ANALYSIS ON THE OVERLAPPING MANDATES OF KEY INSTITUTIONS

Zimbabwe has multiple regulatory frameworks governing business operations, and in some cases, these regulations overlap, leading to inefficiencies, increased compliance costs, and bureaucratic delays Overlapping regulations and multiplicity of regulators are increasingly becoming a huge burden for Zimbabwean businesses.

This analysis provides a snapshot of overlapping regulations impacting the business performance. Zimbabwe’s regulatory requirements and implied costs result from the overlapping mandates of some key institutions, and the Commission examines these critical factors to ascertain the respective implications to the country’s business performance and competitiveness.

Overlapping Mandates of Key Institutions. In Zimbabwe, different agencies demand separate licenses for environmental compliance, health and safety, and labour practices, even if they cover similar concerns. This duplication increases compliance costs, as companies may need to engage additional personnel or legal support to manage these requirements. An example of this regulatory-induced challenge in Zimbabwe is that of institutions with the mandate of regulating agriculture and manufacturing firms. For instance, the Environmental Management Authority (EMA) and the City of Harare administer the hazardous substance storage license. Companies must pay for two (2) licenses from different agencies which serve the same purpose. This ultimately increases the regulatory costs of companies.

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ANALYSIS ON THE IMPACT OF OVERLAPPING AND MULTIPLICITY OF REGULATIONS ON ZIMBABWE’S BUSINESS ENVIRONMENT