CZR Urges Policy Action to Translate Mid-Term Budg...

CZR Urges Policy Action to Translate Mid-Term Budget Gains Into Tangible Growth

Zim Now Writer

The Confederation of Zimbabwe Retailers has welcomed the stability reflected in the 2025 Mid-Term Budget Review but warned that the country’s macroeconomic gains will only benefit industry and commerce if backed by strong, targeted policy action.

In its presentation, CZR noted that currency stability and reduced market volatility have improved the planning environment for businesses.

However, it stressed that these gains must be deepened.

“This stability, if maintained, is a positive signal to the business community. However, macroeconomic gains must be consolidated through strengthened investor confidence and sector-specific support to ensure that the stability translates into tangible growth and resilience for industry and commerce,” the presentation read.

The retail and wholesale sectors, which CZR described as central to employment, value chains and consumer access, face capital shortages that hinder growth.

“To address these challenges and stimulate renewed growth, there is need for deliberate policy action that strengthens access to affordable capital,” the organisation stated.

Tax compliance dynamics also remain a sticking point. CZR warned that the current system often makes non-compliance more profitable than following the rules, calling for progressive reforms.

“The Mid-Term Budget raises pertinent issues regarding tax compliance, highlighting the paradox where non-compliance often appears more profitable than compliance.

We believe a comprehensive tax rationalisation exercise is necessary, one that introduces progressive tax reforms, especially for businesses operating within formal structures,” it said.

The cost and complexity of licensing was flagged as another major business constraint.

“The cost and complexity of acquiring licences and permits across various local authorities and agencies have proven prohibitive for businesses across the entire economy.

Streamlining these processes, harmonising fees, and improving turnaround times can substantially improve the operating environment,” CZR noted.

On the informal sector, CZR urged government to make formalisation attractive through a simplified tax system and reduced costs.

“The formalisation of informal businesses should be incentivised through a simplified presumptive tax system, reduced licence costs, and access to financial services. The informal sector, if properly supported, could be a major contributor to revenue generation and job creation.”

Energy security also featured prominently in the recommendations.

“We believe that meeting the country’s energy needs by 2030 will require deeper private sector involvement in renewable energy investment.

"Government must create enabling conditions through tax incentives, regulatory clarity, and investment guarantees to encourage industry players to invest in solar, wind, and embedded generation projects,” the presentation stated.

CZR further expressed concern over delayed tax refunds, saying these hurt cashflow and limit reinvestment.

“We acknowledge the government’s efforts to strengthen fiscal revenue performance, however we remain deeply concerned by the persistent delays in the disbursement of tax refunds by the Zimbabwe Revenue Authority. These delays place immense pressure on business cashflows, particularly for those who depend on timely refunds to maintain liquidity and reinvest in operations.”

The retailers’ body concluded that while the Mid-Term Budget Review offers a promising direction, the pace and effectiveness of implementation will determine whether its proposals lead to tangible growth, job creation and improved competitiveness.