Online Reporter
Remember Deketeke
Herald Correspondent
The City of Harare is set to reduce business licence fees by 50 percent next year in a move meant to promote investment, enterprise formalisation and economic recovery.
Harare City’s Finance Committee chairman, Councillor Costa Mande, revealed this during the presentation of the US$690,19 million 2026 city budget.
The budget was presented under the theme: “A Commitment to Inclusive Growth, Sustainable Service Delivery and Strong Fiscal Stewardship.”
“In line with the Government of Zimbabwe’s directive for municipalities to rationalise and reduce business licence fees, the City of Harare has recalibrated its 2026 tariff framework to support investment growth, enterprise formalisation and economic recovery,” he said.
The proposed tariff structure, according to Cllr Mande, seeks to make Harare a competitive, inclusive and business-friendly city while maintaining adequate fiscal capacity to sustain service delivery.
The proposed budget stipulates a reduction in licences for shops below 50m² from the current US$400 to US$200, while those between 50m² and 100m² will be reduced from US$600 to US$300. Licences for shop above 100m² are expected to fall from US$800 to US$500.
Hairdressers in classes A, B, and C, previously pegged at US$460, US$115, and US$115 respectively, are all expected to see a 50 percent reduction.
“The city has adopted a tiered reduction model, balancing compliance with the national directive and its own fiscal sustainability,” said Cllr Mande.
“This model recognises Harare’s strategic role as the national capital and commercial hub, where affordable licensing is essential to attract investment, create jobs and formalise small to medium enterprises.”
The budget, which was tabled before councillors, will now undergo a 30-day review period with residents and various stakeholders.
