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The Zimbabwe National Chamber of Commerce (ZNCC) has implored the Government to ensure that there is policy consistency and the creation of an environment that is conducive to business.
Speaking to <a href="https://businesstimes.co.zw/zncc-calls-for-policy-consistency/">Business Times</a> on the sidelines of the ZNCC business conference held in Harare last week, ZNCC president, Mike Kamungeremu, said:
<blockquote>
They (Government) must simply create an enabling environment. In terms of service provision and infrastructure development, we want good roads, among many others. Those are the things that businesses want.
They want an enabling environment in which they will be able to do their business without fear and then they can sell their products and make money and pay taxes to the government at the end of the day.
</blockquote>
He said the majority of businesses were also having trouble obtaining bank loans over the uncertainty of the tenure of the multicurrency system. Said Kamungeremu:
<blockquote>
There was uncertainty about that. The (tenure) of the multicurrency was extended from 2025 to 2030 and this is a one key policy because you will find all banks not lending beyond 2025.
It was very difficult for businesses to get capital. Now that the extension has been granted, we have not received feedback as yet but we expect banks to start lending until that time.
</blockquote>
Kamungeremu also pleaded with the Government to refrain from competing with businesses. He said:
<blockquote>
Critically businesses want the government to be a regulator and they should play the role of regulator in everything that we are doing, not for them to also compete with business.
We gave an example of the insurance sector, where there are insurance companies that are making a lot of money from third-party insurance.
So if the government takes it away, it is more like they are being crowded out of the space so businesses feel that the government must not get in there.
</blockquote>
Presenting the 2024 National Budget on 30 November, Finance, Economic Development, and Investment Promotion Minister Mthuli Ncube said that the Government plans to take over the running of third-party motor vehicle insurance with effect from April 2024.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

ZNCC Pleads For Policy Consistency

Zimbabwe National Chamber of Commerce (ZNCC) CEO, Chris Mugaga, has said President Emmerson Mnangagwa should appoint a fresh set of permanent secretaries with the requisite skills to lead the ministries.
Mnangagwa on Monday appointed a new 26-member cabinet following his re-election for a second and final term last month.
Speaking to ZBC, Mugaga said there should be deeper changes in the civil service and those who fail to deliver should be fired. He said:
<blockquote>
What is much more of a concern is not necessarily the personalities who comprise the Cabinet, but rather the institutional framework on deliverables.
The culture of delivery must be in place. Those who fail to deliver should be shown the exit door.
It’s also vital to appreciate that Cabinet (ministers) work with permanent secretaries.
We want to believe that, going forward, there will also be a review of the calibre of skills leading different ministries in the form of permanent secretaries.
If that’s done, then we can analyse the impact these Cabinet ministers will have.
</blockquote>
Ministers provide policy direction in government, with Permanent Secretaries responsible for running the Ministries.
Permanent Secretaries, who act as the CEOs of Ministries, are supported by directors of various units.
In 2021, Mnangagwa introduced performance-based contracts for Cabinet Ministers, Permanent Secretaries and heads of parastatals.
Meanwhile, Mnangagwa retained several individuals from the previous cabinet, among them Mthuli Ncube (Finance and Investment Promotion), Kazembe Kazembe (Home Affairs and Cultural Heritage), Ziyambi Ziyambi (Justice Legal and Parliamentary Affairs) Anxious Masuka (Lands and Agriculture), Amon Murwira (Higher and Tertiary Education) Oppah Muchinguri-Kashiri (Defence and Security), and Frederick Shava (Foreign Affairs and International Trade).
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

