HARARE – In a landmark policy move designed to revitalise Zimbabwe’s retail and small business sectors, the Government has drastically reduced business fees and merged multiple licences into a single, unified business permit. The reform, announced by Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube, aims to simplify the country’s licensing regime, ease compliance costs, and boost the ease of doing business.
The initiative consolidates eleven separate local authority licences into one comprehensive business licence, a change expected to provide significant financial relief to retailers, wholesalers and small enterprises. Previously, businesses operating multiple lines under one roof, such as bakeries, butcheries or restaurants, were required to obtain several costly licences for each activity. Now, all operations will be covered under one single licence, marking a transformative step toward a more streamlined business environment.
Professor Ncube explained that the reforms were introduced to remove unnecessary financial and bureaucratic barriers that have long hindered business growth. He noted that under the old system, a food factory licence alone could cost as much as US$2,300, a fee that will now be absorbed into the new consolidated licensing framework. He added that the policy is designed to foster entrepreneurship, support small and medium-sized enterprises, and stimulate investment across key sectors of the economy.
The sweeping changes extend beyond the retail sector, with adjustments also affecting tourism, hospitality, financial services, and waste management. Hotels and lodges will now pay half of their previous licence fees, while supermarket chains are exempted from Zimbabwe Tourism Authority requirements unless they operate in designated tourist zones. In a similar effort to ease the burden on SMEs, the Government has directed local authorities to implement a sliding scale for licensing fees, capped at US$500, ensuring affordability for smaller operators.
The reforms also include reductions in other regulatory costs. The Reserve Bank of Zimbabwe has lowered its financial services licence fee, while the Liquor Licensing Board and the Procurement Regulatory Authority have both simplified their processes, issuing single permits that apply across all business branches. These measures are expected to cut red tape, reduce opportunities for corruption, and create a more transparent regulatory environment.
Professor Ncube said the new approach reflects Government’s broader strategy to improve the business climate and move the country closer to achieving its Vision 2030 goal of becoming an upper middle-income economy. He emphasised that the reforms will release much-needed capital for reinvestment, encourage the formalisation of informal traders, and create conditions conducive to job creation and industrial growth.
Business leaders have welcomed the overhaul, describing it as a long-overdue development that will enhance operational efficiency and investor confidence. Zimbabwe National Chamber of Commerce chief executive officer Christopher Mugaga said the changes prove that Government is serious about tackling the country’s regulatory bottlenecks. He expressed optimism that the simplified framework will help businesses renew licences more easily and improve compliance with tax and regulatory obligations.
Confederation of Zimbabwe Retailers president Denford Mutashu also praised the move, saying it delivers on President Emmerson Mnangagwa’s pledge to create a private sector-led economy. He said the reform shows that Government is listening to the concerns of the business community and taking practical steps to remove barriers to investment. Mutashu added that the reduced costs and simplified processes will make it easier for both local and foreign investors to establish and expand operations in Zimbabwe.
A recent study by the National Competitiveness Commission underscored how excessive regulatory costs and overlapping licensing requirements had long undermined Zimbabwe’s competitiveness. The Commission’s findings indicated that manufacturing and retail growth had been constrained by high operational costs, energy prices and taxes. The latest reforms, analysts say, mark one of the most significant efforts yet to dismantle those structural constraints and lay the groundwork for a more dynamic, investment-friendly business environment.