Business lobby groups say next year’s national budget should provide incentives for companies to revive production especially in Bulawayo. MTHANDAZO NYONI Own Correspondent
Traditionally, the national budget is announced at the end of November every year.
This year’s budget would be set amid the deteriorating economic situation in the country blamed on squabbles in the ruling party.
Business lobby groups told Southern Eye Business that they expected Finance minister Patrick Chinamasa to set aside funds to resuscitate struggling businesses.
“We need incentives for companies because right now they are struggling due to lack of credit lines,” Association for Business in Zimbabwe chief executive officer, Lucky Mlilo, said.
“Companies are either being liquidated or put under judicial management and things have not been improving. They are getting worse.”
Confederation of Zimbabwe Industries Matabeleland Chapter president Busisa Moyo said industry was looking forward to a “pro-industry” budget.
“We are hoping that the government will incentivise companies, we need duty on raw materials to be removed and regulation issues to be clarified,” Moyo said.
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He said the budget should address challenges faced by parastatals such as the National Railways of Zimbabwe and Air Zimbabwe.
Moyo said the government should also support rural communities engaged in agriculture to boost industry.
Zimbabwe National Chamber of Commerce chief economist Kipson Gundani said there was need for economic reforms and support for the manufacturing sector.
He said the cost of doing business was high due to over taxation by the Zimbabwe Revenue Authority.
Affirmative Action Group vice-president Sam Ncube said the focus should be on agriculture and manufacturing sector.
“We have been singing that industries are dying, but we haven’t done anything about it,” he said.
“We need to protect the manufacturing sector because at the moment our markets are flooded with cheap goods from other countries.”
Ncube said companies should invest in new machinery once they got support from the government.
He said companies were operating at below 50% capacity because of using obsolete machinery.
Bulawayo requires an estimated $400 million in the short to medium term to salvage close to 100 companies which closed shop last year.
