Online Reporter
Nelson Gahadza
Business Reporter
The Confederation of Zimbabwe Industries (CZI) says comprehensive review of Zimbabwe’s regulatory framework to reduce the cost of doing business, improve policy coordination will ensure regulators focus more on facilitating economic activity than revenue collection.
CZI chief executive officer Ms Sekai Kuvarika said while reducing regulatory fees and simplifying licensing and permit requirements could provide immediate relief to businesses, deeper reforms were needed to address the proliferation of regulatory agencies and statutory instruments.
She was speaking during a panel discussion at the launch of the World Bank’s Zimbabwe Country Growth and Jobs Report, which outlines reforms that could accelerate economic growth, strengthen private-sector investment and support job creation.
Ms Kuvarika said Zimbabwe needed to adopt a broader approach to regulatory reform by reviewing the mandates of existing institutions and determining whether functions performed by multiple agencies could be consolidated.
“The reduction in regulatory fees is foundational. It’s the quick win that the environment could achieve,” she said.
However, she stressed that reducing fees should be accompanied by longer-term reforms to policy and regulatory governance.
Ms Kuvarika said the rapid expansion of regulatory agencies had increased the cost of doing business, questioning whether the establishment of new institutions was always necessary to implement emerging regulatory requirements.
She said some regulatory functions could instead be incorporated into existing institutions through changes to their mandates and organisational structures.
The creation of new agencies, she said, introduced additional fixed costs into the economy beyond the direct costs businesses incur in complying with regulations.
Ms Kuvarika also raised concerns over the proliferation of statutory instruments, arguing that the trend pointed to weaknesses in policy governance.
She said once Government adopts a policy, its legislative requirements should be clearly established instead of being followed by the continuous introduction of statutory instruments throughout the policy’s lifespan.
Ms Kuvarika said regulatory reform would also require stronger legislation, particularly to enhance the role of the National Competitiveness Commission (NCC) in scrutinising proposed regulations.
She welcomed proposals for regulatory impact assessments before new regulations are introduced, but said the institutional framework needed to be strengthened to ensure such assessments were effective.
“The National Competitiveness Commission requires a legislation that is as strong as our competition laws,” she said.
Ms Kuvarika also called for a mindset shift among regulatory agencies, saying their primary responsibility should be to facilitate economic activity rather than focus primarily on revenue collection.
“Their role is an enabling role,” she said, arguing that a growing business sector would ultimately broaden the tax base and generate more revenue for Government.
She further proposed the introduction of shared services among regulatory authorities to reduce duplication, particularly during inspections.
“Why should we have five individuals from five regulatory authorities going on an inspection list?” she asked, suggesting that a single inspection team could assess compliance across several regulatory areas.
Ms Kuvarika said the reforms were achievable but would require an integrated Government-wide approach, with regulatory agencies ultimately being measured by their contribution to improving Zimbabwe’s competitiveness and supporting private-sector growth.
