Source: Ease of doing business moves a gear up – herald
Oliver Kazunga
Senior Reporter
THE Government has unveiled sweeping regulatory reforms, slashing fees, licences and compliance costs across key sectors in a bold push to stimulate investment, industrial growth and job creation under Vision 2030 of an upper-middle-income society.
The move is part of President Mnangagwa’s directive for comprehensive ease of doing business reforms targeting critical sectors to enhance economic growth.
In a statement yesterday, the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, said the reforms that have been approved by Cabinet are designed to improve the ease of doing business, reduce bureaucratic bottlenecks and accelerate broad-based economic growth.
The reforms target the manufacturing, financial, real estate and health sectors, which the Government views as critical pillars for economic transformation and private sector expansion.
“Government, through Cabinet, has approved a comprehensive package of regulatory reforms aimed at improving the ease of doing business, reducing compliance costs and stimulating broad-based economic growth across key sectors of the economy,” he said.
“These reforms — spanning the manufacturing, financial, real estate and health care sectors — form part of ongoing efforts to modernise the regulatory environment, enhance operational efficiency, attract both domestic and foreign investment, and support the growth of Micro, Small and Medium Enterprises (MSMEs), which remain central to Zimbabwe’s economic transformation agenda under Vision 2030.”
MSMEs remain central to the country’s development agenda, accounting for about 60 percent of the Gross Domestic Product.
In the manufacturing sector, the Government has reduced the Ministry of Industry import licence fee from US$100 to US$50 for most items, while National Social Security Authority (NSSA) boiler registration fees have been capped at US$500.
Factory approval plan fees charged by NSSA and local authorities have also been cut by 50 percent, while Rural District Council timber transportation permits have been abolished.
Prof Ncube said the measures would significantly lower production and compliance costs, improve the competitiveness of locally manufactured goods and support re-industrialisation.
“The reforms will also promote re-industrialisation, enhance capacity utilisation and support the formalisation and growth of MSMEs within manufacturing value chains, ultimately contributing to increased industrial output, job creation and sustained economic growth,” he said.
In the financial sector, the Government approved a reduction in the Reserve Bank of Zimbabwe (RBZ) banking supervision fee to 0,007 percent of assets, capped at US$40 000.
Banks will also introduce zero-cost accounts for MSMEs, while cash withdrawal charges for both United States dollar and ZiG transactions will be reduced.
The Government has further abolished RBZ licence fees for authorised dealers with limited authority (ADLA) rural branches, reduced mobile money transfer charges and cut Securities and Exchange Commission registration and licence fees by 50 percent.
Duty on ATM equipment will also be reviewed downwards.
Prof Ncube said the interventions are expected to deepen financial inclusion, increase access to affordable banking services and promote participation in the formal financial system, particularly among MSMEs and underserved communities.
“These measures will lower the cost of financial services and transactions, increasing access to banking—particularly for MSMEs and underserved communities.
“They are also expected to promote digital financial inclusion, improve liquidity circulation and strengthen participation in the formal financial system.
“Over time, this will support business expansion, improve access to capital and enhance confidence in the financial sector,” he said.
The real estate and construction sector also received major relief after the Government approved the standardisation and capping of local authority building plan approval fees.
Building permit requirements and Environmental Impact Assessment requirements by local authorities have been abolished, while certificate of occupation fees have been cut by 50 percent.
Contractor registration fees charged by local authorities have also been reduced to a uniform US$20 across all categories.
Prof Ncube said the reforms would eliminate bureaucratic delays, shorten project approval timelines and stimulate investment in infrastructure and housing development.
“Reduced compliance costs will improve project viability, encourage investment in infrastructure and housing, and enhance transparency and predictability in local authority processes,” he said.
In the health sector, Prof Ncube said the Government abolished the Health Professions Authority licences for pharmaceutical and manufacturing wholesalers and scrapped the Medicines Control Authority of Zimbabwe pharmacy licence fees.
Licensing fees for hospitals and laboratories have been reduced by between 20 and 30 percent, while pharmaceutical manufacturing licence fees have been cut by 25 percent.
Government has also reduced medicine registration fees and practising certificate fees for medical practitioners, with students now exempted.
Private hospital approval letter fees have been capped at US$100, while registration and practising fees for nurses, pharmacists, laboratory scientists and other health professionals have also been reduced significantly.
Prof Ncube said the interventions would lower the cost of establishing and operating healthcare facilities, improve the availability of medicines and strengthen healthcare delivery systems.
“These reforms underscore Government’s commitment to fostering a transparent, competitive and conducive business environment.
“By reducing regulatory burdens and associated costs, Government seeks to unlock productivity, stimulate investment and drive sustainable economic growth.
“Government will continue to review regulatory frameworks to ensure they remain responsive to evolving industry and public needs, while safeguarding standards, promoting innovation and advancing Zimbabwe’s trajectory towards an upper middle-income economy status by 2030,” he said.
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