has not progressed very well.

He says CTPD recommends among other things that government should reconsider its position on tax incentives.

Mr. Mwiinga has further proposed that government through the Zambia Development Agency should revise the minimum investment threshold required for one to qualify for MFEZ incentives.

According to a study, local Zambian entrepreneurs are almost absent from the MFEZs due to a number of challenges prominent among them being the prohibitive threshold of 500, 000 dollars required for one to qualify for fiscal incentives offered.

Speaking earlier, CTPD Board Chairperson, Pamela Chisanga urged government to revisit tax incentives in order to improve the system and ensure that it is transparent and fair.

And Private Sector Development Association (PSDA) Chairperson, Yusuf Dodia has noted the need for ZDA to follow up on licensed companies and see how best they can address the challenges these companies are facing.