Online Reporter
Michael Tome, Zimpapers Business Writer
THE Confederation of Zimbabwe Retailers (CZR) has implored the Government to make the resolution of the high cost of regulatory compliance and implementation of measures to enhance the ease of doing business key areas of focus under the National Development Strategy 2 (NDS2).
NDS2 is Zimbabwe’s second five-year medium-term development plan, expected to drive the attainment of an upper-middle-income society by 2030.
It builds on the foundation of NDS1 (January 2021– December 2025) and the Transitional Stabilisation Programme (TSP), the short-term economic blueprint implemented from 2018 to 2020.
Captains of industry and business lobby groups are on record as saying that addressing over-regulation and constraints to the ease of doing business could improve the operating environment and foster sustainable economic growth.
CZR believes that streamlining regulations and reducing costs encourage enterprise growth, leading to increased economic activity and job creation.
President Mnangagwa expressed similar sentiments earlier this year, highlighting the importance of having fees, licences, permits, and regulations that promote economic development.
Zimbabwe’s Government is continuously working to improve the ease of doing business, to stimulate economic growth and attract more investment into the country.
Following the President’s remarks, Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, undertook to review all regulatory compliance issues and charges within six months to improve business conditions.
CZR said Zimbabwe’s economy was still being bogged down by a multiplicity of regulatory costs and licences, which weighed down the competitiveness of local products and the economy, leading to a loss of export markets for Zimbabwean manufactured goods.
Speaking at the launch of the National Priorities and NDS2 Roadmap consultative meeting held in Harare recently, CZR president Mr Denford Mutashu said a business-friendly regulatory environment, with transparent and predictable regulations and minimal bureaucratic hurdles, was critical in promoting local investment and entrepreneurship.
“Over-regulation and high cost of compliance are impeding growth in the wholesale and retail sector, and I think the President came out of his annual leave to give direction and impetus to this issue.
“NDS2 needs to streamline the cost of compliance and cost of regulation across the business,” said Mr Mutashu.
According to the Confederation of Zimbabwe Industries (CZI), Zimbabwe’s most influential business lobby, regulatory compliance costs account for approximately 18 percent of total overheads on average.
This is largely due to the several regulatory requirements, with a single manufacturing firm required to comply with at least nine regulatory bodies, excluding the Central Government.
The business member organisation noted that companies now employ three full-time staff members, dedicated to processing and following up on regulatory requirements.
CZI argues that this excessive regulatory burden is hindering business growth; thus, there is a need for regulatory reform to reduce the compliance burden on businesses and promote a more favourable business environment.
“It is time for radical deregulation to save our industries and our businesses. We propose that there be a Presidential Directive to the whole economy requiring ministries, agencies, and departments, and all regulatory authorities to reduce the burden and cost of regulations by 70 percent by June 2025.
“A Presidential Directive to freeze any new regulations from being implemented until they are subjected to Regulatory Impact Analysis and demonstrate how they will promote competitiveness rankings and benchmark against our peers would be ideal,” said CZI.
This comes as the Zimbabwe Investment and Development Agency (Zida) has made significant progress in streamlining investment registration and licensing processes.
Zida has streamlined investment registration and licensing lead times from 21 to seven days as part of efforts to enhance the ease of doing business environment in the country.
This follows the implementation of various measures under the One Stop Investment Services Centre (OSISC), which brings together services from over 18 Government departments to ensure timely consultations and approvals of business licences.
