Staff Writer
HARARE, Government has approved a wide-ranging overhaul of licences, permits, levies and fees in the financial services sector, in a move expected to ease the cost of doing business and improve financial inclusion.
The reforms, approved by Cabinet target long-standing concerns over high transaction costs, duplication of regulatory requirements and excessive fees across banking, insurance and pensions.
At the centre of the reforms is the removal of several charges that have weighed heavily on consumers and small businesses.
These include monthly fees for accounts holding less than US$100, charges on transactions below US$5, and account opening fees.
Cabinet also scrapped cash deposit charges for both United States dollar and ZiG accounts, while capping cash withdrawal fees at 2%.
Authorities said the measures are designed to promote financial inclusion and restore confidence in the formal financial system by lowering barriers to entry and usage.
In addition to outright removals, Cabinet approved significant fee reductions across key sub-sectors, including microfinance institutions, insurance and pensions, mobile money platforms, fintechs and capital markets.
The move is expected to improve affordability of financial products while enhancing sector competitiveness.
“The streamlining exercise is aimed at eliminating duplicated and overlapping regulatory licences and permits, removing unnecessary levies and lowering unjustifiably high charges,” the government said in a statement outlining the reforms.
Industry players in the insurance and pensions sector are likely to benefit from reduced compliance costs, which could translate into more competitively priced products for policyholders.
Analysts say high administrative and regulatory costs have historically constrained growth in long-term savings products, particularly pensions.
The reforms will undergo further refinements, with authorities expected to gazette a comprehensive schedule detailing the revised fees, licences and permits.
Beyond financial services, Cabinet extended the review to other productive sectors, including manufacturing and health, signalling a broader policy thrust towards reducing the cost structure across the economy.
In manufacturing, the review covers ten sub-sectors, including beverages, agro-processing, textiles, pharmaceuticals and motor vehicle assembly.
Key measures include the removal of the Rural District Councils timber movement permit, consolidation of Environmental Management Agency licences, and reductions in import and regulatory fees.
Similarly, in the health sector, government scrapped several registration and inspection fees for wholesalers and pharmacies, while reducing charges related to clinical trials, licensing and institutional approvals.
Economists say the cross-sector reforms reflect a deliberate shift towards improving the ease of doing business and enhancing economic productivity.
If effectively implemented, the measures are expected to stimulate formalisation, increase financial sector penetration and support broader economic recovery efforts.
