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The Zimbabwe Government has announced sweeping reforms for the wholesale and retail sectors, focusing on consolidating licences and drastically cutting regulatory costs. The reforms, announced by the Ministry of Finance, Economic Development and Investment Promotion, are part of a broader government initiative to improve the ease of doing business across all sectors of the economy. Key Highlights of the Reforms: 1. Licence Consolidation and ReductionThe government has eliminated eleven separate licence requirements by merging fragmented local authority licences into a single, unitary shop licence. This greatly benefits businesses that operate multiple lines of trade – such as a combined bakery, butchery, and restaurant – under one roof. Previously, a food factory licence alone could cost as much as $2,300. Additionally, businesses that operate as both retailers and wholesalers will now only need one licence. Factory and retail licences have also been combined for integrated businesses operating from a single premise. 2. Significant Cuts in Licence FeesTo promote small and medium enterprises (SMEs), local authorities will now implement a sliding scale for licence fees, with a firm cap of $500. This is part of a wider fee reduction seen in other sectors; for instance, Hotel and Lodge licence fees have been cut by 50% and similarly capped at $500. Other specific fee reductions include: Change of Property Use: Capped at $1,000, down from as high as $3,500.Effluent Waste Management: Reduced from $575 to $200 per annum.Financial Services Licence: Issued by the Reserve Bank of Zimbabwe for a flat fee of $20, a dramatic decrease from previous costs that could reach $1,867. 3. Removal of Redundant and Overlapping LicencesSeveral licences have been scrapped entirely to eliminate duplication: Bottle Store Licences are no longer required if the bottle store is part of a retail shop that already holds a valid licence.Supermarket Licences from the Zimbabwe Tourism Authority (ZTA) have been removed from general retail shops and will now only apply to tourist-designated businesses.Permit to Sale Veterinary Products by the Medical Control Authority of Zimbabwe (MCAZ) has been scrapped as it duplicated the function of the Department of Veterinary Services. 4. Simplified National LicensingThe reforms also introduce streamlined national licensing systems: The Procurement Regulatory Authority of Zimbabwe (PRAZ) has combined its categories into one licence costing between $50 and $120, which can be used by all branches of a business.The Liquor Licensing Board has compressed all liquor licence permits into a single type, regardless of whether the business is in a City, Municipality, Town or Rural District Council (RDC). A Push for Growth and Investment In a press statement, Prof. Mthuli Ncube, the Minister of Finance, Economic Development and Investment Promotion, stated that these measures are designed to “aid in the creation of a conducive economic environment where jobs will be created, [and] productivity improved across all sectors.” Subscribe to Blog via Email
