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Martin Kadzere Harare Bureau
THE cabinet has approved principles of the proposed amendments to the National Incomes and Pricing Commission Act to pave way for the creation of the National Competitiveness Commission Act, Industry and Commerce Minister Mike Bimha said. This will lead to the formation of National Competitiveness Commission mandated among other things to address the cost and ease of doing business as well as harmonisation and reducing the regulatory burdens on the business in the country.

In the meantime, such issues would be dealt with through the Standing Inter-Ministerial Committee with input from various stakeholders such as statutory regulators, various Government ministries and the private sector, Minister Bimha said.

“Last week, the Cabinet approved the principles on the amendments and the document is now with the Attorney General’s Office,” said Minister Bimha. “What we want is to broaden the mandate of NIPC such that it also deals with competiveness issues.”

Among key functions of the proposed commission would be to continuously monitor the cost drivers in the business and economic environment and advice on measures to be taken to address current and emerging cost challenges, review business regulations and develop a list of priorities for reducing the cost of doing business.

The commission will also undertake research and maintain a comprehensive nationwide statistical database to be used in the analysis of competitiveness across all sectors of the economy and developing periodic competitiveness frameworks.

It would also monitor, investigate and analyse costs and price trends of goods and services in Zimbabwe and benchmark them with those prevailing in the region and beyond.

In addition, it would provide regular reviews and update on capacity utilisation in various sectors of the economy, promote public understanding as well as disseminate information on matters related to competitiveness and conduct awareness programmes. The proposed NCC would report to the Minister of Industry and Commerce.

Analysts say the establishment of the National Competitiveness Commission is a welcome development. There are approximately 40 National Competitiveness Councils or Commissions worldwide including Brazil and South Korea. Some originated and were led by the private sector particularly in the US, Egypt and Croatia and some by the government in countries such as Ireland, United Arab Emirates and Saudi Arabia.

In these countries, the NCCs provide a baseline of information for understanding a country’s competitiveness. The assessment uses the most current, authoritative, comparable data which enabled annual tracking of those respective countries’ progress in competitiveness.

Basing on the defined mandates and best practices, NCCs through rigorous research, normally provide fact-driven basis for dialogue, prioritisation and action planning regarding the economy. The assessments done by NCCs highlight areas of strong and weak performance supported with suggestions, interpretations and implications for the economy. This is done in a way that all actors can agree on the data and its implications thereby building consensus amongst stakeholders.

“For Zimbabwe, this is critical requirement particularly now when the economy is facing stiff competition from its trading partners, economist Gift Mugano said in an interview.

In most of the countries, the NCCs work is summarised in a national competitiveness report which provides information and guidance for policy-makers, by spotlighting urgent issues in the economy that need to be resolved, and opportunities to confront and resolve binding constraints. These reports are produced annually.

International experience shows that in countries where NCCs were established, there was significant improvement in competitiveness, increase in investments and exports.