Journal of Social Development in Africa (1988) 3,2, 5-16Rural Growth Points in Zimbabwe —prospects for the future*K H WEKWETE+ABSTRACTThis paper briefly examines the context of rural growth points in Zimbabwesince Independence (1980). It examines prospects for rural industrial andcommercial growth in the light of a highly centralised industrial andcommercial base, dominated by monopolistic and oligopolistic firms. Anumber of possible small scale industry opportunities are identified, whichlead to an assessment of the current role of central and local governmentinitiatives.IntroductionThe term 'growth point' is widely used in Zimbabwe to denote settlementswhich are earmarked or designated for economic and physical development.The terminology is often confusing because of the wide range of settlementsto which it is applied — ranging from small rural centres to setdements thesize of Chitungwiza (the third largest town in Zimbabwe). This wideapplication also results in policy problems, particularly in terms ofincentives required to attract investment and the support which centralgovernment has to give. Growm points can generally be defined assettlements (rural or urban) which central and local government considerhave a potential for further development and hence need to be supported byfurther public and private sector investment.In me immediate post-independence era (post-1980) the focus of thegrowth centre policy was on rural areas. The centres (points) were identifiedin the communal areas and would receive public sector investment toimprove physical and social infrastructure. This investment estimated at $60million between 1983/4-1985/6 would be directed at the following: waterreticulation, internal roads, sewage-, electricity and other communityservices. The main focus was on physical development which was perceivedas a basis on which private and other public capital would be attracted to thecentres. In an effort to redress the imbalanced nature of the colonial* Paper presented to the 4th Annual Congress of the Association of District Councils,November 1987, Nyanga, Zimbabwe.+ Dept of Rural and Urban Planning, P O Box MP167, Mount Pleasant, Harare, Zimbabwe.- e A H Wlkweteeconomy, the development of settlements (District Centres, Rural ServiceCentres 'and business centres) was seen as providing important foci forlocating investment. Their development would improve the image orattractiveness of the communal areas, as potential investment areas.This paper addresses the issue of improving the potential and examiningprospects for the decentralisation of economic activities and for local ruralindustrialisation in communal areas. The paper examines some of thecurrent government initiatives to strengthen economic development of thecentres (growth points) and some of the limiting structural factors. Finallysome suggestions are made on possible future strategies and how localauthorities should respond.Policy and Public Sector Investment ProgrammeSince its inception as policy in 1981, the growth centre policy has beencharacterised by a focus on the physical development of designated centres.Each of the 55 district council areas has a district centre which has a de-factogrowth point status (growth point area). Through the Public SectorInvestment Programme each of the centres has received a minimum ofZ$ 160 000 for infrastructural development. More investment has flowed,particularly housing for the different government ministries, whoseoperations have been decentralised to mese centres.The nature of the district centres vary but most of them reveal the typicalpredominance of low order commercial services (general dealers, etc) andadministrative services (central and local government).The implementation of the physical infrastructure programme wasperceived in three phases [phase 1 (1983/4), phase 2 (1984/5), phase 3(1985/6)]. For most centres the targeted investment has been installed and insome cases more physical infrastructure investment has been granted(usually the more vibrant centres: Murewa, Gutu, Gokwe). In most districtsthe attention has shifted to the smaller rural service centres and businesscentres which form the lower ranks of the settlement hierarchy. At centraland local government levels the question most often asked is how do wemake growth points grow? What should be promoted and how?In 1978 government passed statutory instruments 57 and 58, which relateto income tax and sales tax provisions respectively,'for prospective investorsin growth point areas. Such provisions include reduction in income tax forcompanies locating in growth points and sales tax exemptions for thepurchases of capital equipment. The incentives are aimed at attractingpotential entrepreneurs to invest and also to attract existing large firms todecentralise. The statutory instruments follow the gazetting of landconstituting each service centre and the preparation of physical layout plans.Another initiative by central government has been the establishment ofRural Growth Points in Zimbabwe 7the Urban Development Corporation in 1986 whose terms of referenceinclude: 'to generate employment and encourage the development ofcommerce and industry within development areas' (Urban DevelopmentCorporation Act 1986). This initiative was in addition to the SmallEnterprises Development Corporation established in 1983. One of its keyobjectives is to encourage and assist in the establishment of co-operativesand small commercial and industrial enterprises.At local government level, local audiorities in conjunction with dieDepartment of Physical Planning have been preparing investment brochuresfor each of the growth centres (District) as information for potentialinvestors. Efforts are also being made to provide housing and relatedservices to attract existing firms to invest in the rural areas.Therefore, following what can be termed the 'infrastructure phase', policyhas now shifted towards the stimulation of economic activity. This shift islogical but it is also a realisation that infrastructure on its own will notnecessarily attract investment. Given mat there are 55 District centres(growth point areas) and many other small towns (which can apply forgrowth point status), the competition for investment for each is stiff. Theadvantages for each centre are likely to stem from its 'natural' endowment,eg location in high productive area, or location at important nodal fed forpublic and private transport. Out of die 55 centres,