CZI Calls For Business Friendly Policies To Drive Zimbabwe’s Economic Growth

Zimbabwe’s path to economic transformation hinges on the creation of a supportive policy environment, particularly in key productive sectors, according to the Confederation of Zimbabwe Industries (CZI).

The industrial body says strategic sectors such as agriculture, manufacturing, mining, energy, and Information Communication Technology (ICT) must be prioritised, not only to boost competitiveness but also to empower small and medium enterprises (SMEs) that anchor the economy.

This comes as Government is currently reviewing the country’s business operating environment across several industries, including manufacturing, retail, agriculture, tourism, and construction. The review aims to simplify business processes, cut operational costs, and streamline the issuance of permits, levies, and licenses, reforms expected to attract investment, encourage formalisation, and spur growth.

CZI has been actively engaging authorities with reform proposals focused on monetary policy, taxation, trade, and the general ease of doing business. The organisation emphasises that while SMEs play a vital role in industrialisation and job creation, they continue to face regulatory and taxation bottlenecks that stifle expansion.

“In response to these challenges, CZI is conducting a study to explore how smart regulation can support SME growth and competitiveness,” the organisation said in a statement shared on its LinkedIn platform.

“The goal is to design practical models for proportionate regulation and an optimal tax mix that allows small enterprises to grow, contribute to the fiscus, and strengthen the national economy.”

As part of the study, CZI hosted seminars in Harare, Mutare, Bulawayo, and Masvingo in September to engage SMEs in the manufacturing sector. The sessions gathered data on employment, revenues, returns on investment, taxes, and regulatory costs to inform the development of a workable model.

SMEs remain the backbone of Zimbabwe’s economy, contributing significantly to GDP and employing over 60 percent of the country’s workforce. Despite their importance, the sector continues to battle complex regulations and heavy tax burdens that limit its full potential.

Through its current initiative, CZI hopes to illustrate what an ideal business environment should look like for SMEs in Zimbabwe, one that balances regulation with flexibility and encourages sustainable growth.

“We are grateful to all the SMEs that took part in the initial phase of this research and look forward to the next stage of developing practical policy recommendations,” CZI said.

The wider business community has also echoed similar sentiments, urging Government to adopt policies that nurture growth, attract investment, and enhance industrial competitiveness across all sectors.