Govt to extend tax incentives to investors

PRESIDENT Emmerson Mnangagwa has urged Finance minister Patrick Chinamasa to extend tax incentives to various foreign investors in order to encourage investment into the country.

BY TATIRA ZWINOIRA

Officially opening the Pepsi plant run by Varun Beverages Zimbabwe Private Limited in Harare yesterday, Mnangagwa said government must maintain an investment culture.
“Minister, such investments (Varun Beverages − India’s investment into setting up the local Pepsi plant) will also require incentives and I know you do not agree with me. But, it is my belief that you will have more companies coming here if you give them incentives and tax breaks, but that is your area,” he said.

Varun Beverages, a subsidiary of Indian-based company, RJ Corp invested over $30 million into the local Pepsi plant.

“While this investment attests to the steadily increasing attractiveness of our business climate to investors from far and wide, my government is continuously monitoring our investment climate to ensure it remains conducive and open for business to grow and succeed. Meanwhile, I urge prospective local and foreign investors to form partnerships and joint ventures in order to strengthen their business aptitude and enhance their competitive edge,” Mnangagwa said.

At full capacity, the plant can produce 400 bottles of Pepsi beverage products per minute.

“I came to Zimbabwe a couple of times, met with government and the people and found them to be so supportive even though there are a lot of challenges here. But, I think the country is going in the right direction,” billionaire and chairman of RJ Corp Ravi Jaipuria said.

“The first day we opened we were sold out, so that clearly shows my thinking was not wrong and it will take a bit of time for Zimbabwe to go where we want it to be. I think it is a great start and would like to invest much more into the country.”