Industry keen on establishing operations in Mt Hampden
THE Confederation of Zimbabwe Industries (CZI) has reported strong interest from its members in establishing operations in the new capital city under development at Mt Hampden, Mashonaland West Province.
The CZI, representing the country's vital manufacturing sector (contributing roughly 18 percent of GDP), sees the new city as a potential catalyst for growth.
The emergence of new companies and industries is anticipated, leading to a ripple effect of economic benefits. Job creation, increased government revenue, and improved living standards are all potential outcomes.
The multi-billion dollar metropolis aims to alleviate congestion in Harare and will ultimately house over 1,5 million residents on its expansive 15 000-hectare footprint. The city’s masterplan, approved by the Cabinet, prioritises core infrastructure development, including roads, water, electricity, and telecommunications. Construction of the new Parliament Building is already underway.
The new capital city aligns with the Government’s ambitious plan to transform Zimbabwe into an upper-middle-income economy by 2030.
CZI president, Mr Kurai Matsheza, confirmed member interest in the new city, with some actively evaluating potential relocation. While declining to disclose specific companies, he acknowledged the project’s positive prospects and promised future updates on confirmed participants, including potential new businesses.
Mr Matsheza anticipates businesses from various sectors will establish operations in the new city. Manufacturing, ICT, agro-processing, and a range of others are all possibilities, Factors such as rental rates and available facilities will ultimately influence industry distribution.
The new city's development will occur over four phases spanning 10 years. The initial twoyear phase focuses on establishing traction and developing core infrastructure. Phase two will involve securing funding for baseline infrastructure through various channels, including public-private partnerships, loans, and bond issuance.
Years five to 10 will see the development of commercial, residential, and industrial areas, primarily utilizing public-private partnerships, foreign direct investment, and various financing instruments. The final phase, beginning in year 10, involves continued development through private equity, partnerships, foreign investment, and syndicated loans.
Mr Matsheza highlighted the advantage of a ready-made customer base. “As this is a complete city on its own, consumers for goods and services will be there,” he noted, offering a clear benefit for businesses setting up shop.
Dubai-based billionaire Shaji Ul Mulk, founder of Mulk International Group, has already begun construction of a US$500 million cyber city in Mt Hampden, demonstrating international investor appeal in the project.
Industry and Commerce Minister Mangaliso Ndlovu recognised the potential socio-economic benefits associated with new city development and attracting investment. While acknowledging the cyber city project, he expressed limited knowledge of other specific businesses involved at this stage.
“Obviously, there are a number of socio-economic benefits that come as a result of the development of a new city but in this case, I think it will be too early for me to comment on that.
“But I am aware of the cyber city that’s going to be developed there. I know of the cyber city that’s one that has taken centre stage, but if there are other businesses as yet, I haven’t really been given that brief,” he said.