Zimbabwe: Sweeping Cuts in Levies, Bank Charges Get Nod . . . Move to Improve Ease of Doing Business

Rumbidzayi Zinyuke — ZIMBABWE is set to implement a sweeping reduction of bank charges, licencing fees and levies across key sectors as part of wide-ranging reforms aimed at improving the ease of doing business, strengthening compliance and stimulating economic growth.

The review, which covers areas such as financial services, retail, manufacturing and local authority permits, is expected to make it easier for companies to operate, promote investment and enhance competitiveness across the economy.

Earlier this year, President Mnangagwa indicated that his administration would implement far-reaching measures to improve the ease of doing business in the country by reducing fees, streamlining regulations and removing unnecessary red tape.

Speaking during a post-Cabinet media briefing in Harare yesterday, Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere said Cabinet had approved a comprehensive review of fees in 12 sectors of the economy.

The decision follows Cabinet’s adoption of a raft of business reforms aimed at reducing the cost of doing business and unlocking growth opportunities.

“Cabinet approved the consolidation of fragmented licencing 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 comprising the wholesale sector, supermarket and groceries, meat and meat products retail shops, butcheries, clothing shops and furniture shops,” he said.

Among those being reviewed is the liquor licence application fee, which was previously pegged at US$1 080 in some urban areas, and will now cost US$20 across all sectors.

The local authority bakery licence fee of US$703 and the Medicines Control Authority of Zimbabwe (MCAZ) permit to sell general products, previously set at US$200, were completely scrapped.

Licencing thresholds across all local authorities were also capped to promote uniformity and fairness.

“The reviewed licences, permits and fees will be subjected to further refinements, and the appropriate schedule shall be duly gazetted.

Cabinet also reviewed cross-cutting licences, permits, levies and fees that have a significant impact beyond the wholesale and retail sectors and relate to the following: shop/trading/business licences by Local Authorities, Procurement Regulatory Authority of Zimbabwe (PRAZ) licences, fire compliance licences by Local Authorities, Environmental Assessment consultation fees, property change of use fees, and bank charges,” Dr Muswere said.

Responding to questions from journalists, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the Government had taken note of the burden of high bank charges on both businesses and individuals and would engage the financial services sector to address the issue.

“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 said.

Prof Ncube said the Government was working with the Reserve Bank of Zimbabwe (RBZ) and the banking sector to review and reduce these charges as part of broader financial services sector reforms.

“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,” he said.

Prof Ncube said a full report on the cost of doing business in the financial services sector would soon be presented to Cabinet.

He also said the harmonisation of fees across local authorities would not only improve compliance but also boost revenue collection, as more businesses would afford to operate legally.

“Our analysis shows that the impact of these reductions will be positive. Businesses will experience improved profitability and growth, and compliance with the law will increase. In fact, when compliance improves, local authorities end up earning more than before,” Prof Ncube said.

He noted that the review would also address disparities in fees charged by different councils for similar services.

“For instance, environmental consultation fees to establish a shop can cost as much as US$4 200 in some areas, while others charge as low as US$20. This lack of uniformity discourages investment and pushes small businesses into informal operations. The new framework seeks to correct that,” Prof Ncube said.

To ensure fairness and regional competitiveness, the Government benchmarked the new fees against those charged in neighbouring countries.

Prof Ncube said a liquor licence application fee in South Africa ranged between US$86 and US$150, while in Zambia it cost US$13 and US$6 in Botswana.

He said the new US$20 fee for local businesses was fair and regionally competitive.

Prof Ncube added that reforms were also key in eliminating unnecessary bureaucratic processes that had long frustrated businesses.

“It’s not just about fees, but also about processes. Every additional licence comes with procedures that delay business operations. We are simplifying these processes to make Zimbabwe more investor-friendly,” he said.

Government is expected to gazette the reviewed schedule of licences and fees soon.

The measures form part of a broader drive under Vision 2030 to create a conducive environment for investment, job creation and sustainable economic growth.

The comprehensive reforms reaffirm the Government’s commitment to modernising the economy, supporting private sector development, and ensuring that Zimbabwe remains an attractive destination for both local and foreign investors.

By The Herald.