Sunway City targets 70pc growth in five years

Sunway CITY, one of Zimbabwe’s most promising special economic zones (SEZs) and smart city urban development projects, is targeting at least 70 percent completion within the next five years.

This is part of efforts to provide industrial space and affordable housing to drive the country’s economic development.

Currently, 35-40 percent of the project has been developed, under the National Development Strategy 1 (NDS1), with over 36 local and foreign investors already operating within the zone, employing more than 1 000 people.

The project, born out of a partnership between the then-Malaysian Prime Minister, Dr Mahathir Mohamad, and the late former Zimbabwean President Robert Mugabe, traces its origins to the 1990s. Its name combines Harare’s “Sunshine City” moniker and Malaysia’s successful “Sungwei” export processing zone.

Sunway City CEO Mr Collin Mutingwende said: “Currently developed at 35-40 percent of its total capacity, Sunway City aims to reach at least 70 percent development within the next five years.

“The project currently hosts approximately 36 investors and continues to attract both local and foreign investment.”

Mr Mutingwende emphasised the role of local investors in boosting the economy through import substitution, which helps preserve foreign currency.

The SEZ model offers incentives such as zero corporate tax for the first five years of operation and duty-free importation of capital equipment to qualifying investors.

“Employment generation remains a key focus. While Sunway City directly employs around 30 workers, the real impact comes from jobs created by companies within the zone, in some of which Sunway City will be a joint venture partner,” he said.

Spanning 1 559 hectares along Mutare Road, Sunway City is designed as a self-contained smart city with integrated industrial, residential, institutional and commercial zones.

“The master plan includes industrial zones for manufacturing and value addition of local raw materials; high-, medium- and low-density residential areas; schools; hospitals; a regional shopping mall; a solar park and high-rise apartments for workforce accommodation,” said Mr Mutingwende.

“Despite its progress, Sunway City faces infrastructure hurdles, particularly unreliable water supply.

“Currently, most companies within the zone rely on borehole water, with municipal supply being irregular — sometimes available only once or twice monthly.”

However, funding constraints, partly due to historical sanctions on the Industrial Development Corporation of Zimbabwe (IDCZ), the shareholder of Sunway City, have also posed challenges.

But support from institutions like the African Development Bank, the Industrial Development Corporation of South Africa and local banks has helped bridge the gap.

Sunway City, wholly owned by IDCZ under the Mutapa Investment Fund, represents Zimbabwe’s push towards industrialisation.

Mr Mutingwende added: “Sunway City’s mandate is to develop eco-friendly, world-class integrated industrial, commercial, institutional and residential parks to facilitate industrialisation and economic growth.”-hrald