Lovemore Chazingwa
Mashonaland West Bureau Chief
KADOMA-The latest move by City of Kadoma to reduce 2026 annual business license fees by 300% has courted a raft of mixed reactions from among a cross section of residents and business.
This has come during the usual license renewal period.
In a March 2025 during an ordinary full council meeting attended by The Midweek Watch, health director Dr. Daniel Chirundu informed the house that a New Year blitz on illegal operators netted a significant number of business operators. He said a sizable number of shops were closed for operating without valid business licences.
A snap observation shows that some of the closed businesses have failed to reopen up to this day.
Analysts point to the fact that a reduction in rate charges may not translate to higher revenue inflows.
Researcher at Local Governance Institute, Kudzai Chatiza reasons thus, “I know it’s easy to suggest there’s a likelihood that reduced cost of doing business incentivizes them to invest and also for the city to attract external investment. However, that depends on whether that was a major business drawback. Remember that local taxes are usually a small fraction of factors straining businesses, especially medium to large scale, that generate significant employment and drive local economies. Macroeconomic factors, including access to affordable finance, equipment, and overall competitiveness, play a key part. I’m not being ‘academic or evasive’, just being clear.”
Business licences are supposed to be paid ahead of the beginning of each financial year. However, council usually face resistance from business operators who argued that the licence fees are too steep and the payment conditions equally stringent.
Most business operators report that they lose revenue as council normally close their operating premises due to license fee arrears. Payment plans are an option although these come at a time the damage would already have been done. It becomes an uphill for the business operators to recover during the course of the year thereby, breeding a culture of debt arrears overhang.
NetOne public relations manager Ernest Magadzire gives a technically loaded view on the slash, “On the ground, implementation is gradually taking shape, though it is not yet fully consistent. Where there are gaps, we continue to engage council in line with the spirit of the announcement.
“For the telecommunications sector, the reduction from US$1,500 to US$500 per annum is a welcome and progressive move. It lowers operating pressure and allows us to channel more resources into network support, service quality, and customer reach. Most importantly, reduced costs across the ecosystem mean our customers have more disposable income. We have already seen this reflect in increased usage and improved sales, which ultimately supports business sustainability and local economic growth.”
One business operator encouraged council to widen options to lessen burden on residents, “That’s a positive development. I encourage city fathers to venture into bigger projects. Reliance on rates is suffocating residents,” identified as Ma 1 (0784741…) in the whatsapp group.
The latest round of announced licence fee cuts were denied by some sections of the business community as a mere rhetoric.
“Nothing has changed on our bill statements. My statement is showing a debt arrears of an even larger amount as opposed to what I used to pay,” said one business person responding in a City of Kadoma engagement Residents Engagement whatsapp group.
Another commented that they paid the usual US$280 which they have been paying before the proposed slash.
A look at the proposed licence fee structure from council shows that there were significant reductions in some businesses while others had slight chops. A very small number tasted pencil slim trims.
Small scale business operator, Ishmael Mudavanhu of Ishue Agrochemicals views this as a step in the right direction.
“I think our council made the right decision because most businesses were failing to comply due to steep fees. With this reduction most operators will comply.”
Land developers, explosives dealership, borehole drilling, elution plant operation used to part with at least US$2 000 for licensing alone annually. Large scale wholesale airtime (Econet, NetOne and Telecel), non-alcoholic beverage depot, LP Gas storage bulk tanks were also on the upper range license fee as they used to pay US$1 500 per annum to get an operating license. Beginning this financial year, the license fee for all these businesses is reduced to a modest US$500 per annum.
Abbatoir health certificate enjoys over 700% axing from US$870 to just US$100 per annum, making it the most privileged business unit in the license fees slash regime.
There are marginal reductions in a number of businesses with some enjoying cuts around 30 to 50 percent of previous annual fees. These include wholesalers, car sales, supermarkets, electrical shops, arms and ammunition, private colleges, fuel service station, timber sales and general dealership.
Slight chops obtain in commercial transport/depot, mining equipment, motor bike sales, security shop, over the counter medicines (pharmacy).
The penalty for dumping waste and that for selling uninspected meat remains at US$435. A waste disposal permit at US$725, remains stagnant. The waste disposal permit is valid for 6 months.
Most of the services under environment and health remain unchanged. Business operators are appealing to council to consider the same reduction heaven as applied in other sectors.
One business operator raised concern with the environment and health department license fees, “Last Friday, I paid for four shops at US$280 per shop. Has the health report been considered in this cushion?” asked the business operator only identified as Baba Pana (0773 471 …), on the council group.
“Failure to pay portrays one as an enemy of progress,” commented Montrose (0772893…) on the same WhatsApp group.
Penalties for late payment are pegged at 10 percent of the stated annual business operating license fee for the financial year in question.
Renowned town planner Percy Toriro hails the reduction, with some caution though.
“The fee reduction in some budget charges is a welcome development. Most councils are suffering from reduced payments due to failure of residents to afford. It is better to set affordable rates so that councils nurture a culture of rates payment. Once residents get used to not paying, the risk is creating residents who receive bills that they ignore due to inability to pay which makes service delivery impossible.”
City public relations department will gauge impact after the license payment period window.
“Council will be able to assess figures after the first quarter. We first need to compare the 2025 and 2026 payment inflows,” said city public relations manager Walter Ndlovu.
