World Bank applauds ZimAsset

Published: 16 April 2014

Zimbabwe's new economic blueprint ties in well with recommendations of the Doing Business Report, a World Bank official has said.

World Bank business reform manager Marcus Sheurmaier said: "World Bank applauds ZimAsset in implementing reform. The Doing Business Reports 2013 recommendations are in line with ZimAsset. Zimbabwe has a lot of potential in terms of human capital and improving the investor atmosphere."

Zimbabwe did not rank well in last year's Doing Business Reports.

In last year's global and regional Doing Business Reports Zimbabwe was ranked 170 out of 190 economies and 33 out of 47 Sub-Saharan economies, respectively.

The World Bank Doing Business Reports address key features needed for the country to create an improved atmosphere for successful business start-ups and foreign investment.

And Sheurmaier said a number of these issues were addressed under ZimAsset.

Sheurmaier, however, pointed out that there was still need for the country to further reduce the time it takes to start a business.

Currently, it takes an average of 90 days.

"Registration is not the final element in starting a business; there are costs all the way from pre-registration to post registration.

"The results of that are that setting up a business in the country would take close to 90 days and costs more than 40 percent of per capita income, which is a significant cost," he said.

In terms of starting a business, some of the short-term recommendations proffered by the World Bank include: introduction of standardised company incorporation forms and articles of association for new company registration; continuance of efforts to automate records at the Registrar of Companies, and elimination of the requirement to advertise in a local newspaper the application for a trade and business license.

The World Bank also recommended the Government to eliminate the requirement to inspect premises of companies that pose no environmental or public safety risk, as well as to streamline the process of checking the uniqueness of the company name and put in place an online system allowing to do the search and reservation of names.

- BH24