By Business Reporter– Finance and Economic Development Minister Mthuli Ncube has admitted that Zimbabwe’s small and medium enterprises (SMEs) are being choked by the deteriorating economy and a burdensome tax regime, promising sweeping policy changes within the next two weeks to address the crisis.

Speaking at an investment conference held in Masvingo recently, Ncube acknowledged that the current economic environment is stifling small businesses and undermining their potential to thrive. He assured delegates that the government is working to reduce the cost and complexity of doing business.

“In terms of the cost of doing business, we are seized with the matter as government,” said Ncube. “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.”

He added: “The cost of licenses will come down.

Secondly, the number of licenses or steps towards obtaining permissions will be reduced. This will happen within the next six months to improve the ease of doing business.”

Ncube also pointed out that many small businesses remain viable only by evading taxes and regulations. He said the government is aiming to strike a balance by lowering regulatory demands to incentivize formal compliance.

“Some businesses are only profitable because they are not complying with the rules.

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,” he said.

The minister also revealed that government is tasking provinces to identify potential Special Economic Zones (SEZs) to drive local investment and value addition. Masvingo, in particular, has been challenged to develop projects worthy of SEZ status.

“Government remains committed to creating a conducive environment for investment, especially in beneficiation and downstream processing, such as lithium battery and steel production,” Ncube said.

“We’re asking Minister Ezra Chadzamira and his team to identify projects that can be granted Special Economic Zone status—especially those focused on value addition.”

Government policies and heavy taxation have long been cited as key barriers to the growth of Zimbabwe’s formal business sector, particularly for SMEs.

Source: Zimeye

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