Harare, Zimbabwe – In a bid to support small and medium enterprises (SMEs) and promote economic growth, the Harare City Council has announced a substantial reduction in shop licence fees. This initiative is expected to ease financial pressures on businesses and encourage the expansion of the informal sector, which plays a pivotal role in Zimbabwe’s economy.
The new fee structure introduces tiered charges based on business size, with small businesses now required to pay US$400 annually, medium businesses US$600, and large businesses US$800. Additionally, the council has introduced flexible payment plans, allowing businesses to settle their fees monthly, quarterly, biannually, or annually.
According to a statement by the city council, this decision addresses longstanding grievances from SMEs about the prohibitively high licence fees and the rigid policies that previously rendered licences non-transferable.
“The reduction in licence fees is part of our broader strategy to create a more business-friendly environment,” the council noted. “By supporting SMEs, we aim to stimulate economic activity and promote sustainable growth within the city.”
Harare’s informal economy has grown significantly in recent years, fuelled by widespread company closures, inflation, and currency instability. SMEs now account for an estimated 60% of Zimbabwe’s GDP, making them a cornerstone of the country’s economic stability.
Economic analysts have welcomed the move, noting that reducing operational costs for small businesses could lead to job creation and greater financial inclusivity. The initiative also aligns with efforts to formalise the informal sector, which has long been a driving force behind Zimbabwe’s economy.
By alleviating the financial strain on small business owners, the Harare City Council hopes to foster entrepreneurship and build a more resilient local economy in the face of ongoing challenges.
