Chronicle Editor
Nokuthaba Brita Ncube, [email protected]
PLANS are underway for the Government to review licensing costs for businesses in order to facilitate improved ease of doing business as part of the country’s industrial reconstruction and growth strategy.
This is contained in the Zimbabwe Industrial Reconstruction and Growth Plan (ZIRGP) report, which was issued recently by the Ministry of Industry and Commerce and outlines broader efforts to enhance the ease of doing business to unlock fresh investments.
Several surveys have suggested that local businesses and potential investors are concerned about the multiplicity of regulatory costs, which tend to impede business interest and increases start-up costs.
“Regarding the ease of doing business, as approved by Cabinet, the Committee chaired by the Office of the President and Cabinet has started its work, with the target of streamlining business licenses by the end of 2024 so that beginning of 2025 business applicants apply for limited licenses,” reads the report.
“The cost of the licences will be reviewed to ensure that the costs are competitive and not punitive”.
In order to mitigate against high regulatory and utility costs that are negatively impacting manufacturing, the Ministry of Industry and Commerce, through the National Competitiveness Commission (NCC), is expected to carry out Regulatory Impact Assessments with a view to review regulations that hinder competitiveness and production.
Improved ease of doing business is a significant investment factor across the globe given its direct link to the attraction of foreign direct investment (FDI), which is widely viewed as a major contributor to the development of a country.
Zimbabwe, under the Second Republic led by President Mnangagwa, has revived investment interest through several ease-of-doing-business policies, which have seen several companies being revived while others have increased production, with foreign investors also coming on board.
Moreover, the Government has also been assisting companies to retool, hence, a significant number of businesses are back in production and creating employment through the diversification of operating models.
The Zimbabwe Industrial Reconstruction and Growth Plan is a transitional plan to be implemented until December 2025, which focuses on growth opportunities in the industrial and commercial sectors, aimed at reducing the import bill and facilitating local production.
It also recognises underlying policy issues that need to be addressed during the process leading to the National Development Strategy 2 (NDS) and is aligned to Sustainable Development Goals (SDG), Africa Union Agenda 2063, Common Market for Eastern and Southern Africa (Comesa) Industrialisation Strategy (2017-2026) and Southern African Development Community (SADC) Industrialisation Strategy and Roadmap (2015-2063) aspirations.
Thereafter, the Zimbabwe national Industrial development policy (ZNIDP) Two will be developed and will be aligned to the NDS2. The crafting of ZNIDP TWO, which will be launched during the last quarter of 2025 will commence in 2025 and will involve wide stakeholder consultations.
Online Reporter