Mthulisi Nxumalo
The Zimbabwe National Chamber of Commerce (ZNCC) has proposed a cap of US$0.40 per litre on combined fuel taxes and levies as part of efforts to reduce the cost of doing business and improve the competitiveness of local industries.

The proposal was presented by ZNCC Midlands provincial vice-president Blessing Mamombe during a stakeholder engagement with the Zimbabwe Energy Regulatory Authority (ZERA), where the business organisation called for reforms to make energy more affordable, reliable and accessible.

Mamombe said high fuel costs continued to weigh heavily on businesses, affecting production, transport, investment and the ability of Zimbabwean companies to compete with regional counterparts.

While acknowledging ZERA’s efforts to improve transparency by publishing fuel price breakdowns, ZNCC argued that more needed to be done to address the cumulative burden of taxes and levies included in pump prices.

The chamber called on ZERA to engage the Ministry of Finance and other relevant authorities to review the fuel tax structure, adding that the proposed cap should be assessed against government revenue requirements and the purposes of existing levies.

ZNCC also proposed a fuel-price smoothing mechanism to cushion businesses and consumers against sudden increases caused by international market movements, geopolitical tensions and currency fluctuations. It said the mechanism should also ensure that reductions in underlying costs were passed on to consumers.

On electricity, the organisation called for simpler and more predictable licensing procedures to encourage investment in power generation, particularly renewable energy.

It recommended that ZERA publish a comprehensive guide outlining application requirements, fees, processing timelines and reasons for approving or rejecting applications.

ZNCC further urged the regulator to provide clear guidance for commercial and industrial businesses investing in solar systems, particularly on when registration, notification or licensing is required.

The chamber also raised concern over the continued sale of unapproved and substandard electrical appliances, saying the products posed safety risks and disadvantaged businesses that complied with regulatory requirements.

It called for stronger market inspections and closer cooperation between ZERA, the Zimbabwe Revenue Authority, local authorities and standards bodies to remove non-compliant products from retail outlets.

ZNCC further called for greater accountability within the energy regulatory system, proposing annual performance reports covering licensing timelines, enforcement activities, consumer complaints and progress in implementing recommendations from business stakeholders.

Despite its concerns, the organisation acknowledged progress in the energy sector, including amendments to the electricity net-metering framework under Statutory Instrument 127 of 2026, which introduced virtual net metering and the monetisation of surplus electricity.

The changes could allow eligible businesses operating at multiple locations to transfer electricity credits between approved supply points, potentially improving the financial viability of solar investments.

ZNCC also welcomed reductions in petroleum licensing fees, improvements in electricity supply and the additional generation capacity brought by Hwange Units 7 and 8, which added about 600 megawatts to the country’s electricity generation capacity.

The organisation said effective energy regulation was critical to lowering operating costs, attracting investment and improving industrial productivity as Zimbabwe pursues its long-term economic development targets.

ZNCC said it remained committed to working with ZERA to develop practical, evidence-based reforms that address the challenges faced by businesses across manufacturing, agriculture, mining, transport, retail and other sectors.