Chronicle Editor
Judith Phiri, Business Reporter
THE National Competitiveness Commission (NCC) said the implementation of the Regulatory Impact Assessment (RIA) policy in Zimbabwe will go a long way to assist in the improvement of investor confidence and increase in investments.
RIA is a tried and tested tool used to assist policymakers in developing quality regulations and avoid negative consequences which distract investment and impede competitiveness.
The instrument has been widely applied in the Organisation for Economic Co-operation and Development (OECD) and is gradually expanding to developing countries including Africa.
These include the European Union, United Kingdom, Germany, Indonesia, Kazakhstan, South Africa, Zambia, and Kenya.
Responding to questions from Sunday News Business, NCC executive director, Mr Philip Phiri said the overall goal of RIA was to improve the quality of regulations, primarily in terms of effectiveness and efficiency.
“One goal is to improve the competitiveness of a country by specifically identifying compliance costs related to business regulations impeding price competitiveness, such as licences, permits, clearances, certificates, taxes, levies, and user charges and comparing them to the intended public benefit. Other objectives are linked to protecting the environment, or social goals, such as reducing poverty or gender equality,” he said.
He said the introduction of RIA in Zimbabwe was intended to address unconducive regulatory business environment that discourages investors and entrepreneurship.
Mr Phiri said such an environment increases the cost of doing business for existing firms and thus impedes their global, regional, and local price competitiveness.
“Business in Zimbabwe has been raising concerns about over-regulation characterised by an influx of Statutory Instruments (SIs) and undocumented law-making process which contributes to a high-cost economy.
“The major important benefit of RIA is that it provides crucial information to decision-makers on whether and how to regulate with a view to achieving public policy goals,” he said.
“A well-functioning RIA system assists policymakers in identifying the potential outcomes of proposed regulations and determine whether regulations will achieve the intended objectives.”
He said the benefits that came along with the implementation of RIA in Zimbabwe will assist in the improvement of global competitiveness rankings, improvement in doing business rankings, reduced business risks and increased growth and welfare.
Mr Phiri called on Zimbabwe to adapt so as to ensure its ranking in the global competitiveness arena becomes more investor friendly.
Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland Chapter chairman Mr Bekezela Moyo said RIA was one of the best approaches when dealing with the impact regulation changes that might have on the varying sectors of industry.
“Putting RIAs in place allows the regulatory authorities the ability to engage with the industry captains and identify the impact changes have on the sustainability, rehabilitation and resuscitation of industry drivers.
“As part of President Mnangagwa’s Vision 2030, the roadmap to success is engagement and understanding between all parties in both Government and business, while a working collaboration before implementation has a distinctive sound of success,” he said.
He said in some instances, a blanket regulation has benefited some sectors of industry but also had a negative impact on others which has led to regulation amendments having to be done yet this could all be avoided with the implementation of RIA’s.
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