Online Reporter
Mukudzei Chingwere, Zimpapers Writer
PRESIDENT Mnangagwa has directed that the ease of doing business initiatives be implemented immediately, with a commitment to review the levies, licences, fees and permits across 12 key sectors within six months.
This initiative aims to simplify processes for businesses, ultimately fostering a more conducive environment for economic growth.
This announcement was made by the Minister of Information, Publicity and Broadcasting Services, Dr Jenfan Muswere, after yesterday’s Cabinet meeting.
The Cabinet’s decision underlines a substantial shift in Government policy, aimed at reducing the regulatory burdens that have long hindered business viability in the country.
The current regime levies, licences and fees across sectors have been condemned by business operators as punitive and detrimental to businesses’ sustainability.
Many companies have expressed concerns that these financial obstacles are raising the overall cost of doing business in Zimbabwe, making it difficult for them to thrive.
Dr Muswere noted that the existing licensing framework, which necessitates a multiplicity of requirements, creates unnecessary complexities and administrative burdens for entrepreneurs.
“Cabinet considered and approved the review of levies, licences, fees and permits on business by Ministries, Departments and Agencies of Government,” said Dr Muswere.
“The President, at the beginning of the year, highlighted the high level of levies, licences, fees and permits, raising the cost of doing business in Zimbabwe.
“The President directed a review of levies, licences, fees and permits across 12 sectors, namely: Health; Agriculture; Retail;
Tourism; Transport; Energy; Manufacturing; Broadcasting; Telecommunications; Liquor; Construction and Financial Services.
“The study established, among other things, that some of the regulators require a single business to obtain multiple fragmented licences or permits, adding unnecessary complexities and administrative burdens.
“Other regulators have lengthy procedures and processes before they can issue their respective licences,” said Dr Muswere.
He said in order to provide relief to businesses, the Government has directed the Minister of Finance, Economic Development and Investment Promotion, in collaboration with the Chief Secretary to the President and Cabinet and line Ministries, to superintend and co-ordinate detailed sector reviews on the levies, licences, fees and permits.
Dr Muswere said the review will specifically address economy-wide regulatory challenges, including the multiplicity, duplication and fragmentation of regulatory charges.
“Once approved, the reviewed fees and levies would be implemented through amendment of the respective legislation and Statutory Instruments,” he said.
“This reform process will significantly streamline and reduce the burden on the people, business, enhance national competitiveness, attract investment, promote economic growth, create employment and catapult the country towards the attainment of Vision 2030.”
He said a whole-of-Government approach will be adopted and will bring together respective ministries, departments and agencies as well as businesses for a consensus-based review.
Dr Muswere said the process will adopt a 100-day cycle-based Accelerator Model and detailed recommendations agreed upon by stakeholders will be submitted to Cabinet for approval.
The Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, said they anticipate completing the process by the end of this year.
He said the 12 identified sectors will not be the only ones, but a starting point, as all the sectors will be visited. Prof Ncube also clarified that these levies, licences, fees and permits are not taxes and not part of fiscal taxation.
“This is not a sprint but a marathon, so we are going to focus on this during the second half of this year, which is up to December,” said Prof Ncube.
“We have already started to review the 12 sectors so far, going in-depth regarding the various fees that have been paid by operatives.
“The next six months, the work will be done, next week or the week after, we will be concluding on the agricultural sector and making announcements on the specific reviews,” said Prof Ncube.
