Embrace innovation, businesses challenged

THE government has challenged businesses to embrace innovation to become architects of their own growth, carving out new pathways in industries and contributing to economic development.

Officially opening the Employers Confederation of Zimbabwe (Emcoz) annual congress in Kariba yesterday, Public Service, Labour and Social Welfare minister July Moyo said businesses that fail to embrace innovation would not grow.

“We still face many challenges and uncertainties such as COVID-19 pandemic effects, macroeconomic stability, climate, climate change, technological disruptions and geo-political dynamics,” he said in a speech read on his behalf by Cliford Matorera, chief director in his ministry.

“These factors pose risks and threats to business growth as well as our development aspirations. We need to be proactive and resilient and embrace change as an opportunity rather than a challenge.

He added: “We need to adopt the mindset of continuous learning and improvement and foster a culture of innovation and creativity. We need to leverage on our strength and comparative advantages and diversify our sources of growth and income.

“We need to enhance our productivity and competitiveness and increase value addition and benefit beneficiation. We also need to promote inclusive and sustainable development and ensure that no one and no place is left behind.”

Moyo said the adoption of cutting-edge technologies was integral to the modern business’ next step.

“Whether it’s the integration of artificial intelligence, data analytics or embracing of industry 4.0 principles, technology adoption provides a competitive advantage.

“It enables businesses to enhance efficiency, reduce operational costs and deliver products and services that meet the evolving demands of the market, encouraging businesses to invest in research and development.”

The minister said labour was a vital factor of production and it had both active and human characteristics. As an active factor, he said labour could initiate and direct production processes and adapt to changing circumstances.

As a human factor, it is the source of creativity, innovation and entrepreneurship.

“Therefore, it is important to recognise the value of labour and invest in continuous skills development and training. By equipping the workforce with the necessary skills needed for emerging industries and technologies, we can enhance productivity and ensure the sustainability of business in a rapidly changing environment,” Moyo said.

He said low levels of motivation and engagement could lead to a decrease in productivity. Addressing these aspects is crucial for fostering a motivated and engaged workforce, Moyo said. Innovation is the lifeblood of progress, the engine that propels economies forward, he said.

Emcoz president Demos Mbauya applauded the authorities for implementing policies that resulted in some measure of stability on the market over the past six months.

In a bid to boost the local unit and tame rising consumer inflation, government introduced several measures in May this year, including a directive that all government departments collect fees in the local currency, introduction of a 1% tax on all foreign payments, among others.

“We commend the authorities for implementing policies that have resulted in some measure of stability in the market over the past six months compared to the economic instability experienced in the first five months of the year,” he said.

“The environment is far from being perfect, however, if I look back in the last six months, we have experienced some measure of stability, particularly on the exchange rate, because the elephant in the room in our economy has always been the exchange rate.

“So, we have seen over the last months some stability in the exchange rate which has allowed businesses to be able to cost and predict pricing. This has also allowed on the remuneration side some measure of stability…erosion of disposable income. So, we applaud the authorities for the relative stability, but it’s far from being perfect.

Mbauya said the government should have consulted before coming up with the 2024 national budget.

The congress is running under the theme, Adapting to a changing landscape — towards sustainable economic and business growth. It ends today.

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