Govt cuts fees, levies to stimulate business

New Ziana > News > Govt cuts fees, levies to stimulate business

Harare, (New Ziana) – The Government has announced sweeping reforms to business regulations in the livestock, dairy and stock feed sectors, drastically cutting costs and scrapping multiple fees in a move set to boost competitiveness, investment and rural development.

Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube, in a press statement on Wednesday, said the reforms were part of the Second Republic’s broad ‘Ease of doing Business and Regulatory Fees Reforms Programme’, which is anchored on President Mnangagwa’s vision of building a modern economy under the mantra “Zimbabwe is Open for Business.”

“These reforms will remove duplication, reduce costs and simplify compliance,” said Prof Ncube. “They are designed to make our agriculture sector more competitive, spur investment and job creation, and promote rural development while positioning Zimbabwe as a leader in regulatory reforms on the continent.”

The first phase targets agriculture, which continues to underpin Zimbabwe’s economic growth and sustains 65 percent of the rural population.

Prof Ncube said that despite its importance, the sector had been stifled by excessive regulations and prohibitive compliance costs.

“In the past, dairy farmers required up to 25 permits from 12 different agencies, feed manufacturers needed 23 permits from 10 departments, and abattoirs had to contend with 20 different requirements. This created unnecessary bottlenecks and drove up costs for both small and large farmers,” he said.

Among the major changes, farm registration fees with the Agriculture Marketing Authority have been slashed to just one dollar, while dairy processor registration has been reduced from US$350 annually to a once-off US$50.

Feed manufacturers, who previously paid as much as US$250, will now only part with US$20.

Livestock movement clearance has been cut from US$10 per beast to US$5 per herd, while the import permit for livestock genetics such as heifers, bulls and semen now costs US$20 instead of US$100.

Export registration for dairy products has tumbled from US$900 to US$10, while that for meat exports has dropped from US$500 to US$100 annually.

“By cutting red tape and lowering costs, Government is unlocking productivity and creating an environment where farmers and processors can operate efficiently and competitively,” said Prof Ncube. “This is a game-changer particularly for smallholders who form the backbone of our rural economy.”

The reforms also ease health and environmental compliance.

Local authority health certificates, once pegged at US$300, have been lowered to US$100, while abattoir establishment fees have fallen from US$350 to US$50. Veterinary abattoir registration has been capped at US$100, down from US$600. Several charges have been abolished altogether, including the AMA livestock development levy, the cattle levy, ZINWA borehole and water use fees, EMA and ZERA levies, as well as the costly Consignment-Based Conformity Assessment Certificate.

Prof Ncube stressed that the reforms were developed through a multi-stakeholder process led by the Office of the President and Cabinet, with technical support from the World Bank. He said the initiative would extend to other key sectors such as tourism, transport and retail in subsequent phases.

“All future regulations will undergo a Regulatory Impact Assessment to ensure they support, rather than constrain, economic growth,” he said. “Government remains committed to creating a modern, efficient and business-friendly regulatory system that drives inclusive growth and positions Zimbabwe as an upper middle-income society by 2030.”

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