AXIA Corporation is confident that the Government’s ongoing policy reforms to improve the ease of doing business will help rebuild investor and market confidence over the medium term.
The Government is implementing ongoing business reforms to streamline operations, reduce costs and improve the investment climate, primarily through a new “ease of doing business” drive.
The reforms entail consolidating multiple licenses, reducing operational costs and slashing various fees and permit requirements in this sector.
Targeted key sectors include wholesale and retail, tourism, transport and agriculture.
Axia’s optimism stems from Zimbabwe’s growing macroeconomic stability, underpinned by policy consistency, a relatively firm exchange rate and contained inflationary pressures.
Recent reforms include simplifying regulations and reducing license fees in sectors like retail, livestock and wholesale channels.
The introduction of the Zimbabwe Gold (ZiG) currency in April last year has also contributed to more predictable price movements and corporate planning.
The local unit has remained largely stable, with the exchange rate averaging ZiG26,7 to US$1 over the course of the year.
The exchange rate moved from ZiG15,35 per US dollar as at September 30, 2024, a shift authorities said reflected the currency’s transition phase and authorities’ efforts to maintain overall macroeconomic stability.
Axia noted that access to foreign currency remained strong across its Zimbabwean operations and the bulk of its sales were US dollar-denominated, enabling it to self-fund most of its import requirements without exerting pressure on official foreign currency channels. – Herald
