Call to scrape inhibiting taxes, fees gets louder
ECONOMIC experts this week outlined a host of ambitious strategies aimed at enhancing Zimbabwe’s economic competitiveness, including a proposal for a Presidential Decree to temporarily to reduce all business costs such as regulatory fees, taxes, and logistics expenses by up to 70 percent to address the inhibiting cost of doing business and encourage regional and global competitiveness.
The proposed approach is centred on fostering innovation and technology, addressing macroeconomic and regulatory challenges and investing in skills and technology development for the future.
These strategies were presented during the inaugural National Competitiveness Commission (NCC) Competitive Summit held in Bulawayo, a pivotal event designed to foster sustainable economic growth.
Zimbabwe faces a multitude of challenges that hinder its competitiveness and economic growth.
These challenges can be categorised into economic, institutional and infrastructure – related factors.
For instance, Zimbabwe’s power generation capacity is insufficient to meet the needs of its growing economy. Frequent power outages are disrupting business operations and discourage investment.
Some of the transport infrastructure such as roads and railways, is in a dilapidated state.
This hinders the movement of goods and services, increasing transportation costs and reducing competitiveness.
Held at the Zimbabwe International Exhibition Centre (ZIEC), the summit which ended yesterday brought together top business leaders, policymakers and industry experts to deliberate on strategies to overcome the country’s persistent economic challenges.
Among the prominent speakers was Kipson Gundani, chief executive officer of the CEO Africa Roundtable (CEOART), who outlined a detailed roadmap to geared at boosting Zimbabwe’s economic competitiveness.
Gundani told delegates about the transformative role of innovation and technology in revitalising Zimbabwe’s industrial sector.
He urged businesses to prioritise investments in research and development (R and D) to drive innovation and produce goods that meet international standards.
“Innovation is no longer optional; it is a necessity for survival in today’s competitive market,” Gundani said.
He further explained how innovative processes can lead to superior products, enhance customer satisfaction and drive market success.
“Companies that fail to innovate risk being left behind in an increasingly competitive global economy,” he cautioned.
In addition to innovation, Gundani addressed the macroeconomic and regulatory challenges that have long hindered Zimbabwe’s business environment.
He identified hyperinflation, currency instability and a complex regulatory framework as significant barriers to competitiveness.
“A stable macroeconomic environment and streamlined regulatory processes are essential for creating a conducive business climate,” he said while calling for consistent policies and a reduction in bureaucratic red tape, noting that inconsistent policies and administrative delays create uncertainty for businesses, making long-term planning and investment difficult.
CZI chief economist, Dr Cornelius Dube, presented a bold proposal of a Presidential Decree to temporarily cut business costs by 50 to 70 percent to ease the high cost of doing business and enhance the country’s regional and global competitiveness.
Dube attributed Zimbabwe’s low ranking in the Competitive Industrial Performance (CIP) index among Southern African Development Community (SADC) nations to high labour costs, limited economies of scale, and a heavy regulatory burden—factors that significantly hinder competitiveness.
According to Dube, regulatory expenses account for 17,8 percent of total overhead costs for manufacturing firms, with companies required to engage with at least nine regulatory bodies.
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