Harare businesses to challenge license fees hike

The Harare business community has voiced its displeasure over the increase in shop license fees imposed by the Harare City Council.

Many owners of small to medium-sized businesses have expressed interest in filing petitions opposing the hike.

Vincent Zhanje, chairperson of the Harare CBD SMEs said; “As the business community of Harare guided by the Urban Councils Act (Chapter 29:15), we feel obliged to be consulted on issues of city budgets. We are guided by Section 86 of the Constitution of Zimbabwe, which gives us the right to have access to information with regards to our operations.”

The reason why business operators are up in arms with the City Council after the local authority hiked shop licence fees by over 1 000 percent is that the rates are too high.

According to a Business Weekly survey in Harare’s Central Business District, non-factory retailers and food distributors must now fork over more than $1 million, up from an average of $200,000.

“I used to pay $200 000, but when I went to pay my shop license fees for this year, I was asked to pay US$1 100,” said an operator, Killian Muzorori.

Several shops are on the verge of closing and moving out of the Central Business District.

“We are on the verge of closing shop because we are failing to pay the shop license fees. Our plea is that the responsible authorities review downwards the operator’s fees or else we are left with no option, but to close our shops which are sustaining a lot of families,” noted another businessman, Chris Manguni.

Harare City Council Director of Health Services, Dr Prosper Chonzi, confirmed the increase in license fees, saying they are implementing their 2023 budget.

The Harare City Council was recently forced to review vehicle clamping fees downwards from US$137 to US$57 after a public outcry over the high clamping fees.

Many believe the city council which has been dogged by corruption is now cashing in on innocent citizens to replenish its dry coffers by charging exorbitant fees and fines.

A significant number of shops in Harare’s Central Business District, are reportedly operating without licences and some city officials are allegedly taking bribes not to shut them down.-ebusinessweekly