Mthuli promises sweeping SME reforms within 2 week...

Mthuli promises sweeping SME reforms within 2 weeks

🟤ZIMBABWE's untaxed informal market presents revenue loss risks while exposing the country's fragile economy to widespread illicit financial flows, which are estimated at US$1,5 billion annually by the Zacc. https://www.theindependent.co.zw/local-news ...

Zim Now Business Desk

Finance Minister Mthuli Ncube says the government will slash business licensing costs and simplify regulatory processes within the next two weeks in a bid to boost Zimbabwe’s struggling small business sector.

“We are seized with this matter,” he said. “The cost of licenses will come down within two weeks, and within six months, we will reduce the number of steps to get those licenses,” said Ncube while speaking at an investment conference in Masvingo.

Ncube acknowledged that the cost of formalization had become unsustainable for many SMEs, driving them into the informal economy.

He admitted that some businesses only survive by avoiding taxes and regulations, adding that the government wants to reverse this incentive to stay informal. “It cannot be the case that you only remain in business if you cheat the government,” he said.

As part of wider economic reforms, Ncube urged Masvingo to identify a local project for Special Economic Zone designation—ideally one focused on value addition. SEZs, he said, are key to attracting investment in lithium, steel, and other growth sectors.

Zimbabwe’s formalization efforts have long been hampered by high compliance costs, red tape, and mistrust of tax authorities—leading to over 70% of the economy operating informally.