According to the report which assesses regulations affecting domestic firms in 183 economies on 10 areas of business regulation such as starting a business, resolving insolvency and trading across borders, Zimbabwe is only 12 places away from the least competitive business destination, Chad.
Neighbouring South Africa, Botswana, Zambia and Mozambique were ranked 35, 54, 84 and 139 respectively.
Zimbabwe ranked 144 on the ease of establishing a company, following government’s introduction of the Zimbabwe Investment Authority, a one stop shop for business prospectors and reduce the time it takes for one to secure a business permit to five working days.
In terms of dealing with construction permits, which considers records of all procedures required for a business in the construction industry to build a standardised warehouse for example obtaining connections for water, sewerage and a fixed telephone line, the country ranked 166.
On other key indicators including access to electricity and getting credit, Zimbabwe ranked 157 and 126 respectively.
Zimbabwe’s electricity sector is amongst the worst in the region due to problems in securing funding because of the country’s perennial bad image and an inconsistent policy environment characterised by the controversial indigenisation laws.
The power woes have resulted in massive load shedding that has crippled industry or ballooned operational costs as companies have to rely on more expensive alternative energy sources.
The survey ranked Zimbabwe 122 in terms of protecting investors due to a lack of property rights, given the unlawful grabbing of commercial farmland in 2000.
The country ranked 127 on tax issues, 112 on enforcing contracts, 153 on resolving insolvency and 172 on its cross boarder trading practices.
Post published in: Business