Staff Reporter
The Harare City Council (HCC) has announced a 54% reduction in shop licence fees, lowering the annual cost from US$649 to US$300 for small businesses, in a move aimed at bolstering the growth of small and medium enterprises (SMEs).
In a statement released yesterday, Council spokesperson Stanley Gama said the initiative is part of a broader strategy to address long-standing complaints from SMEs about high fees and restrictive regulations.
“We recognise the critical role SMEs play in the economy, contributing 60% of Zimbabwe’s GDP. The fee reduction and the introduction of flexible payment plans reflect our commitment to easing financial pressure on these businesses.
“The revised fee structure now categorises businesses by size. Small businesses will pay US$400 annually, medium enterprises US$600, and large businesses US$800. Payment options have also been diversified, allowing monthly payments of US$40, quarterly, biannual, or full annual payments,” Gama said.
According to Gama, these changes were designed to cater to the diverse financial capacities of businesses and to ensure compliance is both achievable and sustainable.
“The council has also introduced transferable and more flexible licences. This is particularly beneficial for businesses that frequently relocate due to operational dynamics. We want our policies to align with the realities of the informal economy, which has grown significantly due to challenges like company closures and economic instability,” Gama added
The council emphasised that consultations with SMEs played a key role in shaping the new policy.
“This is just the beginning. We will continue engaging with the business community to ensure our policies remain supportive and relevant,” Gama noted.
In an interview with this publication, business owners and entrepreneurs have widely welcomed the changes.
Mary Moyo, who operates a small clothing store in the city, expressed relief, saying, “The old fees were simply unaffordable for small businesses like mine. This reduction means I can reinvest in stock and grow my business without the constant worry of licence fees.”
Similarly, Tinashe Chikuni, a hardware store owner, applauded the flexible payment system.
“Monthly payments make it much easier to manage cash flow. For once, it feels like the council is listening to our concerns,” he said.
The initiative is expected to stimulate SME growth, reduce informality, and foster a more robust economic environment in Harare.
