By Chantelle Muzanenhamo
The Government has announced sweeping reforms to review licences, permits, levies, and fees across Zimbabwe’s retail and wholesale sectors in a move aimed at boosting investment, improving competitiveness, and encouraging informal businesses to transition into the formal economy.
The decision, which was confirmed by Cabinet on Tuesday, seeks to merge numerous fragmented and overlapping requirements into a single, streamlined system.
Information, Publicity and Broadcasting Services Minister Dr. Jenfan Muswere said the reforms would affect nearly every sector.
“Cabinet approved the consolidation of fragmented licensing requirements into a single licence, the streamlining of duplicative and overlapping licences and permits, the removal of unnecessary levies and fees and the lowering of high levies and fees for the wholesale and selected major retail sub-sectors,” he stated.
The changes will is expected lower costs for businesses.
For instance, the cost of applying for a liquor licence, which could previously reach as high as US$1,080 in some urban areas has been reduced to a uniform US$20.
Several other fees have been scrapped entirely, including the local authority bakery licence of US$703 and a US$200 permit from the Medicines Control Authority of Zimbabwe for selling general goods.
In addition to the licensing overhaul, the government has also moved to tackle high bank charges, which have been widely criticised by both businesses and consumers.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the government is now engaging with the Reserve Bank of Zimbabwe (RBZ) and the banking sector to bring down excessive service costs.
“We are aware that monthly account service charges can be as high as US$15 for individuals and US$20 for corporates. Withdrawal charges can reach up to 3 percent of the transaction value, while money transfer and bill payment fees range between 1.5 and 3 percent. These are significant costs that affect both business operations and ordinary citizens.”
He added that discussions with the financial sector were already underway to deliver meaningful reductions.
“This is an area where we need to engage further with the banking sector to see how these things can be managed. We acknowledge efforts by the Reserve Bank and the Bankers Association to reduce fees on some accounts, but we need to do more.”
The reforms are expected to ease the cost of doing business, stimulate entrepreneurship, and support the government’s broader “Ease of Doing Business” agenda as part of Vision 2030.
Meanwhile several Zimbabweans have been asking when government effect vehicle number plates cost reduction from the current $500 in line with Ncube announcement in September.
Government on September 10 announced a raft of measures aimed at lowering the cost of doing business in the transport sector, with a notable 50 percent cut to all local authority parking fees and related penalties including towing and clamping.
In addition, the price of vehicle number plates was slashed to $50 but $500 but that remained lip service.
Incidentally it was Mushore who announced the changes yet to be implemented.
After announcement a statutory instrument bringing the new changes should be made.