Licence fee cut a game-changer: CZR

CONFEDERATION of Zimbabwe Retailers (CZR) has commended initiatives by the Government to improve the ease of doing business, saying that the reforms mark a significant milestone in the Second Republic’s ongoing drive to create a competitive, efficient and business-friendly environment that promotes growth, formalisation and sustainability.

The latest reforms come at a time when Government has been intensifying efforts to streamline regulatory processes under the National Development Strategy 1 (NDS1), which prioritises private-sector-led growth, domestic investment and the reduction of bureaucratic bottlenecks.

Over the past few years, Zimbabwe has been working to modernise its business environment through digitisation of services, policy harmonisation and targeted interventions to support the small-to-medium enterprise (SME) sector, which accounts for the bulk of economic activity and employment.

The Government’s directive to slash business licence fees is therefore seen as part of a broader structural push to ease the cost of doing business and enhance the competitiveness of local enterprises. The decision is expected to strengthen the country’s formalisation drive at a time when more than 60 percent of economic activity remains informal.

For many entrepreneurs and small business owners who have long struggled with the heavy financial burden of licence fees and fragmented regulatory requirements, the move provides long-awaited relief and an opportunity to grow.

In a statement, CZR president Dr Denford Mutashu said these measures collectively demonstrate a deliberate and results-oriented policy approach aimed at reducing the cost of doing business, promoting transparency and removing bureaucratic hurdles that have long stifled retail and wholesale growth.

“CZR extends its heartfelt appreciation to His Excellency, the President of the Republic of Zimbabwe, Dr ED Mnangagwa, for his visionary leadership and unwavering commitment to improving the ease and cost of doing business in Zimbabwe,” he said.

“In direct response to the press statement issued by the Ministry of Finance, Economic Development and Investment Promotion on 31 October 2025, CZR warmly welcomes and commends the ministry for the bold and progressive ease of doing business reforms announced for the retail and wholesale sector.”

Dr Mutashu said the reforms mark a significant milestone in the Government’s ongoing drive to create a competitive, efficient and business-friendly environment that promotes growth, formalisation and sustainability within Zimbabwe’s retail and wholesale landscape.

He noted that the reduction in fees is expected to stimulate small business growth, particularly among women and youth operators who form the backbone of the informal economy.

The decision to cut business fees and licences is expected to have a cascading positive impact on the broader economy. By reducing the financial burden on businesses, the Government hopes to encourage entrepreneurship, create jobs and increase economic activity—key elements in achieving Vision 2030 targets.

Dr Mutashu highlighted that the retail and wholesale sector remains a major pillar of Zimbabwe’s economy, contributing significantly to employment, value chain development and tax revenues. However, over the years, the sector has been weighed down by excessive regulatory fragmentation, high licensing costs and cumbersome approval processes that have hampered SME expansion.

“CZR therefore applauds the Government for responding to long-standing calls from the business community to streamline and simplify licensing procedures,” said Dr Mutashu.

“The consolidation of multiple licences into a single unified shop licence will reduce duplication, lower compliance costs, and improve operational efficiency. The introduction of a sliding scale licensing fee structure capped at USD$500 for SMEs is a welcome development that promotes inclusivity and encourages the formalisation of small traders.”

CZR commended the ministry for introducing wide-ranging reforms that include consolidation of eleven separate local authority licences into a single unified licence for shops with multiple business lines, removal of the bottle store licence requirement where a bottle store operates within a licensed retail shop, and combining retail and wholesale licences into one to ease operations for mixed traders.

The organisation also applauded the merging of factory and retail licences for integrated businesses under one premise, scrapping of the ZTA licence requirement for supermarkets, now limited to tourist-designated entities, a 50 percent reduction and capping of hotel, lodge, and other tourism-related business licence fees at USD$500, and capping of Change of Property Use fees at USD$1 000, down from as high as USD$3 500.

Other initiatives include reduction of effluent waste management fees from USD$575 to USD$200 annually, consolidation of PRAZ licence fees into a single category ranging from USD$50–$120, applicable across all business branches, harmonisation of liquor licensing permits across all local authorities, introduction of a flat RBZ Financial Services Licence fee of USD$20 annually, down from USD$1 867 and elimination of the MCAZ permit to sell veterinary products due to duplication with the Department of Veterinary Services.

CZR said these measures depict a coordinated effort to cut red tape, promote transparency and boost business confidence.

“CZR is particularly encouraged by the Government’s commitment to eliminating overlapping regulatory functions and introducing uniformity across local authorities. As the national voice of the retail and wholesale sector, CZR stands ready to partner with the Government in ensuring the effective rollout and monitoring of these reforms,” said Dr Mutashu.

“We call upon all local authorities to immediately align their by-laws, fee structures, and operational frameworks with the new directives to ensure uniformity and avoid confusion among operators.”

CZR further urged businesses to pass on savings from reduced licensing costs to consumers through fair pricing and improved service delivery — measures critical to stimulating demand and stabilising the market.

The organisation implored all retailers, wholesalers, and SMEs to take full advantage of these reforms by regularising their operations, expanding formal employment, and reinvesting in their enterprises.

“CZR will continue to engage constructively with the ministry and other relevant stakeholders to ensure that implementation remains efficient and beneficial to both business and consumers,” said Dr Mutashu.

He said the reforms represent a concrete step towards achieving Vision 2030, with the goal of transforming Zimbabwe into an upper-middle-income economy driven by a vibrant, competitive and inclusive business sector.

“CZR remains committed to working closely with the Government to advance the interests of the business community and contribute meaningfully to the country’s economic growth and transformation agenda,” said Dr Mutashu.-herald