By Business Reporter – Finance Minister Mthuli Ncube has conceded that Zimbabwe’s small and medium enterprises (SMEs) are being strangled by the country’s worsening economic crisis and an onerous tax regime, pledging policy reforms within two weeks to ease the pressure.
Speaking at an investment conference in Masvingo recently, Ncube acknowledged that the hostile economic environment—compounded by the collapse in confidence surrounding the Zimbabwe Gold (ZiG) currency—is suffocating small businesses and undermining their potential to grow.
“In terms of the cost of doing business, we are seized with the matter as government,” Ncube said. “Within the next two weeks, we will announce significant changes, including a reduction in the monetary value of licenses and the number of regulatory steps required to acquire them.”
The minister’s remarks come amid a steep decline in the ZiG’s value on parallel markets, which has pushed up inflation, eroded consumer spending power, and deepened uncertainty across the SME sector.
Ncube admitted that many small businesses are only staying afloat by evading taxes and regulations—a sign of how punitive government policies, coupled with the weakening currency, have crippled formal operations.
“Some businesses are only profitable because they are not complying with the rules,” he said. “It cannot be the case that you only stay in business if you cheat the government.
We are reducing what the government demands from you so that you can operate competitively.”
The minister also announced that the government is tasking provincial leaders to identify potential Special Economic Zones (SEZs) aimed at attracting investment and promoting value addition, particularly in strategic sectors such as lithium battery production and steel manufacturing.
“Government remains committed to creating a conducive environment for investment,” Ncube said. “We’re asking Minister Ezra Chadzamira and his team to identify projects that can be granted SEZ status—especially those focused on beneficiation.”
Heavy taxation and policy inconsistency have long been cited as major obstacles to the growth of Zimbabwe’s formal business sector. The recent decline of the ZiG has further exposed structural weaknesses in the economy, leaving SMEs—often seen as the backbone of economic resilience—struggling to survive.
Ncube’s promised reforms signal an acknowledgment at the highest level that without meaningful changes, the collapse in confidence sparked by the ZiG could derail government ambitions to revive the formal economy.
Source: Zimeye
.