Mr Oswel Binha

Published: 01 December 2013

THE Zimbabwe National Chamber of Commerce has called for the business community to closely work with Government in the implementation of the economic blueprint, Zimbabwe Agenda for Sustainable Socio-Economic Transformation, to revive the economy.

The ZNCC national president, Mr Hlanganiso Matangaidze said in a recent interview that it was imperative for business and Government to bury grudges if ZIMASSET is to work.

His comments come following the launch of the Sovereign Wealth Fund of Zimbabwe Bill by Cabinet recently, which is expected to help fund the ZIMASSET.

"The ZIMASSET blueprint looks solid, but for it to work it will also require the full co-operation of the business community and the general public of Zimbabwe.

"As a chamber we have seen the seriousness of the new Government towards attempts to fulfill its election promises and revive our hard-hit economy.

"However, as a nation it is time to let bygones be bygones and speak with one voice to return our country to its former bread and butter glory," said Mr Matangaidze

The ZNCC president said in the absence of the needed Foreign Direct Investment and the depressing realism of economic sanctions constricting financial assistance from the International Monetary Fund and European Union, the Sovereign Wealth Fund was a positive step by Government.

This adoption of a home grown solution comes in the wake of Government's recent attempts to call for an end to the imposed sanctions and its countless futile engagement with the IMF and EU for financial assistance.

Last month, Finance and Economic Development Minister Patrick Chinamasa implored the diplomatic community in Zimbabwe from both developing and Western countries to partner the Zimbabwean Government so that the country's ZIMASSET would promote the lives of the people.

Minister Chinamasa said countries that were having quarrels with Zanu PF and the new Zimbabwe government should set their political differences aside and work for economic co-operation.

Through the creation of the Sovereign Wealth Fund in addition to developing public private partnerships, Government expects to develop the capacity to pool resources for key socio-economic development interventions.

According to section 13 and section 14 of the draft Bill, a portion not exceeding 25 percent of royalties payable in accordance with Chapter VII (Mining Royalties, Duty and Fees) of the Finance Act (Chapter 22:04) in respect of minerals such as gold, diamonds, coal, methane, nickel, chrome and platinum will be pooled in the Fund.

Also, 25 percent of the "special dividend on the sales of diamonds, gas, granite and other extractable minerals by or on behalf of the Minerals Marketing Corporation of Zimbabwe that is payable by the Corporation to the Consolidated Revenue Fund pursuant to section 33 of the Zimbabwe Mining Development Corporation Act", will be harvested for the Fund.

According to the ZIMASSET, state enterprises will play a pivotal role in stimulating productivity, hence the need for recapitalization, which is where the sovereign wealth fund comes in.

The sovereign wealth fund will finance the identified state enterprises that will be key in facilitating economic growth. In the Manufacturing sector development finance institutions such the Industrial Development Corporation, the Infrastructural Development Bank of Zimbabwe and the Small Enterprises Development Corporation will be financed.

In the mining sector, the Zimbabwe Mining Development Corporation and Minerals Marketing Corporation of Zimbabwe will be capacitated.

For the agriculture sector, the Grain Marketing Board, the Agriculture Marketing Authority, AGRIBANK and the Agriculture Rural Development Authority will be recapitalised to stimulate productivity and safeguard food security.

Development economist, Mr Prosper Chitambara said the Sovereign Wealth Fund was long overdue.

"This is a positive development which was long overdue. Several countries have used the Sovereign Wealth Fund scheme. Libya used it to fund its infrastructure and social services, Botswana used it for its social service and education sector, just to mention a few countries," said Mr Chitambara.

He however said the Sovereign Wealth Fund must be underpinned under a tax regime which will minimize transfer pricing in the wake of past fraud tendencies.

Mr Chitambara added that Government will also need to come up with strong incentives against corruption as it implements ZIMASSET.
- manicapost