Impact analysis of Zimbabwe’s Broadcasting Services Amendment Act (No. 2 of 2025) to business competitiveness

On May 23, 2025, the Government of Zimbabwe enacted the Broadcasting Services Amendment Act (No. 2 of 2025), introducing a new requirement that all motorists must pay a radio license fee to the Zimbabwe Broadcasting Corporation (ZBC) when renewing vehicle insurance or obtaining a license disc.

Private vehicle owners are now required to pay US$92 per year, while businesses must pay US$200 annually per vehicle.

While the government positions this policy as a means to strengthen the financial base of the national broadcaster and modernize the media landscape, the broader implications for the country’s business environment are far more complex and contentious.

Zimbabwe now stands as an outlier in the Southern African Development Community (SADC) region. A comparative analysis reveals that no other SADC country imposes a vehicle-based radio license.

South Africa, for instance, uses a hybrid model where its public broadcaster, the SABC, is funded through commercial revenue, television license fees, and government grants. Zambia and Botswana similarly rely on household television levies and public budget allocations. Against this backdrop, Zimbabwe’s approach has sparked debate over whether such a levy enhances or erodes competitiveness, particularly in a fragile economic climate.

Proponents of the legislation argue that the amendment will significantly increase revenue for the national broadcaster.

With Zimbabwe home to an estimated 1.2 million vehicles, the law is projected to generate tens of millions of dollars annually. This influx of funding could enable ZBC to invest in higher-quality programming, particularly local content, which may in turn revitalize the media industry and offer new advertising avenues for local businesses. A better-funded broadcaster is likely to improve programming standards and viewership reach, making it a more attractive and competitive platform for advertisers. Furthermore, by linking the radio license to the process of vehicle licensing and insurance, the government aims to reduce evasion and ensure a stable, predictable revenue stream. This consistency can benefit businesses by making advertising costs more predictable and easier to integrate into financial planning and forecasts.

However, critics have raised serious concerns about the law’s negative consequences, especially on business operations. The high cost of compliance is a central issue. For companies operating fleets such as those in logistics, delivery, or service industries the radio license fees can become a major financial burden. A fleet of 50 vehicles now attracts a staggering US$10,000 in fees annually, and this is before factoring in insurance and other regulatory obligations. Such costs inevitably lead to reduced profit margins, which businesses may pass on to consumers, thereby affecting price competitiveness.

In addition to cost, the uniform application of the levy regardless of whether a vehicle is equipped with a radio or not has been criticized as an inefficient and unfair taxation model.

This kind of blanket policy fails to consider actual usage and can result in businesses paying for a service they do not consume. Moreover, the administrative burden is expected to increase.

Businesses must now navigate another layer of regulatory compliance, and without clear, transparent exemption processes, there is a heightened risk of corruption and bureaucratic inefficiencies.

Beyond financial and administrative implications, there are deeper concerns about how such policies may affect the broader investment climate. When government regulations are perceived as coercive or arbitrary, they can erode trust in public institutions and discourage both domestic and foreign investment. Furthermore, by adding to the cost of doing business, the law may push some operators into the informal economy a trend Zimbabwe is already battling. The risk is that, in trying to fund the national broadcaster, the government may end up undermining efforts to formalize and grow the economy.

To mitigate these risks, several policy adjustments have been proposed. Key among them is the recommendation to introduce a tiered licensing structure that differentiates between private cars, small businesses, and large corporate fleets.

This would ensure a more equitable distribution of the financial burden. There is also a call for clear exemption mechanisms that allow businesses to demonstrate non-usage and avoid paying unnecessary fees.

Other proposals include tax deductions for registered businesses paying the levy and earmarking a portion of the revenue for economic development, such as subsidized advertising for small businesses and the production of business-relevant content. Transparency in how funds are used is also essential; ZBC is encouraged to publish detailed reports to build public trust and accountability.

The private sector, too, has a role to play. Businesses are encouraged to use the improved ZBC platform to market local products and services, thereby turning a regulatory burden into a strategic opportunity. They should also engage in constructive dialogue with policymakers to advocate for sector-specific reforms and consider optimizing their fleets to avoid unnecessary expenses.

In conclusion, the Broadcasting Services Amendment Act offers both opportunities and risks. If implemented with fairness, transparency, and stakeholder consultation, it could improve the media landscape and support local business advertising.

However, without these safeguards, it risks becoming another layer of bureaucracy that stifles growth and discourages formal economic activity. Zimbabwe’s competitiveness depends not just on raising revenue, but on creating a business-friendly environment that supports innovation, reduces administrative burdens, and fosters trust between the private sector and public institutions.

For a comprehensive report on the analysis on the impact of the enacted legislation: Zimbabwe broadcasting services amendment act (no. 2 of 2025) on competitiveness and its impact on competitiveness, visit https://www.ncc-zim.co.zw. For any questions or suggestions, you can contact us at info@ncc.co.zw or call +263 242 313 230.