Online Reporter
Sunday Mail Reporter
THE Government will soon gazette downwardly revised regulatory fees for three key agricultural value chain sub-sectors — beef, dairy and food processing — as part of ongoing reforms to make local businesses competitive.
The initiative is part of a broader strategy to improve the country’s ease of doing business and create a more conducive environment for local and foreign investors.
In the beef value chain, farmers, abattoir operators and meat processors currently face multiple fees from different regulatory bodies for livestock movement permits, veterinary inspections, meat grading and slaughter, among other things. These costs are often duplicated across agencies, making it expensive for players to operate formally.
It is envisaged that under the new reforms, the Government will consolidate these charges and lower the overall financial burden.
For the food processing sector, which includes bakeries, canneries, beverage manufacturers and small-scale agro-processors, regulatory costs currently include inspection fees, product certification charges, health and safety licences, and local authority permits.
Many of these are levied annually, creating heavy compliance costs, especially for start-ups.
The Government believes easing the regulatory cost burden will unlock investment, encourage formalisation and promote job creation across the agricultural value chain.
In an interview with The Sunday Mail, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said: “We are making very good progress. The issue really is regulatory fees; it’s not taxes . . . are collected by the Central Government through Zimra (Zimbabwe Revenue Authority) and the regulatory fees are collected by agencies, in line with regulatory processes.
“So far, we have been focusing on the dairy sector, the food processing sector, but also the beef and meat processing sector. There is a lot going on there, and very soon you will see us gazette the new fees that will really lower these fees.”
He said once new regulations are finalised for these sub-sectors, the programme will be rolled out to other key areas of the economy.
“We are moving in stages,” said Prof Ncube.
“After these three sectors, we are going to move on to the next sectors. So, we will keep going in stages.
“There is a lot of work to do, but we are on to it. We really want to lower the cost of these fees.”
Some of the current regulatory fees, he added, will be scrapped altogether.
“I cannot front-load what we will implement through the issuance of an SI (statutory instrument), but some of them will be scrapped, for sure.”
During the first Cabinet meeting of the year, President Mnangagwa directed his administration to expedite the elimination of excessive regulations and punitive administrative costs imposed by ministries and Government agencies.
He said taxes, licences, permits and regulations should facilitate economic development rather than hinder progress.
Cabinet has since established a high-level committee to review the existing regulations and fees, taking into account the concerns of industry leaders regarding the burdensome financial costs and hindrances to growth.
The ongoing programme is intended to simplify the licensing framework and reduce bureaucratic barriers, making it easier for businesses to operate and thrive.
Formal businesses are presently operating in an environment characterised by high tariffs and an intricate regulatory structure that requires businesses to comply with multiple tax and permit obligations across various agencies.
This complexity has increased operational costs, making it difficult for some businesses to remain viable.
