- The government has merged 11 fragmented local authority licenses into a single unitary shop license, eliminating redundancies for integrated businesses
- Key fees have been slashed, including capping SME licenses at $500 on a sliding scale, halving tourism fees to $500 max, dropping property use change fees to $1,000 from $3,500
- Reforms scrap unnecessary permits like ZTA requirements for supermarkets, MCAZ veterinary product sales, and separate bottle store licenses within retail outlets
Harare- The Government implemented a series of reforms on 31 October 2025 aimed at enhancing the ease of doing business by eliminating redundant licenses and fees, a move that addresses long-standing barriers in a country historically ranked poorly in global ease of doing business indices.
According to the World Bank's Doing Business reports prior to these changes, Zimbabwe lagged behind regional peers due to bureaucratic hurdles, with businesses often requiring over 30 licenses to operate a single retail outlet, leading to high compliance costs and stifled growth. These reforms consolidate and scrap various licenses across sectors, particularly retail and wholesale, “to foster a more conducive environment for investment and job creation,”, Finance, Economic Development and Investment Promotion Minister, Mthuli Ncube said in a statement, aligning with the nation's Vision 2030 goal of achieving upper middle-income status.
By streamlining regulatory processes, the government seeks to reduce operational burdens, promote small and medium enterprises (SMEs), and stimulate economic productivity, as evidenced by immediate positive feedback from industry leaders.
Consolidation of 11 Fragmented Local Authority Licenses into a Single Unitary Shop License
This policy eliminates the need for multiple permits for businesses operating diverse activities under one roof, such as a bakery, butchery, restaurant, takeaway, and food factory. Previously, a retailer combining these services would face separate licenses, each with its own fees and renewal processes, often totaling thousands of dollars annually and requiring interactions with multiple authorities.
Now, this unified license simplifies compliance, reducing administrative time and costs significantly. For instance, a small integrated food outlet in Harare, which might have paid up to $2,300 just for a food factory license alongside other permits, can now operate under one capped fee structure, allowing reinvestment into expansion or hiring.
Such changes are projected to boost retail sector growth, which is forecast to expand by 5.10% in 2025, by lowering entry barriers and encouraging private sector-led development.
Convergence of Fragmented Retail Licenses into One Shop License with Reduced Clearance Authorities
In the retail sector, the government has merged fragmented licenses into one shop license while reducing the number of clearance authorities to a single entity, further easing operations for multifaceted businesses. This addresses past inefficiencies where shops had to navigate overlapping regulations from local councils, leading to delays and corruption risks.
A contemporary example is seen in chain retailers like OK Zimbabwe, where CEO Willard Zireva highlighted in a September 2025 interview with Equity Axis that operating stores required over 30 redundant licenses processed in the same offices sometimes, inflating costs and hindering turnaround strategies amid economic pressures. With the new single license, OK Zimbabwe and similar entities can consolidate approvals, potentially saving thousands in annual fees and redirecting funds toward restocking shelves and settling supplier debts, as Zireva outlined in efforts to revive the company's performance.
This policy not only enhances efficiency but also promotes inclusivity, as smaller urban retailers report quicker license approvals, contributing to a projected 6.6% economic growth target by reducing compliance costs that previously accounted for up to 15% of operational expenses for SMEs.
Sliding Scale License Fee Structure Capped at $500 for SMEs
To support SMEs, local authorities are now required to differentiate license fees using a sliding scale structure capped at $500, a measure designed to make business accessible for smaller operators while preventing exploitation by high fees. Before the reform, fees varied wildly across municipalities, often exceeding $1,000 for basic operations, deterring startups and forcing many into informality.
In practice, this cap has benefited emerging entrepreneurs in rural districts, such as a bakery that previously paid $703 for a standalone local bakery license but now operates under the capped unitary fee, allowing the owner to expand product lines without additional costs.
Removal of Bottle Store Licenses for Integrated Retail Outlets
The removal of bottle store licenses for outlets integrated within licensed retail shops eliminates duplication, allowing supermarkets to sell liquor without extra permits. Historically, this required separate approvals costing up to $1,080 for wholesalers in cities, adding unnecessary layers to operations. A real-world beneficiary is large retail chains like OK Zimbabwe, which can now integrate liquor sales seamlessly, cutting costs and improving profitability margins amid competition from informal vendors.
