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BULAWAYO — Government has been urged to repeal the National Incomes and Pricing Act as it is scaring away investors seeking a free-market economy.
According to a report by the Zimbabwe National Chamber of Commerce (ZNCC) released following research on legislation hindering business development, the law is also not in step with the current economic dispensation.
“The continued existence of this law in the country’s statutes may send confusing signals to investors regarding the inclusive government’s long-term commitment to the virtues of a free-market economy,” ZNCC said in the report released recently.
ZNCC embarked on the research to analyse various criminal, financial and commercial statutes to enable the body to engage policy makers and other key stakeholders on the need for reform.
The National Incomes and Pricing Act is blamed for speeding up the collapse of the economy.
Government adopted the price controls in response to the rapidly increasing prices of basic commodities blamed on the ever-shrinking value of the Zimbabwe dollar.
President Robert Mugabe accused businesses of trying to influence Zimbabweans to rise against his government.
Instead of curbing inflation thereby putting a stop to ever-increasing prices of goods and services, the price controls sparked a serious shortage of basic commodities.
“Our view is that this law (National Incomes and Pricing Act) should be removed from the country’s legislative framework.
“In any case, controlling prices did not yield anything positive for the national economy other than further undermining the viability of many businesses that were already struggling to remain afloat,” ZNCC said.
Government allowed a free market economy after being forced to abandon the price controls.
The controls spawned massive shortages of basic commodities and forced Zimbabweans to trek into neigbouring countries for shopping.
ZNCC also called for the review of the Reconstruction of State Indebted Insolvent Companies (Chapter 24:27), Companies Act, and the Indigenisation and Economic Empowerment Act, saying the laws were hindering economic development and posed a risk to existing and potential investments.
BY NQOBANI NDLOVU
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