Govt Scraps 11 Business Licences to Cut Costs, Simplify Approvals

Small businesses across Zimbabwe are set to benefit from new government reforms that scrap 11 costly licence requirements and merge fragmented local authority permits into a single, simplified licence — a move now being implemented to cut red tape, lower fees, and stimulate economic growth.

The reforms are part of the Government’s ongoing Ease of Doing Business and Regulatory Fees Reforms, led by Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube.

After addressing the livestock, tourism, and transport sectors, the Government has now shifted focus to wholesale and retail — sectors often burdened by overlapping fees and complex approvals.

Prof Ncube said the changes are designed to simplify regulatory processes for small and medium enterprises (SMEs) and formal businesses that operate under one roof with multiple lines — such as bakeries, butcheries, restaurants, takeaways, and food factories.

Previously, some businesses were paying as much as US$2 300 for a food factory licence alone.

“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 Prof Ncube in a statement.

He said the reforms aim to remove duplication and streamline approvals, particularly within the retail sector — one of Zimbabwe’s fastest-growing industries.

To support this, Government has removed the fragmentation of licences, consolidating several retail permits into one shop licence and reducing the number of authorities involved in the clearance process to a single point.

Under the new system, local authorities will apply a sliding-scale licence fee structure capped at US$500.

This allows smaller businesses to pay less while promoting formalisation and growth of SMEs.

Among the major changes, bottle store licences are no longer required for outlets operating within licensed retail shops.

Retail and wholesale licences have been combined into a single permit for businesses conducting both operations, while factory and retail licences have been merged for enterprises operating from the same premises.

These adjustments are expected to significantly reduce regulatory and compliance costs for integrated businesses.

Prof Ncube added that the reforms also extend to other sectors.

Hotel, lodge, and tourism business licence fees have been reviewed downwards by 50 percent and capped at US$500 per business.

Change of Property Use fees have been reduced to US$1 000, down from as high as US$3 500 previously charged by some local authorities.

Effluent waste management fees have been cut from US$575 to US$200 annually.

The Procurement Regulatory Authority of Zimbabwe (PRAZ) licence fees have been unified across categories into one licence costing between US$50 and US$120, allowing businesses to use a single licence across all branches.

The Liquor Licensing Board has harmonised all liquor licence permits, removing distinctions between urban and rural jurisdictions.

The Local Authority Financial Services Licence will now be issued by the Reserve Bank of Zimbabwe (RBZ) as a single annual licence covering all business activities, for a flat fee of US$20 — down from as much as US$1 867.

Additionally, the Permit to Sell Veterinary Products issued by the Medical Control Authority of Zimbabwe (MCAZ) has been abolished, as it duplicated functions under the Department of Veterinary Services.

“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,” said Prof Ncube.

He reaffirmed Government’s commitment to transforming Zimbabwe into a competitive investment destination.

“Government remains committed to improving the business environment to encourage domestic and foreign investment in which Zimbabwe can become an Upper Middle-Income Society by 2030,” he said.

-Chronicle