Ambitious Victoria Falls transformation plan outlined

Victoria Falls is already Zimbabwe’s biggest tourism destination, but wants to ever improve, with the Government promising to continue promoting investments into the tourism city in a variety of non-polluting industries that encourage ever more visitors.

President Mnangagwa conferred city status to Victoria Falls in December 2019 making it the youngest city in the country.

Victoria Falls has also been designated a special economic zone setting the city as the centre for construction of convention centres, state-of-the-art hotels, medical tourism facilities, financial services hub, shopping malls and other facilities offering tourist activities.

Plans are underway to build Masue City, which will have a convention and conference centre, five-star hotels, medical facilities and shopping malls to make Victoria Falls a conference capital.

The special economic zone will stretch to Hwange and Binga districts. In 2020 the Second Republic established the Victoria Falls Stock Exchange, the only United States dollar-denominated bourse in the region as part of efforts to implement the zone and the exchange has since attracted 14 listings in its first three years.

Several hotels including Palm River Hotel, Mbano Manor Hotel, Zambezi Boutique, Mpala Jena and others have been built during the first five years of the Second Republic with a number of other projects underway in the city.

Vice President Chiwenga said Government wants to transform Victoria Falls into the little Vegas with state-of-the-art facilities and infrastructure that is commensurate with a resort city.

This includes establishing firms and companies outside the tourism sector.

Speaking recently in the tourism capital, Vice President Chiwenga said a number of countries such as India, China and Russia are interested in investing locally as the country continues to fight sanctions.

“What we want is that Victoria Falls should not just be a place of leisure but have economic activity and the Second Republic under President Mnangagwa will lead this,” he said.

“The infrastructure that has been built here during the Second Republic like Victoria Falls Boutique, Palm River Hotel, Mbano Manor and others are few compared to what is coming. Many countries are interested in coming to work with us,” said VP Chiwenga.

He said the Government was constructing health facilities and pharmacies across the country in every province and Victoria Falls will have a dedicated pharmaceutical centre so that it has medicines ready for tourists as the country promotes medical tourism.

“The President gave you Special Economic Zone status, city status, stock exchange, an art gallery and you have an airport. We want to build non-polluting industries here such as pharmacies and sports facilities,” said Dr Chiwenga.

“We want to build many hospitals so that those from other countries who want to come for treatment while enjoying the natural environment can do so. Victoria Falls should have special magistrates’ courts, a High Court and a Civil Registry to process passports and other documents as we bring services close to the people.”

VP Chiwenga said the city should have its own TV station.

He said while Government is rehabilitating the Bulawayo-Victoria Falls Road to enhance access to the destination, plans are underway to fix feeder roads including the Victoria Falls-Binga road that goes via Chisuma, Jambezi and Deka along the Zambezi River and Lake Kariba.

The Second Republic’s ‘Zimbabwe is open for business’ mantra and policy of engagement and re-engagement have promoted growth despite sanctions imposed on the country by western countries.

In an interview, Matabeleland North Provincial Affairs and Devolution Minister Richard Moyo said the growth of Victoria Falls will translate to the growth of the whole province.

“Development of Victoria Falls is important to us as a province because it is a tourism hub and as such its growth will be felt across the entire province,” said Minister Moyo.

Source: Ambitious Victoria Falls transformation plan outlined (24/08/24)

Confusion over Victoria Falls SEZ status

 PLAYERS in the tourism sector in Victoria Falls have called upon relevant authorities to speed up the operationalisation of the Special Economic Zone status of the city as it will be a key enabler to the recovery and growth of the tourism sector.

Tax rebates on different facets that include corporate tax, employee tax as well as customs duty on capital equipment and raw materials have been identified as a key enabler in the recovery and growth of the industry as they are part of the policies and regulations that operate within a SEZ.

The local authority is saying the city was gazetted as a SEZ in 2017 but the Zimbabwe Investment and Development Agency has reiterated that such a status has still not yet been approved. ZIDA public relations manager Ms Constance Makoni told Sunday Business that Victoria Falls was not yet a SEZ with relevant statutory approvals under the Ministry of Local Government and Public Works yet to be made.

