Regulatory Costs Choke Industry, Hinder Competitiveness, Says CZI

CZI calls for urgent reform to revive industry competitiveness

by Adedotun Oyeniyi

KEY POINT


  • Regulatory costs choke industry, slowing growth and competitiveness.
  • CZI urges reform to reduce compliance burdens on businesses.
  • Industry competitiveness is hampered by high operational costs.

Zimbabwe’s manufacturing and industrial sectors are being stifled by excessive regulatory costs and compliance burdens, according to a report by [Insert Source Name]. The Confederation of Zimbabwe Industries (CZI) has warned that rising costs associated with regulatory compliance are undermining industry competitiveness, deterring investment, and stalling growth.

CZI’s report outlines how businesses are struggling to keep up with multiple layers of regulation, permit requirements, and fees that significantly increase operational expenses. The increased cost of doing business has rendered many local manufacturers less competitive on the regional and global markets.

“These regulatory costs are suffocating businesses,” said a CZI spokesperson. “Manufacturers are forced to divert resources from production to compliance, which weakens their ability to compete.”

The report emphasized that the complexity and frequency of regulatory changes leave companies in a constant state of adjustment, further increasing operational costs.

CZI highlights burden of compliance on Zimbabwean businesses

The Confederation of Zimbabwe Industries (CZI) report revealed that companies are spending substantial amounts on licenses, permits, and inspections, which negatively impact production and profitability. This compliance burden is compounded by what industry players describe as an unpredictable regulatory environment.

“Each time new regulations are introduced, we have to reallocate resources to comply. It’s not sustainable,” said a manufacturing sector representative. He added that some companies have been forced to downsize or halt expansion projects due to compliance-related expenses.

CZI argues that, without intervention, the rising regulatory costs will continue to stifle growth in key sectors such as manufacturing, agriculture, and mining. This comes at a time when Zimbabwe is striving to boost exports and attract foreign direct investment (FDI) to revive its struggling economy.

According to newsday.co.zw, business leaders have called on policymakers to simplify regulations, reduce the frequency of regulatory updates, and streamline the process for obtaining necessary permits.

Call for regulatory reform to revive industry competitiveness

The CZI is urging the Zimbabwean government to undertake regulatory reform to address the rising cost of compliance. Key proposals include consolidating licenses, reducing the number of inspections, and providing clear guidance on compliance requirements.

Business leaders argue that these reforms would reduce the cost of doing business and improve the country’s attractiveness to foreign investors. The CZI emphasized that regulatory reform is essential for creating a stable business environment that promotes industry competitiveness.

“Reducing regulatory bottlenecks will free up resources that businesses can redirect toward innovation, expansion, and job creation,” said a senior official from CZI. He added that regulatory streamlining is not just a cost-cutting measure but a strategic move to enhance competitiveness in regional and international markets.

The report concluded with a call for dialogue between industry stakeholders and the government, stressing the need for public-private partnerships to develop a fair and transparent regulatory framework. Such changes, according to CZI, could revitalize Zimbabwe’s industrial sector and support broader economic recovery efforts.

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