Government has formally gazetted long-awaited reforms to local authority business fees, marking a major step toward reducing the cost of doing business and simplifying licensing procedures across key sectors of the economy.
The changes, contained in Statutory Instrument 41 of 2026 — Model Fees By-Laws, 2026, introduce widespread fee reductions, abolish several permits, and cap selected municipal charges that businesses have long argued were stifling investment and expansion.
The new framework applies to both urban and rural local authorities and is designed to standardise council charges while aligning them with national economic reform objectives.
Retail sector relief
The retail industry is among the biggest beneficiaries of the reforms. Previously, supermarket operators were required to secure as many as 25 separate permits — many issued by local authorities at significant cost.
Under the new regulations, numerous licences have been abolished, merged or capped, reducing regulatory duplication. Several fees affecting butcheries, bakeries, restaurants, takeaway outlets, wholesalers and food outlets operating within retail shops have now been scrapped entirely, while standalone operations will face capped annual licence fees of up to US$500.
Business groups have long argued that excessive municipal licensing requirements created unnecessary barriers to entry, particularly for small and medium enterprises.
Dairy and livestock reforms
In agriculture, Government has removed the annual dairy permit following findings by the National Competitiveness Commission that dairy farmers previously required at least 26 different permits to operate.
Additional relief has been introduced in the livestock sector, where cattle levies, livestock movement clearance fees and carcass inspection charges have been abolished. Authorities say the measures are intended to improve productivity and lower compliance costs for farmers.
Tourism and hospitality fees cut
Tourism operators will also see reduced regulatory costs. Hotel, lodge, restaurant and accommodation licences now carry a 50 percent fee reduction, subject to capped limits depending on the category.
Industry stakeholders have previously warned that high municipal charges were undermining Zimbabwe’s competitiveness as a regional tourism destination.
Government officials say the reforms are expected to support investment recovery in hospitality following years of cost pressures.
Urban transport and parking changes
Urban motorists and transport operators will benefit from new limits on municipal charges, with city parking fees now capped at US$0.50 per hour nationwide.
Other transport-related adjustments include reduced or standardised fees for intra-city route authorities, taxi rank discs and certain traffic enforcement penalties.
Energy and manufacturing incentives
The statutory instrument also abolishes several operational levies affecting industry, including generator levies, borehole water abstraction charges and timber transportation fees — measures aimed at easing production costs in manufacturing and energy-intensive sectors.
Waste management charges, however, remain in place under annual billing structures.
Policy shifts toward ease of doing business
Finance Minister Professor Mthuli Ncube said Government has now approved reforms across several of the 12 targeted sectors identified for regulatory overhaul, including livestock, manufacturing, tourism, transport, retail and energy.
An explanatory note accompanying the statutory instrument states that the reforms seek to promote affordability, consistency and ease of doing business while maintaining councils’ regulatory oversight.
The model by-laws provide a non-binding framework guiding local authorities to align fee structures with national economic policy, amid ongoing efforts to improve Zimbabwe’s investment climate.
Business leaders say the key test will now be implementation, as councils adjust their fee systems to comply with the new framework.
Economists expect the reforms to lower entry costs for new businesses, formalise informal enterprises and stimulate economic activity — particularly among small operators who have historically struggled with high compliance expenses.
