Published: 3 hours ago

The Government of Zimbabwe has announced sweeping reforms to ease the cost of doing business in the livestock, dairy farming, and stockfeed sectors, in a move expected to boost investment, production, and competitiveness in agriculture.

The reforms, unveiled by Finance, Economic Development and Investment Promotion Minister Mthuli Ncube, mark the first phase of a broader review of business regulations across all sectors of the economy. The initiative, supported by the Office of the President and Cabinet with technical assistance from the World Bank, is part of President Emmerson Mnangagwa's "Zimbabwe is Open for Business" drive.

Minister Ncube said the agriculture sector was chosen as the starting point because of its critical role in sustaining livelihoods, creating jobs for 65% of the population, and contributing the bulk of Zimbabwe's exports. "Government is elevating efforts to retain agriculture as the mainstay and engine of the economy," he said.

For years, the livestock and dairy industries have struggled under excessive regulation, with farmers and processors facing high compliance costs and duplications across agencies. For instance, dairy farmers previously needed up to 25 permits from 12 different bodies, while feed manufacturers required 23 permits from 10 departments.

The new framework eliminates duplication and slashes fees. Registration charges for farms, processors, and feed manufacturers have been significantly reduced, while several levies and permits have been abolished altogether. Notable changes include the scrapping of the Agriculture Marketing Authority's livestock development levy and cattle levy, the abolition of the National Biotechnology Authority's costly import compliance licence, and the removal of ZINWA borehole and water-use fees.

Under the new system, small and medium-scale farmers will no longer pay registration fees, while large-scale farmers will only pay US$50. Dairy processor registration has been cut from US$350 annually to a one-time US$50 fee, and feed manufacturing registration slashed to US$20 from as high as US$250. Livestock movement permits now cost US$5 per herd, down from US$10 per beast. Export permits for dairy products, previously pegged at US$900, now cost just US$10.

Environmental and utility-related costs have also been lowered. The Environmental Impact Assessment Licence has been reduced from 1.5% of project value to 0.05%, capped at US$100,000, and payable during operations instead of upfront. EMA levies and ZERA levies have been scrapped, while groundwater permits now cost only US$10 per farm.

Government expects the changes to lower the cost of doing business, encourage exports, attract new investment, and promote formalisation in high-potential value chains. The reforms are also designed to stimulate rural development and job creation.

Subsequent phases of the programme will extend to other sectors such as tourism, transport, and retail. Minister Ncube stressed that all new regulations will undergo a Regulatory Impact Assessment to ensure they do not stifle growth.

"The Government remains committed to creating a modern, efficient, and business-friendly regulatory system that drives inclusive economic growth and positions Zimbabwe as an Upper Middle-Income Society by 2030," Ncube said.
- BD

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