Cabinet slashes agricultural fees

STAFF WRITER

Cabinet has approved a sweeping review of licences, permits, levies and fees across Zimbabwe’s agricultural value chain, covering crops, horticulture, fisheries and fertiliser, in a decisive move aimed at lowering the cost of doing business and accelerating sectoral growth.

The reforms, which eliminate and sharply reduce a range of regulatory charges, are expected to ease operational burdens on farmers and agribusinesses, while improving competitiveness and investment appeal. Key measures include steep cuts to contractor and trader fees, the removal of selected levies, simplification of licensing procedures, and the scrapping of Value Added Tax on fish products.

Information, Publicity and Broadcasting Services Minister, Dr Zhemu Soda, said the reforms could be a turning point in transforming agriculture into a US$12bn industry by 2030, up from the current US$7 billion.

“Cabinet considered and approved the review of licences, permits, levies and fees in the agricultural sub-sectors comprising crops, horticulture, fisheries and fertiliser, in line with the Cabinet decision of July 29, 2025, which endorsed the implementation of a raft of business reforms across 12 sectors of the economy,” he said.

“The review process is aimed at reducing the cost of doing business, increasing competitiveness, enhancing enterprise viability, and enabling the growth of the Zimbabwean economy.”

Soda said the reforms target inefficiencies within the regulatory framework, including the elimination of duplicate and overlapping licences, removal of unnecessary levies, and reduction of what government deemed unjustifiably high charges.

Among the most significant adjustments, Agricultural Marketing Authority (AMA) contractor registration fees for crops have been slashed by 75% to US$250 from US$1 000, while trader registration fees have been reduced by 90% to US$100 from US$1 000. Effluent discharge fees have also been cut by half to US$13 500 from US$27 000.

Further relief measures include a 50% reduction in pesticide registration fees to US$150 from US$300, the removal of the 15,5% VAT on fish product sales, and a reduction in lake lease fees charged by the Zimbabwe Parks and Wildlife Management Authority to US$15 000 from US$30 000. Fish harvest fees, previously set at US$7,50 per tonne, have been scrapped entirely.

Cabinet also moved to rationalise cross-cutting charges that extend beyond agriculture, including the standardisation of local authority development levies and water charges under the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development.

“The reviewed licences, permits and fees will be subjected to further refinements, and a comprehensive schedule will be duly gazetted,” Dr Soda said.

Beyond fee reductions, Cabinet approved a package of structural policy reforms designed to strengthen the sector’s viability. These include the introduction of tougher deterrent penalties for agricultural theft—expanding beyond livestock to cover crops, fisheries and equipment, the waiver of import licence requirements for agricultural equipment spare parts brought in for own use, and a review of dam construction regulations to stimulate private sector investment in water infrastructure.

The government indicated that the agriculture sector reforms are part of a broader programme targeting multiple industries, with work already completed in sectors such as livestock, tourism, transport, and wholesale and retail. Authorities expect to conclude reforms in the remaining sectors in the coming weeks.

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