ZIMBABWE needs to address policy inconsistency, provide certainty and create an enabling environment in order to reap full benefits from the mining sector, Deputy Prime Minister Arthur Mutambara has said.
REPORT BY KUDZAI CHIMHANGWA/ HAPPINESS ZENGENI
Speaking at the 74th Chamber of Mines Annual General Meeting in Nyanga, Mutambara said policy inconsistency was one of the major factors that had contributed to the country’s poor ranking on the global ease of doing business rankings.
Mutambara said a bad policy was better than policy instability and inconsistencies adding that this easily scared away business. “What business wants is uncertainty and not cross-policies, which promote polarisation.”
The Government of National Unity has not been in agreement on certain policy issues, which include indigenisation and investment as well as agriculture. This inconsistency in turn affects economic growth and development programmes such as the Medium Term Plan.
World Bank country economist Nadia Piffarretti said policies were best when grounded on analysis of domestic conditions.
Mutambara said the other similar factor, which was affecting business was government instability. “For two years now, government was talking about holding elections and business at the moment is not sure.”
Recently, the Zimbabwe National Chamber of Commerce called on government to sort out the politics and focus on the economy.
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Mutambara said it was imperative for government to consider best practices from other countries in addressing challenges bedevilling the mining sector.
“We are using archaic legislation in the form of the Mines and Minerals Act. That law is criminal as it was based on racism and apartheid and does not empower the people,” he said.
Mutambara’s call comes at a time when there are consultations being made in the sector pertaining to the Minerals Development Policy. Permanent secretary in the Mines Ministry Prince Mupazviriho said consultations were still ongoing in terms of the policy and pronouncements would be made after all submissions had been considered.