“The City of Victoria Falls has not yet been gazetted as an SEZ — it has been designated as space that will be gazetted, but this is still work in progress that requires the relevant statutory approvals under the Ministry of Local Government and Public Works. There are still some running preparatory works being undertaken by the city with regards to spatial planning that will determine the extent of the city space and the gazetting is likely to be finalised after all these preparatory works have been completed,” she said.

However, Victoria Falls Mayor Councillor Somvelo Dhlamini said Victoria Falls already has a SEZ status which it was accorded in 2017.

“Victoria Falls was accorded a Special Economic Zone status in 2017 with two areas of speciality: finance and tourism. That being the case, the SEZ status complements the promotion of Victoria Falls as a preferred tourism investment destination. Victoria Falls had applied for the extension of its boundaries in 2012.

However, an inter-ministerial consultation recommended that there is no need to expand the City to curb over-development in areas close to the World Heritage Site. As a result, Central Government established the Masue integrated resort and Ndlovu satellite town to decongest Victoria Falls,” said Clr Dhlamini
Local tour operator Mr Clement Mukwasi called for the relevant authorities to clarify the status of the city to ensure that there is smooth recovery of the city.

“It actually encompasses quite a lot of benefits that come with the designation of that SEZ. Corporate tax at the moment ranges between 24 percent and 72 percent for the companies operating outside SEZ but if a place becomes a SEZ, the corporate tax is zero rated. This means for the first five years from the time the place is designated as a SEZ you actually do not pay tax which is a serious enabler to investment,” he said.

Mr Mukwasi said if corporate tax is zero rated for the tourism industry specifically, there will be quick recovery.
“At the moment employees both locals and expatriates are taxed using different bands from the lowest up to about 40 percent depending on the salary one gets but if one is now in a SEZ, specialised expatriated staff will now be taxed at a rate of about 15 percent which is actually key again in the attraction of best brands best service providers in the industry.”

He also said due to low business as a result of Covid-19, some equipment and resources used in different tourism activities was being dilapidated hence the need for rebates in customs duty for capital equipment and raw material.

“Things like helicopters as an example do not wear out only because of use, they also wear out because of being inactive but when you want to buy parts or import a new helicopter into the country you have to pay duty for such importation. However, if the place becomes a SEZ, the capital goods will have 100 percent rebate.

This is also a key enabler to the tourism industry because remember the tourism industry operates on an international turf in that the services that we give in Victoria Falls must be similar or better than the services given in Cape Town, New York, Amsterdam or any other tourism destination,” he said.

Ms Makoni also weighed in saying the gazetting of the City as a SEZ will focus on the development of products and activities that drive or are driven by tourism.

“The designation of the spaces as Special Economic Zone will help different sectors of the economy in many ways. However, as the Victoria Falls is a major tourism resort it is expected that any activities within the SEZ will be driven by activities that play a part in the tourism value chain,” she said.

Source: Confusion over Victoria Falls SEZ status (01/08/21)

Vic Falls SEZ blueprint crafted

 THE Government has started crafting a blueprint to guide the operationalisation of the greater Victoria Falls Special Economic Zone (SEZ).

Cabinet a few months ago approved the Integrated Development Programme/Conceptual Development Framework for the Victoria Falls-Hwange — Binga SEZ whose idea is to integrate economic activities, catapult growth and improve livelihoods in the province.

A committee comprising the Ministers of Local Government and Public Works July Moyo, Environment, Climate, Tourism and Hospitality Industry Nqobizitha Mangaliso Ndlovu together with the chief executive officer of the Zimbabwe Investment and Development Agency (Zida), Mr Douglas Munatsi, were directed to come up with an implementation matrix.

Addressing journalists after the 40th post-Cabinet briefing, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said progress has been made in the planning and development process.

“Cabinet was briefed by the Minister of Local Government and Public Works on the progress made in the planning and development process for the Victoria Falls-Hwange-Binga Special Economic Zone.  The committee has since identified a consortium to prepare a visual blueprint for the area,” she said.

