GOVERNMENT MOVES TO CUT COSTS, BOOST BUSINESS GROWTH THROUGH LICENCE AND FEE REVIEWS

By Edward Makuzva

The Cabinet has approved a sweeping review of licences, permits, levies and fees in the retail and wholesale sectors, a major step towards reducing the cost of doing business and enhancing competitiveness across Zimbabwe’s economy.

The decision, announced following the Cabinet’s consideration of the reforms this week, stems from the July 29, 2025, resolution, which endorsed comprehensive business reforms across twelve key sectors.

The latest move targets bottlenecks and excessive charges that have long burdened entrepreneurs and small businesses, especially in retail and wholesale operations.

According to the Cabinet, the review is designed to consolidate fragmented licensing requirements into a single licence, streamline overlapping permits, and eliminate unnecessary levies and fees.

High and duplicative costs will be reduced or scrapped altogether to create a more enabling environment for both new and existing businesses.

Key Reductions and Removals

Among the notable changes, the Liquor Licence application fee, previously pegged at a staggering US$1,080 for wholesalers, has been drastically reduced to US$20 across all sectors.

The Medicines Control Authority of Zimbabwe (MCAZ) permit, which required traders to pay US$200 to sell veterinary products, has been completely removed, while the Local Authority bakery licence fee of US$703 has also been abolished.

Furthermore, the threshold of fees charged by all Local Authorities will be capped to ensure uniformity nationwide — a move expected to prevent local councils from imposing arbitrary charges that inflate operational costs.

Cross-Cutting Reforms Beyond Retail and Wholesale

Cabinet also addressed several cross-sectoral licences and fees that affect businesses more broadly, including shop and trading licences issued by Local Authorities, fire compliance certificates, environmental assessment consultation fees, and bank charges.

Key decisions include:

Procurement Regulatory Authority of Zimbabwe (PRAZ) licence for groceries and provisions reduced from US$120 to US$20; Health Report licence fee, previously pegged at US$661, cut by 50%; NSSA Elevator registration fee slashed from US$200 to US$20; and Bank charges and transfer fees are to be reduced to promote financial inclusion and formal banking.

Creating a Business-Friendly Environment

Officials say these reforms mark a significant milestone in the government’s ongoing drive to make Zimbabwe more investor-friendly and to empower local enterprises to thrive.

By easing regulatory burdens, the Cabinet expects to stimulate growth in key sub-sectors such as supermarkets and groceries, butcheries, clothing and furniture shops, and wholesale outlets.

The reviewed licences, permits, and fees will undergo final refinements before the official schedules are gazetted.

Once published, the new framework will take effect immediately, setting the tone for a more streamlined and affordable business operating environment.

Government insiders say the ultimate goal is to position Zimbabwe as a competitive regional player by ensuring that business regulations are transparent, consistent, and supportive of entrepreneurship.