Online Reporter
Zvamaida Murwira-Senior Reporter
A COMPREHENSIVE review of licences, permits and levies in the energy sector has already seen some fees slashed or abolished, making it easier to add capacity and paving the way for potential reductions in the cost of electricity, fuel and liquefied petroleum gas.
Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere said after the Cabinet meeting in Harare yesterday that this was the latest intervention to stimulate economic activity.
This marks the latest in a series of systematic reviews undertaken by Cabinet as the Second Republic continues its broader agenda of economic reform.
The energy sector’s inclusion in this initiative signals the Government’s recognition of the critical role affordable energy plays in driving economic growth and maintaining price stability across the economy.
The review will cover electricity, petroleum products, such as liquefied gas and is part of President Mnangagwa’s administration’s ongoing raft of business reforms in 12 sectors meant to improve the ease of doing business and provide competitiveness among other objectives.
“Cabinet considered and approved the review of licences, permits, levies and fees in the energy sector, in line with the Cabinet decision of July 29, 2025, which approved the implementation of a raft of business reforms in 12 sectors of the economy. The review process is aimed at reducing the cost of doing business, increasing competitiveness and enhancing the growth of the Zimbabwean economy,” said Dr Muswere.
“The review of licences, permits, levies and fees in the energy sector followed extensive whole-of-Government and societal approach consultations, which were attended by ministries, departments and agencies and the energy sector players.”
He said the energy sub-sectors licences, permits, levies and fees that had been reviewed include those for electricity generation, transmission, distribution and secondary distribution, plus petroleum imports, wholesale and retail, and liquefied petroleum gas imports, wholesale and retail.
Dr Muswere said among the reviewed levies, licences, fees and permits, include the Zimbabwe Energy Regulatory Authority (ZERA) Licence application fee that has been reduced from US$2 500 to US$2 000 while the ZERA Solar Generation Licence, set at US$2 875 has been removed completely.
“The ZERA Petroleum Import (Procurement) Licence of US$30 000 has been reduced by 50 percent. The fuel retailing licence in rural areas has been reduced from US$200 to US$150 while the LPG retail licence will be reduced by 50 percent from the US$230 that is currently being charged. Furthermore, it is noted that investment in the energy sector has largely been driven by Government, and this model has become unsustainable, given the limited fiscal space and lack of access to external sources,” said Dr Muswere.
“The reviewed licences, permits, levies and fees will be subjected to further refinements, and the appropriate schedule shall be duly gazetted after ministries have effected the necessary legislative and administrative changes.”
Responding to questions from the media, Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, said the reduction of the fees should ultimately lead to a reduction of prices of energy-related products.
“We expect these measures to have an impact on prices, the cost build up of these energy sources has to do partly with these regulatory fees. So if they are being reduced, the expectation is that the final product to consumers will also come down. Watch the space we need to do more to trigger the reduction of prices,” said Prof Ncube.
Dr Muswere said Cabinet had also received an update on the Youth Service in Zimbabwe Training Programme, where it heard that a total of 2 184 youths had so far been trained at various centres in the country.
“The training was conducted in partnership with the Security Services including the Zimbabwe National Army, the Air Force of Zimbabwe, the Zimbabwe Republic Police, the Zimbabwe Prisons and Correctional Service, and the President’s Department,” said Dr Muswere.
“A total of 174 youths who underwent rehabilitation at the Angel of Hope Drug Rehabilitation Centre in Mbare were also trained under the programme at Dadaya Youth Training Centre. Plans are in place to register a security company and operationalise it in January 2026 to provide employment to some of the graduates of the programme. Empower Bank will absorb some of the youth at its various construction projects. Meanwhile, the recruitment target for the programme will be increased to 10 000 for the January 2026 intake.”
He said Cabinet considered and approved the Principles of the Foreign Affairs and International Trade Bill, 2025, meant to codify foreign policy procedures and processes.
Responding to enquiries from the media, Foreign Affairs and International Trade Minister Professor Amon Murwira, said the Bill is meant to assert the country’s national interest through its foreign policy.
“We want our people to lead a fulfilling life, we also need to improve Zimbabwe’s national interest. Through this Bill, we are responding to constitutional imperatives. Firstly, we have to be Pan African and belong to organisations that promote peace,” said Prof Murwira.
