CZI pushes for Milei-style deregulation in Zimbabwe

The Confederation of Zimbabwe Industries (CZI) has urged government to adopt a bold deregulation model inspired by Argentine President Javier Milei, calling for the elimination or amendment of at least one regulation on a regular basis to unlock economic growth.

In submissions to the Ministry of Industry and Commerce, which is drafting the Zimbabwe National Industrial Development Policy II (2026–30), CZI said excessive regulations continue to stifle private sector growth.

On assuming office in December 2023, Milei embarked on an aggressive deregulation drive, removing or modifying rules at a rapid pace. By December 7, 2024, his administration had enacted 672 regulatory reforms, averaging 1,84 per day, according to the US-based Cato Institute. Roughly half of these rules were scrapped while the rest were amended.

"Zimbabwe requires bold and accelerated reforms, including systematic deregulation inspired by Argentine President Milei's ‘one deregulation per day' model; maybe in Zimbabwe, it could be one deregulation per week," CZI said.

Local businesses have long complained about policy inconsistencies and regulatory hurdles such as multiple taxes, levies, foreign exchange retention rules, red tape, and unstable monetary and fiscal frameworks.

CZI noted that the weight of regulation has contributed to a sharp contraction in the formal sector, which now makes up just 23,9% of operational establishments, down from about 40% before the COVID-19 pandemic. Of the 204 798 businesses in operation, 76,1% are informal, according to official data.

The industry body emphasised that the new industrial policy must undergo a "rigorous technical validation process" to ensure it can drive structural transformation and industrialisation over the next five years.

The call comes amid high inflation and tight liquidity conditions. While month-on-month ZiG inflation eased to 0,4% in August 2025 from 1,6% in July, the annual ZiG inflation rate remains high at 93,8%. Annual US dollar inflation stood at 14,2%, though month-on-month inflation was at 0%.

CZI also raised alarm over government's domestic debt arrears to businesses, estimated at US$8,9 billion as of March, saying the burden has left firms financially exposed.

"Both the private sector and the government are currently operating under severe liquidity constraints," CZI noted. "To ease pressure on businesses, Zimra should adopt flexible tax accommodation measures, especially for companies with strong compliance records."

The organisation further proposed that firms be allowed to offset outstanding State arrears — including unpaid contracts, matured Treasury Bills, and export surrender portions — against their tax obligations, warning that failure to resolve the issue poses an existential threat to industry.