Molline Gagare Business Reporter
THE country’s major business bodies – the Confederation of Zimbabwe Industries (CZI), Zimbabwe National Chamber of Commerce (ZNCC) and the Small to Medium Enterprises Association of Zimbabwe (SMEAZ) — are rolling out a survey of business transaction costs to determine their impact on business viability in Bulawayo and Harare.

Centred on the “cost of compliance”, the survey examines how specific areas where opaque terms, duplicate regulations, lack of access to information among other things lead to opportunities and instances of transactional corruption.

The SME’s sector has for the last decade contributed significantly to the economy of Zimbabwe and employment creation yet it continues to face viability challenges due to high operational costs.

“The Zimbabwean economy has gone through significant structural transformation during the last decade that has accounted for the emergence of the SME sector as a significant contributor to national output and employment creation.

“However, despite this, the sector continues to face viability challenges stemming from an untenable business-operating environment and a huge overhead cost base due to high business transaction costs,” the organisations said in a joint statement yesterday.

The survey is focused on how business transaction costs manifest themselves within the Zimbabwean business community across sectors, their nature and impact on viability.

“It’ll seek to establish the experience of business owners in areas such as, but not limited to establishing and running business, with a view to generate the micro level interactions of companies with various stakeholders (public, quasi-public and other service providers) and the costs incurred thereof,” read the statement.

Assessing the efficiency of the services rendered by public sector agencies and other service providers in facilitating business endeavours is also at the centre of the study.

“The survey will, in the ultimate, map recommendations for appropriate policy reforms to stem the escalation of business transaction costs and to enhance enterprise viability. It’s therefore a building block towards equipping Zimbabwe’s private sector and public sector with an objective lever to anchor business-friendly economic policy,” the organisations noted.