EDITORIAL COMMENT : President’s push for simpler business rules must not stall

Quite often, good ideas face unnecessary delays in implementation, even when everyone is in support, as someone insists on checking every possible implication and ensuring that all points are covered.

Sometimes, of course, there are other forces at play, such as the rigidity of bureaucratic processes or individuals exercising their power by saying no. As President Mnangagwa made clear this week, that is simply not acceptable.

Regardless of the reasons, President Mnangagwa now believes the review of licences, permits, levies and their fees — which gathered momentum last year — needs to be brought to a conclusion across all areas.

Some ministries and agencies have already completed the necessary reforms, but he wants the entire process settled by the end of next month.

This was a major promise by Zanu PF to the business community, and once investigations began it quickly became apparent that health and safety standards, consumer protection, environmental safeguards and the rest could be retained with a far simpler licencing regime and much lower costs.

Much of the paperwork businesses faced had accumulated over decades, with new requirements added piecemeal, each demanding a separate licence rather than amending the existing one.

In many sectors, numerous licences were unnecessary to maintain standards, and were replaced with a straightforward checklist.

One glaring example was supermarkets.

The original licencing system was designed for butchers, greengrocers, grocers, takeaways and other small shops, each requiring separate rules.

When large supermarkets emerged, they suddenly needed the entire range of licences. Even in earlier times, licences were issued by different authorities, leading to duplication. In other sectors, licences were granted grudgingly, as established companies sought to keep newcomers at bay through lobbying.

During periods of shortages, there was even a belief that fewer businesses might be beneficial.

When the mess of licences was finally tackled, it became clear that tinkering would not suffice.

Each ministry had to return to basics, determine what truly required licencing, and then push ahead with reforms.

The first announced changes demonstrated how business could be made easier, competition increased without compromising standards, and innovation unlocked.

Simplification and lower fees did not only benefit formal businesses. Informal traders, long deterred by the old system’s complexity and costs, now have fewer excuses to remain outside the formal economy.

They can follow sensible standards and contribute to the tax base.

One point bureaucrats must remember is that no set of regulations can ever cover every eventuality.

New issues will arise, and that is when amendments are needed. But this time, amendments must be made properly — by adjusting criteria for existing licences rather than creating new ones.

Fees should cover the cost of inspections, but when a single inspector can check all standards in one visit, costs naturally fall.

Modern technologies also mean many checks can be carried out remotely.

Banking, tax and communications, for example, are now overseen by officials behind computer screens, far faster and more efficient than the days of paper files and pencils.

The President is correct: there is nothing conceptually difficult about overhauling the licencing regime and rebuilding it to ensure essential standards are upheld while costs are reduced.

Zanu PF can keep its promises — consumers will not be cheated, defrauded or endangered, and the ease of doing business will be greatly improved.

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