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Jacob Mudenda

Prosper Ndlovu, Business Editor
ZIMBABWE is angling for top 20 position from 155 in the global ease of doing business ranking, riding on a raft of reforms being undertaken to accelerate economic recovery in the short to medium term, an official said.

The country needs critical investment to achieve sustainable economic growth and create jobs for thousands of Zimbabweans, which cannot be achieved in the absence of an enabling business environment, Speaker of Parliament Jacob Mudenda said.

Addressing business executives and Parliamentarians who are attending a two-day ease of doing business seminar in Bulawayo, he said the legislature was ready to complement efforts by the executive — through the Office of the President and Cabinet — in energising the ease of doing business agenda and ensuring its completion within the shortest possible time.

President Mugabe initiated the process at the beginning of the third session of the Eighth Parliament, which paved way for the initial 100-Day Rapid Results framework to December 2015 that laid the foundation for a coordinated input from different ministries and institutions with the aim of improving fundamental policies that will make Zimbabwe more attractive to investors.

Progress made so far has already seen the country leapfrog from 171 to 155th position, according to the 2015 World Bank doing business report.

“The current efforts being undertaken must put us in the top 20 countries in the ease of doing business rankings. Our aim and mission is to get out of 155 and be at the top,” said Mudenda.

He said Parliament would play its part to actuate this desired vision through its legislative, oversight and representational   roles.
Mudenda said the House was aware of the myriad legislative, policy and structural bottlenecks that hinder investment and vowed to expeditiously remove them.

He said the objective of the reforms was to move the country from mournful rhetoric to innovative and concrete legislative and policy solutions that can attract both domestic and foreign investment.

The Speaker challenged the participants to come up with specific implementable recommendations that can be adopted and synchronised to take Zimbabwe forward.

The government has already made some strides in this direction as evidenced by the recent enactment of the Joint Ventures Bill, which provides guidelines for the implementation of joint ventures between the government and the private sector.

Similarly the Banking Amendment Bill, which now awaits Presidential signature, is expected to provide impetus for increased transparency and inclusion on the financial service sector.

Also on schedule are the Minerals Exploration and Marketing Corporation and the Special Economic Zones Bills that are now before Parliament.

Mudenda said the Bills were being thoroughly scrutinised and would soon be passed into law to create a conducive legislative framework for investment.

Zimbabwean companies also struggle with a plethora of cost drivers that threaten the product competitiveness factor in relation to foreign producers.

Major cost drivers include labour, power, water, and cost of finance, transport, multiple tariffs and a punitive tax regime as well as lagging information technology.

“Our country is relatively uncompetitive with regard to the cost of production. Thus, reducing the cost drivers is necessary to improve competitiveness of business and enhance economic performance,” said Mudenda, adding: “We, therefore, need an honest and in-depth self introspection of our policies and laws in order to deal with the real and perceived excessive requirements, which impinge upon efficient and profitable business operations”.

He challenged government ministries, state agencies and the private sector to move from empty rhetoric to action saying strategising without implementation would not take the country anywhere.

A number of ministers and top officials from the Office of the President and Cabinet are attending the meeting, which ends today.