Consultancy

The scope of this study was to explore the tax system in Zimbabwe and interrogate the drivers of increased noncompliance and how business can be relieved of the high tax burden by drawing lessons from other countries. Findings from the survey highlighted that there are too many tax revenue heads and different compliance dates that burdens businesses and promotes tax evasion and defaults on payments; Taxes not fairly applied between formal and informal economy. General lack of enforcement on the informal sector too much focus on formalized businesses and finally penalties system was found to be too high and rigid.

This study assessed, and mapped the viability of the soya bean value chain in Zimbabwe with a view to identifying bottlenecks, policies and measures or strategies to enhance competitiveness of the subsector from primary production to processing through to the finished product. Findings were based on extensive review of literature and consultations with key stakeholders in the sector.

Results from the study revealed the poor performance along different segments of the soya bean value chain and highlighted several reasons for it. These include high production costs; inefficient farming practices; low public and private sector investment; competition from other crops such as maize which receive high public investment thereby crowding out private sector participation and created perverse incentives for players to prioritise maize production and distribution at the expense of weakly supported crops such as soya bean among others. Low prioritisation of soya bean production at both public and farmer level, has resulted in market failures in support services such as extension and research; marketing; access to market information; and public investment in production.

The Zimbabwe Economic Policy Analysis and Research Unit (ZEPARU) was invited to give an overview of the Zimbabwean economy at a Finance Managers’ Strategic Planning Workshop for Delta Corporation in September 2016. The purpose of the presentation was to inform Delta corporation of the economic developments together with the projections of economic variables such as inflation, gross domestic product (GDP) and international commodity prices in the short to medium-term as they crafted their strategic plan. The presentation gave an overview of the Zimbabwean economy mainly focusing on the four key economic sectors namely the real sector, public sector, financial sector and external sector. The analysis looked at developments in the agriculture and manufacturing sectors, fiscal developments, stock market developments, growth rates of total investment and foreign direct investment (FDI) among other issues. Moreover, the presentation also looked at money supply developments which included analysis of non-performing loans and the appreciation of the United States Dollar (USD) against other currencies and its implications to the economy. The presentation focused on the implications of various economic developments which have a direct impact to the operations of Delta Corporation. This gave a broad overview of the immediate and likely implications of economic variables to Delta in the short to medium term.

Similar assignments were also done for TelOne and the Motor Industry Association of Zimbabwe.

The Zimbabwean economy is anchored on a vibrant informal sector and as such where the informal sector is now the dominant sector requires that strategies should be put in place to nurture the sector so that it can sustainably and significantly contribute to the growth of the broader economy. The structural change that has taken place calls for the banking sector to take a proactive approach of harnessing resources currently believed to be circulating outside the formal financial system.

The study sought to ascertain the nature of the challenges currently faced by the informal sector players which have forced them to keep their resources outside the formal financial system and how the banking can harness these resources. The study established that although the informal sector players could have few resources in isolation, they could become a formidable source of resources when combined. Banks should thus engage the informal sector players and embrace the idea of fostering partnerships and clusters. Under this arrangement informal sector players, through the assistance of banks, pool their resources by bringing their capital and expertise together to make a meaningful investment. This also allows them to gain knowledge further and skills from their partners than when operating as individuals. If the small traders come together to work as a group, they should also be encouraged to register their associations to assist in easily identifying their location, assessing their challenges and also make banks aware of their existence.