Business amplifies call for peaceful elections

Judith Phiri, Business Reporter

THE business community has called for the holding of peaceful elections in the country which will also ensure a smooth flow of business.

Research shows that elections all over the world tend to have an effect on a given country’s economy, while past studies have indicated that during the pre-election period, there is a noticeable slowdown in the economy for both developed and emerging economies.

The country is set to hold its harmonised elections on Wednesday and business organisations have added to the clarion call for the holding of peaceful polls.

In an interview, the Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland Chapter chairman Mr Bekezela Moyo who is also the managing director of Allied Security and Curry Mine, said it was important as a country to hold peaceful elections.

“This showcases the maturity of Zimbabwe as a nation of peace-loving people. President Mnangagwa has continuously called for peace as this also brings investor confidence in Zimbabwe which in turn boosts industry and also helps in the protection of our business interests,” he said.

Economic commentator and businessman, Mr Morris Mpala said general elections are a legal requirement at law and being held in a generally free, fair and peaceful environment helps in managing reputation risk for the country.

“It is this risk that has to be managed as it affects business in terms of cost of capital, attracting investments/capital, attracting human capital and as just a moral booster for business and the general public as an economic ecosystem. It’s about managing perceptions that come with non-peaceful elections.”

Local economist and National University and Science and Technology (Nust) lecturer Mr Stevenson Dlamini said the election period is linked to the macro-environment that affects the environment of doing business.

“This means that the election period may lead to a better way of doing business or a detrimental environment depending on the political atmosphere surrounding the period.

“The business’ call for peaceful elections is reflective of their appreciation of the negative consequences of the contrary. Peaceful elections promote ease of doing business through guaranteeing property protection,” he said.

He said non-peaceful elections affect the international relations which are critical in promoting both exports and imports of a country.

Mr Dlamini said the election season often creates policy uncertainty for businesses, but a peaceful election environment reduces the risk of policy shifts that may negatively affect business and economic activity in a country.

In an article titled, “Zimbabwe 2023 elections: Impact on the economy”, Business Consultant and a Doctoral Research candidate focusing on Entrepreneurial Innovation at Binary University, Mr Bernard Gwarada said during the pre-election period, investors’ confidence tends to be reduced.

“Investors therefore take a pragmatic and wait-and-see approach. This is because investors want assurances that their investment is safe. This approach is also documented in literature as something that happens in a number of countries.

“According to reports, The Zimbabwe Investment and Development Agency (Zida) has targeted US$4 billion worth of investments for 2023 from both domestic and foreign investments and in the first half of the year they have received actual investments of about US$600 million.