“The Victoria Falls Development Programme will entail the upgrading of Victoria Falls Municipality to city status and improved land utilisation and modernisation, which should unlock land for new investment.”

The Government plans to make Victoria Falls its conference capital and is planning to build a multi-purpose convention centre with top-notch facilities such as five-star hotels, medical centre, a university, a Zimbabwe Defence Forces camp and sporting facilities.

There are plans to build Masue and Batoka satellite towns as part of the Victoria Falls Development Plan whose corridor comprises Masue Stateland, Batoka City, Mlibizi, Binga Centre, Sijalila, Hwange Hinterland and Gwayi Shangani resort.

Minister Mutsvangwa said the institutional framework and detailed designs as well as a Statutory Instrument to operationalise the establishment of a Masue Joint Management Committee has since been drafted.

“Regarding the Masue Resort, planning for the mixed use and commercial zones is underway. A proposed new town anchored on power generation activities will be created at Batoka once the legal processes have been completed. Furthermore, layout plan extensions for Binga, a highly promising tourist node are being prepared,” said the minister.

Binga is key to Government’s plans to leverage on domestic tourism as it presents an opportunity to tap into untapped facilities such as sand beaches, hot springs, aerodrome, wildlife, fishing and cultural attractions. The Victoria Falls-Hwange-Binga SEZ will capacitate tourism, agriculture and mining as it includes integration of the natural environment, current ecotourism activities and requirements of the World Heritage Status while enhancing tourism products and integrating other activities such as mining and irrigation in Binga and Hwange districts.

According to the framework, 10 nodes were identified within the Victoria Falls-Binga SEZ namely: Victoria Falls Municipality area, Jafuta (Masuwe) State land, Batoka Town, Mlibizi Resort, Binga Centre, Sijalila Resort, Binga hinterland, Gwayi-Shangani Dam Resort, Hwange Town, and Hwange Aerodrome Centre.

In the selected areas, Government plans to develop integrated resorts, a research, innovation and educational parks, power generation and aquaculture, development of beaches in Binga, world class golf course, recreational theme parks, upmarket houses, state-of-the-art civic centres and redevelopment of the residential area in Victoria Falls, as well as building an airport in Binga.

Source: Vic Falls SEZ blueprint crafted (12/11/2020)

New town being developed near Victoria Falls

 The Hwange Rural District Council in partnership with a property developer have commenced constructing a satellite town 40 kilometres outside Victoria Falls.

The transformation of the Ndlovu area into a satellite town is envisaged to among other things, create jobs, develop infrastructure as well as reduce congestion near the world heritage site, Victoria Falls.

Construction of roads has already begun in the area while the relocation programme has been approved by the concerned stakeholders.

Hwange Rural District Council Vice Chairperson, Mr Mathew Muleya said stakeholders recently approved a compensation plan which will see a property developer constructing houses for the affected families.

"One of the outstanding issues was the relocation and compensation plan and l am pleased that we have resolved that issue. A developer has been identified for the relocation programme," said Mr Muleya.

Meanwhile, a housing cooperative engaged in construction of the satellite town, Indlovu Community Co-operative, has engaged a South African developer, Vukani Property Developers to construct houses for its members.

The construction of the satellite town is set to ensure that locals take advantage of the potential that the resort town of Victoria Falls offers.

Victoria Falls has remained a major tourist destination but lack of investment in key infrastructure remains a major concern.

Government has however prioritised the development of the area as evidenced by the ongoing Victoria Falls International Airport expansion project.

Source: New town being developed near Victoria Falls (05/10/2014)

See Also

Victoria Falls Bits and Blogs (13th April 2018) Call for Vic Falls land-use re-zoning and relocation of industrial area.

Victoria Falls Bits and Blogs (13th November 2020) Vic Falls SEZ blueprint crafted.

Victoria Falls Bits and Blogs (21st June 2024) Three centres earmarked for smart cities,