admin
THE Zimbabwe Government is working on harmonising the indigenisation and investment laws to improve the ease of doing business in the country, a senior Government official said on Wednesday. A recent World Bank report showed that Zimbabwe’s global ranking on the ease of doing business dropped this year to 170 out of 185 countries.
The report provides an aggregate ranking on the ease of doing business based on indicator sets that measure and benchmark regulations applying to domestic small to medium-size businesses through their life cycle.
In a speech read on his behalf at the launch of the World Economic Report 2013, Economic Planning and Investment Promotion deputy Minister Samuel Undenge said investors were reacting differently to the indigenisation policy.
“Investors are reacting differently to the indigenisation policy as noted in investment conferences held in and outside the country.
“As a result the number of registered investors is far below the approved numbers,” he said.
Undenge said amendments and amalgamations to investment and indigenisation laws were before cabinet for approval.
“The two concerned Ministries are working closely together and this will improve foreign direct investment into the country,” he said.
According to the World Bank report, starting a business in Zimbabwe requires nine procedures, takes 90 days and costs 107 percent of income per capita.
Low levels of savings and income, liquidity, high interest rates and short term credit lines have characterised the investment environment in the country.
Ministry director Thabai Dhliwayo said they had engaged the Ministry of Youth, Indigenisation and Economic Empowerment on indigenisation of certain sectors.
“Some sectors need to get a waiver if we are to get investment,” he said.
Dhliwayo said reviewing of the Zimbabwe Investment Authority (ZIA) and operations of the One Stop Shop would be completed soon.
Meanwhile, ZIA approved a total of 120 projects with a total investment value of $719 129 907 during the period July 2012 to March 2013.
The mining sector constituted eighty four percent of the approved projects while manufacturing had seven percent.
Construction had five percent while services and agriculture had three and one percent respectively. – New Ziana
Online Reporter