Online Reporter
Edgar Vhera
Specialist Writer – Agribusiness
Stakeholders in the livestock industry have applauded the Government for slashing and scrapping some fees and levies previously applicable to the sector, saying this will attract investments in the sector.
The Government recently announced sweeping reforms to the regulatory framework governing the livestock, dairy and stockfeed value chains with immediate effect, fulfilling a promise made by President Mnangagwa to reduce the high cost of production that has hampered the sector.
Stockfeed Manufacturers Association (SMA) executive administrator, Dr Reneth Mano, said the measures would restore confidence in farmers to invest in livestock production for enhanced income and improved livelihoods.
“I am just glad that President Mnangagwa listened to farmers and other livestock value chain players’ calls and slashed and or abolished regulatory fees and levies by between 50 and 100 percent.
“This massive reduction in regulatory cost of compliance is set to restore and strengthen the business case for smallholder farmers and young unemployed graduates of agriculture to once again start taking beef cattle farming as the highly profitable business venture with untapped export potential,” he said.
Dr Mano said exciting times beckoned in the cattle, sheep and goat production businesses, which were the gateway to income growth and wealth creation for both established farmers and young graduates with sharp agribusiness brains and access to a family farm or rural homestead.
Livestock value chain players complained in the past that different Government departments and parastatals were collecting the same fees at different nodes of the farm-to-fork value chain, thereby increasing production cost.
Commercial Farmers union (CFU) president, Mr Liam Philp, said the recent intervention was the first positive step from the Government showing their commitment to addressing the overtaxed and over-regulated sector.
“This statement has sent a strong signal to the productive sector, investors and financiers of what is yet to come.
“The operating environment was not only stifling growth but also forcing some down-sizing and closures of primary producers,” he said.
Mr Philp said the Minister of Finance had made the first batch of commitments quickly.
“We implore him to continue with the speed and efficiency he has demonstrated as we move through other sectors of the economy. I am optimistic that we are witnessing the beginnings of a meaningful policy shift to invigorate the productive sector which our economic prosperity relies on.
“We are most appreciative to President Mnangagwa for directing the interrogation of our value chains and the implementation of remedial policy reform to improve both the cost and ease of doing business,” he said.
Zimbabwe Farmers union (ZFU) secretary general, Mr Paul Zakariya, said the reforms would bring much-needed relief to farmers, particularly smallholders who form the backbone of the sector.
“Lower costs for farm registration, livestock movement, abattoirs and environmental charges, together with the removal of levies such as the cattle and AMA development levies, will help unlock growth and competitiveness in these value chains,” he said.
Before this directive, dairy farmers lamented the lack of a one-stop shop within Government establishments, saying it was proving costly in compliance and negating the ease of doing business concept.
This came up at the recently held value chain review workshop hosted by the Ministry of Industry and Commerce in Harare.
Dairy Processors Association of Zimbabwe (DPAZ) secretary general, Mrs Tendayi Clementine Marecha, said import and export permits required in the dairy sector were too many and offered in different offices.
“Too many licences and permits from the Ministries of Industry and Commerce, Lands, Agriculture, Fisheries, Water and Rural Development and Health and Child Care, as well as the National Biotechnology Authority of Zimbabwe, Agricultural Marketing Authority (AMA) and Veterinary Services are required and this can deter business.
“There is a need to establish one one-stop shop where industry submits one application and gets all the necessary important licences and permits through the creation of an online system for ease of access,” said Mrs Marecha.
