GOVERNMENT has unveiled sweeping regulatory and fee reforms for the livestock, dairy and stockfeed industries in a move expected to slash business costs, remove red tape and stimulate investment in agriculture, the backbone of the economy.
Announcing the measures in a statement yesterday, Finance, Economic Development and Investment Promotion minister Mthuli Ncube said the reforms were part of a wider ease of doing business drive spearheaded by the Office of the President and Cabinet, with technical support from the World Bank.
“This new framework will see Zimbabwe join a few countries in Africa implementing such comprehensive cross sector regulatory reforms simultaneously, in the process, positioning the country as a leader in creating a conducive environment for business growth, job creation, productivity and competitiveness,” he said.
“The reforms are being rolled out sector by sector, commencing with the agriculture sector, specifically the livestock, dairy and stockfeed value chains.”
Ncube said agriculture, which supports nearly 65% of rural livelihoods and contributes the bulk of Zimbabwe’s exports, has long been hampered by excessive regulations, high compliance costs and duplication of responsibilities across government agencies.
For example, dairy farmers previously needed up to 25 permits from 12 agencies, feed manufacturers required 23 permits from 10 departments, while abattoirs and processors faced more than 20 separate requirements each.
Under the new framework, registration costs across the livestock and dairy value chains have been drastically reduced, while farm registration fees under the Agricultural Marketing Authority have been pegged at just US$1.
Smallholder farmers will no longer be required to obtain costly certificates.
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Large-scale farmers will now pay US$50 for registration, down from much higher levels.
Dairy processor registration fees, once set at US$350 annually, have been reduced to a one-time US$50, while feed manufacturing licences that previously ranged from US$150 to US$250 will now cost only US$20.
In livestock management, the reforms have abolished duplicate local authority permits and harmonised movement clearances.
Farmers will now pay US$5 per herd, compared to the previous US$10 per beast, a move expected to ease financial pressures particularly on smallholders.
The reforms also target export competitiveness.
Export registration fees for dairy products have been cut from US$900 to just US$10, while meat exporters will now pay US$100 instead of US$500.
Agricultural export permits have been harmonised with ZimTrade and reduced to US$10 annually, down from US$70.
Import permits for livestock genetics such as heifers, bulls and semen have also been reduced from US$100 to US$20.
“EMA [Environmental Management Authority] effluent and waste disposal fee for dairy farmers reduced from US$800 to US$100 annually,” Ncube said.
“Environmental impact assessment licence lowered from 1,5% of project value to 0,05%, capped at US$100000 and payable during operations, not upfront.
“Scrapping of ZINWA [Zimbabwe National Water Authority] borehole/water abstraction costs and water use fees.Groundwater permit cut to US$10 per farm.EMA levies (effluent, generator) and ZERA [Zimbabwe Energy Regulatory Authority] levies abolished.”
Health and safety compliance costs have been eased significantly, with local authority health certificates, once priced at US$300, now pegged at US$100 per year.
Abattoir establishment fees have been lowered from US$350 to US$50, while veterinary registration for abattoirs has been capped at US$100, down from US$600.
The requirement for food handler health certificates has been scrapped altogether.
Ncube said the measures are designed to lower the cost of doing business, encourage investment and support the formalisation of small-scale farming enterprises.
The changes are meant to strengthen export competitiveness and stimulate job creation, particularly in rural areas.
“These measures will encourage investment, create jobs and stimulate rural development, positioning Zimbabwe as one of the few African countries implementing comprehensive cross-sector regulatory reforms,” he said
The Finance minister said subsequent phases of the reforms will extend to tourism, transport, retail and other strategic sectors, with all new regulations subject to a regulatory impact assessment before adoption.
“The government remains committed to creating a modern, efficient and business-friendly regulatory system that drives inclusive economic growth,” he added.
The Zimbabwe Association of Dairy Farmers welcomed the reforms saying the decision to remove the duplication, reduce costs and simplify compliance would “definitely contribute towards promoting efficiency, competitiveness and formalisation, improving the dairy industry business preparations to fully participate in the AfCFTA [African Continental Free Trade Area] to the benefit of the industry and national economic trade”.
They said the slashing of various compliance fees and eliminating of duplications would positively contribute to the efforts of increasing the national milk production which has been on an upward trend which achieved a monthly high of 10,5 million litres in July this year.
The dairy farmers said the decision would empower new entrants, medium and smallholder farmers, including women and youths, who in the past were particularly affected by high compliance fees.
