The Confederation of Zimbabwe Industries has welcomed government’s sweeping review of levies, licences, fees and permits in the agriculture sector, saying the reductions will ease the cost of doing business and improve sector competitiveness.
According to the CZI-led review, 96 regulations were examined across livestock farming, livestock processing, dairy farming, dairy processing and stockfeed manufacturing.
Out of these, 34 regulations were eliminated entirely, many of them duplications, while 40% were reduced by more than 50%.
“This review is a step in the right direction. For years, the agriculture sector has been burdened by multiple levies and overlapping regulations that increased costs for farmers and processors,” CZI said in its report.
“The elimination of duplications and the capping of charges will go a long way in enhancing the sector’s productivity and sustainability.”
The review revealed that only 17 regulations remained unchanged, with just one regulation increasing in cost — the Veterinary Dairy Services somatic cell count levy, which rose from US$1 per month to US$20 per year, a 66% increase.
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CZI explained the adjustment as necessary for maintaining dairy quality standards.
Sectoral analysis showed the biggest gains were in livestock and dairy farming, where 44% and 45% of regulations respectively were scrapped. Stockfeed manufacturing and livestock processing also registered major cost reductions, even though fewer regulations were eliminated.
“About 12 regulations that imposed fees of at least US$400 were removed, while three that charged firms based on turnover without any cap were revised to introduce ceilings,” CZI said.
“This acknowledges that enforcement costs do not always rise with company size, and the reform will particularly benefit small and medium enterprises.”
Regulatory agencies most affected by the review included the Zimbabwe National Water Authority, which lost 10 costly regulations, followed by the Environmental Management Agency and local authorities, with 7 and 8 eliminations respectively.
CZI emphasised that the move would help strengthen agriculture’s role in the broader economy. “The reduction of levies and fees will improve investor confidence, reduce compliance costs, and create an enabling environment for growth.
"If maintained, these reforms could be a catalyst for increased agricultural exports and improved food security,” the organisation said.
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