The promulgation of Statutory Instrument 41 of 2026 marks a significant recalibration of Zimbabwe’s local authority fee structures, introducing a model framework aimed at rationalising licensing and registration charges across both urban and rural councils.
Issued in terms of the Urban Councils Act [Chapter 29:15] and the Rural District Councils Act [Chapter 29:13], the Model Fees By-Laws, 2026 apply to all local authorities and are designed to promote affordability, consistency and improved ease of doing business while preserving regulatory oversight.
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Book NowAt the core of the instrument is a structured capping and abolition of several fees that have historically been cited by businesses as barriers to formalisation and growth. Numerous licences for operations conducted within retail shops, including bakeries, butcheries, fishmongers, restaurants, takeaways, bottle stores, wholesale operations and food factories, have been abolished. Where such businesses operate as standalone entities, fees are now capped at US$500 annually.
The instrument also abolishes a range of levies affecting agriculture and small-scale operators, including cattle levies, dairy permits, livestock movement clearance fees, timber transportation levies, borehole abstraction charges and generator levies. Carcass inspection fees have similarly been scrapped. These changes represent a deliberate easing of compliance costs in productive sectors linked to food security and rural livelihoods.
Hospitality operators stand to benefit from structured reductions. Hotel licences will attract a 50 percent reduction capped at US$1 725, while lodges, motels, inns, hostels, restaurants and self-catering facilities are subject to 50 percent reductions within defined ceilings. Place of Assembly fees for hotels and fuel storage licences have been abolished entirely.
On the regulatory front, the framework retains oversight mechanisms but introduces cost discipline. Municipal or business licences are capped at US$500 annually, health reports at US$100, and change-of-property-use applications at US$1 000. Environmental impact consultation fees are set at a once-off US$20 per request, while fire compliance certificates are capped at US$500, with a 50 percent reduction applying to higher-value fire licences.
Traffic and transport-related charges have also been standardised, with intra-city route authorities set at US$20 annually, taxi rank discs at US$20 per quarter, terminus vouchers at US$50 per quarter and parking fees at US$0.50 per hour. Tow-away charges are subject to a 50 percent reduction across all local authorities.
The explanatory note accompanying the instrument clarifies that the by-laws are model and non-binding in nature, serving as guidance to local authorities in aligning their fee regimes with national economic policy objectives. The thrust is clear: reduce fragmentation in local fee structures, eliminate duplicative or excessive charges, and create a predictable regulatory environment that encourages enterprise formalisation.
By balancing revenue considerations with the need to stimulate economic activity, Statutory Instrument 41 of 2026 positions local authorities as facilitators rather than obstacles to growth. Its effectiveness will ultimately depend on uniform adoption and disciplined implementation, but its policy direction signals a broader commitment to harmonising sub-national governance with national development priorities.
