HARARE – The City of Harare has slashed business licence fees by 50 percent, a move officials admit will leave a US$500,000 hole in the city’s revenue base.
Presenting the 2026 council budget on Thursday, finance and development committee chairperson Councillor Costa Mande unveiled a US$690.8 million spending plan — up 19 percent from this year’s budget.
Mande said the fee cuts were meant to make it easier to do business in the capital.
Under the new structure, shop licence fees will be reduced by about 50 percent, with small shops under 50m² now paying US$200 a year, down from US$400.
Hawkers (non-food) will pay US$58, down from US$115, while hairdressers will now pay US$230 instead of US$460 — a measure Mande said was designed “to support women and youth operators.”
“While this will result in reduced revenues amounting to US$500,000, we believe the relief will stimulate small business growth,” he said.
The city continues to rely heavily on property tax, water services and wastewater charges for most of its income.
Mande said levies introduced in 2025 — covering emergency services, street lighting and water — will remain in place.
Harare plans to spend US$118.95 million on roads, targeting the repair and sealing of 200 kilometres of roads, upgrading drainage systems and installing smart traffic lights.
A further US$21.4 million has been set aside for governance and administration, including the rollout of a new Enterprise Resource Planning (ERP) financial management system to improve transparency and efficiency.
Mande also revealed that the city is owed ZWL$8.61 billion, mainly by domestic consumers, while its own debts total ZWL$2.114 billion — more than half of it to ZESA.
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