Online Reporter
Judith Phiri, Zimpapers Business Hub
THE Employers’ Confederation of Zimbabwe (Emcoz) has called for policy and legal frameworks to immediately follow regulatory reforms aimed at easing the cost of doing business in the country.
This comes at a time when the Government is undertaking business regulatory reviews to improve the ease of doing business.
Delivering a speech at the 43rd Emcoz annual congress and general meeting in Bulawayo on Thursday, Emcoz president, Mr Demos Mbauya, commended the Government for reviewing taxes and levies in agriculture.
The two-day event ran under the theme: “Social Dialogue for Economic and Social Transformation.”
The reviews are part of the Government’s extensive business reform programme targeting key sectors, including retail, tourism, transport, energy, manufacturing, telecommunications, construction, and financial services.
They seek to address high costs and bureaucratic hurdles to promote investments, business and economic growth.
“As a business, we wish to commend the Government for heeding our calls in recent months by reviewing and in some cases, removing certain taxes and levies that were weighing heavily on industry.
“These are positive steps in the right direction, but for the benefits to be fully realised, the appropriate policy and legal frameworks must be put in place expeditiously and reforms must be extended to cover all sectors of the economy,” he said.
He said the Government could reduce the cost of doing business through further streamlining regulatory approvals and licences, making processes simpler and faster.
Mr Mbauya said digitalisation of Government services was key to cutting red tape and improving efficiency, while a transparent and predictable tax regime would ensure fairness and stability for businesses.
“There is a need for investment in reliable infrastructure, particularly energy and transport, which directly affects business costs. Dialogue-driven policy reforms will ensure that business perspectives are fully integrated before changes are implemented.”
Mr Mbauya called upon all sectors across industries to seize the opportunity and compile and submit to the Government concrete and practical reform proposals to cut regulatory compliance costs.
He said these measures would not only reduce costs but also create an environment where investment thrives and enterprises expand.
On the informal economy, Mr Mbauya said more than 80 percent of jobs in Zimbabwe were in the informal sector, meaning most workers had no contracts, pensions and protection.
“Informality is both a symptom and a trap. A symptom of high costs and barriers to entry. A trap because it keeps workers vulnerable, lowers productivity and narrows the tax base,” he said.
“There is a need to simplify registration by making it cheap, fast and digital. Also, lower compliance costs to make formality attractive and not punitive.”
Mr Mbauya said there was a need to expand social protection to cover all workers.
He said by promoting small to medium enterprise (SME) financing and training, operators in the informal sector would become registered entrepreneurs, traders and exporters.
Mr Mbauya said the goal was not to punish informality but to gradually formalise it, to turn survival into security and hustling into opportunity.
“Zimbabwe is a young nation, with more than 65 percent of the population under the age of 35.
“This demographic structure can either be a threat or an opportunity. It is a threat when young people remain excluded from jobs, training and opportunities, potentially leading to frustration and instability.”
Mr Mbauya, however, said it was also an opportunity, because a skilled, innovative and empowered youth population could become the engine of industrialisation, innovation, and growth.
He said there was a need to invest in technical and vocational training, digital skills, and entrepreneurship support, while creating an environment in which young people can succeed here at home.
The Emcoz boss urged businesses in Zimbabwe to take advantage of the African Continental Free Trade Area, a continental trading block with 1,3 billion people and a US$3,4 trillion market, which presents a big opportunity for the continent.
“For Zimbabwe, this is a chance to expand exports and attract investment, but only if we are competitive, compliant, and productive.”
Commenting on the mid-term monetary policy review, Labour and Economic Development Research Institute of Zimbabwe (LEDRIZ) senior researcher, Dr Prosper Chitambura, said economic growth was vital to sustaining the financing of critical productivity-enhancing sectors such as education, health and social protection.
