Zimbabwe Slashes Agricultural Fees to Boost Farming Sector

A Farm in Zimbabwe (Image Source)

Zimbabwe has introduced sweeping reforms to lower costs and cut red tape in the agricultural sector, a move officials say will unlock productivity, strengthen food security, and attract investment. The policy overhaul, announced under the government’s Ease of Doing Business programme, dramatically reduces fees for farmers in the livestock, dairy, and stockfeed industries.

“These reforms are about lowering the cost of doing business, especially for small and medium enterprises,” Finance Minister Professor Mthuli Ncube said during the launch. “Agriculture supports 65% of our people’s livelihoods. This package is designed to free up our farmers.”

Key Reductions in Fees and Permits

Under the new measures, farm registration fees set by the Agricultural Marketing Authority (AMA) have been cut to just $1, while dairy processor fees have dropped from $350 annually to a one-off $50.

Other major reductions include:

• Feed manufacturer fees: cut to $20

• Livestock movement clearance: reduced to $5 per herd

• Export registration for dairy products: slashed from $900 to $10

• Environmental fees: EMA’s effluent disposal charge reduced from $800 to $100

• Borehole abstraction fees: previously charged by ZINWA, now completely abolished

The government says these cuts will simplify compliance and allow farmers to channel more resources into production rather than bureaucracy.

Farmers and Unions Welcome Relief

For farmers long burdened by multiple permits, the announcement has brought relief.

“I used to spend more time chasing permits than tending my herd,” said Nyasha Mudzengi, a dairy farmer in Gweru. “Now I can focus on production.”

Agricultural unions echoed similar sentiments, arguing that the changes will encourage formalisation of agribusiness and help small-scale producers scale up.

Economic Impact and Investor Interest

Analysts predict that the new framework could spark a surge in agricultural exports, particularly dairy products, by reducing barriers to international markets. Lower compliance costs may also entice foreign investors who previously viewed Zimbabwe’s agricultural sector as uncompetitive.

“This is a game-changer for agribusiness,” said economic analyst Tendai Chihambakwe. “By lowering entry barriers, Zimbabwe is signalling that it is serious about making farming a profitable and scalable industry.”

The government has indicated that the reforms will eventually extend to other key sectors, including tourism, transport, and retail, as part of wider economic restructuring.