The Government of Zimbabwe has consolidated 11 different local authority licences into a single unitary business licence to improve the ease of doing business.
The reduction in fees is expected to stimulate entrepreneurship, encourage the formalisation of entities and create free funds for investment in growth and job creation.
The review came in the wake of representations from industry and commerce stakeholders, who raised concern over the multiplicity and steep licences needed to operate businesses lawfully.
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The new policy consolidates 11 different local authority licences into a single, unified shop licence.
The reprieve, which has been met with optimism from various stakeholders, extends across various sectors, including retail, tourism, food and confectionery, liquor trading and butcheries.
"Previously, a food factory licence alone could set a business back as much as US$2,300. Now, that entire cost, along with 10 others, is swept away into one simple licence," said Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube in a statement at the weekend.
Bottle stores operating within a licensed retail shop will no longer require a separate licence, while businesses dealing in both wholesale and retail will need only a single permit.
Integrated factories and retail outlets on the same premises will be covered by one licence, cutting multiple regulatory costs.
Further, supermarkets are exempted from Zimbabwe Tourism Authority (ZTA) licence requirements, unless they operate in designated tourist jurisdictions.
To cushion small and medium enterprises (SMEs), the government has directed that councils set a sliding scale for licence fees, with a maximum limit of US$500.
This measure is designed to ensure that the cost of doing business remains proportionate to the size of the enterprise, providing significant relief to emerging operators.
"These measures are meant to aid in the creation of a conducive economic environment where jobs will be created, productivity improved across all sectors of the economy, achieving high growth rates through improving the ease of doing business," said Ncube.
"Government remains committed to improving the business environment to encourage domestic and foreign investment in which Zimbabwe can become an upper middle-income society by 2030.
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"The retail sector is one of the fastest growing sectors in Zimbabwe, and to further strengthen it, Government has moved to remove the fragmentation of licences," added Ncube.
The Medical Control Authority of Zimbabwe (MCAZ) has also removed the permit for the sale of veterinary products, as its functions overlap with those of the Department of Veterinary Services.
Tourism businesses, including hotels and lodges, have seen their licence fees reduced by 50 percent, also pegged at a maximum US$500.
Change of property use fee has been capped at US$1,000, down from highs of US$3,500 thereby dealing a huge blow to local authorities which were amassing revenue from the transactions.
Liquor licensing has been simplified, with the Liquor Licensing Board compressing all permits into one, regardless of location.
The Reserve Bank of Zimbabwe (RBZ) Financial Services Licence for local businesses has been cut to US$20, down from US$186, while the Procurement Regulatory Authority of Zimbabwe (PRAZ) will now issue a single licence across business categories at a cost of between US$50 and US$120, applicable to all branches of a company.
