This strategic review aligns with a broader Cabinet decision from July 29, 2025, which mandated business reforms across twelve key sectors of the economy.
Key Reductions Announced
The goal is clear: to foster growth and attract private investment, particularly as the current government-led model of energy investment has become fiscally unsustainable.
The comprehensive review, which followed extensive “Whole-of-Government and Societal Approach” consultations with various Ministries, Departments, Agencies, and energy players, targets three main sub-sectors:
Liquefied Petroleum Gas (LPG) (importation, wholesale, and retail).
Several major fee reductions announced by the Zimbabwe Energy Regulatory Authority (ZERA) highlight the scale of the reform:
| Fee/Levy | Old Cost (US$) | New Cost (US$) | Reduction/Change |
|—|—|—|—|
| ZERA Licence Application Fee | $2,500 | $2,000 | 20% Reduction |
| ZERA Solar Generation Licence | $2,875 | Removed | 100% Removal |
| Petroleum Import (Procurement) Licence | $30,000 | $15,000 | 50%
Reduction
In a boost for rural economies, the fuel retailing license in rural areas has been cut from US200 to US150. Additionally, the LPG retail license will be reduced by 50% from the current US$230 fee.
Paving the Way for Private Capital
Cabinet acknowledged that investment in the energy sector has been predominantly government-driven, a model now untenable due to limited fiscal space and lack of access to external funding.
These fee reductions are therefore a crucial step in signaling Zimbabwe’s commitment to facilitating private sector participation and unlocking much-needed capital for critical energy projects.
The reviewed fees and licenses are set for further refinements and will be officially gazetted once the relevant Ministries complete the necessary legislative and administrative changes.
This initiative marks a significant step towards creating a more attractive and competitive investment climate in Zimbabwe’s vital energy sector.