Pick n Pay impaired its entire 49% stake in TM Supermarkets in May 2025, writing off R51 million due to severe currency volatility and hyperinflationary pressures exacerbated by high operational costs, including regulatory fees and these reforms could help mitigate such risks for remaining operations.
Combination of Factory and Retail Licenses for Integrated Businesses
Combining factory and retail licenses for integrated businesses under one premise reduces compliance costs by merging what were once distinct regulatory paths. Previously, a food processing and retailing operation might incur separate fees exceeding $2,300 for factory elements alone, stifling vertical integration.
Scrapping of Zimbabwe Tourism Authority (ZTA) License Requirements for Supermarkets
The scrapping of Zimbabwe Tourism Authority (ZTA) license requirements for supermarkets, limiting them to tourist-designated businesses, removes an irrelevant burden from general retailers. Supermarkets no longer face these fees, which added hundreds annually without relevance, freeing resources for core operations in a competitive market where customer numbers fluctuate.
Halving and Capping of Tourism Fees for Hotels and Lodges at $500
In the tourism and transport sectors, fees for hotels and lodges have been halved and capped at $500, providing relief to an industry recovering from pandemic impacts. For instance, lodges in Victoria Falls, which paid up to $1,000 previously, now benefit from reduced costs, enabling investments in upgrades.
Reduction of Change of Property Use Fee to $1,000 from $3,500
The change of property use fee has been slashed to $1,000 from as high as $3,500, facilitating business expansions without prohibitive costs. Retail developers in Bulawayo, for example, can now repurpose properties more affordably, leading to new shopping complexes that create jobs and stimulate local economies, with one project reporting a 25% cost saving that accelerated completion.
Reduction of Effluent Waste Management Fees to $200 Annually from $575
Effluent waste management fees have been reduced to $200 annually from $575, acknowledging existing septic costs borne by businesses. This benefits food retailers with on-site processing, like butcheries in Harare, reducing overall environmental compliance expenses by over 65% and allowing reinvestment in hygiene standards, which improved customer trust and sales volumes.
Consolidation of PRAZ License Fees into One License Costing $50-120
The Procurement Regulatory Authority of Zimbabwe (PRAZ) has consolidated fees into one license ranging $50-120, applicable across branches. Multi-branch retailers like Spar Zimbabwe can now use a single permit, cutting previous category-specific costs and simplifying tenders, with savings estimated at 50% per branch, enhancing participation in government contracts.
Unification of Liquor Licensing Board Permits Regardless of Location
The Liquor Licensing Board has unified all permits regardless of location, standardising processes across cities, municipalities, and rural districts. Wholesalers previously paying $1,080 for city applications now face a flat $20 fee, dramatically lowering barriers, and reducing illicit trade.
Single Annual Local Authority Financial Services License at $20 from $1,867
The Local Authority Financial Services License is now a single annual RBZ-issued permit at $20, down from up to $1,867. This aids retailers offering financial add-ons, like money transfer services in shops.
Scrapping of Permit for Selling Veterinary Products by the Medicines Control Authority
The permit for selling veterinary products by the Medicines Control Authority of Zimbabwe has been scrapped due to overlap with the Department of Veterinary Services.
While these reforms mark a significant step toward simplifying operations and reducing costs for businesses, the government still have a lot on its table. The measures provide immediate relief in licensing and fees, but broader fiscal pressures continue to hamper growth, as evidenced by ongoing complaints from retailers about high operational expenses beyond regulatory compliance.
To build on this momentum and achieve sustainable progress, the government must address additional burdens, such as gradually reducing the Intermediate Money Transfer Tax (IMTT), which imposes a 2% levy on electronic transactions and disproportionately affects cash-strapped SMEs.
Similarly, reconsidering the VAT status of refined sugar could alleviate consumer price pressures and support retail margins, especially given sugar's role in food processing and household consumption. Lowering foreign currency retention thresholds, which currently require exporters to surrender 30% of earnings (allowing retention of 70%), would enhance liquidity for importers in the retail chain.
Tackling other taxes that inflate costs, including high electricity charges from ZESA amid frequent outages, is essential to prevent business closures and encourage investment.
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