Open­ing the econ­omy for busi­ness

Mail & Guardian - - Invest In Zimbabwe -

Oc­to­ber 2018 and runs un­til De­cem­ber 2020, is a two-year pro­gramme fo­cused on driv­ing eco­nomic growth by shift­ing pol­icy and im­ple­ment­ing pru­dent macroe­co­nomic poli­cies. One of its pri­mary fo­cuses is on en­hanc­ing the at­trac­tive­ness of the coun­try when it comes to busi­ness.

In a nut­shell, Zim­babwe is putting sig­nif­i­cant ef­forts in open­ing up the coun­try for busi­ness. In or­der to achieve this car­di­nal goal, gov­ern­ment has put in place ro­bust pol­icy re­form mea­sures that are de­signed to achieve the growth tra­jec­tory tar­geted un­der the TSP. Fur­ther­more, to achieve this de­sired growth tra­jec­tory, gov­ern­ment needs to do more on ease of do­ing busi­ness, im­prov­ing com­pet­i­tive­ness and open­ing the coun­try to in­ter­na­tional in­vestors and fi­nanciers, ac­cord­ing to the TSP Re­port.

In­sti­tu­tional ef­fi­ciency, reg­u­la­tion and pol­icy de­sign will be­come a clear fo­cus for the gov­ern­ment. They have to. To fa­cil­i­tate pri­vate sec­tor en­gage­ment and busi­ness in­volve­ment, these three fac­tors need to be ad­dressed. Com­plex red tape and in­com­pre­hen­si­ble leg­is­la­tion limit in­vestor and busi­ness in­ter­est. Fur­ther, the re­port high­lights the im­por­tance of har­ness­ing the po­ten­tial of the dig­i­tal econ­omy.

Dig­i­tal en­trepreneur­ship and the Fourth In­dus­trial Revo­lu­tion can trans­form em­ploy­ment, skills de­vel­op­ment and eco­nomic strength.

To sup­port this, the gov­ern­ment has com­mit­ted to de­vel­op­ing con­crete plans that will cre­ate an en­abling en­vi­ron­ment for the dig­i­tal econ­omy, par­tic­u­larly with re­gards to im­proved con­nec­tiv­ity. It is also pay­ing at­ten­tion to the de­vel­op­ment of a macro-pru­den­tial pol­icy frame­work that fo­cuses on re­duc­ing sys­temic fi­nan­cial risks and en­cour­ages steady fi­nan­cial and eco­nomic growth. This has seen the pri­ori­ti­sa­tion of fi­nan­cial sta­bil­ity as­sess­ment mod­els and early warn­ing tools such as macro stress tests and in­ter-bank con­ta­gion mod­els.

Along­side eas­ier ac­cess to credit, ini­tia­tives tar­geted at small, medium and mi­cro en­ter­prises, in­clu­sive eco­nomic growth and sec­tor-rel­e­vant plan­ning, Zim­babwe is mak­ing the right moves that are con­ducive for busi­ness growth. This is a good start for the Gov­ern­ment of Zim­babwe, although it is not go­ing to be easy to re­solve all the chal­lenges in a short space of time, as en­vis­aged un­der the Tran­si­tional Sta­bil­i­sa­tion Pro­gramme and Vi­sion 2030.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.