RYAN CHIGOCHE
Industry and Commerce minister, Sekai Nzenza says Zimbabwe will implement recommendations of the 2021 Zimbabwe Competitiveness Report (ZCR) to improve its poor ranking.
Zimbabwe is ranked 127 out of 140 countries, according to the Global Competitiveness Index, is ranked poorly at 127 out of 140.
There has been slow progress in the implementation of reforms on key parameters that define competitiveness particularly such as ICT adoption, upgrade of infrastructure and innovation, among others.
In its economic blueprint, the National Development Strategy 1, government underscores the need to enhance global competitiveness targets a ranking of below 100.
“I am reliably informed that the 2021 report identified the major factors contributing to low competitiveness in Zimbabwe.
“Recommendations from this report are critical to address the identified competitiveness gaps. This requires all stakeholders to work together as one to address the same, in order to make our economy competitive,’’ Nzenza said.
The ZCR has projected the country’s GCI ranking to be at 100 by 2025 with the trajectory expected to benefit from anticipated macro-economic stability, improved institutions, enhanced market efficiency and so forth.
According to the report the major factors contributing to low competitiveness include the proliferation of ad hoc regulations and the use of statutory Instruments without prior stakeholder consultations.
The report also spoke of the dominance of primary and semi-processed agriculture and mineral products in the export basket, limited access to foreign currency and finance, weak institutional capacity for service delivery and infrastructure deficit.
Against the findings, major recommendations which were proffered by the report include critical issues such as continued macroeconomic stability, fostering investment promotion, enhanced productivity, strengthening public institutional capacity, promotion of export growth, diversification and value addition and beneficiation, among others.
The report also recommended the authorities to allow power service providers for utilities to charge cost reflective tariffs that ensure viability and attract investment in power generation to enhance reliability.
Nzenza said the successful implementation of the recommendations will help to shape the country’s policy choices with the goal to enhance the competitiveness against comparator countries.
Regionally the country ranks lower amongst its peers.
According to experts the low rank will constrain the country to benefit from preferences and opportunities availed under bilateral trade agreements as the country’s products are uncompetitive.
