The Confederation of Zimbabwe Industries (CZI) has embarked on a nationwide study aimed at developing practical models for a more enabling regulatory and taxation environment to support the growth and competitiveness of small and medium-sized enterprises (SMEs).
CZI said Zimbabwe’s economic transformation remains closely tied to the conduciveness of its policy environment, particularly in key sectors such as agriculture, manufacturing, ICT, energy, and mining. However, small-scale enterprises, which play a crucial role in driving inclusive industrialisation and job creation, continue to face significant regulatory and taxation challenges that hinder their expansion.
The new study, titled Smart Regulation for SME Growth and Competitiveness, seeks to identify what a proportionate regulatory framework and an optimal tax mix could look like to help small businesses scale up, contribute more effectively to national revenue, and strengthen Zimbabwe’s industrial base.
“As part of this initiative, CZI is engaging with small enterprises across the country to better understand their operational challenges and the costs associated with compliance, taxes, and licensing,” the organisation said.
In September, CZI conducted seminars in Harare, Mutare, Bulawayo, and Masvingo to select SMEs in the manufacturing sector to participate in the modelling process. Participating enterprises provided data on employment, revenues, returns on investment, taxes, licenses, and regulatory fees including their share of operating costs. This information will inform the development of a model that promotes both compliance and business sustainability.
CZI said the ultimate goal is to demonstrate what an ideal regulatory and taxation environment would look like for Zimbabwe’s small-scale enterprises, ensuring that they are not overburdened by administrative requirements while remaining productive contributors to the economy.
“Small and medium enterprises are the backbone of Zimbabwe’s economy, accounting for a substantial share of employment and informal economic activity. For Zimbabwe to achieve inclusive industrialisation, it is essential to create a policy environment that nurtures entrepreneurship rather than constrains it,” CZI said.
The organisation extended its appreciation to all SMEs that participated in the first phase of the study and said it looks forward to moving into the next stage, which will involve modelling and testing potential policy recommendations.
Zimbabwe’s SME sector contributes significantly to the country’s economic output, with estimates suggesting that over 60% of the workforce is engaged in small-scale or informal enterprises. However, the sector continues to face challenges such as limited access to finance, complex licensing requirements, and high tax burdens relative to earnings.
Analysts say that streamlining the regulatory framework and simplifying tax compliance could help small businesses formalise operations, improve productivity, and contribute more effectively to the national fiscus. The CZI’s initiative aligns with broader efforts under Zimbabwe’s National Development Strategy 1 (NDS1), which emphasises private sector-led growth, innovation, and industrial competitiveness as drivers of sustainable economic recovery.
