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Govt Cuts Energy Sector Fees in Push to Lower Business Costs

Government has approved significant reductions to licences, permits and levies within the energy sector as part of ongoing reforms aimed at improving competitiveness and easing the cost of doing business.

Speaking during a post cabinet press briefing in Harare yesterday, Information Minister Jenfan Muswere said the measures were in line with a July 2025 government directive to reform 12 key sectors of the economy.

“Cabinet considered and approved the review of licences, permits, levies and fees in the Energy sector, in line with the Cabinet decision of 29 July 2025 which approved the implementation of a raft of business reforms in twelve sectors of the economy. The review process is aimed at reducing the cost of doing business, increasing competitiveness and enhancing the growth of the Zimbabwean economy,” Muswere said

According to the minister, the revised fees cover electricity generation, transmission and distribution; petroleum importation, wholesale and retail; as well as liquefied petroleum gas (LPG) importation and retail.

Among the most notable changes is a reduction of the Zimbabwe Energy Regulatory Authority (ZERA) licence application fee from US$2 500 to US$2 000.

The ZERA Solar Generation Licence fee previously set at US$2 875 has been scrapped entirely a move expected to encourage investment in renewable energy.

In addition, the ZERA Petroleum Import (Procurement) Licence fee has been cut by 50% from US$30 000, while the fuel retailing licence for rural areas will drop from US$200 to US$150.

The LPG retail licence fee will also be halved from the current US$230.

Muswere said the adjustments were necessary given the heavy reliance on government-driven investment in the energy sector, a model he admitted had become unsustainable due to constrained fiscal space and limited access to external financing.

He added that the reviewed fees would undergo further refinement before being officially gazetted.

“The appropriate schedule shall be duly gazetted after ministries have effected the necessary legislative and administrative changes,” he said.

Government hopes the new measures will stimulate private investment, promote efficiency and support broader economic growth in the coming years.

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