Online Reporter
Rutendo Nyeve [email protected]
THE Government has warned local authorities against charging excessive licensing fees that discourage investment and make it difficult for businesses to operate, saying councils must comply with directives aimed at improving the ease of doing business.
The move is part of the Government’s wider “Zimbabwe is Open for Business” policy, which seeks to attract both local and foreign investors by creating a friendlier and affordable business environment.
President Mnangagwa has repeatedly said creating a supportive environment for businesses is key to growing the economy, creating jobs and boosting industrial development under the National Development Strategy and Vision 2030.
Speaking in an interview with Zimpapers in Victoria Falls recently, Minister of Local Government and Public Works Daniel Garwe said councils that continue to ignore Government directives on licensing fees would face action.
“The President has now directed all the local authorities, all the Government, various Government ministries to have licensing fees, to charge rates that encourage people to invest in them.
“If there is any local authority which is not paying attention to that, we humbly request people to bring the names of those local authorities so that corrective measures are put in place.
“But all of us are supposed to adhere to the new act of measures that were pronounced by Government. From the beginning of this year, Government has been promoting the ease of doing business, by way of slashing rates, ensuring that licensing fees are affordable and acceptable to the communities, to the business people and everybody else,” he said.
Minister Garwe’s remarks follow complaints that some local authorities are still charging high fees for operating licences, parking and other levies despite Government directives to reduce the cost of doing business.
Business operators, especially small and medium enterprises, have raised concern that the charges are too high and are affecting growth, forcing some businesses to operate informally or shut down altogether.
Earlier this year, Government introduced measures to reduce licensing fees across 12 key sectors of the economy. These include manufacturing, retail, tourism, transport, agriculture, mining, construction, information technology, health services, education, real estate and hospitality.
The reductions also cover trade licences, parking fees, street vendor permits and a number of administrative charges imposed by local authorities.
Government says lowering these costs is an important part of the Second Republic’s economic transformation agenda and is aimed at encouraging investment, formalising small businesses and improving compliance.
Stakeholders have welcomed the move, saying high council charges have for years created unnecessary pressure on businesses, particularly in the informal sector.
Officials believe reducing the financial burden on businesses will encourage more companies and traders to register formally, helping broaden the tax base while also attracting more domestic and foreign investment.
The ease of doing business remains one of the key pillars of the National Development Strategy 2 (NDS2), which aims to support entrepreneurship, job creation and private sector-led economic growth.
Meanwhile, Minister Garwe has urged members of the public to report councils that continue to defy Government policy.
“Corrective measures will be taken without fear or favour. No council is above Government policy,” said Minister Garwe.
The ministry has since established a hotline and email platform to receive complaints from the public, with some councils expected to be called in for compliance reviews.
