Harare, (New Ziana)-The Harare City Council has announced a 50 percent reduction in business licence fees, a move expected to create a revenue shortfall of about US$500 000 for the local authority.
Presenting the 2026 council budget, Finance and Development Committee chairperson Councilor Costa Mande unveiled a US$690.8 million budget for the coming year, a 19 percent increase from the 2025 budget.
He said the decision to reduce business licence fees was part of efforts to improve the ease of doing business in the capital.
Under the new budget, shop licence fees will be reduced by about 50 percent with shops measuring below 50 square metres, which currently pay US$400, now paying US$200 annually, while hawkers (non-food) will see their licence fees drop from US$115 to US$58.
Hairdressers will now pay US$230, down from US$460 , all part of what Mande described as “an effort to support women and youth operators.”
Mande however noted that recently introduced 2025 levies, including those for emergency services, street lighting, and water, will continue to be collected.
Main sources of revenue for the council remain property tax, water services, and wastewater services.
In terms of expenditure, Harare plans to allocate US$118.95 million towards road infrastructure, targeting the repair and sealing of 200 kilometres of roads, improved drainage, and the installation of smart traffic lights.
Meanwhile, Mande revealed that Harare is owed ZWL$8.61 billion, mostly by domestic consumers, while the council itself owes creditors ZWL$2.114 billion, more than half of which is for electricity.
New Ziana
