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Govt Collapses 11 Licences Into One As Retail Sector Reforms Slash Business Costs

Value-Added Tax Deferral Minimum Threshold Raised To $1 Million

Government has moved to further untangle Zimbabwe’s licensing maze — scrapping eleven permits and fusing overlapping council authorisations into one universal licence — in yet another attempt to cut red-tape and speed up business set-ups.

Finance, Economic Development & Investment Promotion Minister Professor Mthuli Ncube said these reforms are directly targeted at small-to-medium players and composite enterprises that operate several lines of trade under the same roof — such as bakeries, butcheries, fast food outlets and food manufacturing facilities — which were previously forced to pay multiple fees for what was basically one business operation.

In some cases, he noted, operators were being billed over US$2 300 just for a single food factory licence.

Ncube noted that the retail and wholesale space is the country’s fastest-expanding sector — and Government is now moving from the Livestock, Tourism and Transport reforms into this cluster.

He said the new model collapses fragmented permits into one shop licence — and reduces the number of authorities involved to one — removing duplication and slimming down approval windows.

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Under the new structure, councils must apply a sliding-scale charge that may not exceed US$500, giving small start-ups and SMEs room to grow, formalise and scale.

Key changes include:

  • bottle store permits no longer required for bottle stores operating within an already licensed retail shop

  • wholesale + retail licences merged into one for businesses doing both

  • food factory + retail combined for integrated businesses operating under one address

  • ZTA licensing scrapped for supermarkets except for tourism-specific locations

Other announced reforms stretch into the broader economy:

  • hotel / lodge / tourism business fees cut by 50% — capped at US$500

  • change-of-property-use capped at US$1 000 (previously as high as US$3 500 in certain councils)

  • effluent annual fees slashed to US$200 from US$575

  • PRAZ licensing harmonised — one licence can now be used across branches (US$50–US$120)

  • Liquor Licensing Board has harmonised all liquor permits — rural/urban split removed

  • Local Authority Financial Services Licence now centralised at RBZ — flat US$20 (previously up to US$1 867)

  • MCAZ veterinary product selling permit abolished — as it duplicated DVS functions

Prof Ncube stressed that this package is not cosmetic — it is intended to ignite enterprise growth, reduce overheads, absorb more employment, and raise productivity.

“These interventions are meant to create an environment where business can thrive — where jobs are created and where the economy can hit higher growth,” he said.

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He reaffirmed that the administration remains firm on its target — a competitive, investment-friendly Zimbabwe — and ultimately achieving Upper Middle-Income status by 2030.

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