Zimbabwe Cuts More Business Fees as Cabinet Approves Second Phase of Cost-of-Doing-Business Reforms

By Southerton Business Times | Harare

The Government has approved a second phase of cost-of-doing-business reforms, introducing fresh cuts to licence fees, levies and regulatory charges across key sectors including agriculture, transport, sport, education and the natural stone export industry. The latest measures, approved by Cabinet, are intended to simplify regulation, eliminate duplicated licences and reduce the financial burden on businesses as Zimbabwe seeks to improve the ease of doing business and stimulate economic growth.

Speaking during Tuesday's post-Cabinet media briefing, Information, Publicity and Broadcasting Services Minister Dr Zhemu Soda said the reforms build on the first phase of the programme, which reduced several transport-related fees and vehicle registration costs.

"Cabinet approved the streamlining of overlapping licences and permits while removing unnecessary fees across the remaining sectors," Dr Soda said.

The latest reforms are designed to reduce compliance costs for businesses by removing duplicated regulatory requirements and lowering charges considered unnecessarily high.

The measures affect operators in agriculture, transport, sport, education and the natural stone export sector. The Government says reducing the cost of regulatory compliance will improve Zimbabwe's business environment, encourage investment and support economic expansion.

Industrial hemp producers are among the biggest beneficiaries of the latest reforms. Cabinet approved reductions in Agricultural Marketing Authority (AMA) registration fees for industrial hemp operators, while application processing fees charged by the Medicines Control Authority of Zimbabwe (MCAZ) will also be lowered. The changes are expected to reduce barriers to entry for investors in Zimbabwe's emerging industrial hemp industry.

Zimbabwe's sports industry will also benefit from significant reductions in statutory levies.

Under the new measures:

• The Sport and Recreation Commission (SRC) levy on gate takings has been reduced from 6% to 3%.

• The Zimbabwe Football Association (ZIFA) levy on gross match-day revenue has also been cut from 6% to 3%.

• The Premier Soccer League (PSL) levy has been reduced from 10% of net match-day income to 4%.

• Local authority venue hire levies have been lowered from 15% to 10% of total gross attendance revenue.

The Government said the reductions are intended to ease financial pressure on sporting organisations and encourage greater investment in sport.

Cabinet also approved additional transport sector reforms aimed at improving service delivery. Government plans to establish a one-stop shop for vehicle ownership transfers to simplify administrative procedures and reduce processing times. Authorities will also formalise the registration of tricycles and introduce a licensing framework for riders. Vehicle change-of-ownership fees will remain unchanged.

Local authorities will now be required to cap outdoor advertising charges at US$2.50 per square metre, reducing costs for businesses that rely on billboards and outdoor marketing. Cabinet also approved the abolition of cemetery entry fees, removing a charge that had been levied by some local authorities.

Unlike other sectors, education-related statutory charges will remain unchanged. Annual school affiliation fees, Zimbabwe School Examinations Council (ZIMSEC) affiliation charges and examination fees will continue at current levels. Dr Soda said the latest reforms will come into effect once the required Statutory Instruments have been gazetted. The latest package forms part of the Government's broader programme to improve Zimbabwe's investment climate by reducing regulatory costs, simplifying licensing requirements and making it easier for businesses to operate.

Zimbabwe cost of doing business reforms