Business / Economy
Businesses are unsure of what to do due to unclear election dates
28 May 2013 at 20:41hrs | Views
FINANCE Minister Tendai Biti yesterday said most businesses have adopted a wait-and-see attitude due to uncertainty over election dates.
Biti said this while addressing the media on the state of the economy.
"The biggest factor of all is the hanging factor that is being brought in by the election. Businesses are just hanging in there unsure of what to do given the uncertainty pertaining to the lack of clarity on the exact date of the election.
"The elephant in the living room is self evident, it remains the issue of the election. I think the sooner there is clarity on the dates, there is clarity on the processes, there is clarity on the funding, I think we should see the return of greater business confidence," Minister Biti said.
Minister Biti, whose party has been pushing for a poll postponement, said Cabinet had approved increases in taxes for tobacco, mobile banking charges and mobile network charges, among other fiscal measures, to raise funds for the polls, a development that could result in an increase of charges in these sectors.
He said his ministry was not going to rush to implement the mechanisms until Government is satisfied that it would not affect the general populace.
He, however, said Government had mobilised US$25 million for mobile voter registration and would publish the logistics of how and when the exercise starts.
"Treasury has secured the sum of US$25 million in the Consolidated Revenue Fund. This will be channelled towards the intense voter registration exercise that is defined in Part Six of the new Zimbabwe Constitution.
"We spent the whole morning in Cabinet and Government is going to publish the consolidated plan for how this voter registration exercise is going to pan out.
"I can tell you that what has been agreed is that there will be a mobile voter registration unit in all the 1 900 wards in Zimbabwe.
"We also agreed that schools will have the 2008 voters' roll so that persons can inspect the voters' roll," he said.
He said his ministry was, however, concerned that the electoral budget continued to increase, saying the proposed allowances for election agents were too high.
Minister Biti said his ministry and that of Justice and Legal Affairs had revised the rates downwards.
Before the referendum, Treasury increased by 5 percent fuel duties to raise money for the referendum, something that resulted in fuel prices going up.
Business is on record calling for the speedy holding of elections.
Minister Biti's comments come as Sadc, the guarantors of the Global Political Agreement, has said it was awaiting the announcement of the date for harmonised elections and plans to hold a special summit to co-ordinate efforts to raise funds for the elections.
Addressing a Press conference after an extraordinary Summit of Sadc Heads of State and Government held on the sidelines of the 21st Ordinary Session of the African Union General Assembly in Addis Ababa, Ethiopia, on Sunday, the bloc's executive secretary, Dr Tomaz Salamao said elections could not continue to be postponed forever.
After the adoption and publication of the new Constitution, Dr Salamao said, the next step are the elections and as Sadc they were waiting to hear the ruling of the Supreme Court, which they would support.
The Supreme Court last week reserved judgment in the case in which a Harare man, Mr Jealousy Mawarire, is seeking to compel President Mugabe to announce the election date before the expiry of the life of the Seventh Parliament at midnight on June 29, saying failure to do so would see Zimbabwe run illegally without the third pillar of the State, the legislature.
Minister Biti said Government still looked to the United Nations and Sadc to provide funding for the elections which require upwards of US$130 million.
"As all of you are aware, Government of Zimbabwe doesn't have resources for this. In this regard, we are expecting UN machinery to provide funding to Zimbabwe. As all of you are aware, we have also written to Sadc seeking electoral assistance and we are pleased to note that the side meeting of Sadc that took place on Sunday the 26 of May in Ethiopia has agreed to hold a special summit on Sadc funding.
"We have also written specific letters to certain countries in the region that have got financial muscle including among others South Africa and Angola in relation to election funding. From where we are sitting we have absolutely no doubt that we will secure these funds way before the nomination processes take place in compliance with Section 58 of our Constitution," said Minister Biti.
Biti said this while addressing the media on the state of the economy.
"The biggest factor of all is the hanging factor that is being brought in by the election. Businesses are just hanging in there unsure of what to do given the uncertainty pertaining to the lack of clarity on the exact date of the election.
"The elephant in the living room is self evident, it remains the issue of the election. I think the sooner there is clarity on the dates, there is clarity on the processes, there is clarity on the funding, I think we should see the return of greater business confidence," Minister Biti said.
Minister Biti, whose party has been pushing for a poll postponement, said Cabinet had approved increases in taxes for tobacco, mobile banking charges and mobile network charges, among other fiscal measures, to raise funds for the polls, a development that could result in an increase of charges in these sectors.
He said his ministry was not going to rush to implement the mechanisms until Government is satisfied that it would not affect the general populace.
He, however, said Government had mobilised US$25 million for mobile voter registration and would publish the logistics of how and when the exercise starts.
"Treasury has secured the sum of US$25 million in the Consolidated Revenue Fund. This will be channelled towards the intense voter registration exercise that is defined in Part Six of the new Zimbabwe Constitution.
"We spent the whole morning in Cabinet and Government is going to publish the consolidated plan for how this voter registration exercise is going to pan out.
"I can tell you that what has been agreed is that there will be a mobile voter registration unit in all the 1 900 wards in Zimbabwe.
"We also agreed that schools will have the 2008 voters' roll so that persons can inspect the voters' roll," he said.
He said his ministry was, however, concerned that the electoral budget continued to increase, saying the proposed allowances for election agents were too high.
Minister Biti said his ministry and that of Justice and Legal Affairs had revised the rates downwards.
Before the referendum, Treasury increased by 5 percent fuel duties to raise money for the referendum, something that resulted in fuel prices going up.
Business is on record calling for the speedy holding of elections.
Minister Biti's comments come as Sadc, the guarantors of the Global Political Agreement, has said it was awaiting the announcement of the date for harmonised elections and plans to hold a special summit to co-ordinate efforts to raise funds for the elections.
Addressing a Press conference after an extraordinary Summit of Sadc Heads of State and Government held on the sidelines of the 21st Ordinary Session of the African Union General Assembly in Addis Ababa, Ethiopia, on Sunday, the bloc's executive secretary, Dr Tomaz Salamao said elections could not continue to be postponed forever.
After the adoption and publication of the new Constitution, Dr Salamao said, the next step are the elections and as Sadc they were waiting to hear the ruling of the Supreme Court, which they would support.
The Supreme Court last week reserved judgment in the case in which a Harare man, Mr Jealousy Mawarire, is seeking to compel President Mugabe to announce the election date before the expiry of the life of the Seventh Parliament at midnight on June 29, saying failure to do so would see Zimbabwe run illegally without the third pillar of the State, the legislature.
Minister Biti said Government still looked to the United Nations and Sadc to provide funding for the elections which require upwards of US$130 million.
"As all of you are aware, Government of Zimbabwe doesn't have resources for this. In this regard, we are expecting UN machinery to provide funding to Zimbabwe. As all of you are aware, we have also written to Sadc seeking electoral assistance and we are pleased to note that the side meeting of Sadc that took place on Sunday the 26 of May in Ethiopia has agreed to hold a special summit on Sadc funding.
"We have also written specific letters to certain countries in the region that have got financial muscle including among others South Africa and Angola in relation to election funding. From where we are sitting we have absolutely no doubt that we will secure these funds way before the nomination processes take place in compliance with Section 58 of our Constitution," said Minister Biti.
Source - Herald
