By Josephine Mugiyo
AS Zimbabwe continues to pursue the National Development Strategy 1 (NDS1) which seeks to boost economic growth, the country is taking lessons from China on how it can boost the profitability of state-owned enterprises.
Zimbabwean and Chinese delegates are currently attending a five-day virtual meeting which is focusing on economic reforms as Zimbabwe strives to improve its business operations.
Deputy Chief Secretary in the Office of the President and Cabinet, Ambassador Nicholas Kitikiti says China’s track record inaptly running profitable state-owned enterprises is a good starting point for Zimbabwe.
“We want to look closely at how we can best run state-owned enterprises. China has succeeded greatly in that area so we are using it as a case study on how we can build our own state enterprises,” said Ambassador Nicholas Kitikiti, the Deputy Chief Secretary in the office of the President and cabinet.
According to Ambassador Kitikiti, the Chinese government also used tax incentives as a means to stimulate economic growth, another key area Zimbabwe is hoping to explore.
“Another area will involve the use of tax incentives as a tool for stimulating the economy. What we have noticed in the discussions is that China went through a program of reducing taxes which are charged to businesses with a view to say that amount will be recovered through having a high performing economy,” said the Ambassador.
Zimbabwe is currently implementing reforms in state-owned enterprises meant to increase national economic competitiveness and productivity.
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