Government's Sweeping Review of Levies and Regulations Boosts Zimbabwe's Agriculture Sector

Strategic Insights -

The recent review of levies, licenses, and permits for the agriculture sector by the Government of Zimbabwe has been hailed as a significant reform by the Confederation of Zimbabwe Industries (CZI). The comprehensive review, which assessed 96 regulations affecting various aspects of agriculture, has led to the elimination of 34 regulations and a 40% reduction in another 40 regulations. This move is expected to ease costs, improve competitiveness, and restore confidence in the regulatory environment.

Key Takeaways:

  • The review eliminated 34 regulations and reduced another 40 by at least half, affecting various aspects of agriculture, including livestock farming, dairy farming, and stockfeed manufacturing.
  • The Zimbabwe National Water Authority (Zinwa) accounted for the highest number of eliminations at 10, followed by local authorities with eight and the Environmental Management Agency (EMA) with seven.
  • At least 12 regulations that previously charged more than US$400 each were struck off, while levies based on turnover were capped to avoid punishing large firms.
  • The reforms aim to boost productivity, investment, and competitiveness, and are part of the Government's broader ease of doing business reforms.
  • Smallholder farmers are expected to benefit from the elimination of costly local authority permits and licensing fees, allowing them to invest in farming inputs and improve productivity.
  • The overhaul is expected to have a positive impact on Zimbabwe's economy, particularly on rural jobs and downstream manufacturing.

Statistics:

  • 96 regulations affecting agriculture were assessed in the review.
  • 34 regulations were eliminated, and another 40 were reduced by at least half.
  • At least 12 regulations that previously charged more than US$400 each were struck off.
  • Compliance costs were slashed by as much as 99% in several cases.
  • Zimbabwe National Water Authority (Zinwa) accounted for 10 eliminates, local authorities 8, and Environmental Management Agency (EMA) 7.

Sources:

  • Confederation of Zimbabwe Industries (CZI) document.
  • Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube's press release.
  • Interview with economist Dr Tawanda Mazingi.
  • Interview with agronomist Rudo Chaterera.