Opening the economy for business

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.