ZIMBABWE’s economic transformation depends on the conduciveness of its policy environment, especially in strategic sectors, which should also facilitate the growth and competitiveness of the small and medium enterprises, the Confederation of Zimbabwe Industries has said.
The organisation said the key sectors included agriculture, manufacturing, Information Communication Technology, energy and mining.
This comes as the Government is in the process of reviewing business conditions across key sectors, including agriculture, manufacturing, retail and distribution, tourism and construction, among others.
The Government is reviewing business conditions primarily to reduce costs and simplify processes for businesses by overhauling levies, licenses, and permits, a move intended to encourage formalisation, boost economic growth, and improve the country’s investment climate.
The industrial lobby group is one of the business member organisations that have made several reform recommendations to the Government, focusing heavily on monetary policy, trade regulations, taxation and improving the general business environment.
CZI said SMEs, which are key drivers of inclusive industrialisation and employment creation, continued to face substantial regulatory and taxation challenges that constrain their growth.
“It is against this background that CZI is currently undertaking a study on how smart regulation can be achieved for SME growth and competitiveness,” said CZI in an article posted on its LinkedIn platform.
“The objective is to propose practical models for a proportionate regulatory framework and an optimal tax mix that enables small businesses to scale, contribute to the fiscus, and thereby enhance the economy.
“As a first step, seminars were conducted in Harare, Mutare, Bulawayo, and Masvingo in September to identify and select SMEs in the manufacturing sector to participate in the modelling process, providing information on employment, revenues, returns on investment, taxes, licenses, and regulatory fees (including their cost share).”
In Zimbabwe’s bustling economic landscape, SMEs have long been the backbone of economic growth and innovation.
These dynamic businesses, often operating on a shoestring budget, have the potential to drive economic transformation, create jobs and foster a culture of entrepreneurship.
However, the SMEs sector in Zimbabwe has faced many challenges that have hindered its full potential.
SMEs account for a significant portion of the country’s gross domestic product and employ over 60 percent of the working population.
These enterprises are the lifeblood of local communities, providing essential goods and services while fostering a vibrant entrepreneurial spirit.
Therefore, CZI intends to develop practical models for an appropriate regulatory framework and an optimal tax mix that supports SME growth and competitiveness.
This initiative seeks to demonstrate what an ideal regulatory and taxation environment looks like for SMEs in Zimbabwe, which would enable them to grow and contribute meaningfully to national revenue inflows and industrialisation.
“We extend our appreciation to all SMEs that participated across the four identified cities and look forward to the next phase of this important study.”
The business community continues to appeal to the Government to make the business environment more conducive through policies that promote growth and competitiveness.-herald
