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Mike Bimha

Prosper Ndlovu, Business Editor
INDUSTRY and Commerce Minister Dr Mike Bimha yesterday said the on-going ease of doing business reform process will result in a reduction in the cost of production which will enhance domestic product competitiveness.

Zimbabwe is regarded as a high cost country in the region, a trend economic analysts blame for reduced exports and dominance of imports. Surveys by economic research bodies have shown that the country is a victim of high labour, taxation, regulatory, technology, transport and logistics cost among others, which frustrate efficient business operations.

The situation has been worsened by the weakening of regional currencies and strengthening of the United States dollar, the country’s major currency since the adoption of the multiple-currency system in 2009.

As part of measures to improve the business environment in the country and attract foreign direct investment, the Government is rolling out an “ease of doing business” programme meant to consolidate economic development efforts.

Since September 2015, notable progress, with the support of the World Bank, has been made in improving the business environment for local entrepreneurs as well as laying the foundation for attracting sustainable and mutually beneficial foreign direct investment.

Commenting on progress on the programme yesterday, Dr Bimha said more ground has been covered in reforming the ease of doing business framework in Zimbabwe.

“A lot of ground has been covered in terms of simplifying procedures, simplifying systems and also amending legislation to make sure that there is ease of doing business,” he said in a live interview with ZBCtv to mark the 37th Independence celebrations.

“Ease of doing business on the other hand, the flip side of it, is also the cost of doing business. Once you improve the ease of doing business you are also reducing the cost of doing business, which is what every business person would want.”

In view of progress made so far, Dr Bimha said prospects for industrial growth were bright for Zimbabwean firms as Government moves to consolidate the empowerment drive.

“I am sure you are aware of Statutory Instrument 64 of 2016, which I think has brought a number of benefits and we are still realising a number of benefits of that particular instrument, which regulates importation of those products that we can produce.

“So, it (instrument) empowers local producers, it gives them room to retool and reequip and I think we have had tremendous success on the issue,” he said.
“Government has also put in place legislation to support the ease of doing business particularly through my ministry, the National Competitiveness Bill, which is before Parliament at the moment.”

As part of accelerating the implementation of the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset), the Government through the Office of the President and Cabinet embarked on the rapid results initiative (RRI) approach to the ease of doing business in Zimbabwe.

This programme was also a response to President Mugabe’s call to reform the investment climate. In pursuit of these reforms, five technical working groups were constituted to meet set targets in the following areas; starting a business and protecting minority investors, enforcing contracts and resolving insolvency, getting credit, paying taxes and trading across borders and construction permits and registering property.

A number of milestones have been achieved in these various thematic areas in identifying the needed reforms. Legislative milestones have been fast-tracked through the establishment of a dedicated taskforce, chaired by the Secretary for Justice, Legal and Parliamentary Affairs and significant progress has been made in crafting nine pieces of legislation and a number of statutory instruments most of which are now at Parliamentary stage.

These are Deeds Registry Act, Judicial Laws Ease of Settling Commercial Disputes Bill, Shop Licensing Act, Insolvency Act, Movable Property Security Interest Bill, Estate Administrators and Insolvency Practitioners Act, Companies Act, Regional Town and Country Planning Act and the Public Procurement Act.

Concerning administrative milestones, processing of construction permits was made faster by streamlining the building plan approval process, while registering property was made easier by launching an official website containing information on the list of documents and fees for completing a property transaction as well as a specific time frame for delivering a legally binding document that proves property ownership.