Industry and Commerce Minister Mangaliso Ndlovu has announced that most licences contributing to unsustainable overhead costs for businesses will be scrapped within six months.
Responding to questions from MPs during a recent Question and Answer session in the National Assembly, Ndlovu said that the Treasury and the Office of the President and Cabinet (OPC) are working together to tackle the issue of burdensome regulatory fees. He said:
We identified in our reconstruction and growth plan that the regulatory environment weighs heavily on business viability, and to address it, we have the Minister of Finance working with the Office of the President and Cabinet (OPC) to address this.
They have identified most of these licences, fees and other compliance issues that have to be addressed, and shortly, Mr. Speaker, those who followed the Minister of Finance did highlight a few months back that in six months, most of these will be done away with.
They have indicated they are almost complete with that exercise. They will, in the nearest possible future, make announcements of the regulations that are falling away and those that will be significantly slashed to make sure we promote the ease and cost of doing business.
Excessive licensing has long burdened the economy. For example, operating a single supermarket requires around 25 licences and permits, many of which carry hefty fees.
In the poultry sector, businesses face high charges from the National Biotechnology Authority (NBA) and the Agricultural Marketing Authority (AMA). The NBA demands an annual registration fee of $6,500, despite offering no services or plant inspections.
AMA requires quarterly registration for imported feed ingredients, including non-GMO minerals, costing $36,400 annually. It also charges $1,000 for Feed Mill Registration and $1,800 per year for plant quarantine, again without providing any service or inspection.
These fees are in addition to normal business taxes and local authority charges. According to the Confederation of Zimbabwe Industries (CZI), regulatory fees account for 18% of overhead costs.
More: NewZimbabwe.com
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