The Zimbabwean government has approved a radical reduction of a wide array of business costs, including bank charges and levies. The sweeping reforms target everything from punishing bank charges to burdensome licensing fees and levies, aiming to stimulate investment, improve competitiveness, and encourage informal businesses to transition into the formal sector.
The decision, confirmed by Cabinet this week, represents the most significant step yet in President Emmerson Mnangagwa’s pledge to dismantle the bureaucratic and financial barriers that have long hampered commercial growth.
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Zimbabwean Government Slashes Levies
At the heart of the new strategy is a drastic simplification of the country’s licensing framework. The government plans to consolidate a maze of fragmented requirements into a single, coherent system. Information, Publicity, and Broadcasting Services Minister Dr Jenfan Muswere revealed that the overhaul would affect nearly every sector.
He stated,
“Cabinet approved the consolidation of fragmented licensing requirements into a single licence, the streamlining of duplicative and overlapping licences and permits, the removal of unnecessary levies and fees and the lowering of high levies and fees for the wholesale and selected major retail sub-sectors.”
The changes are dramatic. The cost of applying for a liquor licence, which could previously reach a staggering US$1,080 in some urban areas, has been reduced to a uniform US$20. Other fees have been abolished entirely, including the local authority bakery licence of US$703 and a US$200 permit from the Medicines Control Authority of Zimbabwe for selling general goods.
Zimbabwean Government Slashes Bank Charges
Perhaps the most keenly felt change for ordinary citizens and businesses will be the long-awaited review of bank charges. The Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, directly addressed the financial burden placed on account holders.
He confirmed,
“We are aware that monthly account service charges can be as high as US$15 for individuals and US$20 for corporates. Withdrawal charges can reach up to 3 percent of the transaction value, while money transfer and bill payment fees range between 1.5 and 3 percent. These are significant costs that affect both business operations and ordinary citizens.”
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Professor Ncube announced that the government is now working in concert with the Reserve Bank of Zimbabwe and the banking sector to force these costs down.
“This is an area where we need to engage further with the banking sector to see how these things can be managed. We acknowledge efforts by the Reserve Bank and the Bankers Association to reduce fees on some accounts, but we need to do more,” he added.
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The post Zimbabwean Government Slashes Bank Charges And Levies appeared first on iHarare News.
