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The government is working on a raft of measures aimed at making Zimbabwe an investment country of choice. What is pleasing to note is that there seems to be an agreement between the political leadership and business that the way forward is to make the country conducive to new investment. The political leadership through the government has put in place measures to make Zimbabwe an investment destination of choice.
On Monday, the President, Cde Robert Mugabe announced that the government will soon establish a body to spearhead the repealing of laws scaring away investors as the country seeks to lure more investment. Cde Mugabe said the National Competitiveness Commission will be responsible for reviewing business related legislation and the repealing of old laws which impact negatively on business activities. He said the government was prepared to listen and address investors’ concerns as it wanted to bring the cost of doing business in Zimbabwe to the barest minimum.
Cde Mugabe who was addressing thousands of people who thronged the National Heroes Acre in Harare to commemorate the National Heroes Day, said sacrifices by the gallant heroes who lost their lives during the liberation struggle, could only be consolidated through building a vibrant economy that empowered all people.
“This should remind us all, particularly those in leadership positions in all spheres of our society, to focus all our energies in ensuring that the economy is fully recovered,” said President Mugabe.
Last week the Reserve Bank of Zimbabwe announced that it had secured $210 million from development finance institutions to fund capital projects in key productive sectors of the economy. It said the initiative was part of its broad efforts to improve productivity, boost exports and improve liquidity.
In his Mid-Term Monetary Policy Statement released on Wednesday, the RBZ governor, John Mangudya said beneficiaries of the funds obtained from PTA Bank, the Afriximbank and the Development Bank of Belarus were firms with capacity to enhance productivity and repay the loans.
Mangudya said in view of the integral role played by export earnings in the generation of foreign exchange resources, there was a need to put in place deliberate measures to promote production across the whole spectrum of the economy. He said the RBZ had agreed with banks to cap interest rates at 18 percent as part of measures to reduce the prohibitive cost of finance. The review of bank charges and interests rates is envisaged to stimulate aggregate demand, promote resuscitation of industry and cut cost of doing business.
Measures being taken by the government to relax labour laws should, however, not be misinterpreted by business to mean a licence to exploit workers as has happened with the recent Supreme Court ruling which has seen companies sending thousands of workers, who have served for several years, on the streets empty-handed. The companies are taking advantage of the Supreme Court ruling which states that companies can just give workers three months notice.
These workers that are being offloaded contributed to the growth of the very companies that are now throwing them on the streets with nothing despite the fact that they committed no offence. It is our fervent hope that the amended Labour Law Act will be able to address these affected workers’ plight. There is an urgent need for the government to move with speed to amend the Act before more workers are thrown onto the streets.
Online Reporter