Plan afoot to reduce mining fees

Nyore Madzianike

Senior Reporter

GOVERNMENT is working on modalities to reduce levies and fees across the mining sector as part of efforts to enhance domestic value addition and beneficiation, while improving the ease of doing business.

The outcome of the process is expected to be reviewed by the Ministry of Finance, Economic Development and Investment before being gazetted.

The then Permanent Secretary for the Ministry of Mines and Mining Development, Pfungwa Kunaka, announced the development last week while giving oral evidence before the Parliamentary Portfolio Committee on Mines and Mining Development on issues raised from the 2025 budget performance report.

Mr Kunaka has since been reassigned to the Ministry of Public Service, Labour and Social Welfare.

“So, the Ministry has been under the spotlight in OPC. The Ministry of Finance are undertaking an exercise to see whether or not our current fees and levies can be reduced, whether some can be done away with and all that.

“I am pausing this because you now wonder how we can get the committee before that issue, which is finalised.

“So, these issues come and I am sure it is an operational issue, but like you are saying, we need to be able to consult with the sector,” he said.

Earlier this year, Government suspended the export of all raw minerals and lithium concentrates to enhance mineral accountability, promote local beneficiation and ensure maximum value retention.

The suspension covered all minerals in transit, with Zimra, MMCZ and other regulators directed to enforce the ban without exception.

Only mining companies with valid mining titles and sanctioned beneficiation are permitted to export minerals, while agents and third-party traders are not authorised to export on behalf of title holders.

Government has also reviewed licences, permits, levies and fees in the agriculture sector, cutting charges for fertiliser producers and horticulture exporters, reducing the cotton buying point levy by 75 percent and scrapping fish harvest fees, among other measures.

It approved a waiver of licences for farmers importing equipment for their own use and reviewed regulatory frameworks to incentivise private investment in dam construction and water infrastructure.

The measures reduced the cotton buying point levy from US$800 to US$200, eliminated Grain Marketing Board movement permits, scrapped fish harvest fees and removed import licencing requirements for agricultural equipment spares.

Government also rationalised Agricultural Marketing Authority licences, permits and fees and introduced support measures for key agricultural sub-sectors.

Similar exercises have been undertaken in the transport, retail, manufacturing, energy, health and financial services sectors.

In the financial sector, monthly fees for accounts with balances below US$100, charges for transactions under US$5, and cash deposit fees have been removed.

Cash withdrawal fees are now capped at two percent, while account opening charges have also been scrapped.

Fees in micro-finance institutions, insurance and pensions, mobile money and fintech capital markets have been reduced.

In the manufacturing sector, Cabinet approved reductions in fees across selected sub-sectors, including beverages, agro-processing, confectionery, textiles and clothing, timber, paint, pharmaceuticals, brick moulding, motor vehicle assembly, and iron and steel manufacturing.

Cabinet also approved reductions in a range of fees, including the general import licence fee and charges linked to radiation and nuclear gauge licencing and registration.

In the health sector, several initial registration and inspection fees have been removed, while others have been reduced.

These include the elimination of initial registration fees for wholesalers, pharmaceutical premises and facilities, as well as annual inspection fees for manufacturing and pharmaceutical wholesalers.

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