Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
The high cost of regulatory compliance is an albatross around the neck of local industry, prompting the Government to intensify reforms to make the business environment more predictable, efficient and investment-friendly.
Regulatory compliance accounts for an estimated 18 percent of production costs.
This comes as Zimbabwe has implemented 61 percent of the approved business regulatory reforms across 12 key economic sectors as of mid-2026.
The Government continues to cut compliance costs and remove extra red tape for local companies.
According to Industry and Commerce Permanent Secretary Ambassador Tadius Chifamba, the regulatory burden can undermine the private sector’s capacity to drive industrialisation, innovation and investment, making regulatory reform a critical component of the country’s competitiveness agenda.
Addressing the National Competitiveness Commission (NCC) Second Competitiveness Summit in Bulawayo yesterday, Ambassador Chifamba said the Government was seeking to move beyond policy commitments towards reforms that produce measurable improvements for businesses and investors.
He said the summit provided an opportunity to assess progress made in implementing resolutions from last year, identify outstanding challenges and ensure that the competitiveness agenda translated into tangible results.
“Our theme of this Summit, ‘Accelerating Regulatory Reforms and Ease of Doing Business for a Dynamic and Competitive Zimbabwean Economy’, is our operational manifesto for economic transformation.
“For the private sector to play its role, it must operate within a regulatory environment that is not a maze of constraints, but a launchpad for innovation, productivity, and global competitiveness.”
The remarks place regulatory efficiency at the centre of Zimbabwe’s industrialisation drive, with the Government seeking to reduce the cost and uncertainty associated with operating businesses across the economy.
“Competitiveness lies at the heart of industrial development. Industry players have indicated that the cost of regulatory compliance, estimated at approximately 18 percent of the cost of production, has increasingly affected the competitiveness of the sector.
“Smart, predictable and efficient regulatory systems are therefore imperative.
“Regulation must become an enabler of productivity and innovation rather than a constraint on enterprise.”
Ambassador Chifamba said the summit would therefore examine how Zimbabwe could develop regulations that were enabling, incentive-based, predictable and sustainable.
The reforms are expected to support enterprise development, encourage investment and allow businesses to respond more effectively to changing domestic, regional and global market conditions.
The Government has already made progress in streamlining the regulatory environment, including through establishing the Zimbabwe Investment and Development Agency (ZIDA).
Ambassador Chifamba noted the recent launch of the ZIDA e-Regulations Portal as an important intervention aimed at improving transparency and reducing bureaucratic bottlenecks.
“The recent launch of the ZIDA e-Regulations Portal represents a significant step forward in improving transparency and reducing bureaucratic bottlenecks.
“This digital platform is designed to cut bureaucratic hurdles by providing transparent, step-by-step guidance on regulatory procedures, making it easier for investors to navigate the business environment.”
He also said progress had been made under the National Development Strategy 1, while NDS2 was continuing with initiatives aimed at improving ease of doing business.
“These include the modernisation of customs-clearance procedures and other measures intended to facilitate trade, investment and industrial development.”
However, he said Zimbabwe needed to continue aligning its regulatory systems with emerging regional and international standards, including those associated with the African Continental Free Trade Area.
Such alignment, he said, would strengthen the capacity of local enterprises to participate in regional and international value chains while ensuring that growth remained sustainable and responsible.
The regulatory reform drive comes as the Government seeks to accelerate manufacturing through the Zimbabwe National Industrial Development Policy 2 (ZNIDP 2), which runs from 2026 to 2030.
Ambassador Chifamba said the policy prioritised value-chain development, local content development, rural industrialisation and the revitalisation of the manufacturing sector.
A major new focus is mineral beneficiation, with the Government seeking to use the country’s mineral resources as a foundation for domestic manufacturing and job creation.
“A central and new focus of ZNIDP 2 is the strong and structured emphasis on mineral value addition and beneficiation as a manufacturing imperative.
“We can no longer be content with exporting raw materials; our minerals must contribute meaningfully to domestic industrialization and employment creation, technological development and economic growth.”
