Online Reporter
Tapiwanashe Mangwiro
Harare City authorities and industry leaders have converged on a common message: to reduce the cost of doing business and simplify regulation in order to strengthen the capital’s position in regional markets.
At a joint business breakfast hosted by the Confederation of Zimbabwe Industries (CZI) and the City of Harare, senior officials outlined a reform agenda anchored in structured engagement between local government and the private sector.
CZI president Much Mukanganwi said competitiveness had remained the defining constraint for Zimbabwean firms, particularly in an environment of rising operating costs and regional competition.
“The most important thing is that competitiveness has to do with cost structures, and with the local authorities reviewing the rates, it helps businesses to become more competitive,” he said.
Mr Mukanganwi added that the city’s policy direction aligned with broader national ambitions to move the economy up the value chain.
“With the Vision 2030 Trust, where the economy must go up the value chain, it then becomes very important as Zimbabwe needs to position itself to be able to compete in the regional markets. This is fundamental in ensuring that we are competitive as a regional player.”
His remarks came as Zimbabwe sought to leverage opportunities under the African Continental Free Trade Area, which is expected to intensify competition among African cities and manufacturing hubs.
Harare mayor Jacob Mafume said the city had already begun aligning its policies with directives to ease the burden on business.
“We have aligned our businesses to the call by Cabinet through His Excellency President Mnangagwa to reduce our licence fees, reduce our rates and many other service charges where possible and where applicable,” he said.
Mayor Mafume said authorities believed lower costs would translate into broader economic gains.
“The idea is that should business begin to operate, then more people will be employed, more money will be turning in the economy, more rates will be paid, and more investment will be attracted.”
He added that the City had moved to streamline administrative processes, including merging and reducing licences.
“We are also reducing many of our bureaucratic steps towards starting up a business, making sure that we get as close as possible to a one-stop approach towards entry. Once it is easier for business to enter, it is easier for investment to come in.”
Mayor Mafume acknowledged that Harare had been competing with other African cities for capital and enterprise.
“This approach would bring the added and needed investment into Harare and Zimbabwe,” he said.
Economist Donald Mberi said the emphasis on structured engagement marked a shift from fragmented policymaking to a more coordinated model.
“What stood out was the willingness to institutionalise dialogue. If sustained, this reduces policy uncertainty, which is one of the biggest deterrents to investment in urban economies,” he said.
Mr Mberi noted, however, that cost reductions alone would not be sufficient.
“Businesses are looking for predictability. Rates can be lowered today, but if they are adjusted abruptly tomorrow, the credibility of reforms is undermined.”
For small businesses, the proposed changes were seen as potentially transformative. Sharon Nyakonda, a CZI member and entrepreneur, said high compliance costs had long constrained growth.
“Licences, fees and the number of approvals required have been a real barrier, especially for smaller operators. If the city follows through on simplifying processes, it will make a meaningful difference,” she said.
Mrs Nyakonda added that easier market entry could encourage informal operators to formalise.
“When compliance becomes affordable and straightforward, more businesses are willing to come into the formal system, which benefits both the city and the economy.”
While the tone of the engagement was broadly positive, participants indicated that implementation would determine whether the reforms deliver tangible results.
The CZI president stressed that competitiveness would ultimately depend on sustained cost discipline and policy alignment across all levels of government. The mayor, for his part, framed the city’s reforms as part of a longer-term strategy to reposition Harare as an investment destination.
The meeting signalled a growing recognition that structured engagement, rather than ad hoc interventions, may be central to unlocking growth in Zimbabwe’s urban economy.
