Investors rate regulators in perception survey, Ipec found to have no overall effect

Investors rate regulators in perception survey, Ipec found to have no overall effect

HARARE, The Insurance and pension Commission (IPEC) is among a few regulatory institutions in Zimbabwe found to have no overall effect on business operations by investors, an Investor Perception Survey (IPS) report shows.

The IPS report for 2016 was commissioned by Government through the National Economic Consultative Forum (NECF) and undertaken by the Zimbabwe Economic Policy Analysis and Research Unit (ZEPARU).

According to the report, IPEC is in the league of other regulators that include POTRAZ, EMA, ZIA, Registrar of Companies and MCAZ.

Respondents, the report said highlighted that the Zimbabwe Revenue Authority, Local Authorities and the Reserve Bank of Zimbabwe efficiency levels have a strong negative effect on their businesses.

In terms of the score sheet, 47% of the investor respondents say the IPEC has no effect on their business, 21% sees limited positive effect while only 5% rated the regulator with strong positive effect.

7% and 21% view IPEC as to have strong negative effect and limited negative effect respectively to their operations.

On effect of efficiency of regulatory systems and institutions on business by size, large firms cited a number of institutions that have a negative effect on business entities.

Ipec is also among companies that have no effect on large companies interviewed. However, only the Standards association of Zimbabwe was reported to have a positive effect on business entities with an overall 54.3%.

About 27.9% of the large companies say the institution has negative effect while 46.5% see no effect. 25.6% see positive effect in the regulator.

Meanwhile, in an investment outlook for the next three years, the report says indicators are on a Likert scale with three options that are scaling down, maintaining or expand despite high cost of doing business in Zimbabwe.

It says majority of firms anticipate expanding their business in terms of investment in advanced technology in production, improving existing facilities and construction of new buildings.