The Government has identified 11 mineral-based value chains for focused promotion, with regulatory reform expected to play a key role in unlocking investment and industrial capacity.
“To this end, the Government has identified 11 mineral-based value chains for focused promotion. Regulatory reform is central to the success of this effort, as it will enable industries to scale up, innovate, attract investment and compete sustainably in domestic, regional and international markets.”
He said an efficient regulatory framework would also help strengthen linkages between mining, manufacturing and other productive sectors.
“An efficient regulatory framework will also support the development of linkages between mining, manufacturing and other productive sectors.
“This will enable Zimbabwe to retain greater value from its natural resources, strengthen local supply chains and create opportunities for small and medium-sized enterprises.”
The Government has also moved to directly address the cost of doing business through a review of licences, permits, levies and fees.
“In August 2026, Cabinet approved a wide-ranging review of licences, permits, levies and fees, which included removing unnecessary levies and reducing unjustifiably high fees in all key sectors of the economy, including dairy, tourism, transport, manufacturing, mining, financial services, wholesale and retail, energy, construction and health.”
The move potentially has implications across the productive economy as businesses contend with multiple regulatory requirements and associated costs.
Ambassador Chifamba also pointed to the inaugural Zimbabwe Industrialisation Conference and Expo held in July as part of efforts to mobilise capital for industrial projects.
“This high-level event was designed as a practical deal-making platform to mobilise domestic and global capital for industrial projects, directly supporting the objectives of ZINDP 2 and our import substitution agenda.”
A major feature of the current reform programme is the push towards locally generated competitiveness data.
The Government, through the NCC and Zimbabwe National Statistics Agency, conducted the National Competitiveness Baseline Survey (NCBS), which Ambassador Chifamba described as a shift towards developing a local competitiveness indicators database.
“This ground-breaking initiative represents a shift from relying on external statistics to developing a localized competitiveness indicators database that accurately captures Zimbabwe’s unique economic realities.”
He said the baseline would provide policymakers, businesses and development partners with evidence to guide targeted interventions and track progress towards Vision 2030.
Complementing the survey is the Rural and Urban Councils Competitiveness Index (RUCCI), which is designed to assess competitiveness among local authorities.
“This landmark framework provides a robust evidence-based mechanism for measuring and enhancing the competitiveness of all local authorities, thereby promoting efficient service delivery, investment attraction, and inclusive local economic growth.”
Ambassador Chifamba said the index would strengthen the devolution agenda, improve ease of doing business and encourage healthy competition among local authorities.
For the Government, the effectiveness of the reforms will ultimately depend on implementation and their impact on businesses, investors, workers and communities, he added.
“The success of regulatory reform will ultimately be measured by its impact on businesses, investors, workers and communities.
“We must therefore ensure that reforms are implemented consistently, monitored effectively and informed by regular consultation with the private sector and other stakeholders.”
He said the Government would continue streamlining licensing and permitting procedures, strengthening digital platforms, improving inter-agency coordination and enhancing transparency around regulatory requirements.
“We will also continue to assess the cost of compliance and identify opportunities to eliminate duplication, reduce delays and improve service delivery.”
The private sector, he said, also had a role to play through constructive engagement, evidence-based feedback and compliance with applicable laws and standards.
Ambassador Chifamba said NCC would remain central to coordinating the reform process, tracking progress and ensuring commitments made at the summit translated into measurable improvements.
“The National Competitiveness Commission will remain central to coordinating these efforts, tracking progress and ensuring that the commitments made at this Summit translate into measurable improvements in Zimbabwe’s competitiveness.”
He urged stakeholders to use the summit to move from policy commitments to practical implementation.
“Let us use this Summit to deepen our resolve, strengthen collaboration and move from policy commitments to practical implementation
“A dynamic and competitive Zimbabwean economy requires a regulatory framework that is efficient, transparent, predictable and responsive to the needs of business and society.
“Through sustained reform, evidence-based decision-making and strong public-private partnerships, we can create an environment that promotes investment, supports innovation, strengthens industrialisation and improves the welfare of our people.”
