Online Reporter
Business Reporter
ANALYSTS and stakeholders across agricultural value chains have hailed the Government’s decision to cut or scrap several statutory fees and permits as a masterstroke that will unleash the full potential of the sector.
The Government slashed or removed several fees and permits for livestock and dairy sectors, a development that has been described by industry leaders as a decisive move to end years of stifling bureaucracy and burdensome costs for operators.
The sweeping changes, announced last week by Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube, are designed to drastically reduce the cost of doing business, stimulate production and attract capital into the critical sector.
Minister Ncube said the changes marked the first phase of the ease-of-doing-business and regulatory reform programme, in a development that adds impetus to President Mnangagwa’s “Zimbabwe is Open for Business” rallying call.
“This new framework positions Zimbabwe as one of the few countries in Africa undertaking such broad-based regulatory reforms across multiple sectors at once,” Minister Ncube said.
“We are determined to ease costs, encourage investment and restore agriculture to its rightful place as the mainstay of our economy.”
The reforms target long-standing bottlenecks that shackled farmers with endless paperwork and costly statutory payment obligations. Until now, dairy farmers had to comply with up to 25 separate permits across 12 different agencies, a prohibitive obstacle that discouraged formalisation and new investment.
The new regime abolishes or drastically reduces these costs.
Annual health certificates from local councils, once pegged at US$300, have been scrapped entirely.
The Environmental Management Agency’s US$800 effluent and solid waste disposal fee has been set aside, while the generator levy, which ranged from US$80 to US$800, was also eliminated.
Local authorities’ dairy permits, previously costing US$443, were similarly removed, as was the annual borehole and water abstraction charge of US$80.
The dairy farm registration certificate, which cost up to US$500, was cut to a flat US$50.
To encourage rebuilding of the national herd, import permits for breeding stock were reduced from US$120 to US$20.
Dairy processing plants, once subject to annual fees of up to US$600, now attract a single flat rate of US$50.
The move has been met with widespread commendation from the industry.
Mr Edward Warambwa, national chairperson of the Zimbabwe Association of Dairy Farmers (ZADF), welcomed the Government’s responsive approach to their lobbying efforts.
“The review of business regulations for the livestock and dairy farming is applauded as it is in line with achieving the Government of Zimbabwe’s Vision 2030,” Mr Warambwa said.
“The recent decision to remove the duplication, reduce costs and simplify compliance will definitely contribute towards promoting efficiency, competitiveness and formalisation.”
He emphasised that the removal of duplicate fees would directly reduce the financial burden on farmers, a core thrust of the ZADF.
“Our farmers can now allocate more resources to improving their operations, especially the focus on reducing the cost of feed through investing in feed and fodder interventions at the farm level, investing in better technology and increasing production efficiencies,” he said.
The overhaul extends beyond the farm gate, benefitting processors and stock feed manufacturers, critical links in the dairy value chain.
The environmental impact assessment fee is now capped at a maximum of US$100 000 and spread over a project’s life, instead of being an upfront cost.
Import permits for milk powder were cut from US$120 to US$20, while the US$900 export registration for processors was reduced to US$10.
Officials argue these measures will strengthen the competitiveness of Zimbabwean dairy exports, as the country has long lagged behind domestic demand, relying on significant milk powder imports.
The timing is strategic.
The Government believes that by lowering compliance costs, producers will be encouraged to expand, reduce import reliance and eventually position Zimbabwe as a net exporter.
Mr Warambwa highlighted that the reforms were empowering, particularly to new entrants, including the youth and women, who were disproportionately affected by high fees.
“This decision will empower them, enabling them to grow their businesses and contribute more significantly to national milk production,” he said.
Milk Processors Association president Dr Tendai Gambiza said: “For too long, we were paying to stand still. Now, we have the chance to move forward. This was the sort of policy shift we had been waiting for.”
With agriculture central to both livelihoods and export earnings, the success of these reforms will be paramount.
The reforms are expected to deliver lower costs, stronger supply chains and better market access.
Some of the biggest beneficiaries of rural communities stand to benefit from higher incomes, while consumers see more affordable dairy products.
For now, the immediate winners are the farmers freed from hundreds of dollars in annual fees.
The longer-term gains, if investment flows and output rise as planned, will resonate throughout the entire national economy, positioning Zimbabwe’s deregulation drive as a potential model for the continent.
