Commercial Farmers' Union of Zimbabwe

Commercial Farmers' Union of Zimbabwe

***The views expressed in the articles published on this website DO NOT necessarily express the views of the Commercial Farmers' Union.***

Business talks tough on fiscal policy

Business talks tough on fiscal policy

Sunday, 17 July 2011 12:22


BUSINESS has proposed the introduction of a levy that penalises exporters of 
unprocessed products to force companies to adopt value addition and 
employment creation.

The proposal by the Confederation of Zimbabwe Industries (CZI) is meant to 
reinforce calls by economic blueprints to embrace value addition.

CZI president, Joseph Kanyekanye said business expected the proposal to be 
contained in the Mid Term Fiscal Policy Review statement.

Finance minister Tendai Biti is expected to present the midterm policy on 
July 26.

The value addition must start on products such as cotton and tobacco, CZI 

“It is wrong socially, ethically and legally to have a situation where you 
export over 90% of your cotton,” Kanyekanye said.

“The minister must put a scenario where he says ‘this year for unprocessed 
tobacco, cotton, we will charge a 5% levy on the sale’.

“In year two it will go to 10%, in year three it will go to 30% and in year 
four it will go to 80%. In year five it will be 100%.”

Value addition is contained in various blueprints unveiled since 

Despite its recognition, nothing has moved along that front and as a result, 
the country has over the years exported only raw materials.

He said government had instruments such as the Medium Term Plan (MTP) and 
other various blueprints but is not living the talk.

Kanyekanye added that the absence of value addition had not helped in 
trimming down the country’s unemployment levels.

“It is painful that a country like ours where we have abundant resour-ces 
should have unemployed people. We have Cotton Printers in Bulawayo currently 
under liquidation.

“We have no yarning taking place,” the CZI boss noted.

If government decides not to listen to its proposal, CZI threatened a 

“The era where business would come in suits and smile to you and say ‘thank 
you minister’ is gone.

“We are saying government musttake cue from that. We have restless 
businesspeople out there saying paying lip service to our requests must go,” 
Kanyekanye said.


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