adminOliver Kazunga Senior Business Reporter
CABINET has approved the principles for the amendment of the National Incomes Pricing Commission Act to transform the National Incomes and Pricing Commission (NIPC) to a National Competitiveness Commission. The NIPC is being transformed so that it specialises on competitiveness issues to address the high cost of business that has eroded companies’ competitiveness.
As a result of high cost of business, locally manufactured products have been crowded out by cheap imported goods that have continued to flood the market since the liberalisation of the economy in February 2009.
“I presented the principles for the amendment of the NIPC Act, which we’re now rebranding to become a National Competitiveness Commission. Those principles sailed through Cabinet and were approved yesterday (Tuesday) which means we’ll then start in earnest the process of making those amendments and bringing this to Parliament,” said Industry and Commerce Minister Mike Bimha in an interview on the sidelines of the launch of the Zim-European Union Business Information Centre in Bulawayo yesterday.
Minister Bimha would not be drawn into ascertaining the timeframe the competitiveness commission will be established due to procedural and legislative requirements that need to be undertaken in transforming the NIPC.
He said while the National Competitiveness Commission was yet to be set up, they would have representatives from the private sector together with government to work on some of the issues to do with competitiveness.
“As you might be aware, apart from setting up this commission, there’s also a Cabinet standing committee on competitiveness. So, we still have representatives from government and the private sector who will deliberate on some of these issues which are really to do with the mandate of the National Competitiveness Commission.
“And once there’re recommendations, they will also be brought before the Cabinet standing committee on competitiveness, which will then make final recommendations to Cabinet,” he said.
The envisaged National Competitive Commission would not look at issues of pricing and controls but will focus on finding measures to promote domestic industry competitiveness.
According to the Confederation of Zimbabwe Industries manufacturing sector survey, capacity utilisation in local companies declined from 39,6 percent in 2013 to 36,6 percent last year owing to a number of issues among them competition from imported products, liquidity constraints and antiquated industrial equipment.
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