Zimbabwe’s agriculture sector is set to benefit from the government’s regulatory fee reforms, which will see statutory fees either scrapped or reduced in the coming year.
Photo: Supplied | Ministry of Lands, Agriculture, Fisheries and Rural Development
The reform process, led by the Office of the President and Cabinet with support from the Treasury and technical assistance from the World Bank, will affect more than 20 permits and levies in the livestock, dairy, and stockfeed industries, according to Treasury officials.
Once gazetted, these changes are set to benefit the agriculture sector first, before being rolled out across many other sectors of the economy to enhance the ease of doing business in the country.
Speaking to Farmer’s Weekly, Deputy Minister of Lands, Agriculture, Fisheries, Water and Rural Development Davis Marapira said the agriculture sector will benefit from the adjustments in the new year.
“The fee adjustment policy takes effect when the budget is implemented, which is usually in January. The impact of that policy must be felt through lower prices for customers,” he said.
Some permits abolished
In a press statement, the Treasury said the agriculture sector has been constrained by excessive regulations, high compliance costs, and duplication of responsibilities across institutions.
It added that dairy farmers previously needed as many as 25 permits across 12 agencies; feed manufacturers required 23 permits from 10 departments; beef cattle farmers faced 18 requirements; abattoirs needed 20; dairy processors 21; and feed processors 23.
The statement said the reforms remove duplication, reduce costs, and simplify compliance to promote efficiency and competitiveness. It added that, among others, the Agricultural Marketing Authority livestock/cattle levy and biosafety permit, as well as borehole water abstraction costs and user fees, have been scrapped.
Other key fee reforms include:
- Farm registration certificate abolished for small and medium farmers
- Dairy processor registration fee reduced from annual US$350 (R5 926) to once-off US$50 (R847)
- Feed manufacturing registration fee cut from between US$150 (R2 540) and US$250 (R4 233) to flat US$20 (R339)
- Livestock movement clearance fee reduced from US$10 (R169) per animal to US$5 (R84,65) per herd
- Import permits for livestock genetics, including heifers and bulls, reduced from US$100 (R1 693) to US$20 (R339)
- Fees for export permits for dairy products cut from US$900 (R15 236) to US$10 (R169)
- Meat export permit fees reduced from US$500 (R8 464) to US$100 (R1 693) annually
- Environmental impact assessment licences reduced from 1,5% to 0,05% of project value, capped at US$100 000 (R1,7 million) and now payable during operations rather than upfront
“The government is elevating efforts to retain agriculture as the mainstay and engine of the economy, [and is] cognisant of its crucial role in job creation, particularly for the rural population, supporting 65% of livelihoods and the bulk of the country’s exports,” the statement said.
Reviews to be gazetted to gain legal force
During a post-cabinet briefing held on 18 November, Information Minister Jenfan Muswere said cabinet had also approved the review of licences, permits, levies, and fees in the energy sector, which will come into force once ministries have affected the necessary legislative and administrative changes. The energy sector reviews will also impact the agriculture sector.
“Among the reviewed levies, licences, fees, and permits, the Zimbabwe Energy Regulatory Authority [ZERA] licence application fee has been reduced from $2 500 (R42 333) to $2 000 (R33 864) while the ZERA solar generation licence of $2 875 (R48 679) has been removed completely.
“The ZERA petroleum import procurement licence of $30 000 (R507 959) has been reduced by 50%. The fuel retailing licence in rural areas has been reduced from $200 (R3 386) to $150, while the LPG retail licence will be reduced by 50% from the $230 (R2 540) that is currently being charged,” Muswere said.
Meanwhile, Marapira said that, despite the government’s initiative, consumers don’t always see price reductions due to the presence of some unscrupulous players along the value chain.
“The question is whether we have discipline at every level – from the farmer to the middlemen, abattoir, processor, and butcher. Otherwise, someone will take advantage of the government’s fee reductions to make bigger profits. It needs a holistic approach from all of us.
“Some want profit margins of as much as 200%, [or even] 50% in a US dollar environment where the currency is stable. But the government will have heard your concerns as farmers, as retailers,” he added.
