The Sunday Mail
Taurai Changwa : Business Forum
There is, however, need to ask fundamental questions: What does the world demand? What does the future demand of us? How do we fit in the international market? All these questions need answers.
Solutions do exist and it is up to us to go out there and find them.THE era where companies simply concentrate on making profits without duly considering the environment in which they operate is coming to an end.
It is now apparent that companies have to pay attention to the communities in which they operate. It is not optional, but absolutely fundamental.
Zimbabwean companies have a distinct identity relative to their peers in the region, but it is important for it to be in concert with that which groups other companies in the global business community.
In the past two decades — when the local economy has been subjected to sanctions from Europe and the United States — policy-makers have instituted many reforms, policies and programmes, but we remain mired in challenges.
Sometimes it might seem as if some of the policy measures are reactionary, but the situation has been so fluid that Government has had to be versatile.
For those in Government, it has been more like attending to a malfunctioning car, where another challenge crops up as soon as one has been attended to. In such circumstances, the situation calls for a thorough diagnosis to establish the main problem.
The world is changing and there is need for us to change with it. Businesses have to adapt to new circumstances for economic growth.
There is, however, need to ask fundamental questions: What does the world demand? What does the future demand of us? How do we fit in the international market? All these questions need answers.
Solutions do exist and it is up to us to go out there and find them.
But the first step to rediscover our potential is to establish our shortcomings and work on them. Denial can only lead to more failure.
The second step is to implement the policies that we would have identified as fitting to grow the economy and avoid additional baggage that can only undermine the ability to achieve set targets.
Corruption has bogged down many Government projects, and there is need to ensure it is decisively dealt with.
Also, Zimbabwe cannot do it alone and, thankfully, there are countries that are willing to support as typified by the Sino-Zimbabwe projects that are presently being pursued by the two countries, including some projects that are being jointly undertaken with Russia.
Zimbabwe has a lot to offer to the world.
There is inherent potential in our agricultural sector that hasn’t been realised as yet, and, equally, the full potential of the mining sector has to be explored.
Zimbabwe has more than 44 different mineral groups and prime agricultural land that can be leveraged as a springboard for future economic growth.
Tourism is another bright spot.
President Mugabe continues to preach value addition as a critical component of development and this has to be expeditiously pursued.
Anything that can augment revenue inflows is most welcome.
The country’s balance of payment position is currently unenviable and the huge debt overhang makes it all the more difficult to take huge strides towards our goals.
The Zimbabwe Revenue Authority, which is hard pressed to raise additional revenues to meet increasing demand from the Treasury, has had to heavily lean on a few companies that are still operating. In turn, companies are resorting to cutting costs to grow their bottomlines.
Still a lot of work needs to be done to grow the economy.
Perhaps the best way forward in the interim is to resort to cash budgeting, where we refrain from spending more than we collect in taxes.
The challenges that are affecting the economy are not peculiar to Zimbabwe alone as most countries around the globe are similarly constrained.
The commentary that was made at the World Economic Forum Annual Meeting in Davos, Switzerland is seemingly instructive: “The year 2015 was a hard one all around. Brazil fell into recession.
China’s economy experienced its first serious bumps after almost four decades of breakneck growth. The eurozone managed to avoid a meltdown over Greece, but its near-stagnation has continued, contributing to what surely will be viewed as a lost decade.
“For the United States, 2015 was supposed to be the year that finally closed the book on the Great Recession that began back in 2008; instead, the US recovery has been middling … With this analysis it is evident that several countries are being affected.”
And Zimbabwe’s economy is no exception.
The notable slump in foreign direct investment that seem to suggest a market that is still reluctant to take risks in the local economy is worrying.
Efforts must be redoubled to ensure that Zimbabwe, again, assumes its pride of place on the international market.
Taurai Changwa has vast experience in tax, accounting, audit and corporate governance issues. He is MD of SAFIC Consultancy and writes in his personal capacity. Feedback: [email protected], Facebook page SAFIC Consultancy and WhatsApp +263772374784
