Mthuli Ncube promises major cuts within 2 weeks

Finance and Economic Development Minister Professor Mthuli Ncube has pledged sweeping policy reforms within the next two weeks aimed at boosting the viability of small-scale businesses across Zimbabwe.

Speaking at an investment conference held in Masvingo, Prof Ncube acknowledged that the existing business environment was burdening entrepreneurs, particularly in the small-to-medium enterprise (SME) sector. He said the government was fully aware of the challenges and would soon implement decisive measures to cut costs and streamline operations for business owners.

"In terms of the cost of doing business, we are seized as government with this matter and we are going to reduce the cost of doing business. Watch the space-within the next two weeks, the cost of licenses will come down," said Ncube.

He went further to explain that the number of licenses or regulatory steps required to legally operate a business would also be reduced. "Between now and two weeks we should announce a reduction in the monetary value of licenses and over the next six months a reduction in the number of steps to acquire these licenses," he said.

The minister admitted that some businesses were only staying afloat by avoiding taxes or regulations and said it was in the government's interest to create a fair system that rewards compliance rather than punishes it.

"Some businesses are only profitable because they are not complying with the rules. It cannot be the case that you only remain in business if you cheat government. Hence, government will reduce what it needs from you so that you can do business competitively," he added.

As part of broader economic reforms, Prof Ncube also called on Masvingo province to identify a viable project that could be granted Special Economic Zone (SEZ) status, particularly one focused on value addition and beneficiation.

"Minister Ezra Chadzamira, we are asking you and your team to find some project which will be awarded a special economic zone status, especially if the project is focusing on value addition," Ncube said.

He noted that SEZs are central to the government's investment strategy, particularly in sectors such as lithium battery production and steel manufacturing, where Zimbabwe holds significant mineral reserves.

"Government remains committed to creating a conducive environment for investment, in particular lowering regulatory costs and improving the ease of doing business," Ncube said.

Zimbabwe's formal sector has long complained of overregulation and high taxation, factors widely blamed for the country's growing informal economy. Analysts have warned that unless these bottlenecks are addressed, small businesses will continue to struggle or operate underground, depriving the government of much-needed revenue.

The minister's remarks have raised hopes among business stakeholders that long-awaited reforms may soon become reality.