CZI demands action

its calls to address issues affecting the viability of local companies.
CZI president Mr Joseph Kanyekanye said business leaders were agitated by the Government’s “pretending to listen to their grievances”, while it did not act on them.
To ensure effective implementation of Government economic turnaround programmes, CZI had demanded the creation of a “super minister” portfolio responsible for whipping into line non-performing ministers.
Mr Kanyekanye was presenting the business lobby group’s input into the Medium Term Policy, soon to be presented by Finance Minister Tendai Biti.
The CZI leader cited shortage of working capital, antiquated machinery, high input costs, power outages and the high cost of labour, compared with regional countries, as their major constraints.
CZI also proposed and demanded action on fiscalised tax registers, high income tax levels, delays at ports of entry and the slow pace of privatisation.
The organisation opposed plans to lift the ban on scrap metal, export support and continuation of the multi-currency and influx of cheap imports.
Mr Kanyekanye said it was surprising that Zimbabwe’s economy continued to “wobble” despite the abundance of natural resources.
He said the economies of less endowed countries – among them Israel, Malaysia and Singapore – were flourishing.
“We hold meeting after meeting with ministers. They listen to you and simply ignore (what you say),” he said. “Ignoring, to me, is very painful because you spend a lot of time giving advice, which time, if spent on my business, would enable me to make money.
“That eats on me in a very, very subtle manner.”
He said Malaysia had demonstrated that set targets could be achieved as the country was on course to meet its 2020 vision for a fully industrialised economy.
It was in this regard that CZI had suggested a number of issues be addressed in the MTP and has also given timelines for implementation.
CZI demanded protection of local businesses especially shoe manufacturing, vehicle assembly, milling and the scrapping of import duty on raw materials from Sadc countries, which they said raised the cost of production.
The country’s most influential business lobby group also made proposals for recapitalisation of the central bank to the tune of US$100 million by December to enable it to carry out its supervisory and lender-of-last-resort functions.
Since the Reserve Bank had no capacity to repay funds it took from companies’ foreign currency accounts, CZI wants the debts converted to tradable tax certificates to be used in place of tax heads with a certain cap.
CZI suggested that Government should explore all possible avenues to reduce expenditure – to create fiscal space for capital projects and to set up an infrastructure fund that would receive 10 percent of Government revenue.
The confederation said it also wanted Government to invest surpluses from revenue collections in local banks and sectors that were not doing well, but with strong recovery potential.
In addition, CZI called on the Government to effectively deal with the country’s debt, sort out differences on the GPA to enhance access to credit and setting up of an industry revival fund to support business recovery.
It also said it wanted Government to fully harness potential revenue from informal sectors, embrace genetically modified organisms to enhance the competitiveness of local firms.
It also suggested that Minister Biti should direct pension funds to release funds to support housing development and introduce legislation supporting flawless and less strenuous processes for establishing formal businesses.
CZI said wanted to hold monthly meetings with the President to discuss business constaints.