Harare City Cuts Business Licence Fees to Encourage Investment and Formalisation

HARARE – The City of Harare has unveiled significant reductions in business licence fees as part of its 2026 municipal budget, a move aimed at stimulating investment, encouraging formalisation, and supporting small enterprises.

Presenting the budget, Finance Committee Chairperson Councillor Costa Mande said the initiative follows the Government of Zimbabwe’s directive for local authorities to review and lower licence fees to foster economic growth and entrepreneurship.

According to the proposed 2026 tariff schedule, small retail outlets occupying less than 50 square metres will have their annual licence fees slashed from USD 400 to USD 200. Similarly, non-food hawkers will now pay USD 58, down from USD 115, while hairdressers operating in Class A premises will be charged USD 230, reflecting a 50% cut.

“These reductions are intended to make it easier for small businesses especially women and young entrepreneurs to operate legally and grow sustainably,” said Cllr Mande.

He added that the City had adopted a tiered reduction model to ensure that the new structure promotes compliance while remaining consistent with national economic policy.