Business

Mthuli Ncube announces raft of measures cutting back repetitive licenses

Business Reporter

FINANCE Minister ,Mthuli Ncube has announced a raft of measures doing away with a multiplicity of licensing fees in a move aimed at revamping the cost of doing business

He said the changes were anchored on President Mnangagwa’s “Zimbabwe is Open for Business” mantra and mark a decisive shift towards creating a modern, efficient business climate.

Minister Ncube said the streamlining of the compliance framework and charges would make Zimbabwe one of the most attractive destinations to do business on the continent.

“This new framework positions Zimbabwe as one of the few countries in Africa undertaking such broad-based regulatory reforms across multiple sectors at once,” said Minister Ncube.

“We are determined to ease costs, encourage investment, and restore agriculture to its rightful place as the mainstay of our economy.”

Agriculture has been chosen as the first testing ground for these reforms, with livestock, dairy and stockfeed producers now enjoying dramatic reductions in regulatory fees and permits.

The sector, which supports 65 percent of rural livelihoods and generates significant exports, has long been held back by excessive regulation.

Dairy farmers, for instance, previously needed up to 25 separate permits across 12 different agencies, while beef cattle farmers faced 18 requirements, abattoirs 20, and feed manufacturers 23.

“These unnecessary costs and duplications were a heavy burden, especially on smallholder farmers who are the backbone of our agricultural economy,” the Minister noted.

The reforms have swept away much of this duplication. Farm registration with the Agricultural Marketing Authority (AMA), once a costly exercise, is now a token flat fee of just US$1.

For small and medium-scale farmers, the Farm Registration Certificate has been abolished altogether. Agronomist Dr Edmore Ndoro welcomed the measures, saying they will dramatically free up farmers’ resources for productivity.

He noted that with regulatory costs falling away, smallholder farmers in particular can now channel more funds into genetics, feed, and animal health.

“This will directly improve yields, lower farmgate prices, and make our livestock sector more competitive across the region,” he said.

Dairy processors, previously paying US$350 annually, will now pay a once-off fee of US$50. Feed manufacturers who had been charged between US$150 and US$250 will only need to part with US$20.

The overhaul also includes livestock movement permits, which have been slashed from US$10 per beast to US$5 per herd, a change expected to save communal farmers thousands each year.

Exporters are also set to benefit. The registration cost for dairy exports has dropped from US$900 to just US$10, while meat export licences were cut from US$500 to US$100 annually.

Similarly, agricultural export permits are now US$10, harmonised with ZimTrade, down from US$70.

In line with the Government’s pro-business stance, health and environmental charges have also been significantly eased. Local authority health certificates now cost US$100 annually, down from US$300.

Abattoir establishment fees have been trimmed from US$350 to US$50, and veterinary registration has been capped at US$100, down from US$600.

The Environmental Management Agency (EMA) has cut effluent disposal fees for dairy farmers from US$800 to US$100 annually.

Crucially, the costly Environmental Impact Assessment licence has been lowered from 1,5 percent of project value to just 0.05 percent, capped at US$100 000, and will only be payable once operations are underway.

Utility-related levies have also been scrapped. Borehole abstraction fees payable to the Zimbabwe National Water Authority have been abolished, with groundwater permits now pegged at just US$10 per farm. EMA levies on effluent and generators, along with ZERA charges, have all been removed.

The reforms are expected to stimulate rural economies, improve competitiveness, and encourage both domestic and foreign investment.

Small-scale dairy and livestock farmers, who previously struggled with compliance costs, stand to be the biggest winners.

Through streamlining processes and abolishing outdated levies such as the AMA livestock development levy, cattle levy and biosafety permit, the Government has signalled its determination to modernise agriculture while unlocking new opportunities for growth and export earnings.

“These reforms are not just about cutting costs, but about transforming agriculture into a competitive, job-creating and export-driven sector,” Minister Ncube emphasised.

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