Matabeleland South business calls for action to overcome growth barriers

THE business community in Matabeleland South Province has called on the Zimbabwe Industrial Reconstruction and Growth Plan (ZIRGP) to address the factors that have made it difficult for businesses to grow.

The ZIRGP for the period 2024-2025, which focuses on growth opportunities in the industrial and commercial sectors, seeks to reduce the import bill and facilitate local production. The implementation of the ZIRGP is set to address the informalisation of the economy, where various measures, including simplified tax models and registration, will be used to encourage formalisation.

In a speech read on his behalf by a member of the local business community, Mr Lehlohonolo Mokoena, during a Matabeleland South ZIRGP dissemination meeting in Gwanda District, Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland South regional vice-president Mr Thomas Gwatida said hindrances include multiple taxes, which bring pressure on industry, thereby suppressing its growth.

He said other limitations include policies, infrastructure development, skills gaps, capacity building, and limited access to finances.

“As a business community, we want to see our businesses grow from one level to another so that we can contribute to the development of the economy. Through growth, it will mean that we will be able to employ more people,” said Mr Gwatida.

He noted that many businesses are failing to expand due to challenges such as taxes.
“There are many regulatory bodies within the business environment. The existence of numerous regulatory bodies increases production costs and compromises product competitiveness regionally and internationally,” said Mr Gwatida.

He said there is also a need for a clear definition of the operations of producers and suppliers. Mr Gwatida said some producers are selling to the public, thereby taking business from wholesalers and retailers, a development that is affecting business for retailers.

He said there is a need for policies that will clearly define the boundaries of different players within the supply value chain. Mr Gwatida said it is also difficult for new businesses to secure financial assistance.

“Road infrastructure within our province is also a hindrance. We operate in an agro-community where several business people are involved in crop and livestock production, which means they need to move their produce from one point to another to sustain business.

“We end up incurring huge losses in maintaining vehicles due to damaged roads, and clients shun our areas,” said Mr Gwatida.
Mr Gwatida said there is also a need to introduce more courses in vocational training centres to promote skills development for the market.

The ZIRGP also recognises underlying policy issues that need to be addressed during the process leading to the National Development Strategy 2 (NDS 2). The policy is also aligned to Sustainable Development Goals, Africa Union Agenda 2063, Comesa Industrialisation Strategy (2017-2026), and SADC Industrialisation Strategy and Roadmap (2015-2063) aspirations.

In a speech read on his behalf by Bulawayo director for Industry and Commerce Ms Mary Chingonzoh during the same meeting, Industry and Commerce Minister Mangaliso Ndlovu said there is a need to align the new Industrial Development Policy with the upcoming NDS2 (2026-2030).

Minister of Industry and Commerce, Mangaliso Ndlovu

He said the plan is designed to tackle critical challenges in the manufacturing and policy sectors, promoting economic recovery and industrialisation.

“This plan addresses the underlying policy concerns as we transition from National Development Strategy 1 (NDS1) to National Development Strategy 2 (NDS2). The plan builds upon previous policies and aligns with the forthcoming municipal development strategy for 2026-2030,” said Minister Ndlovu.

He said the Government is committed to formulating a transitional plan that effectively addresses the underlying policy issues that need attention.

“This plan targets key challenges in manufacturing and policy sectors to promote economic recovery and industrialisation,” said Minister Ndlovu.

The previous Zimbabwe Industrial Development Policy has expired, and to align the new policy with the upcoming National Development Strategy 2 (2026-2030), a transitional plan has been adopted.
The ZIRGP builds on previous policies and aligns with the forthcoming development strategy for 2026 to 2030.chroncile