Ease of doing business approach way to go

AN online blogger reiterates that ease of doing business plays a crucial role in economic growth. “While ease of doing business has implications for foreign direct investments, local businesses too are impacted by the processes, rules, and regulations set up by governments that can help promote a business-friendly environment or hold local businesses back from their entrepreneurial ambitions.

It goes without saying that when systems, processes, rules and regulations are business-friendly, setting up businesses is made easier for not just big companies but also smaller ones that have less capital and resources at their disposal.

In creating an open and fair economic environment, ease of doing business can benefit businesses and local citizens in the following way: Access to economic opportunities, lower transaction costs and less corruption.”

It is behind this background that we applaud Government for prioritising creating an enabling environment for the ease of doing business. It was reported last week that Government has made strides towards creating a conducive business environment to transform the economy and attract Foreign Direct Investment after tabling seven Bills to do with the ease of doing business during the first quarter of the year.

This is in keeping with Government’s pronouncement last year that 13 laws will be promulgated in the first quarter of the year to create a conducive investment climate by addressing concerns previously raised by foreign investors.

Some of the Bills include the National Competitiveness Commission Bill, the State Procurement Bill, Judiciary Laws Amendment Bill and the Shop Licences Amendment Bill.

Addressing delegates at the fourth Zimbabwe Accountants Conference in Harare, Vice-President Emmerson Mnangagwa said Government was committed to working with the private sector in formulating policies that enhance the country’s competitiveness.

“I am sure that with the right polices in place, for example, a conducive business environment, a skilled financial services sector, an adequate enabling infrastructure and most importantly an aggressive private sector, nothing can stay in the way of attaining a prosperous economy. I am aware that Zimbabwe is listed very low in the quest of ease of doing business.

On our own as Government, we have now several, seven to 10 pieces of legislation, that are going through Parliament in order to enhance the ease of doing business. But most importantly, I think professionals like you (the accountants) should come forward to assist us with knowledge as to what you see as constraints in the implementation of formation of doing business in the country so that we legislate accordingly,” he was quoted as saying.

Creating an enabling environment for the ease of doing business will boost the investment climate and speak to the country’s economic blueprint Zim Asset, which was promulgated with a new trajectory to pursue an accelerated economic growth and wealth creation. One of the major obstacles to foreign investors and even local investors has been the bureaucracy involved in setting up a business, but the “one stop” approach will mean that no time is wasted with people shuttling from one office to the next seeking approval for projects. With small and medium enterprises, the more the “red tape that exists can often result in obstacles that ultimately prevent them from moving ahead with their businesses in a timely manner or discourage individuals from pursuing businesses in their local economies”.

We believe it is crucial for Government to look at the economic environment in the same vein as processes and regulation of setting up a business. The easier and simpler it is to set up a business, the more players will come on board.