Harare slashes business licence fees

The Harare City Council has announced a sweeping 50 percent reduction in business licence fees as part of its approved 2025 budget, in a move aimed at stimulating investment, supporting small-to-medium enterprises (SMEs) and formalising informal traders.

The new tariff framework is expected to provide immediate relief across multiple sectors, lowering the cost of doing business in the capital.

Under the revised structure, small shops operating in spaces under 50 square metres will now pay a flat annual fee of US$200, down from US$400. Hairdressers will see their fees reduced from US$460 to US$230, while non-food traders will now pay US$58, down from US$115.

In one of the most notable adjustments, bank licence fees have been drastically cut from US$5 750 to a flat US$250.

Council authorities said businesses seeking to benefit from the reduced tariffs must remain compliant with tax obligations.

"Business owners must fully pay property tax and provide a valid tax clearance certificate under Section 80 of the Income Tax Act," the local authority said.

The municipality noted that the measures are aligned with the Government's broader economic reform agenda, particularly efforts under the National Development Strategy 2 (NDS2), which seeks to improve the ease of doing business and attract investment.

Last month, Government gazetted complementary regulations cutting licensing fees by up to 50 percent across key sectors. Registration fees for five-star hotels were reduced from US$5 250 to US$2 000, while aircraft registration fees dropped sharply from between US$500 and US$1 000 to just US$20.

Guesthouse licence fees were lowered from US$500 to US$150, and ancillary services such as restaurants and travel agencies saw reductions from US$305 to US$100. External tour operators will now pay US$1 500, down from US$3 000.

Authorities also eliminated or reduced 96 regulatory fees in the livestock, dairy and stockfeed sectors following a review by the Confederation of Zimbabwe Industries (CZI). Of these, 34 fees were scrapped entirely, while 45 others were cut by between 13 percent and 99 percent.

The review addressed long-standing concerns over excessive bureaucracy, which previously required a single dairy farmer to secure up to 25 permits from 12 different agencies.

Economic analysts have welcomed the Harare City Council's move, describing it as a significant step toward improving the business environment.

"This is a pragmatic shift," said economic analyst Mr Enoch Musara. "When licences are affordable, businesses are more likely to operate above board. This gives them access to formal banking and credit facilities."

The reductions are expected to encourage more informal businesses to register legally, broadening the tax base while fostering sustainable economic growth in the city.