Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube presented a report on the review of licences, permits, levies and fees, including e-hailing transport services, to Cabinet.
Cabinet approved interim measures for the sector, including the five-month moratorium, during which the Government will work with industry players and regulators to develop a framework for e-hailing services.
Ncube said e-hailing had become an important part of Zimbabwe’s transport system, providing affordable and convenient services while creating employment opportunities, particularly for young people.
“Cabinet notes that they are providing convenient, affordable and more dignified services to the public as well as employment opportunities especially for the youths,” Ncube said.
However, he said regulatory challenges were affecting the ease of doing business in the sector.
“Accordingly, and following consultations with players and regulatory authorities, Cabinet has approved Interim Transitional Measures, entailing observance of a 5-month moratorium to enable a thorough review of the e-hailing transport services,” Ncube said.
During the moratorium, the Government will work with operators and regulatory authorities to develop a self-regulatory framework to guide e-hailing drivers and operators and strengthen passenger safety.
E-hailing businesses will also be required to register with the Zimbabwe Revenue Authority (ZIMRA), while operators already registered with the tax authority will be required to regularise their tax registration.
The move is expected to clarify the tax obligations of e-hailing operators and drivers while bringing the growing sector further into the formal revenue system.
Cabinet has also directed the Ministry of Transport and Infrastructural Development to develop regulations specifically for e-hailing services.
Ncube said the regulations would be developed in consultation with stakeholders and take into account international best practices.
“Ultimately, the regulations should promote the provision of safe, secure, convenient and affordable transport services in line with the aspirations of the National Development Strategy 2,” he said.
The review comes as app-based transport services continue to expand in Zimbabwe, providing an alternative to conventional public transport and creating income opportunities for drivers.
The moratorium will give the Government time to address issues including passenger safety, driver regulation, taxation and the operation of e-hailing platforms before permanent regulations are introduced.
The e-hailing review is part of a broader Government exercise to review licences, permits, levies and fees across 13 priority sectors in an effort to reduce the cost and complexity of doing business.
The review covers agriculture, manufacturing, tourism, transport, wholesale and retail, energy, broadcasting, telecommunications, construction, banking and financial services, health and mining.
Cabinet said the reforms were intended to strengthen the competitiveness of the economy, improve public service delivery and promote inclusive and sustainable development.