Zim Govt further scraps 11 licence requirements in an effort ease business operations

A few weeks ago, the government announced the scrapping of some fees and the reduction of fees in a wide range of areas from motorists fees, to city fees and to even business and agriculture fees but despite the announcement these fees had not yet been reduced raising concerns about the disconnection between central government and local authorities. In another move, the government has scrapped eleven licence requirements and consolidated fragmented local authority permits into a single, unitary licence as part of broader reforms to enhance the ease of doing business, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has said.

As quoted he said, this new move is designed to simplify regulatory processes for small and medium enterprises (SMEs) and formal businesses that operate under one roof with multiple lines — such as bakeries, butcheries, restaurants, takeaways, and food factories.
Previously, some businesses were paying as much as US$2 300 for a food factory licence alone.

“As announced, the Government of Zimbabwe is continuing to ease the cost Ease of Doing Business and Regulatory Fees Reforms for all sectors. To date, Government has announced these reforms for the Livestock, Tourism and Transport Sectors, and is now moving on to the Wholesale and Retail Sectors,” said Prof Ncube in a statement.

He said the reforms aim to remove duplication and streamline approvals, particularly within the retail sector — one of Zimbabwe’s fastest-growing industries.

“The retail sector is one of the fastest growing sectors in Zimbabwe, and to further strengthen it, Government has converged to remove the fragmentation of licences, consolidating several retail licences into one shop licence and reducing the number of authorities involved in the clearance process to one,” he said.

Under the new system, local authorities will apply a sliding-scale licence fee structure capped at US$500, allowing smaller businesses to pay less while promoting formalisation and growth of SMEs. Among the major reforms bottle store licences are no longer required for bottle stores operating within licensed retail shops.

Retail and wholesale licences will now be combined into a single licence for shops conducting both operations.

Factory and retail licences have been merged for integrated businesses operating from the same premises, reducing regulatory and compliance costs.

ZTA licence requirements for supermarkets have been scrapped, now applying only to tourist-designated businesses.

Prof Ncube added that the reforms also extend to other sectors.“Hotel, lodges and other tourism business licence fees have been reviewed downwards by 50 percent under the review of the Tourism and Transport sectors and further capped to a maximum of US$500 per business,” he said.

To further reduce operational costs Prof Ncube said change of Property Use fees have been capped at US$1 000, down from as high as US$3 500 previously charged by some local authorities.

PRAZ licence fees have been unified across categories into one licence costing between US$50 and US$120, allowing businesses to use one licence across all branches.

The Liquor Licensing Board has harmonised all liquor licence permits, removing distinctions between urban and rural jurisdictions.

The Local Authority Financial Services Licence will now be issued by the Reserve Bank of Zimbabwe (RBZ) as a single annual licence covering all business activities, for a flat fee of US$20, down from as much as US$1 867.
Additionally, the Permit to Sell Veterinary Products issued by the Medical Control Authority of Zimbabwe (MCAZ) has been abolished as it duplicated functions under the Department of Veterinary Services.

Prof Ncube said the comprehensive reforms are designed to stimulate enterprise growth, job creation, and productivity across sectors.
“These measures are meant to aid in the creation of a conducive economic environment where jobs will be created, productivity improved across all sectors of the economy, achieving high growth rates through improving the ease of doing business,” he said.
He reaffirmed Government’s commitment to transforming Zimbabwe into a competitive investment destination.

“Government remains committed to improving the business environment to encourage domestic and foreign investment in which Zimbabwe can become an Upper Middle-Income Society by 2030.”

Since these announcements were made, not every change had been brought into effect there putting doubts if government will actually follow through on its promises. 

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