The City of Harare has proposed significant reductions in business licence fees, in line with a recent directive from the central government for municipalities to rationalise and lower such charges.
Presenting the 2026 Budget on Thursday, 30 October, Finance Committee Chairperson Councillor Costa Mande said the city has recalibrated its 2026 tariff framework to promote investment growth, encourage enterprise formalisation, and support economic recovery.
Under the proposed changes, shop licence fees will be reduced by about 50%. Shops under 50m², which currently pay US$400, will now pay a simplified flat annual licence fee of US$200.
Hawkers (non-food) will pay US$58, down from US$115, while hairdressers (Class A – shop) will pay US$230, also reflecting a 50% reduction.
Mande said the move is designed to support women and youth operators in particular.
The council said the proposed tariff structure aims to make Harare a competitive, inclusive, and business-friendly city, while maintaining sufficient fiscal capacity to sustain service delivery.
It added that the city has adopted a tiered reduction model that balances compliance with the national directive and Harare’s fiscal sustainability.
The model also recognises Harare’s strategic role as the nation’s capital and commercial hub, where affordable licensing is critical to attracting investment, creating jobs, and formalising small and medium enterprises.
