Madame President, Mr. Speaker, Sir,
Our economy faces a number of challenges, which include the subdued aggregate demand, liquidity constraints, high interest rates, subdued foreign direct investment and limited fiscal space. This, too, is further compounded by low revenue collections arising from depressed production, rampant revenue leakages, as well as poor mineral commodity prices on the global market. As a consequence, the economy registered a gradual decline, with the estimated growth rate for 2016 now projected at 1.2 per cent.
Government, in the context of the ZIM ASSET, is implementing a battery of initiatives to address the prevailing economic challenges. For instance, it has embarked on the Ease of Doing Business Reforms with the objective of improving the local business environment that stimulates investment inflows. In line with this thrust, a new Companies Act, which will significantly reduce registration delays and facilitate the smooth operation of new businesses, will be tabled for consideration by Parliament during this Session.
The Small Claims Court, the Commercial Court and the High Court Bills are going to be merged into the Judicial Laws Amendment (Ease of Settling Commercial and other Disputes) Bill 2016. Furthermore, the Zimbabwe Investment Authority Amendment Bill, which will provide legal underpinning to the One Stop Shop Investment Centre, will also be brought to this House during this Session.
The Diaspora Policy, which provides incentives to stimulate remittances and inbound investment by Zimbabweans outside the country, is now in place. Some amendments have been made to the Special Economic Zones Act after its recent passage in Parliament. The amendments, which will soon be tabled herein, pertain to some labour law provisions designed to protect workers in the Special Economic Zones. The legislation will boost the country’s capacity to attract world-class investment, employment creation, technology transfer and innovation in strategic areas of the country’s economy.
Madame President, Mr. Speaker, Sir,
This Session of Parliament will also consider the Movable Property Security Interest Bill, which seeks to increase access to credit for the majority of our emerging entrepreneurs. A Collateral Registry will be established to facilitate the use of movable property, including cars, livestock and furniture, as collateral for loans.
The Insolvency Bill and amendments to the Insurance Act, the Pensions and Provident Funds Act, and the Insurance and Pensions Commission Act will be tabled in this Parliament, as Government moves to incorporate international best practices and to also protect policyholders and members of pension funds. In addition, the Microfinance Act will be amended to incorporate the registration of deposit taking Microfinance Banks, in view of the evolving role of such institutions in the provision of credit and the mobilisation of savings. Funds have already been earmarked for the capitalization of the Small and Medium Enterprises Development Corporation.
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