The government is putting in place measures to attract investment and boost exports by ensuring that the country becomes a low-cost producer of goods compared to its regional counterparts.
Treasury’s economic interventions including macro-economic and fiscal consolidation have resulted in significant milestones being registered during the course of the year.
The Ministry of Finance and Economic Development will build on the gains by tailor-making the forthcoming 2020 budget to be presented next week as a foundation for the economy to become highly competitive.
Chief Executive Officer of the CEO Africa Round table, Mr. Kipson Gundani, described the move as a step in the right direction.
“The fact is Zimbabwe became a very expensive destination for investment due to high costs of production such as water, electricity and other variables. These are what investors look at before coming to invest so I think treasury appreciates these issues if the budget will deal with the cost of doing business,” he said.
Director at the Labour and Economic Development Research Institute of Zimbabwe, Dr. Prosper Chitambara, spoke on the increased need to improve the country’s competitiveness rankings.
“ Zimbabwe lost its competitive edge over the years as cost variables went up, hence the need to ensure that we improve the easiness and cost of producing goods and setting up businesses. If treasury’s budget in November for 2020 focuses on that I think it is the right thing to do,” said Dr. Chitambara.
This comes at a time when Zimbabwe’s exports are now cheaper compared to the region while labour costs have drastically gone down after the introduction of the local currency.
Nonetheless, cost factors such as water, electricity, tax compliance and regulatory bottlenecks remain a key challenge in attaining maximum competitive benefits.