ZNCC Urges Mnangagwa To Appoint Fresh Set Of Permanent Secretaries

The <a href="https://www.pindula.co.zw/ZNCC" rel="noopener noreferrer" target="_blank">Zimbabwe National Chamber of Commerce (ZNCC)</a> said that the government should stop recklessly issuing Statutory Instrument (SIs) but rather focus on policy consistency.
The ZNCC made the call in its Budget Consultation Input document ahead of the 2020 National Budget presentation next week. It said:
<blockquote>We had too many SIs and it’s vital for the state to stop recklessly issuing SI as a means of changing economic behaviour, the solution lies in policy consistency which comes as a result of well-researched policy interventions.
In the same vein, Government has been too slow to act on clear threats to an economic revival, the exchange rate parity is a clear example, same with command agriculture funding and now the IMT 2 per cent is a threat to business revival.</blockquote>
The ZNCC also called for an efficient interbank market for 2020 rather than market controls as these have never worked in the Zimbabwean economy.
The organisation reiterated its position that a free-market approach should be pursued with the provision of adequate social safety nets for the vulnerable members of society being taken into consideration.
<h4>More: <a href="https://businesstimes.co.zw/business-leaders-warn-mthuli/" rel="noopener noreferrer" target="_blank">Business Times</a></h4>

Business Advises Govt To Stop 'Recklessly' Issuing Statutory Instruments

Economic analysts who spoke to The Chronicle said that is too early to introduce a local currency as the economic fundamentals to make it sustainable are not yet there. Economist and Zimbabwe National Chamber of Commerce (ZNCC) chief executive officer Mr Takunda Mugaga had this to say:
<blockquote>To bring back our currency calls for macroeconomic convergence which manifests itself in a narrow fiscal gap, narrow trade deficit, as well as improving market confidence. Indicators so far are not promising for Zimbabwe to have its own currency now.
We need to resolve the external debt issue, land tenure issue, domestic debt, as well as re-engaging the international community due to perceived high risk in the country.</blockquote>
University of Zimbabwe Economics Department chairperson Professor Albert Makochekanwa said the country should produce first before introducing a local currency. He said:
<blockquote>The baseline is that every country would want its own currency, but in the case of Zimbabwe, most people have no confidence in the banking sector. The introduction of local currency needs serious production and we are not producing enough. Let us address fundamentals first and gain confidence in our banking sector.</blockquote>
<h2>Related:</h2>
<ul>
<li class="entry-title">
<h3><a href="https://news.pindula.co.zw/2019/01/12/zimbabwe-to-introduce-own-currency-this-year-rand-or-us-dollar-not-solution-mthuli-ncube/" rel="noopener" target="_blank">Zimbabwe To Introduce Own Currency This Year, Rand Or US Dollar Not Solution – Mthuli Ncube</a></h3>
</li>
</ul>
<h3>More: <a href="https://www.chronicle.co.zw/analysts-speak-on-zimbabwean-currency-re-introduction/" rel="noopener" target="_blank">The Chronicle</a></h3>

Not The Right Time To Re-Introduce Local Currency - Economic Analysts Warn Govt

Mthuli Ncube will meet business owners in Bulawayo today to explain key points of the 2019 National Budget Statement as well as clarify issues around currency challenges.
The meeting is being organised by the Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland region and will be held at a city hotel from 9AM. A notice by ZNCC to its members reads:
<blockquote>The Honourable Minister of Finance, Professor Mthuli Ncube, will be in Bulawayo to engage corporate Matabeleland and discuss the recently announced budget, inform the business community on the currency conundrum as well as gather information regarding the challenges peculiar to our region for consideration in refining his fiscal regime henceforth.  Our desire is to intervene in the current economic challenges in a bid to proffer solutions as well as inform the business community on Government’s plans going forward and to be the conduit to progressive dialogue between Government and its stakeholders in the private sector. We believe that an informed person makes better decisions than his/her uninformed counterpart. We also want to curb speculative tendencies that result from lack of information.</blockquote>
More: <a href="https://www.chronicle.co.zw/prof-ncube-to-meet-bulawayo-businesses/">Chronicle</a>

Mthuli Ncube To Meet Bulawayo Businesses Over 2019 National Budget

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