EDITORIAL COMMENT: Let’s do more to attract investors

World BankZimbabwe has recorded a number of achievements in the process of reforming the doing business environment, but still requires more support to achieve notable success.

With more support from Zimbabweans local and abroad, co-operating partners, international financial institutions and development partners, more gains could be realised.

There have been notable achievements under various initiatives. The first 100 days that were launched in September 2015 with the support of the World Bank Group have laid the foundation for attracting sustainable and mutually beneficial foreign direct investment.

The achievements under the first 100 days include drafting of principles of more than eight pieces of legislation, by-laws and regulations while various processes within Government ministries, departments and agencies were streamlined.

Furthermore, proposed amendments made to the Companies Act, Shop Licence Act, Town and Country Planning Act, are some of the notable achievements while new Bills have been drafted on Insolvency (which seeks to promote a culture of corporate rescue to preserve jobs in companies that are viable, though experiencing challenges); Movable Property and Securities Interest (which seek to permit responsible lenders to lend against movable assets as collateral thereby improving access to finance for SMEs in particular); and the Commercial Court (which will permit expeditious settlement of commercial disputes through accelerated processes).

Another highlight was the consolidation of the process to pay taxes at the Zimbabwe Revenue Authority (Zimra) by Zimdef and NSSA through the adoption of a single Window Tax Payment System to reduce time taken in making payment at various agencies.

As a result, a number of targets were achieved in various thematic areas, for example the number of days it takes to process the requirements of starting a business was significantly reduced from 90 days to 30 days.

Regarding Construction Permits, the days were reduced from 448 days to 120 days and Property registration now takes 14 days instead of the previous 36 days. Time taken to pay taxes was also reduced from 242 hours to 160 hours.

The amount of work that has been put into improving the doing business environment is encouraging. But to carry forward the work, Zimbabwe needs all the support she can get from all and sundry. Development partners, IFIs, investors and political players should come to the party.

We are pleased to note that the World Bank is working with Government on the doing business initiatives.

Again, we are encouraged that the International Monetary Fund board will consider the fund’s mission report next week. We know that the mission said Zimbabwe had met its quantitative and qualitative targets under the Staff Monitored Programme and Article IV consultations. We expect the IMF board to adopt the report.

If the IMF board adopts the fund’s mission report at its May 2 sitting, as Government expects, it will give impetus for the country’s debt resolution strategy.

This will set Zimbabwe on the path to formally rejoin the international funders. We are at a critical stage where we need to harness and garner all the support we so need.

No individual or nation can survive in isolation. We need the world and the world needs us. But we also have to do our part for the world to move with us.

Policy coherence and clarity is key at this stage. The fact that the IMF board is discussing a report about us attracts more eyes on us. This therefore requires that we conduct our business with integrity and honour.

But while we endeavour to attract international support, we have not stopped improving our environment.

In that regard, Government is aiming to reduce the period it takes to register a company to 15 days from the current 30 days.

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