ZNCC throws full support behind the govt

The Zimbabwe National Chamber of Commerce (ZNCC) has thrown its full support behind the Government's ongoing business regulatory reform programme, describing it as bold, inclusive, and a key foundation for sustainable economic growth.

In submissions ahead of the 2026 National Budget, the influential business lobby said the reforms are critical for achieving the country's Vision 2030 goal of becoming an upper-middle-income economy. The Chamber commended authorities for maintaining an open, consultative approach that positions the private sector at the centre of economic transformation.

"The 2026 National Budget is not just another fiscal exercise; it is the first proving ground of NDS2 credibility," ZNCC stated. "Its success will be judged by whether it can maintain macroeconomic discipline, widen fiscal space through formalisation, support industrial transformation, and rebuild trust in monetary and fiscal institutions."

The Chamber welcomed the review of regulatory fees, starting with the agriculture sector, and urged the government to extend reforms to manufacturing, wholesale, retail, and services. It also recommended a Contractor Payment Clearing System to ensure that certified invoices are settled within 90 days, supported by tradeable Treasury Bills, as a means to boost confidence and improve tax compliance.

ZNCC highlighted the need to expand production and formalise business activity, noting that Zimbabwe's tax-to-GDP ratio currently stands at 14 percent, below the regional target of 25 percent. The Chamber urged authorities to broaden the tax base, improve efficiency, and deepen compliance, while supporting formal businesses through cross-currency tax offsets and reinstatement of interest expense deductions for financial institutions.

On industrialisation, the Chamber stressed the importance of beneficiation and export diversification, warning that under NDS1, manufacturing capacity utilisation averaged just 51 percent, with manufactured exports making up less than 8 percent of merchandise exports. ZNCC recommended that at least 30 percent of lithium and platinum exports be processed locally by 2027 and called for the activation of special economic zones in Bulawayo and Mutare with five-year tax holidays linked to job creation.

Addressing the informal sector, which accounts for 76 percent of business activity, the Chamber proposed One-Stop Business Formalisation Centres in every province and mobile platforms for registration and tax payment. Linking formalisation to access to finance, insurance, and procurement opportunities was recommended as a way to attract entrepreneurs into the formal economy.

ZNCC also backed the government's efforts to tackle corruption and smuggling, estimated at over US$1 billion annually, recommending technology-driven monitoring, including drones, AI-powered cargo tracking, and joint audits by anti-corruption and revenue authorities.

The Chamber lauded the Treasury's drive to rationalise subsidies, suggesting a phase-out of market-distorting programmes while focusing the Presidential Input Scheme on vulnerable rural farmers to preserve social protection while promoting market-led solutions.

"We recognise and commend the Government's ongoing reform efforts," ZNCC said. "Our recommendations are framed with a pragmatic view, to unlock the full potential of Zimbabwe's businesses and ensure that growth is inclusive, resilient, and transformative."

The Chamber concluded that sustained partnership between Government and business is essential to ensure that the 2026 Budget anchors stability, industrialisation, and prosperity, in line with the Vision 2030 targets.