HARARE – Zimbabwe has scrapped dozens of regulatory charges and slashed others for livestock and dairy farmers after admitting that suffocating red tape had made it nearly impossible for smallholders to operate.
Finance minister Mthuli Ncube on Wednesday said the reforms were designed to dismantle a “maze of permits and fees” that was crippling agriculture.
“Dairy farmers previously required up to 25 permits from 12 agencies, feed manufacturers needed 23, beef cattle farmers 18 and abattoirs 20. These excessive costs and duplication discouraged investment, hurt production and forced many players into the informal sector,” Ncube said in a statement.
Under the new framework, the Agricultural Marketing Authority’s farm registration fee drops to just US$1. Small and medium farmers will no longer need farm registration certificates, while large-scale producers will pay US$50.
“Livestock movement clearance has been reduced to US$5 per herd, compared to the previous US$10 per beast,” Ncube said. “Dairy processor registration falls from US$350 annually to a one-off US$50. Feed manufacturing licences are now US$20, down from as much as US$250.”
The minister said government had also abolished several levies. “We have scrapped the cattle levy, AMA’s livestock development levy, biosafety permits, ZERA charges and ZINWA water use fees,” he said.
Environmental costs are also being trimmed. “The Environmental Impact Assessment licence has been lowered from 1.5 percent of project value to 0.05 percent, capped at US$100,000. This will now be payable during operations and not upfront,” Ncube asserted.
Authorities insist the reforms will ease the cost of doing business, encourage investment and bring more farmers into the formal sector.
The Finance Minister said that these measures will boost production, create jobs and stimulate rural development.
“Agriculture sustains 65 percent of livelihoods and anchors most of our exports. It is critical that we make it easier, not harder, to farm.”
He added that the livestock and dairy sector was just the first step. “Subsequent phases will extend to tourism, transport, retail and other strategic sectors. Our goal is to ensure Zimbabwe’s business environment is simplified, affordable and competitive.”
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