Zimbabwe's repetitive licensing fees to stop in 6 months

Industry and Commerce Minister, Mangaliso Ndlovu, has pledged that the government's efforts to reduce the burden of repetitive business licenses will come to fruition within the next six months, a move expected to significantly lower overhead costs for businesses across the country.

Speaking in response to concerns raised by Parliamentarians about the high cost of regulatory fees, Ndlovu acknowledged the negative impact these fees have on businesses, particularly large-scale retailers and sectors such as poultry farming, where companies are required to obtain multiple licenses and permits. He confirmed that the government is actively working with the Ministry of Finance and the Office of the President and Cabinet (OPC) to address this issue.

"For years, companies have been burdened with the need to obtain numerous licenses, which results in unsustainable overhead costs. In fact, to operate a single supermarket, one needs up to 25 licenses and permits, each with a hefty fee. This is particularly challenging for large retailers like OK Zimbabwe and TM Pick n Pay, who operate over 50 branches nationwide," Ndlovu explained.

The Minister highlighted that businesses in the poultry sector also face a similar challenge, with entities such as the National Biotechnology Authority (NBA) and the Agriculture Marketing Authority (AMA) imposing exorbitant fees. The NBA demands an annual registration fee of $6,500, despite not providing any direct service or inspection. The AMA requires a range of quarterly and annual licenses, including a costly $36,400 registration for imported feed ingredients, in addition to charges for Feed Mill Registration and plant quarantine, which total thousands of dollars annually.

Ndlovu said that these costs, combined with operating taxes and local authority fees, have created a heavy regulatory burden that hinders business growth and sustainability.

"We identified in our reconstruction and growth plan that the regulatory environment weighs heavily on business viability. To address it, we have the Minister of Finance working with the Office of the President and Cabinet to tackle these issues. They have identified the most burdensome licenses and fees, and in six months, many of these will be eliminated," Ndlovu announced.

He reassured stakeholders that the process would be carried out with due diligence, ensuring that the changes would result in a more business-friendly environment.

"The exercise is nearing completion, and very soon, announcements will be made regarding which regulations will be eliminated or significantly reduced. Our goal is to promote ease of doing business and reduce the cost burden on our industries," he added.

This development comes as a relief to Zimbabwean businesses, particularly in light of the recent challenges they have faced due to high regulatory fees. The Minister's assurance that the government is committed to reducing these overhead costs has been welcomed by the private sector, with many hopeful that the changes will lead to a more competitive and sustainable business environment.

With the six-month deadline approaching, businesses are now eagerly awaiting the government's next steps in the reform process.