ZNCC urges government to clear contractor payments to avoid crisis
Zimbabwe’s business lobby has urged government officials to accelerate contractor payments after a monitoring program designed to verify spending created extensive delays that threaten private sector cash flow. The Zimbabwe National Chamber of Commerce warned that the backlog has strained liquidity across construction, agriculture and mining services while hampering tax collection efforts.
Treasury implemented the value-for-money review system to prevent inflated billing and protect the Zimbabwe Gold currency by controlling the money supply. Ministries now must complete verification procedures before releasing funds to suppliers. The chamber proposed establishing a clearance mechanism requiring settlement of certified invoices within 90 days and issuing tradeable Treasury Bills for outstanding amounts that businesses could apply toward tax obligations.
The organization said delayed contractor disbursements and unpaid export surrender balances have reduced competitiveness while creating unfavorable debt conditions. The chamber also called for eliminating the 2 percent intermediated money transfer tax and reforming value-added tax rules that prevent input tax claims on exempt products. Business groups met with Treasury and revenue authority officials last month to present budget recommendations addressing fiscal discipline, tax equity and border efficiency improvements.
