ZNCC 2020 resolutions

THE Zimbabwe National Chamber of Commerce (ZNCC) held its 2020 annual general meeting (AGM), which was a virtual meeting, on August 14 and adopted its 2020 resolutions. Below are the resolutions that were adopted during the AGM:

Global Compensation Agreement

(Agreement to pay former white commercial farmers US$3,5 billion)

• Resources should come from farming profits to honour obligations of US$3,5 billion agreed by government;

• Fiscus cannot carry the cost/has no capacity to honour the obligation;

• Beneficiaries should pay for the farms on 25-year mortgages which can be used to compensate the former white commercial farmers;

• e obligation should not be a burden to the general taxpayer; and

• ere is need to introduce a tax to be paid by farmers who benefited from the land reform which will go towards paying the US$3,5 billion. Women-owned businesses support

• At least 25% of government procurement deals should be reserved for women-owned businesses SMEs Forex Auction Market

• e foreign currency auction market for SMEs is not necessary given that the Foreign Currency Auction System is already in place; and

• Bids for SMEs should be reserved; on average 40% of the envelop should be set for SMEs. IDC restructuring

• IDC should be restructured to make it a development finance institution which supports Industry than for it to remain an investment vehicle as it is now. Political environment

•• Perception risk is a reality;

Obtaining political environment/noise is weighing on business due to perceived country risk; and

• We recognise the presence of Polad; however, there must be genuine engagement of political parties — there must be commitment for dialogue from the two political protagonists, Zanu PF an MDC Alliance. Corruption

• Corruption has become a pandemic in Zimbabwe alongside Covid-19; we estimate that almost 20% of the National Budget is lost through corruption;

• ere is need to change laws and give prosecuting powers to the Zimbabwe Anti-Corruption Commission (Zacc) and to strengthen its independence; and

• Public officials facing corruption allegations should step aside. Agriculture funding

• Government should give leeway for the private sector to support agriculture;

• Government cannot continue to be the main player in agriculture funding given the US$3,5 billion obligation to pay former white commercial farmers;

• Ministry of Finance and Bankers Association of Zimbabwe should put in place a sustainable funding model contrary to grants of yesteryear;

•• Land should have value and be transferable; and Government should disclose how it intends to raise US$3,5 billion to compensate former white commercial farmers. Currency

• Government should adopt dual or multi-currency in the short to medium-term whilst crafting a credible de-dollarisation path whose fruits can only be expected at least five years from now; and

• ere is no clear strategy on de-dollarisation, except media reports and inconsistent pronouncements by the central bank. Presidential roundtable meetings

•

Presidential roundtable meetings with the private sector should be held every quarter; and

•

Presidential Advisory Council (PAC) is not serving interests of the private sector, but individuals given that there are no reports/feedback on engagements with the His Excellency President Emmerson Mnangagwa. Delegated legislation

•

Overreliance on Statutory Instruments (SIs) to correct market distortions is achieving the opposite in addition to undermining institutions which are supposed to deliberate on the rationale for different policy moves;

••

ere is need to curtail reliance on SIs; and

SIs elevate policy uncertainty and inconsistency — (285 SIs in

2019). SMEs support

••

ere is need set up a Credit Guarantee Scheme for SMEs; and A fund should be set aside to support SMEs in terms of the muchneeded working capital. Competitiveness

•

Operating environment is weighing on industry performance, characterised by high cost of doing business, which weighs on competitiveness;

•

National Competitiveness Commission (NCC) should be capacitated, whose function is to continuously monitor the cost drivers in the business and economic environment;

•

Capacitation will ensure that NCC interrogates value chains and

cost of doing business;

•

NCC should produce quarterly reports on competitiveness which the private sector can utilise;

•

ere is need to bring to finality the currency issue given that it is a competitiveness factor; and

•

Costing and availability of utilities must be in order as current water shortages and unpredictable energy and fuel tariffs make planning difficult. Industry 4.0

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ere is need to promote Education 5.0 to complement digitisation; ere is need to set up a standalone department in the Ministry of Industry and Commerce called Industry 4.0 department; and

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Government move to relieve captains of industry and commerce from the Councils of Tertiary Institutions must be reversed as it is creating silo styles between industry and education.