Regulatory Costs Threaten Competitiveness in Dairy Sector, Says NCC

A National Competitiveness Commission (NCC) official has raised alarm over the rising cost of doing business in Zimbabwe’s dairy sector, attributing it to fragmented and excessive regulatory fees imposed by multiple government agencies.

Speaking at the launch of the NCC’s latest dairy sector findings in Harare on Tuesday, Brighton Shayanewako, Director at the National Competitiveness Commission, said the lack of coordination among regulatory bodies is imposing a heavy burden on producers and other players in the value chain.

“There is a major issue around payments for various regulatory permits. We have around 26 permits required from different government agencies, including the Agricultural Marketing Authority (AMA), local authorities, and others all of which come with significant cost implications,” Shayanewako said.

He added that the absence of inter-agency communication has exacerbated the problem, making it difficult for stakeholders to navigate the regulatory landscape efficiently.

“The unfortunate thing is that these regulatory bodies do not communicate with each other. The result is a high cost of compliance which is affecting not just production, but the entire dairy value chain,” he noted.

The NCC’s findings highlighted that regulatory burdens, coupled with rising input costs and limited access to affordable financing, continue to hinder competitiveness in Zimbabwe’s dairy sector — a critical component of the country’s food security and industrialisation drive.

The Commission has urged the government to streamline regulatory frameworks and improve coordination among agencies to reduce duplication and inefficiencies that negatively impact production costs.