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Obert Mpofu

Oliver Kazunga, Senior Business Reporter
ZIMBABWE has the potential to become a key economic giant if it adopts homegrown solutions and finalises on-going ease of doing business reforms, a Cabinet Minister said yesterday.

Speaking during the International Business Conference in Bulawayo, Macro-economic Planning and Investment Promotion Minister Obert Mpofu said this would enhance the regulatory and operating environment for investors.

“The country has a potential to become a key economic giant. Innovation, integration and industrialisation are critical for any economy to thrive as these factors enable economies to adapt to the dynamic global environment through adoption of homegrown solutions while at the same time learning from international best practice,” Mpofu said.

“These factors go a long way in addressing the poverty scourge bedeviling many African countries through employment creation and technology transfer.

“The country is also undertaking Doing Business Reforms to further enhance the regulatory, policy and operating environment for investors. This will make it more convenient for any investor to set up shop and operate in Zimbabwe.”

Minister Mpofu said the country needs to be competitive to attract international capital.

He said this was the reason why the government is establishing Special Economic Zones (SEZs) to offer superior incentives to investors operating in these designated geographical regions.

“This is meant to further improve the investment environment and to harness foreign direct investment into strategic sectors of the economy, which are vital for the turnaround of the economy.

“SEZs have succeeded in China and in other African countries such as Ethiopia. They’ve transformed industries and attracted new capital and technology. These go beyond the Export Processing Zones, which focus mainly on increasing exports,” he said.

Minister Mpofu said in order to address the operational hurdles previously faced by investors, his ministry has held consultations with various stakeholders to come up with measures to enhance the Ease of Doing Business.

Speaking at the same occasion, the Deputy Chief Secretary to the President and Cabinet, Ray Ndhlukula, said the government has made significant progress in achieving the Ease of Doing Business Reforms.

“When compared to other countries, the time taken to start a new business in Zimbabwe was too long. It used to take 90 days to fulfil nine procedures to start a new business. All these procedures are now gone as the time taken to start a new business has been reduced to 30 days.

“Proposed amendments to various pieces of legislation that include the Companies Act have also been made. An MoU was signed to consolidate the payment of taxes to Zimra, Zimdef and NSSA through the adoption of a single window to reduce the time taken by business in making these payments. We’re hoping that you (business) will do it on-line so that you don’t move out of your offices,” he said.

Ndhlukula said the government was implementing the Ease of Doing Business Reforms to improve the investment climate in Zimbabwe for both local and foreign investors.

This, he said, is part of accelerated implementation of the government’s economic blue print, Zim-Asset.

The Ease of Doing Business Reforms that were launched in September last year are aimed at simplifying business procedures as some of the laws that the country is using are archaic.