Regulatory overhaul to spur growth

Nqobile Bhebhe-Zimpapers Business Hub

GOVERNMENT is moving to institutionalise regulatory impact assessment across the public sector, placing the quality, cost and economic impact of regulations at the centre of Zimbabwe’s drive to attract investment, stimulate enterprise and improve national competitiveness.

Vice President Dr Kembo Mohadi said the new approach would require ministries, departments and agencies (MDAs) to take greater responsibility for ensuring that regulations facilitate, rather than constrain, economic activity.

Speaking at the second edition of the National Competitiveness Commission (NCC) Summit in Bulawayo yesterday, VP Mohadi said Zimbabwe could no longer rely on traditional approaches to regulation in an economy operating amid rapid technological, geopolitical and environmental change.

Held under the theme, “Accelerating Regulatory Reforms and Enhancing the Ease of Doing Business for a Competitive Zimbabwean Economy”, the summit brought regulatory efficiency into sharp focus as Government seeks to create an environment in which 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 difficult. In this volatile and dynamic environment, the quality of our regulatory framework matters greatly.”

VP Mohadi said the manner in which laws, regulations and administrative processes were designed, implemented 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 the public interest while enabling enterprise, encouraging investment and fostering innovation.”

The institutionalisation of RIA is 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 the Government had, on August 14, 2026, issued a directive reaffirming its commitment to implementing and institutionalising regulatory impact assessment across all arms of 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 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.

“The institutionalisation of RIA is an important component of our broader effort to improve the ease of doing business, regulatory quality and national competitiveness.

“It reflects our determination to build a regulatory environment that is predictable, coherent and responsive to the needs of our economy.

“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.

The NCC has been mandated, under NDS 2 and the 2026 National Budget, 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.

“This is a very important step before such measures are submitted for consideration by the Attorney-General’s Office,” he said.

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 National Budget further recognised the NCC’s responsibility to co-ordinate the implementation of RIA across MDAs, provide quality assurance and technical oversight, and support Government in ensuring that 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 (NDS 2), which was launched in November 2025 as the second phase of the development framework towards Vision 2030.

“NDS 2 places strong emphasis on economic competitiveness, industrialisation, governance reforms, devolution and sustainability, while ensuring continuity, consolidation and the deepening of reforms initiated under NDS 1.”

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, responds and, most importantly, acts. This is the hallmark of a Government committed to creating an enabling 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 (AfCFTA).

“These transformative initiatives give Zimbabwe access to a market of more than 1,3 billion people with a combined gross domestic product of over US$3,4 trillion, providing a vital platform for economic growth, regional integration and participation in value chains.

“This presents significant opportunities for our producers, manufacturers and service providers to scale up, diversify, add value, export and move up regional value chains.”

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

“For our MSMEs and businesses to compete beyond our borders, we must ensure that the regulatory reforms we undertake at home position Zimbabwean businesses to take full advantage of the opportunities presented by the continental market.”

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

“The Government is promoting e-government systems to enhance transparency and accountability while reducing human discretion.

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

VP Mohadi said the competitiveness agenda would also be guided by a five-year National Competitiveness Strategy, which was developed following President Mnangagwa’s directive at the inaugural NCC Summit.

“This is an important milestone in our competitiveness agenda and I expect the strategy to provide a clear and co-ordinated framework for strengthening Zimbabwe’s competitiveness and supporting implementation.”

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

“These are the reforms required to achieve our national development aspirations. Ladies and gentlemen, achieving competitiveness requires collaboration between the public and private sectors, not just Government efforts.”

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

“To the Government officials present here today, I urge you to see your role not merely as regulators, but as facilitators of growth. Approach ease-of-doing-business reforms with renewed energy and purpose, championing an environment that empowers investment, innovation and enterprise.”

He also urged the private sector to engage more constructively in the reform process.

“To the private sector, I urge you to be proactive partners.

“Do not criticise from the sidelines. Bring forward constructive, evidence-based and data-driven proposals.”

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 added: “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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