Judith Phiri, Business Reporter
THE Zimbabwe National Chamber of Commerce (ZNCC) has said there is a need for stakeholder consultations and impact studies before any new policy measures are put into effect.
In its latest newsletter, ZNCC said stakeholder engagement was critical when policy measures are being put in place. In terms of macroeconomic stability, ZNCC said the National Development Strategy I (NDS1) (2021-2025) put more emphasis on macroeconomic stability as one of its key pillars.
It said price and exchange rate stability were the cornerstone for facilitating a market-led economy recovery and growth.
“Instability is also detrimental to the ability of the Government to provide services to its citizens. For example, due to the rapid exchange rate depreciation and high inflation, the total 2023 National Budget was reduced to about US$983 million as of 16 August 2023 using the wholesale auction exchange rate of ZWL$4577 per US$1 (as of 18 August 2023).”
ZNCC said the focus of the 2023 Budget was to maintain a tight monetary and fiscal policy stance to entrench macroeconomic stability that promotes private sector-led economic growth and building capacity within the public sector to effectively implement the NDS1 during the second half of the Strategy period.
It said the key result area was to achieve fiscal consolidation in which great strides have been made in the preceding Budget. Looking at measures introduced by the Government between May and July 2023, ZNCC said they largely welcomed them.
“From the Chamber’s perspective, the points of focus for Zimbabwe after the election are: deepening currency stability; reversing negative perceptions (the state of peace and freedom before, during, and after the election is critical); and focusing on productivity not production in sectors such as agriculture, mining, education, and manufacturing.”
Looking at skills for trade — addressing business capability gaps for enhanced international competitiveness, ZNCC said a country or business organisation that lacks the necessary human, institutional, and infrastructural provisions will always find it difficult to effectively and competitively participate in international trade.
“To add on, issues pertaining to business strategies at the firm level and trade facilitation at the national level point to the effect that Zimbabwe faces some special difficulties that hinder the country from benefiting from the multilateral trading blocs such as the African Continental Free Trade Area.
“Accordingly, the key components for the efficient and effective functionality of an enterprise include the people, the technologies, the operating processes and business organization, and business strategies,” read part of the newsletter.