The Sunday News
THE International Monetary Fund has welcomed Zimbabwe’s efforts in trying to address the country’s economic challenges although it said more should be done to ensure additional measures are taken to fast-track policy reform agendas.
Zimbabwe has for the past few years been working with IMF under a Staff Monitored Programme that seeks to help the country reposition itself on the radar of international financial institutions.
In a statement after her visit to Zimbabwe which ended on Friday, director of IMF African Department, Ms Antoinette Monsio Sayeh, said Zimbabwean authorities had expressed intent to re-engage the international financial community in addressing the economic challenges.
She was in the country from Tuesday to Friday last week and met Chief Secretary in the Office of the President and Cabinet, Dr Misheck Sibanda, Deputy Minister of Finance and Economic Development Dr Samuel Udenge, the Governor of the Reserve Bank of Zimbabwe, Dr John Mangudya and Members of Parliament.
“With regard to Zimbabwe, economic conditions remain difficult. During our meetings, I highlighted four issues that are key to helping fast-track the country’s policy reform agenda and to gathering support toward a strategy for clearing the outstanding arrears: balancing the primary fiscal budget; restoring confidence and stability in Zimbabwe’s financial sector; addressing the country’s debt challenge; and enhancing the business environment with a view to attracting investments. I know these issues are high on the authorities’ policy reform agenda, and they are going to be monitored with the help of IMF staff under a proposed new 15-month Staff Monitored Programme (SMP) through to December 2015,” she said.
Captains of Industry said Government must address some of the issues raised by IMF in order to create a conducive business environment which will help attract investment into the country.
In separate interviews, they said there were economic enablers like the National Railways of Zimbabwe, Air Zimbabwe, and Zesa among others which needed urgent support from Government as a way of enhancing the business environment.
Zimbabwe National Chamber of Commerce president Mr Hlanganiso Matangaidze said local businesspeople are local investors but Government needs to create a better environment for business.
“We have always advocated for a reform in labour laws that favour employees at the expense of employers and we also need an amiable tax regime as these issues affect local investors,” said Mr Matangaidze.
Mr Matangaidze said another problem was the litany of licensing one has to obtain before starting a business in the country which he said deters investment.
“One has to go through Environmental Management Agency, Zimbabwe Investment Authority and municipalities just to obtain an operating licence. We are suggesting that a one-stop shop be created to obtain this licence where all departments work together instead of sending people back and forth,” he said. On the issue of restoring confidence and stability in the financial sector, he said banks needed to be adequately capitalised and the bad debt overhang that banks are carrying should be addressed.
Association of Businesses in Zimbabwe (ABUZ) president Mr Lucky Mlilo said investor friendly policies are key to attracting investment into the country.
“When you look at Zimbabwe’s position on the ease of doing business index, you will notice that it keeps dropping which is not good for attracting investment. No one would want to come in when there is red tape,” said Mr Mlilo.
He said addressing the country’s debt challenge would help in restoring confidence and stability in the financial sector.
Ms Sayeh also said Sub-Saharan Africa’s economy is expected to expand by five percent in 2014 and 5,75 percent in 2015, and it is forecast that it would remain the second fastest-growing region in the world, just behind emerging and developing Asia.
According to the IMF, sustaining high growth in the region remains the key policy consideration and will require striking the right balance between scaling up public investment to fill infrastructure gaps and maintaining debt sustainability.
