The Commercial Farmers union (CFU) has commended the Government over ongoing efforts to improve the business environment through initiatives to reduce the cost of doing business in the agricultural sector.
Mr Liam Philp, the president of CFU, which mainly represents large-scale white commercial farmers, said this at the Horticulture Development Council (HDC) investor forum held on Thursday last week, whose proceedings included the Horticulture Investors Pitch to the Zimbabwean Economy.
In September, the Government started implementing bold measures to eliminate the bureaucratic obstacles that have long hindered farmers and the agriculture sector.
This includes cutting numerous fees and simplifying regulatory compliance requirements as part of the first phase of its ease of doing business and regulatory reform programme.
It is only the beginning of extensive business reforms cutting across key sectors, including retail, energy, transport, manufacturing, construction and tourism.
Agriculture has been chosen as the first testing ground for these reforms, with livestock, dairy and stockfeed producers now enjoying dramatic reductions in regulatory fees and permits.
Mr Philp indicated that the measures the Government is taking would stimulate increased productivity, enhance competitiveness and attract both domestic and foreign investment into agriculture.
The union noted that challenges such as high input costs, energy shortages and limited access to finance have been constraining growth in the sector.
However, policy consistency, investment in infrastructure and engagement with private players are beginning to yield positive results.
“I want to take this opportunity to thank the head of state and the Government of Zimbabwe for all the efforts, which they are putting into the business and the cost of doing business. There seems to be a strong commitment and tremendous engagement.
“We have seen the first draft of policy reforms come out for the livestock sector and it was very encouraging. There is a lot of work happening in terms of support. We recently submitted recommendations because there is a lot of reform that needs to happen in agriculture,” said Mr Philp.
CFU added that continued collaboration between the public and private sectors will be critical to sustain momentum and ensure that the benefits of reduced operating costs translate into improved productivity and profitability for farmers across the country.
This was affirmed by development finance institutions (DFIs) that have acknowledged the Government’s commitment to the ease of doing business reforms as one of the major reasons they are considering giving Zimbabwe another chance in terms of co-operation.
The DFIs cited that Zimbabwe is one of the best countries to support in terms of horticulture financing and production, given the country’s unique, mild climate, fertile soils and reliable sunlight, which allow all year-round production across multiple agro-ecological zones.
Growing interest in local horticulture comes as the HDC indicated that it aims to transform Zimbabwe’s horticultural sector into a US$2,5 billion industry by 2030, driven by sustainable investment, value addition and strategic partnerships.
Zimbabwe’s agriculture sector remains one of the key anchors of economic recovery, contributing significantly to gross domestic product export earnings.
Recent Government reforms, including investment incentives, currency stabilisation measures, and improved land tenure systems, were also cited as steps that could boost investor confidence. – Herald