OPINION: License Reforms Need Black Market Fix

By Newton Mambande

HARARE – THE recent business license reforms announced by the government have the potential to be a game-changer for the economy. By streamlining the licensing process and reducing bureaucracy, businesses will be able to operate more efficiently and effectively. This move is expected to attract more investors, both local and foreign, and boost economic growth.

The reforms aim to simplify the licensing process, making it easier for businesses to start and operate. This will not only reduce the compliance burden on businesses but also increase revenue collection for the government. With a more streamlined process, businesses will be able to focus on innovation and growth, rather than getting bogged down in red tape.

However, the success of these reforms depends on the government’s ability to tackle the parallel market. The black economy is a major obstacle to economic growth, and if not addressed, it could hinder the effective implementation of the business license reforms. The government needs to take a tough stance on illicit trade deals and impose penalty fees on those who engage in them.

The Impact on the Manufacturing Industry

The manufacturing industry is particularly vulnerable to illicit trade, which can have devastating consequences for legitimate businesses. Illicit trade can lead to a loss of revenue for the government, as well as undermine the competitiveness of local industries. The government needs to take measures to prevent the importation of cheap, counterfeit goods that can harm the local industry.

Digitalizing Systems for Transparency and Accountability

To ensure transparency and accountability, the government has taken steps to digitalize its systems. This includes the implementation of an online licensing system, which will make it easier for businesses to apply for and renew licenses. The digital system will also help to reduce corruption and increase efficiency, as all transactions will be tracked and monitored.

The digitalization of systems will also help to increase transparency, as businesses will be able to track the status of their applications and licenses online. This will reduce the need for physical visits to government offices, making it more convenient for businesses to operate.

A New Era for Business

The business license reforms have the potential to usher in a new era for business in our country. By reducing bureaucracy and streamlining the licensing process, businesses will be able to operate more efficiently and effectively. However, the government needs to take a tough stance on the parallel market to ensure that the reforms are effective. With the right policies and implementation, we can create a business-friendly environment that attracts investment and promotes economic growth.

The clock is ticking, and the government needs to act now to ensure that the business license reforms achieve their intended objectives. The fate of the economy is in their hands, and it remains to be seen whether they will rise to the challenge.

Newton Mambande is an entrepreneur and researcher. He has published scientific research scholarship in journals. He is reachable via Email newtonmunod@gmail.com WhatsApp or Call‪+263773411103