Business - Economic Updates - Featured - Local - Top Stories - August 16, 2021

Industry commends gvt macro economic achievements

By Thobekile Khumalo

Confederation of Zimbabwe Industries (CZI) commends government for the micro economics achieved so far in the main budget as it helps businesses to plan and reinvest.

Addressing keynotes Confederation of Zimbabwe Industries president, Henry Ruzvidzo said that they are grateful that the input made by CZI was taken into consideration.

“We note with appreciation that the input we made to the end term budget and review budget was considered and we thank you for the policies that are helping to steady the ship during this very difficult times.

“The micro economics achieved so far in this budget helps businesses to plan and to reinvest,” he said.

He said that sustaining stability is important for growth.

“Sustaining the stability is important for the growth of the economy and indications from the second half of last year and the first half of this year from the surveys that we have done indicate that industry is on a rebound.

He also said that capacity utilisation has been improving though there are some concerns.

“Capacity utilisation has actually been improving and is projected to continue to improve in spite the challenges that we faced since the beginning of the year with covid. Some concerns, however have been raised by business with respect to the auction system which has been a game changer for our sector. Much work remains to make the auction system much more efficient and more widely accepted by both generators and users of foreign currency.

“The reasons for the widening disparity between the official exchange rate and the parallel exchange rate needs to be established and urgent action taken to resolve the issues to resolve the current distortions that are undermining confidence in our financial services sector,” he said.

CZI president applauded government efforts on the health fund particularly with respect to covid 19 vaccinations saying they are actually looking forward to avoiding any further upsurges and infections that require lockdowns going forward.

“We also note in the budget review that a lot of work is going on in terms of infrastructure development but we encourage that more work and attention be given to the power sector specifically and ICT sector because we are beginning to have quite a number of projects in manufacturing as well as mining coming up and we want to try and avoid the power sector lagging behind and also the ICTs. 5g technology is what is happening elsewhere in the world and these are the technologies we would want to adopt as we build new factories as we build new mines and out infrastructure has to be ready for that.

“Industries competitiveness is critical for growing exports, imports substitution as well as deepening local value chains. Business environment has to improve rapidly and will require an all hands on deck approach, I suggest the next frontier be about simplifying the economic model, taxations, regulations, currency, investment rules and all in all simplifying how business is conducted in the country,” he said.

He added: “We note that effort is on going in terms of reestablishing external lines of urgent resolution of the blocked funds as the issue is critical for growth and development of industry. Easing economy into a growth trajectory is no easy task and so we are working with government to find solutions that will help move forward”.

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