Analysis On The Impact Of The 2024 National Budget On Business And National Competitiveness

The National Competitiveness Commission (NCC) is mandated to enable the creation of a competitive environment for Zimbabwean businesses through the development, coordination, and implementation of key policy improvements. Further, the Commission is expected to produce periodic industrial competitiveness indices to closely monitor local progress.

This paper provides an analysis of the impact of the 2024 National Budget statement on business and national competitiveness. The analysis explicitly focused on the anticipated impact of the 2024 National Budget on business and the overall country’s competitiveness.

The National Development Strategy 1 (2021-2025) (NDS 1) acknowledges the importance of national competitiveness and envisages improving both Global Competitiveness and Ease of Doing Business rankings to below 100 by 2025. To realize the milestones, the focus will be on reviewing business regulations and doing business procedures as well as improving on the key competitiveness enablers.

The 2024 Budget has a projected expenditure of ZWL$ 53.9 trillion, which is 18.3% of GDP. This Budget can be broken down into Z$51.2 trillion in tax revenue and Z$2.7 trillion in non-tax revenue.

The likely impact of the 2024 Budget on competitiveness.

The commission commends the treasury for recognizing the critical role played by infrastructure, ICTs, and digitalization in improving competitiveness. Overall support for infrastructure, including devolution, during 2024 amounts to Z$10 trillion, comprising fiscal support of Z$8.1 trillion, complemented by statutory and other resources at Z$1.4 trillion, development partner support of Z$189.9 billion, as well as loans at Z$322.2 billion.

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2024 National Budget On Business And National Competitiveness