Business lauds national code

THE business community has endorsed the launch of the Zimbabwe National Code on Corporate Governance (ZimCode) that seeks to provide mechanisms for both private and public sectors of the economy to be governed.
BY TARISAI MANDIZHA
The code was launched yesterday and bestows responsibility to management of private and public entities, making them account for their actions in compliance to global best practices.

It is the product of a long journey that started a decade ago and was hamstrung by funding challenges, according to Zimbabwe National Code of Corporate Governance chairperson Canaan Dube said.
Bankers’ Association of Zimbabwe (BAZ) vice-president Charity Jinya said the National Code has come at an opportune time when there are currently a lot of malpractices in the corporate resulting in bank closures.
Jinya said BAZ was already making progress to address some of the challenges and was currently working with the Reserve Bank of Zimbabwe.
“BAZ have recently adopted a new code which will enhance the bank -client relationship which primarily protects the interest of the bank client.
“We believe the National Code will help all of us whether private or public sector, the banks alone will not address the challenges,” Jinya said.
The Confederation for Zimbabwe Industries (CZI) said the manufacturing sector has the biggest potential of all the economic sectors in Zimbabwe to employ more people.
“The National Code offers a good starting point for the creation of a business environment. This is an important development as the business community will be engaging the international community, we believe with the new code in place they will be improved investment in the business sector,” said Henry Ruzvidzo on behalf of CZI.
The Institute of Chartered Accountants of Zimbabwe (ICAZ) president Bothwell Nyajeka said the task for everyone was to implement this principle in the way people do business and for the National Code not to be like other documents which gathers dust.
“As ICAZ we are fully supportive of the National Code and we are confident that this code is going to transform the business sector in Zimbabwe. The National Code is a basic ingredient to maximize.
The Zimbabwe National Chamber of Commerce representative Divine Ndhlukula said the National Code has come at an opportune time when the country was facing a number of challenges, chief among them corruption.
“They are a lot of hidden cost of corruption. Corruption is a result of poor corporate governance. The fight against corruption is the most fundamental task in Zimbabwe in order to remain productive. Integrity and ethical dealings is what will sustain our businesses going into the future,” Ndhlukula said.
Speaking at the official launch, Acting President and Minister of Justice, Legal and Parliamentary Affairs Emmerson Mnangagwa said the code was a critical national initiative which is expected to assist in the full realisation of key corporate governance and ethical leadership messages enunciated in the new Constitution and in key national policy statements.
“I understand that the drafting of ZimCode took longer than originally anticipated because of funding challenges. Funds to implement ZimCode are required and must be found otherwise all this good work will count for nothing.
“I therefore urge the cooperating partners who drafted ZimCode to evaluate the funding opportunities in the National Budget Framework relevant to corporate governance, both from the private sector and the public sector and take advantage of them,” Mnangagwa said.
He said the National Code should be the national norm on corporate governance and ethical leadership because it was rooted in the Zimbabwean culture, values, morality and professionalism.