By Rutendo Mapfumo
Local business people in Harare have expressed diverse opinions about the City’s proposed reduction of business licence fees, a key factor in the 2026 municipal budget.
Presenting the budget, Finance Committee Chairperson Cllr Costa Mande explained that the city’s recalibrated tariff framework is in line with the Government of Zimbabwe’s directive for municipalities to rationalise and reduce business licence charges. The move aims to support investment growth, enterprise formalisation, and economic recovery in the capital. Under the new structure, shop licence fees for spaces under 50m² have been halved from US$400 to US$200.
Hawkers (non-food) now pay US$58, down from US$115, and Class A hairdressers are charged US$230—a notable reduction designed to benefit women and youth operators who form a large part of Harare’s informal economy.
City vendor Michael Chifamba captured the sentiment among informal business owners:
“It’s good that the Council has proposed cutting the fees, but hawkers and vendors have already flooded the streets. This reduction could bring even more hawkers, making business more difficult.”
Chifamba points to the risk that increased competition and overcrowded trading spaces may offset the financial relief provided by lower licensing costs.
Small business owner Abirgirl Mutima echoed similar concerns, highlighting that rental rates remain a major challenge: “As long as we have high rates, business will not be rosy for those who are paying high rates.” This underscores persistent pressures beyond licensing fees that affect business viability in Harare.
City officials maintain that the revised tariff framework is meant to make Harare “competitive and inclusive,” while upholding fiscal sustainability and compliance with national policy. The council has adopted a tiered reduction model to balance affordability and financial health, positioning Harare as a business-friendly hub that welcomes new investment and job creation.
Nonetheless, caution persists in the local business community. Many welcome the financial relief but remain concerned about tougher trading conditions, declining municipal service delivery, and the risk that more informal markets may emerge as legal barriers drop. Authorities say the impact on street commerce, employment, and public services will be closely monitored as the new budget takes effect.
As Harare pushes to streamline business regulation and simplify licensing, city leaders see this initiative as central to achieving investment goals under Vision 2030. Ongoing dialogue with business owners is expected to inform further improvements and adaptations to policy.
