Online Reporter
Nqobile Bhebhe, [email protected]
President Mnangagwa has reaffirmed his administration’s dedication to swiftly enhancing the business climate by fostering innovation and attracting new investments, addressing the challenges that hinder seamless business operations.
At the highly subscribed inaugural National Competitiveness Commission (NCC) Summit, which ended in Bulawayo yesterday, captains of industry and commerce raised concerns over regulatory and compliance burdens as well as associated costs that weigh heavily on business operations, accounting for approximately 18 percent of total overhead costs.
These hurdles were blamed for discouraging the informal sector from transitioning into the formal economy.
Stakeholders also stressed the need for an in-depth review of regulations to streamline processes and lower the cost of doing business to enhance competitiveness.
Business leaders also identified energy generation and supply gaps, and transport infrastructure factors as key enablers of competitiveness, and urged policymakers to improve these to boost productivity and build a resilient economy.
Cabinet ministers present also acknowledged these challenges and indicated that the Government is actively addressing them.
In his keynote address at the summit yesterday, President Mnangagwa who has consistently said he is a listening leader, reaffirmed the Government’s commitment to urgently responding to business concerns.
“The Second Republic is alive to issues affecting businesses and is scaling up measures that create a supportive business operating environment, which encourages innovation and investment,” he said.
“This is poised to enhance the competitiveness of the country’s manufacturing sector at a time when the African Continental Free Trade Area Agreement is now operational.
“I urge stakeholders to tap into the new market opportunities presented by these emerging conditions of trade. Hence, the need to ensure that our country’s goods and services are competitive cannot be overemphasised.
“All sectors, therefore, have a duty and responsibility to embrace the competitiveness agenda and take it to another level.”
The President’s sentiments follow this week’s Cabinet approval of various measures to tackle challenges in the formal business environment and support micro, small, and medium enterprises (MSMEs).
The Government has already committed to streamlining fees, reducing duplication of work by Government agencies, and improving electricity supply. These efforts aim to facilitate MSMEs’ transition into formal businesses.
Going forward, President Mnangagwa told delegates that the Government’s economic thrust is centred on driving higher value addition and beneficiation of raw materials and minerals to establish vibrant industrial value chains.
He said the Zimbabwe Industrial Reconstruction and Growth Plan is a transitional strategy to address current challenges in the industrial and commercial sectors.
Specific sectors, including the soya bean and dairy value chains, have been identified as having a national comparative advantage and significant potential to contribute to manufacturing growth.
Turning to competitiveness, President Mnangagwa reiterated the Government’s commitment to working collaboratively with stakeholders, including the private sector, development partners, and academia, to address barriers to Zimbabwe’s global competitiveness.
“The building blocks are already there in the form of the abundant God-given natural resources, highly educated and hardworking human capital as well as our heritage-based development policies and programmes,” he said.
“All these resources must be fully exploited and blended for enhanced competitiveness and sustainable development.”
The President commended the summit for providing resolutions that inform competitive policy interventions and help insulate the economy against global shocks, and emphasised the need for collective action to achieve global competitiveness.
Collaboration between the public and private sectors remains essential for a thriving ecosystem, he said.
“The various Ministries, Departments and Agencies stand ready to spearhead reforms that encourage innovation and investments, enhanced productivity, and efficient markets. We must all work in tandem and not at cross purposes to achieve overall economic growth and improved standards of living for our people.
“It is critically important that as we undertake the various internal stages, we should think with the bigger socio-economic picture in mind to achieve global competitiveness,” said President Mnangagwa.
“It is my hope, therefore, that recommendations from this Summit will aid in the formulation of sustainable reforms to enhance competitiveness critical for attracting both local and foreign investment and increasing confidence in the economy.”
He also noted that the Competitiveness Summit, now set to be an annual event, marks a significant milestone for the Second Republic in its mission to reinforce Zimbabwe’s global competitiveness.
The President also reaffirmed the Government’s commitment to strengthening the National Competitiveness Commission, which plays a key role in facilitating a competitive business environment.
The Commission is tasked with analysing various aspects of Zimbabwe’s economy to enhance both local and global competitiveness.
He praised the Commission for producing the annual Zimbabwe Competitiveness Report, which informs policy interventions aimed at eliminating barriers to national competitiveness.
“The report also seeks to ensure that our nation offers products and services that meet quality standards of local and world markets at prices that provide good returns,” said the President.
“I am advised that the 2024 Zimbabwe Competitiveness Report is under consideration by the Cabinet Committee on the Ease of Doing Business and will soon be presented to Cabinet for approval and adoption.”
A National Competitiveness Strategy will be developed this year by the Ministry of Industry and Commerce through the Commission, which will be instrumental in guiding national policy formulation.
“My Government stands ready to lend you as much support as possible, to successfully acquit yourselves on this very noble endeavor,” said the President.
The Competitiveness Summit stands as a critical platform for shaping policies that drive economic growth and position Zimbabwe as a competitive player in international markets.
The summit delegates said commitment from all stakeholders will be key in ensuring that the country’s economic transformation remains sustainable and inclusive.
The summit was held under the theme: “Building Sustainability Towards Enhanced Productivity and Competitiveness in Zimbabwe.”
