By Elishamai Alouis Ziumbwa
Harare City Council has announced major reductions in business licence fees for 2026 saying the move is intended to boost investment, encourage formalisation and support economic recovery in the capital.
Presenting the city’s proposed municipal budget Finance Committee chairperson Councillor Costa Mande said the tariff overhaul follows a government directive for local authorities to lower charges for businesses.
“In line with the national directive, the City of Harare has recalibrated its 2026 tariff framework to support investment growth, enterprise formalisation and economic recovery,” Cllr Mande said.
Under the plan, small shops under 50 square metres will see their annual licence fee halved from US$400 to US$200.
Fees for informal and service-sector operators will also fall sharply with hawkers (non-food) paying US$58 instead of US$115 and hairdressers (Class A) US$230 down from US$460.
Cllr Mande said the changes are particularly aimed at supporting women and young people who make up a large share of the informal economy in Harare.
“We have deliberately structured the new tariffs to support women and youth operators who form the backbone of small enterprises across Harare,” he said.
He described the policy as a tiered reduction model designed to balance affordability and compliance with national policy while ensuring the city maintains enough revenue to provide essential services.
“This model recognises Harare’s strategic role as the national capital and commercial hub, where affordable licensing is essential to attract investment, create jobs, and formalise small to medium enterprises,” Cllr Mande added.
City officials say the cuts position Harare as a competitive and business-friendly investment destination while safeguarding municipal finances.
