By Itai Zimunya
The commitment by the Government of Zimbabwe to ease the cost of doing business is a big game changer. The private sector, micro traders, consumers, and the government itself will benefit more. Taxes have to be streamlined and the cost and quantum of regulatory compliance is necessary. The Eastern Caucus (TECa) Chairman Mr Nyasha Musikambesa argued that if these proposals come to light, Zimbabwe can quickly bounce into the upper middle-income status with improved prosperity and happiness.
At present, whilst the Zimbabwe Investment Development Agency (ZIDA) act of 2020 is clear that ZIDA has to coordinate business and investment conditions in Zimbabwe, the reality was opposite. More than nine different Ministries separately administer disjointed fees, levies and regulations which complicate doing business in Zimbabwe. This multiple and disconnected taxation and levying is a serious cost on business as reported by the Zimbabwe National Chamber of Commerce (ZNCC) in its 2024 annual economic report.
The Eastern Caucus (TECa), an economic think-tank in Zimbabwe is in serious discussions with the Government to assist in this process. TECa is part of a global network of think-tanks that helped with a similar process in Rwanda and Nepal.
Zimbabwe currently ranks very low in terms of the Zimbabwe Economic Freedom Audit (ZEFA) report of 2024. However, there is global consensus that Zimbabwe must never be defined by its challenges, but its potential. With its set of mineral endowment, skilled labour force, fairly good climate and celebrated soils, Fred McMahon of the Fraser Institute in Canada argues that, with proven reforms, Zimbabwe can become one of the most economically free and prosperous nations on earth.
It is also heartening to note that the Government of Zimbabwe itself has pronounced a process to embark on this process. President Mnangagwa has been clear since the fourth quarter of 2024, including the first cabinet meeting of 2025 that the big idea now is easing the cost of doing business in Zimbabwe.
The multiplier effect of this easing the cost of doing business, centralizing, digitizing, and simplifying the business registration and reporting process has the potential to quicken Zimbabwe’s rush towards the $100 billion economy mark.
In addition to this process, TECA encourages the Government of Zimbabwe to focus on, among others, a) adopt seamless mobile phone based applications for business registration and reporting bringing the Zimbabwe Revenue Authority (ZIMRA) and other agencies under one portal, b) fully implement the ZIDA Act (2020), c) formalize the informal sector (and not kill it), d) strategic marketing of brand Zimbabwe, and lastly e) support continuous research and development.
It is possible!