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Walter Muchinguri Assistant Business Editor
Industrial Development Corporation of Zimbabwe general manager Mr Mike Ndudzo has said lack of collaboration and co-operation between Government departments and State Enterprises delay investment approvals and as such contribute to the low rankings on the doing business index.
“At the moment we are operating in silos because it takes months to get approval from different Government institutions yet in some instances they are situated within a kilometre radius,” he said.
Mr Ndudzo said that this lack of co-operation was detrimental especially when it comes to investment.
“We cannot continue to have a situation where investors are kept waiting while we take our time to approve their papers. For instance it took us 178 days to get approvals for new investment into Surface from Zimra, Ministry of Youth, Indigenisation and Empowerment and the Competition and Tariff Commission.
“Government institutions need to co-operate if we are serious about attracting investment in the country,” he said.
Mr Ndudzo said that the lack of co-operation and collaboration was not only restricted to Government institutions alone but was also affecting the private sector.
He gave an example of the implementation of their 4D strategy, which he said was being impeded by lack of co-operation and collaboration.
Under the strategy IDC intends to dispose some of its companies to raise money for other key companies in its portfolio while on the other had it was also seeking to dilute its shareholding in others by taking on new partners or investors.
The strategy also involves dissolution and development of key companies in the portfolio.
Companies to be sold include, Zimbabwe Grain Bag, Almin Metal industries, Surface Investments, Sunway City, Stone Holdings, Modzone Enterprises, Zimbabwe Copper Industries, Zimglass, Allied Insurance and automotive companies Deven Engineering and Amtec.
Mr Ndudzo said that the disposal strategy has not succeeded said because of the lack of cohesion between them and some of their partners in the companies in which they want to dispose of their shareholdings.
“We already have Government’s approval to sell our shares in these companies and we have sat with our partners and agreed that we want to sell but when it comes to the actual disposal our partners have been singing a different tune yet we would have agreed in the first instance,” he said.
In instances where they secure investment, he said investors had been frustrated by the time it takes to get approvals.
“We can discuss our strategy in detail but the long and short of it is we cannot succeed unless there is co-operation and collaboration,” he said.
Mr Ndudzo said that the single biggest factor why Malaysia’s economy became a success story that is revered the world over was because they managed to foster co-operation and collaboration within their institutions.
Online Reporter