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Zimbabwe scraps 11 licence requirements

by Staff reporter
7 hrs ago | 124 Views
The Government has abolished eleven licence requirements and merged fragmented local authority permits into a single, unitary licence in a move aimed at enhancing the ease of doing business and cutting operational costs for enterprises.

Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the reforms are part of a broader initiative to simplify regulatory processes for small and medium enterprises (SMEs) and formal businesses that operate under one roof but run multiple lines of trade, such as bakeries, butcheries, restaurants, takeaways and food factories.

Previously, some operators were paying up to US$2 300 for a food factory licence alone, a situation that discouraged business growth and formalisation.

"As announced on the 10th of September 2025, the Government of Zimbabwe is continuing with Ease of Doing Business and Regulatory Fees Reforms for all sectors. To date, Government has announced these reforms for the Livestock, Tourism and Transport Sectors, and is now moving on to the Wholesale and Retail Sectors," said Professor Ncube in a statement on Friday.

He said the measures were designed to remove duplication, streamline approvals and strengthen the retail sector, which remains one of Zimbabwe's fastest-growing industries.

"The retail sector is one of the fastest growing sectors in Zimbabwe, and to further strengthen it, Government has converged to remove the fragmentation of licences, consolidating several retail licences into one shop licence and reducing the number of authorities involved in the clearance process to one," he said.

Under the new system, local authorities will apply a sliding-scale licence fee structure capped at US$500, allowing smaller businesses to pay less while promoting formalisation and enterprise growth.

Among the key changes, bottle store licences will no longer be required for outlets operating within licensed retail shops. Retail and wholesale licences have been combined into a single licence for businesses conducting both operations, while factory and retail licences have also been merged for integrated enterprises operating from the same premises, significantly cutting compliance costs. In addition, the requirement for supermarkets to obtain a licence from the Zimbabwe Tourism Authority (ZTA) has been scrapped, with the licence now only applying to tourist-designated businesses.

Professor Ncube said the reforms extend beyond the retail sector, with hotel and lodge licence fees in the tourism industry having been cut by 50 percent and capped at US$500 per business.

To further reduce costs for enterprises, Change of Property Use fees have been reduced to US$1 000, down from as high as US$3 500, while effluent waste management fees have been lowered from US$575 to US$200 per year.

The Procurement Regulatory Authority of Zimbabwe (PRAZ) licence fees have also been standardised into a single permit costing between US$50 and US$120, which can be used across all business branches. The Liquor Licensing Board has harmonised all liquor permits, removing the distinction between urban and rural operations.

In another major change, the Local Authority Financial Services Licence will now be issued by the Reserve Bank of Zimbabwe (RBZ) as a single annual licence covering all activities at a flat fee of US$20, a sharp reduction from previous charges of up to US$1 867.

The Government has also abolished the Permit to Sell Veterinary Products previously issued by the Medical Control Authority of Zimbabwe (MCAZ), saying it duplicated the role of the Department of Veterinary Services.

Professor Ncube said the comprehensive reforms were aimed at stimulating enterprise growth, job creation and productivity across all sectors of the economy.

"These measures are meant to aid in the creation of a conducive economic environment where jobs will be created, productivity improved across all sectors of the economy, achieving high growth rates through improving the ease of doing business," he said.

He reaffirmed the Government's commitment to transforming Zimbabwe into a competitive investment destination, adding that improving the business environment is central to achieving Vision 2030 - the goal of becoming an upper middle-income society within the next five years.

Source - The Chronicle
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