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FDI must be a bonus

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ZIMBABWE is in a position to transform its fortunes using its own resources and capital circulating in the country.
This argument may be seen as the epitome of naivety while its simplicity might lead it to be viewed as ridiculous.
But the adoption of multicurrency has given the country some sort of leverage, the country can do business with the international community from an advantageous position of possessing the United States dollar commonly used in international trade.
Zimbabweans being an innovative people have embarked on various endeavours that have not only enabled them to survive under harsh economic conditions, but some of them to thrive.
It is said that between US$3 billion and US$7 billion is circulating in the informal sector alone.
For argument’s sake let us say that the figures are absurd and we put the figure at US$1,5 billion.
This figure can and is being generated by the 2,8 million small-scale businesses as determined by the Small and Medium Enterprises (SMEs) survey carried out in 2012.
The businesses according to the survey created 5,7 million jobs, but sadly these employees are not taxed as their operations are off the radar so-to-speak.
Calls have been made, repeatedly, to formalise this sector.
But the sector is yet to be formalised and this means that Government is losing substantial amounts of money in uncollected revenue.
Simply put, formalisation of the informal sector will no doubt significantly boost Government’s depleted revenue base.
Our failure to make the most of what we have in the country lies, it seems, in the lack of willpower to do what is right and what must be done.
Our failure, challenges and struggles stem not from lack of capital, but mismanagement, corruption and lack of efficient systems to harness both skills and resources needed to revive the economy.
For example, if an entity is to use US$5 million to procure unnecessary luxury vehicles can failure of that institution to deliver services be blamed on lack of capital?
The argument is simple, we might not have enough money, but we have capital in the country that can get our systems working.
For instance, besides the money circulating in the informal sector there are monies being generated on a daily basis in the formal sectors, but the question is are they being put to good use?
For instance, the country has become one of the largest consumers of second-hand Japanese cars and the country’s vehicle population is said to stand at 1,2 million.
These cars, coming in everyday in hundreds, pay duty, after every term pay motor vehicle licence fees and everyday at least 100 000 of them pay toll fees.
That money can be used to repair roads, a one off exercise that will improve the business environment.
One may be forgiven for blaming the Zimbabwe Revenue Authority (ZIMRA) for failing to come up with strategies to collect taxes, for example, from the informal sector where there is potential revenue amounting to millions.
Monies that are being generated in the country on a daily, weekly, monthly basis if effectively used can transform the country’s fortunes.
Awarding oneself a salary that is enough to pay a whole company and procuring luxurious items are some of the reasons for failure of our entities not lack of capital.
We must concentrate on the important and do away with the mundane and we will prosper.
Foreign Direct Investment must be a bonus.

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