HARARE – The Zimbabwean government is under increasing pressure to address the mounting challenges faced by businesses, particularly concerning the high cost of doing business exacerbated by a complex regulatory environment.
Frequent parliamentary discussions and proposals from industry bodies highlight the urgent need for reforms to enhance the viability and competitiveness of local enterprises.
Speaking in Parliament on Wednesday, Industry and Commerce Minister Mangaliso Ndlovu acknowledged the concerns raised by legislators regarding the impact of regulatory costs on business operations, particularly within the dairy sector.
He referenced the government’s Reconstruction and Growth Plan, which outlines measures to promote value chains and address the overall cost of doing business.
Ndlovu specifically addressed the issue of “toll manufacturing” across borders, where companies establish entities in neighbouring countries and import products into Zimbabwe, potentially harming the local dairy industry.
He stated that discussions with the Treasury are underway to implement tariffs on such imports to protect domestic producers.
He further acknowledged that the costs associated with production, including regulatory burdens, threaten the viability of various companies.
In response to a question from Dzivarasekwa MP Corban Madzivanyika regarding the progress in reforming the regulatory framework, Ndlovu reiterated that the government, through the Ministry of Finance working with the Office of the President and Cabinet (OPC), was actively identifying and addressing burdensome licenses, fees, and compliance issues.
“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 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.
“It is a thorough process that has to be done with due diligence and 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,” the Minister stated.
These parliamentary discussions align with growing calls from the Confederation of Zimbabwe Industries (CZI) for radical deregulation.
The CZI recently proposed a Presidential directive compelling government ministries, agencies, departments, and regulatory bodies to slash licensing fees and charges by 50 to 70 percent by June 2025.
CZI argued that the current regulatory framework constituted approximately 18 percent of companies’ overheads, significantly hindering their viability and competitive advantage.
The CZI cited that businesses often had to comply with numerous regulatory bodies, incurring substantial costs in terms of both finances and human resources.
The CZI’s data revealed that Zimbabwean businesses face a significantly higher number of taxes and regulatory payments compared to regional peers like South Africa and Zambia.
They also raised concerns about the financial incentives for regulatory authorities to introduce new levies, even as businesses struggle.
In a presentation to the Portfolio Committee On Industry and Commerce in February 2025, the CZI advocated for a Presidential directive to minimize tariffs and charges levied by key state entities.
They stressed the urgency of radical deregulation to safeguard local industries and businesses. The CZI also proposed a freeze on any new regulations until they undergo a thorough Regulatory Impact Analysis demonstrating their potential to enhance competitiveness.
