Conduct regulatory impact assessments — government urged

RIA is a key instrument used worldwide to improve the quality of regulatory decision-making and reduce administrative costs.

In a recent bulletin, the NCC said the government should incorporate RIA in national development planning and law-making processes.

“The implications of a poor regulatory business environment on Zimbabwe’s competitiveness are important for policymakers and industry.

“The role of RIA in improving the quality of the country’s regulatory business environment and the ultimate global competitiveness is critical.

“Government should enhance collaboration among businesses through respective business membership organisations and the commission on regulations negatively affecting their operations, firm, and industry competitiveness as well as national competitiveness through RIA,” read the report.y

“There should be institutionalisation of RIA by regulatory authorities, to enable self-test on competitiveness impact before the regulations come on stream.”

This comes as economic experts have said a poor regulatory business environment has worsened Zimbabwe’s risk premium.

They are of the view that government should normalise conducting consultations before executing major policy shifts, and draw lessons and directions to better the country’s business environment.

The 2021 and 2022 Zimbabwe competitiveness reports noted that the country’s competitiveness is greatly hampered by unfavourable policies, business regulations, administrative processes, and procedures.

“It is believed that poorly designed regulations without adequate key stakeholder consultations are among chief factors weighing down Zimbabwe’s global competitiveness,” NCC said in the report.

“Cognisant of this, it is critical to unpack and analyse the law-making process concerning competitiveness.

“This will assist in identifying regulatory gaps and recommending appropriate measures aimed at improving the country’s business regulatory environment.”

However, the government has put in place several initiatives designed to improve the country’s regulatory environment to improve competitiveness and investment opportunities and as a result, Zimbabwe’s ranking in doing business improved by 21 ranks from 2019 to number 140/190 in 2020.

“Government, to improve the quality of regulations and ease of doing business in Zimbabwe has, in recent years, created independent commissions and other stakeholders and mandated them to review regulations and propose appropriate recommendations,” read the report.

Currently, the review of business regulations impeding competitiveness, as well as ease of doing business is reviewed by the NCC and the Zimbabwe Investment Development Authority, respectively.