HARARE City Council will cut its business licence fees by 50 percent, according to the local authority’s approved 2025 budget.
The tariff framework seeks to stimulate investment, support small-to-medium enterprises (SMEs) and formalise thousands of informal traders, the municipality said.
The reductions provide immediate fiscal relief to a wide array of sectors.
Small shops operating in spaces under 50 square metres will now pay a flat annual fee of US$200, down from US$400.
Hairdressers have seen their tariffs halve from US$460 to US$230.
Non-food traders will now pay US$58, down from US$115.
In one of the most significant reductions, bank tariffs have been slashed from US$5 750 to a flat US$250.
The local authority said for businesses to benefit from these rates, owners must remain up to date with property taxes and provide a valid tax clearance certificate.
“Business owners must fully pay property tax and provide a valid tax clearance certificate under section 80 of the Income Tax Act, Chapter 23.06,” the local authority said.
The Harare City Council’s budget measures align with the Government’s ongoing ease of doing business reforms and the National Development Strategy 2 (NDS2), which prioritise streamlining regulatory frameworks to foster a more competitive investment climate.
Last month, the Government gazetted regulations slashing licensing fees by as much as 50 percent for some key economic sectors.
For instance, registration fees for five-star hotels were slashed from US$5 250 to US$2 000.
Aircraft registration fees were lowered from between US$500 and US$1 000 to US$20.
Fees for guesthouses were reduced from US$500 to US$150, and ancillary services like restaurants and travel agencies saw their fees cut from US$305 to US$100. External tour operators now pay US$1 500 from US$3 000.
Some fees have been completely abolished where duplication existed across multiple state agencies.
The Government also eliminated or significantly reduced 96 regulatory fees in the livestock, dairy and stockfeed sectors to enhance the ease of doing business, according to a review of levies, licences, fees and permits for the agriculture sector by the Confederation of Zimbabwe Industries (CZI).AI technology implementation
Of the 96 regulation fees reviewed, 34 have been eliminated entirely while 45 others saw costs slashed by between 13 percent and 99 percent, the review by the industry lobby group said.
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The review addressed long-standing complaints regarding the multiplicity and fragmentation of licenses.
Previously, a single dairy farmer required up to 25 different permits from 12 separate agencies to operate.
Economic analysts have hailed the move by the Harare municipality as a “step in the right direction,” noting that high licensing costs have historically been the biggest barrier to formalisation.
By lowering the cost of entry, the city is encouraging “shadow” businesses to register legally.
“This is a pragmatic shift,” economic analyst Mr Enoch Musara said.
“When licences are affordable, businesses are more likely to operate above board. This gives them access to formal banking and credit facilities.-herald
