‘Regulations must drive, not constrain economic growth’ – VP Mohadi

Nqobile Bhebhe Senior Zimpapers Writer

REGULATION should facilitate and not constrain economic activity, Vice President Dr Kembo Mohadi said yesterday, as Government moves to institutionalise regulatory impact assessment across the public sector and place the quality, cost and economic consequences of regulations at the centre of efforts to attract investment, stimulate enterprise and strengthen national competitiveness.

Speaking at the second edition of the National Competitiveness Commission (NCC) Summit in Bulawayo, VP Mohadi said ministries, departments and agencies (MDAs) must take greater responsibility for ensuring that regulations support rather than impede economic activity.

He said Zimbabwe could no longer rely on traditional approaches to regulation in an economy being reshaped by rapid technological, geopolitical and environmental changes.

Held under the theme “Accelerating Regulatory Reforms and Enhancing the Ease of Doing Business for a Competitive Zimbabwean Economy,” the summit placed regulatory efficiency at the centre of Government’s drive to create an environment where businesses can invest, innovate, grow and compete.

“The summit comes at a critical moment in Zimbabwe’s economic transformation journey.

“We are operating in an environment characterised by volatility, uncertainty, complexity and ambiguity, an environment that makes traditional planning complicated.

“In this volatile and dynamic environment, the quality of our regulatory framework matters greatly,” said VP Mohadi.

He said the manner in which laws, regulations and administrative processes were designed and reviewed would have a direct bearing on the productive capacity of the economy.

“How we design, implement and continuously review our laws, regulations and administrative processes will determine, to a significant extent, how effectively we can unlock the productive potential of our economy.

“We must, therefore, ensure that our regulatory environment is smart, responsive, predictable, transparent and growth-enhancing, one that protects public interest while enabling enterprise, encouraging investment and fostering innovation,” he said.

The institutionalisation of regulatory impact assessment (RIA) is, therefore, emerging as a key component of the Government’s broader ease-of-doing-business reforms, with the NCC expected to play a central role in assessing the implications of proposed regulations before they proceed through the approval process.

VP Mohadi said Government had, on August 14, 2026, issued a directive reaffirming its commitment to implementing and institutionalising regulatory impact assessment across Government.

“This is a deliberate demonstration of government ownership and leadership in strengthening our regulatory environment and ensuring that our reform agenda translates into tangible improvements in the way the government develops and implements policies and regulations.”

He said RIA should become a whole-of-Government responsibility rather than an initiative confined to a single institution.

“This is not a reform that belongs to one ministry or one institution. It is a whole of Government commitment requiring every ministry, department and agency to take ownership and ensure that the regulations we introduce advance rather than impede our economic transformation agenda,” said VP Mohadi.

Under NDS 2 and the 2026 National Budget, the NCC has been mandated to review the regulatory impact of proposed regulations, licences, fees, levies and payments initiated by MDAs before such measures are submitted for consideration by the Attorney General’s Office.

The shift potentially gives economic considerations greater prominence in the regulatory process, particularly where new licences, fees, levies and payments could affect business operating costs.

VP Mohadi said the 2026 Budget further recognised the NCC’s responsibility to coordinate the implementation of RIA across MDAs, provide quality assurance and technical oversight, and support Government in ensuring new regulations are evidence-based, cost-effective and competitiveness-enhancing.

The move comes as Government seeks to consolidate reforms under the National Development Strategy 2, which was launched in November 2025 as the second phase of the development framework towards Vision 2030.

VP Mohadi said progress had already been made in streamlining regulatory processes across several sectors, including livestock, dairy, tourism, transport, manufacturing, mining, financial services, wholesale and retail, energy, construction and health.

He also cited the streamlining of selected licences and payments administered under the Zimbabwe Investment and Development Agency Special Economic Zones Regulations through Statutory Instruments 226 and 227 of 2023.

“These measures are important in reducing the regulatory burden and lowering the cost of investment in Zimbabwe,” he said.

“These initiatives and policy directions demonstrate that we are a Government that listens, that responds and, most importantly, that acts. This is the hallmark of a Government committed to creating an enabler environment for investment and sustainable economic growth.”

Beyond domestic investment, VP Mohadi linked regulatory reform to Zimbabwe’s ability to exploit opportunities arising from continental integration, particularly through the African Continental Free Trade Area.

However, he said domestic regulatory systems had to be sufficiently efficient and digitally enabled for businesses, particularly micro, small and medium enterprises, to take advantage of continental markets.

Digitalisation is consequently being positioned alongside regulatory reform as a means of reducing bureaucracy, increasing transparency and limiting unnecessary administrative discretion.

“The goal is to create a digital environment for business that eliminates unnecessary bureaucracy and empowers them to compete confidently in regional and global markets,” said VP Mohadi.

He stressed that regulatory reform could not be achieved by Government alone, calling for stronger collaboration between the public and private sectors.

For Government officials, he said the role needed to shift from conventional regulation towards facilitating economic activity.

VP Mohadi also urged the private sector to engage more constructively in the reform process. He urged them to be proactive partners.

“Don’t critique from the sidelines. Bring forward constructive, evidence-based and data-driven proposals,” he said.

VP Mohadi said the ultimate objective of the reforms went beyond simplifying procedures.

“They are about creating an economy in which Zimbabwean businesses can grow, investors can have confidence, innovators can thrive and our people can access greater opportunities,” he said.

“Zimbabwe must be a country where doing business is easier, investing is more attractive, innovation is encouraged and our enterprises are able to compete successfully in regional and global markets.”

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