The Confederation of Zimbabwe Industries (CZI) has implored government to address policy and regulatory bottlenecks hindering the smooth conducting of business in the country.
CZI made these calls in its Third-Quarter 2022 Business and Economic Intelligent Report just published.
According to the report, some 552 firms from various sectors of the economy underwent a survey to determine policy and market feedback for the year 2022.
Business also raised concerns over government’s exorbitant raw material importation fees.
“Importation fees on raw materials are too high, requirement for CBCA certifications on raw materials is really an unnecessary burden and there are many government bodies regulating importation of inputs,” CZI said.
Government introduced the Consignment Based Conformity Assessment (CBCA) certificates to ensure that imports met quality and safety regulations.
Business operators also said the high bank charges levied in terms of the Intermediated Money Transfer Tax (IMTT) were encouraging informalisation.
“IMTT tax on both USD and local currency is increasing informalisation since businesses, both formal and informal, now prefer cash payment due to bank charges being increased by the IMTT tax,” said CZI,
Adding to the ease of doing business challenges, business players said inefficiencies at the auction market were causing delays in allocation of auction funds, adding that the requirements for one to acquire an operating licence were too prohibitive.
To ensure that businesses operate in a conducive environment, CZI said there was need for policies to create a stable economic environment, where both inflation and exchange rate are under control.
The business lobby however said despite the setbacks, some players remained resilient after finding recourse in the consistent use of the US dollar while conducting their transactions.
CZI is Zimbabwe’s largest business membership organisation with members from the Manufacturing, Trade, Transport, IT, Education and Professional Services, making up 36 sub-sectors of the Zimbabwean economy.
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