Zimbabwe National Chamber of Commerce (ZNCC) says the success of the proposed 24-hour economy hinges on supportive policies, particularly a depreciation framework that recognises the accelerated wear and tear of capital equipment under extended operating hours.
A 24-hour economy is a policy model where businesses operate around the clock, typically using a three-shift, eight-hour system to boost productivity, create jobs and enhance competitiveness.
It involves supporting key sectors through security, infrastructure and incentives to shift from standard business hours to 24/7 operations.
In its latest analysis, the chamber said that depreciation policy serves as a decisive investment signal in a multi-shift production environment, as accelerated depreciation provisions lower the effective cost of new capital and influence firm-level investment decisions.
ZNCC, one of Zimbabwe’s most influential lobby groups, said the proposal in Zimbabwe’s 2026 National Budget to incentivise a 24-hour economy represents a notable shift in economic thinking.
“Zimbabwe’s 2026 National Budget Statement proposal to incentivise a 24-hour economy represents a notable shift in development strategy, reframing growth not as a function of expanded capital stock but as a function of more intensive capital use.
“Properly understood, a 24-hour economy is not about extending working hours per se; it is a structural intervention that affects investment incentives, capacity utilisation, depreciation dynamics, energy provisioning, labour productivity and the cost of capital,” ZNCC noted.
The chamber noted that the economic rationale for a 24-hour economy is to improve productivity through higher capital utilisation rather than increased labour intensity.
“Whether this potential is realised depends critically on complementary policies relating to depreciation, energy security and finance.”
ZNCC said single-shift operations in capital-intensive sectors such as manufacturing, logistics and agro-processing often result in high fixed costs because machinery depreciates regardless of utilisation.
“Single-shift operation in capital-intensive sectors such as manufacturing, logistics and agro-processing results in high average fixed costs, as plant and equipment depreciate irrespective of utilisation.
“Extending operations across multiple shifts increases output without proportional new investment, raising returns on assets and improving cost competitiveness.
“At the macro level, higher utilisation supports output growth, employment absorption and export performance.”
However, the chamber warned that extended operations inevitably accelerate physical wear of equipment, making an adaptive depreciation framework critical.
“A central implication of extended operations is accelerated physical wear of capital equipment.
“In this context, depreciation policy becomes a decisive investment signal, because accelerated depreciation provisions improve the effective cost of new capital and influence firm-level investment timing.”-herald
