The City of Harare has announced a significant reduction in shop license fees. The move is intended to alleviate the financial burden on businesses and stimulate growth in a sector that contributes 60% of Zimbabwe’s GDP, reported Zimbabwe Economic Review.
The council said the new fee structure introduces flexibility, offering various payment options to suit different business needs.
Businesses can now pay license fees monthly, quarterly, biannually, or annually.
Additionally, the fees will now be categorized based on the size of the business: small businesses will pay US$400 annually, medium businesses will pay US$600 annually, and large businesses will pay US$800 annually.
The local authority explained that this reduction responds to widespread complaints from SMEs regarding high fees and the rigid non-transferability of licenses.
By lessening these costs, Harare aims to encourage the growth of SMEs, which is essential for economic stability, especially given the large informal economy resulting from company closures, currency instability, and inflation.
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The Harare City Council has lowered shop license fees to help businesses grow. The new fee structure allows businesses to pay monthly, quarterly, biannually, or annually. Small businesses pay $400 per year, medium businesses pay $600, and large businesses pay $800. This change aims to support small and medium-sized businesses (SMEs) that have complained about high fees. By reducing costs, Harare hopes to help SMEs, which are important for the economy, especially with many companies closing and inflation in Zimbabwe.

Harare City Council Cuts Shop Licence Fees

City of Harare mayor Jacob Mafume says it is not the mandate of the Zimbabwe Republic Police (ZRP) to inspect businesspeople’s operating licences.
This comes after police officers were filmed confronting a businesswoman in the central business district (CBD) purportedly asking to see her operating licence. Said Mafume:
<blockquote>
We have taken note of the video of police officers asking for business licences in the city centre and we are going to write to the Officer Commanding Harare asking him to explain.
Police have no role in inspecting business licences in the city. It’s the duty of municipal police.
We believe that this is a duplication of roles that will breed-rent-seeking behaviour.
</blockquote>
ZRP national spokesperson Assistant Commissioner Paul Nyathi told <a href="https://www.newsday.co.zw/local-news/article/200010513/police-have-no-mandate-to-inspect-shop-licences-harare-mayor">NewsDay</a> that police have a constitutional mandate to enforce all the laws in the country, including municipal by-laws. He said:
<blockquote>
The Harare mayor knows what to do when he has a complaint. He should write to the Police Commissioner-General.
In terms of the country’s laws, ZRP has a constitutional mandate to enforce all the laws promulgated by Parliament.
We have the mandate to enforce laws such as Forestry Act, EMA Act and council by-laws in the country.
So there is nothing sinister about police inspecting if businesses are operating within the confines of the law.
</blockquote>
The enforcement of municipal by-laws is primarily the responsibility of local authorities.
However, the ZRP may be called upon to assist in enforcing municipal by-laws if necessary.
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