The government has set new regulations aimed at lowering the cost of doing business across the country.
The Model Fees By-Laws, 2026 which reduces the fees that local authorities can charge, was published on February 27, 2026, as Statutory Instrument 41 of 2026.
Issued by the Minister of Local Government and Public Works under the Urban Councils Act [Chapter 29:15] and the Rural District Councils Act [Chapter 29:13], the framework aims to align local fees with national economic policies.
Follow us on WhatsApp | LinkedIn for the latest headlines
Although the explanatory note describes it as a "non-binding framework," the publication moves to reduce what many businesses have described as excessive and inconsistent municipal levies.
For most business licenses, fees are now capped at US$500 per year. This cap applies to a wide range of businesses, including bakeries, butcheries, fishmongers, restaurants, takeaway outlets, bottle stores, food factories, and wholesale operations, as long as these businesses are not part of a larger retail establishment.
Additionally, the broadest category of licenses, the general municipal, shop, and business licenses, is also capped at US$500 annually. Health report fees are capped at US$100, while liquor license registration is set at a flat rate of US$20. Abattoir licenses will also cost US$20, with a one-time approval fee of US$50.
Accommodation and hospitality businesses will see significant fee reductions. Hotels will pay a maximum of US$1,725 annually, a 50% reduction from previous rates. Lodges are capped at US$500, and guest houses, inns, hostels, motels, and self-catering establishments will face caps ranging from US$152.50 to US$227.50, all reflecting 50% reductions.
Fire compliance and certificates are capped at US$500, and fire licenses that would have previously exceeded US$1,000 annually will now see a 50% reduction. Building change-of-use applications are capped at US$1,000, and waste management fees are set at US$200 annually.
The new regulations also address fees in the urban transport sector. Operators seeking an intra-city route authority will now pay US$20 annually. Terminus vouchers are set at US$50 per quarter, while taxi rank disks will cost US$20 per quarter. Long-distance bus operators will be charged US$5 per entry for parking and access.
On-street parking is set at US$0.50 per hour, while vehicle clamping will incur a US$20 fee per incident. Tow-away charges will be halved for all local authorities.
These new regulations mark a significant step toward reducing the financial burden on businesses and creating a more streamlined and predictable regulatory environment in Zimbabwe.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
