News / National
Mandatory radio licence risks fuelling Zimbabwe corruption
11 Jun 2025 at 09:11hrs | Views
The recently enacted Broadcasting Services Amendment Act No. 2 of 2025, which makes it mandatory for all motorists to pay for a Zimbabwe Broadcasting Corporation (ZBC) radio licence before renewing vehicle insurance or Zimbabwe National Road Authority (Zinara) licences, could drive some businesses into informality and open the door to corruption, the National Competitiveness Commission (NCC) has warned.
President Emmerson Mnangagwa signed the controversial law last month, which has sparked widespread criticism - particularly over Clause 15, which mandates the licence requirement for vehicle owners only, excluding other groups who access radio content.
In its analysis, the NCC expressed concern that the law places an additional financial strain on businesses, undermines competitiveness, and may unintentionally incentivize corruption.
"While the Act presents potential benefits, businesses perceive it as an additional financial burden, which has an impact on cash flows, profitability and competitiveness," the Commission said. "The Act poses a high risk of triggering informality of some businesses and igniting tendencies for corruption in the issuance of exemptions."
Although the NCC acknowledged the law could boost local content creation and advertising markets through better funding for public broadcasting, it warned that the policy's impact varies across sectors. Media-related industries may benefit, but transport-heavy and low-margin businesses are likely to struggle under the added cost.
The new law sets quarterly radio licence fees at US$23 for private vehicles (US$92 annually) and US$50 for corporate vehicles (US$200 annually). A company operating a fleet of 100 vehicles would now pay US$20,000 per year solely for radio licences.
A business owner surveyed by the NCC said the mandatory fee discourages formal operations.
"This is an additional burden to economic actors already reeling under escalating costs of compliance," the business owner noted. "Reducing profit margins will only force some into informality."
The NCC further criticised the "one-size-fits-all" approach, arguing it unfairly penalises operators who may not even use the service.
"There is a need to base the radio licence fee on vehicle type or business size. This reduces the disproportionate burden on small businesses and transport operators," the report suggested.
To address these issues, the Commission recommended introducing tiered or scaled fees, opt-out provisions, or tax credits to ensure fairness while still supporting the broadcaster.
Analysts call for ZBC reform before mandates
Leading economist Dr Gift Mugano criticised the law's approach, arguing that it fails to take into account the operational realities of businesses in Zimbabwe, particularly those running large fleets.
"As much as it is fair that we need to pay for services, ZBC must first provide quality services worth paying for. We pay for DStv without coercion because it delivers value. ZBC doesn't do that-it's just political broadcasting," said Mugano.
He added that Zimbabwe had become regionally uncompetitive due to a high cost of doing business, including regulatory fees.
"The mandatory licence concept is okay in principle. But if we have 1.2 million motor vehicles in Zimbabwe, why not charge US$10 per quarter? That's US$36 million a year-more than enough to sustain operations if managed well," Mugano proposed.
"But the real issue is ZBC itself. People don't see value. It's boring, repetitive, and mostly serves ruling party interests. Reform ZBC and the people might willingly pay."
The Broadcasting Services Amendment Act has become a flashpoint in national discourse, with business leaders, economists, and civil society urging a more transparent and inclusive approach to broadcasting funding-one that does not punish productivity or force payments for services deemed irrelevant or substandard.
As debate intensifies, pressure is mounting on the government and ZBC to demonstrate tangible improvements in content quality and value for money, if public buy-in is to be achieved.
President Emmerson Mnangagwa signed the controversial law last month, which has sparked widespread criticism - particularly over Clause 15, which mandates the licence requirement for vehicle owners only, excluding other groups who access radio content.
In its analysis, the NCC expressed concern that the law places an additional financial strain on businesses, undermines competitiveness, and may unintentionally incentivize corruption.
"While the Act presents potential benefits, businesses perceive it as an additional financial burden, which has an impact on cash flows, profitability and competitiveness," the Commission said. "The Act poses a high risk of triggering informality of some businesses and igniting tendencies for corruption in the issuance of exemptions."
Although the NCC acknowledged the law could boost local content creation and advertising markets through better funding for public broadcasting, it warned that the policy's impact varies across sectors. Media-related industries may benefit, but transport-heavy and low-margin businesses are likely to struggle under the added cost.
The new law sets quarterly radio licence fees at US$23 for private vehicles (US$92 annually) and US$50 for corporate vehicles (US$200 annually). A company operating a fleet of 100 vehicles would now pay US$20,000 per year solely for radio licences.
A business owner surveyed by the NCC said the mandatory fee discourages formal operations.
"This is an additional burden to economic actors already reeling under escalating costs of compliance," the business owner noted. "Reducing profit margins will only force some into informality."
The NCC further criticised the "one-size-fits-all" approach, arguing it unfairly penalises operators who may not even use the service.
"There is a need to base the radio licence fee on vehicle type or business size. This reduces the disproportionate burden on small businesses and transport operators," the report suggested.
To address these issues, the Commission recommended introducing tiered or scaled fees, opt-out provisions, or tax credits to ensure fairness while still supporting the broadcaster.
Analysts call for ZBC reform before mandates
Leading economist Dr Gift Mugano criticised the law's approach, arguing that it fails to take into account the operational realities of businesses in Zimbabwe, particularly those running large fleets.
"As much as it is fair that we need to pay for services, ZBC must first provide quality services worth paying for. We pay for DStv without coercion because it delivers value. ZBC doesn't do that-it's just political broadcasting," said Mugano.
He added that Zimbabwe had become regionally uncompetitive due to a high cost of doing business, including regulatory fees.
"The mandatory licence concept is okay in principle. But if we have 1.2 million motor vehicles in Zimbabwe, why not charge US$10 per quarter? That's US$36 million a year-more than enough to sustain operations if managed well," Mugano proposed.
"But the real issue is ZBC itself. People don't see value. It's boring, repetitive, and mostly serves ruling party interests. Reform ZBC and the people might willingly pay."
The Broadcasting Services Amendment Act has become a flashpoint in national discourse, with business leaders, economists, and civil society urging a more transparent and inclusive approach to broadcasting funding-one that does not punish productivity or force payments for services deemed irrelevant or substandard.
As debate intensifies, pressure is mounting on the government and ZBC to demonstrate tangible improvements in content quality and value for money, if public buy-in is to be achieved.
Source - NewsDay
