The Zimbabwe National Organisation of Associations and Residents Trust (ZNOART) has lauded the government’s latest business licensing reforms, describing them as a “watershed moment” for economic growth, small business formalisation, and community development.
The reforms, announced by the Ministry of Finance and Economic Development, will see the consolidation of up to 11 local authority business licences into a single, unitary licence, with a sliding scale fee structure capped at USD$500. The measures are a key pillar of the National Development Strategy 1 (NDS1) and are designed to advance President Emmerson Mnangagwa’s Vision 2030, which aims to transform Zimbabwe into an upper middle-income economy within the next five years.
ZNOART Applauds “Visionary Leadership” and Calls for Swift Implementation
Speaking to the press, ZNOART National Chairman Mr Shepherd (Shalvar) Chikomba said:
“We extend our heartfelt appreciation to His Excellency, President Dr ED Mnangagwa, for his visionary leadership in driving Zimbabwe’s economic growth. The streamlining and simplification of licensing procedures is a crucial step towards achieving Vision 2030 and will unlock new opportunities for our communities,” he said.
“The introduction of a sliding scale licensing fee structure, capped at USD$500, is a welcome development. It promotes inclusivity and encourages small traders to formalise, which is vital for broadening our tax base and improving service delivery. We urge all local authorities to incorporate these reforms into their 2026 budgets and strategic plans, ensuring uniformity and transparency nationwide,” said Mr Chikomba.
Small Businesses and Traders: Relief and Hope, But Calls for Vigilance
Small business owners and informal traders have largely welcomed the reforms, citing the high cost and complexity of the previous system, which required multiple licences and could cost over USD$1,000 for basic operations.
A Harare retailer said, “Before, I had to pay for several licences just to run my shop. Now, with one licence and a clear fee cap, I can plan my business better and invest more in stock.” Another trader noted, “The USD$500 cap is a relief, but I hope councils will actually implement the sliding scale for micro businesses, as even $500 can be a lot for the smallest traders.”
Local Authorities: Supportive but Cautious
Local authorities have expressed support for the reforms, acknowledging the benefits of simplified administration and easier compliance monitoring. However, some councils are concerned about the potential loss of revenue, particularly from the capping of change of property use fees, which previously contributed significantly to municipal budgets.
A city council official commented, “We support the move to simplify licensing, but we will need to review our budgets and find new ways to maintain service delivery with reduced fee income.”
Government and Business Leaders: Boost to Investment and Formalisation
Finance Minister Professor Mthuli Ncube said the reforms are a direct response to the burdens faced by entrepreneurs and are designed to make Zimbabwe more competitive and attractive to investors. “High local authority fees had discouraged investment. Their reduction will help stimulate private sector participation, a critical driver for maintaining economic growth above six percent,” he said.
Business associations, including the Zimbabwe National Chamber of Commerce (ZNCC), have described the changes as long overdue. ZNCC CEO Christopher Mugaga stated, “The changes prove that Government is serious about tackling the country’s regulatory bottlenecks.”
Policy Context: Vision 2030 and NDS1
The licensing reforms are a cornerstone of Zimbabwe’s Vision 2030 and NDS1, which prioritise economic growth, private sector development, and improved public service delivery. By reducing bureaucratic barriers and costs, the government aims to foster public-private partnerships, attract investment, and promote the formalisation of informal businesses—key steps towards achieving upper middle-income status by 2030.
ZNOART’s Role and Ongoing Advocacy
ZNOART, established in 2019, is a nationally recognised advocacy body representing residents’ associations and trusts across Zimbabwe. Under Mr Chikomba’s leadership, the organisation has consistently championed reforms to improve service delivery, transparency, and the business environment.
“As an organisation with residents at heart, we await the necessary legal amendments and urge local authorities to pass on savings from reduced licensing costs to residents through improved service delivery. ZNOART stands ready to partner with the Government to ensure buy-in and ownership of the reforms, promoting community engagement and effective implementation,” added Mr Chikomba.
