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NewsDay

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ZNCC lines up 2017 business strategies

Business
THE Zimbabwe National Chamber of Commerce (ZNCC) has lined up strategies for 2017 aimed at improving the economy that include the ease of doing business and regularisation of small-to-medium enterprises (SMEs).

THE Zimbabwe National Chamber of Commerce (ZNCC) has lined up strategies for 2017 aimed at improving the economy that include the ease of doing business and regularisation of small-to-medium enterprises (SMEs).

BY MTHANDAZO NYONI

ZNCC president Davison Norupiri
ZNCC president Davison Norupiri

In an interview with NewsDay, ZNCC president Davison Norupiri said the strategies would help grow the economy, which is currently in the intensive care unit.

“As a chamber, we are going to work closely with the government on the ease of doing business, so that we improve on our rating as a country,” he said.

“We feel we cannot leave that for government alone. We need to play part as private sector. We are also going to work on ways of attracting foreign direct investment (FDI).”

Zimbabwe desperately needs FDI, but has lost out to regional peers such as Zambia and South Africa due to unfriendly policies such as the indigenisation legislation, which foreign investors say it scares them away.

Last year, FDI inflows into Zimbabwe went down by 23% to $421 million from the previous year’s $545m.

The 2014 numbers were the highest since the country embraced a multi-currency regime in 2009.

Zimbabwe has been undertaking a number of reforms to improve its ranking on the World Bank ease of doing business index.

The country slipped four places to 161 on 2017 World Bank’s ease of doing business ranking despite the country undertaking a number of reforms.

“We will also tackle issues of small-to-medium enterprises. We want a number of them to regularise their activities so that they pay duties and taxes to the government. We have set up an SME desk in the chamber,” Norupiri said.

SMEs are estimated to be contributing 40% of the country’s total gross domestic product and employing over 5,7 million people as the economy regresses.

After the closure of large enterprises due to the downturn of the country’s economic fortunes, most people have turned to the informal sector to earn a living, but government wants them to formalise their operations for taxing purposes.

However, the process to formalising them has become cumbersome due to exorbitant taxes and penalties charged by the Zimbabwe Revenue Authority.

Norupiri said they want to fully support policies such as Statutory Instrument 64 of 2016, export incentives and command agriculture.

“We want to hammer on our members not to abuse these policies,” he said.

He said ZNCC would open a new branch in Masvingo after an outcry from the business community to serve places such as Chiredzi, Gutu and part of Beitbridge, among others.