By Aldridge Dzvene
In Zimbabwe’s long quest for economic revitalisation, one issue has stubbornly resisted resolution, its outdated and cumbersome regulatory environment. Despite consistent calls from industry players, development partners and government itself, the country remains trapped in a web of bureaucratic entanglements that continue to undermine competitiveness, suppress innovation and drive formal businesses into the shadows.
This reality came into sharp focus during the 2025 Regulatory Impact Assessment (RIA) Stakeholder Dialogue held at Cresta Msasa in Harare. The gathering brought together top government officials, private sector leaders and policy experts under the theme “Fostering Inclusive and Effective Regulation: Balancing Compliance, Innovation and Sustainable Growth in Zimbabwe.” What emerged from the dialogue was a sobering acknowledgement of the depth of Zimbabwe’s regulatory challenge and the urgent need for reforms that are not only cosmetic but transformative.
Confederation of Zimbabwe Industries (CZI) Chief Executive Officer Sekai Kuvarika delivered a candid reflection that resonated with many. She noted that talking about the state of regulation in Zimbabwe often feels like repeating a broken record, yet like the Bible, its message must be read and re-read until real change is achieved. Her remarks offered a blend of frustration and hope, a deep awareness of the cost of regulatory inertia, but also a belief in the possibility of renewal if bold steps are taken.
According to Kuvarika, Zimbabwe has failed to make meaningful progress on major global business rankings such as the Ease of Doing Business Index and the Global Competitiveness Index. The stagnation, she argued, is not due to a lack of ideas or diagnosis but rather the absence of a compelling economic case to push reforms forward. Regulations are often presented as burdens or costs without articulating the positive economic impact that could be realised through a more competitive business environment. This absence of a results-oriented approach continues to stall urgently needed change.
Minister of Industry and Commerce Hon N M Ndlovu echoed this urgency in his keynote address. Citing the directives of President Emmerson Mnangagwa, the Minister underscored the need to revisit regulations that hinder the start or growth of both local and foreign investments. He stressed that licenses, permits and fees must no longer act as punitive barriers but should instead serve to promote economic development and uplift the livelihoods of Zimbabweans.
One of the most startling revelations came from both the Minister and Kuvarika. For small and medium enterprises (SMEs), the cost of regulatory compliance before even commencing operations can exceed US$8,000 annually. This figure excludes capital costs and represents only the fees, permits and inspections required to be formally operational. In a country where more than 65 percent of the economy is informalised, this financial barrier essentially sends a message to entrepreneurs, stay informal or don’t operate at all.
The situation becomes even more dire when seen from the perspective of investment retention and attraction in the context of the African Continental Free Trade Area (AfCFTA). As Kuvarika pointed out, the race to scale up production and access broader African markets is underway. Unfortunately, Zimbabwe risks being left behind, not because of a lack of talent or resources, but because of an environment that is too hostile to expansion and innovation. Other African countries are aggressively courting investors and offering regulatory frameworks that are flexible, efficient and purpose-driven, qualities Zimbabwe sorely lacks.
Kuvarika further highlighted the phenomenon of Zimbabwean companies being lured to set up manufacturing bases in neighbouring countries that offer more favourable environments. Ironically, when these Zimbabwean businesses invest outside the country, they are recorded as foreign direct investment in those host countries. This speaks volumes about the opportunity cost Zimbabwe continues to bear due to its inability to make hard decisions around easing regulation.
The issue of government efficiency also took centre stage. Both Kuvarika and the Minister emphasised that slow, duplicative and opaque systems within ministries and departments often delay business operations unnecessarily. In many cases, businesses are forced to halt operations simply because the bureaucratic machinery moves too slowly. Such inefficiencies don’t only cost money, they stifle growth and breed frustration.
Data from the National Competitiveness Commission reveals that regulatory authorities in some instances collect more revenue from businesses than the national treasury. One anonymous company was cited as having made a financial loss in 2024 while paying US$134,000 in regulatory fees, yet it did not pay any corporate tax due to its unprofitable status. This paradox raises questions about the sustainability and equity of Zimbabwe’s current regulatory architecture. It also underscores the need to centralise and streamline regulatory functions in a way that ensures accountability and coherence.
To address these challenges, the government is placing renewed emphasis on the Regulatory Impact Assessment (RIA) framework, a tool designed to evaluate the costs, benefits and unintended consequences of regulations. Through the National Competitiveness Commission, the Ministry of Industry and Commerce and partners such as the Confederation of Zimbabwe Industries and the National Economic Consultative Forum, the government aims to implement policy interventions that will lower compliance costs, modernise infrastructure, promote renewable energy and unlock industrial growth.
Already, there are signs of movement. The US$88 million Trabablas Interchange, linking three major roads in Harare, is now operational. Combined with smart traffic systems, this is expected to reduce logistical bottlenecks and improve industrial efficiency. However, as stakeholders rightly noted, infrastructure development alone is not enough. What is needed is a full recalibration of the way regulations are conceived, implemented and enforced.
Ultimately, Zimbabwe’s path to becoming a competitive, inclusive and prosperous economy hinges on the boldness of its reforms. The Minister was emphatic in stating that no ministry, department or agency has the luxury of inaction. Under the spirit of a whole of government approach, every sector must rise to the challenge of transforming the regulatory environment in line with Vision 2030.
The message from the RIA Dialogue was clear. Zimbabwe can no longer afford to view regulatory reform as a technical footnote. It is a national priority that holds the key to industrial revival, job creation, export growth and the full realisation of the country’s economic potential. The longer the country delays, the steeper the cost, both in lost investments and in diminished confidence from its own entrepreneurs.
As Sekai Kuvarika aptly put it, we must not have static regulatory structures. Let’s compete for investment not just across sectors but across regions. If this sentiment is translated into action, Zimbabwe may yet break free from its regulatory shackles and claim its rightful place as a manufacturing and innovation hub on the African continent.
