CZI bemoans high regulatory fees

via CZI bemoans high regulatory fees | The Herald 14 November 2014

The manufacturing industry’s competitiveness has been seriously bogged down by unbearably high costs associated with difficult compliance requirements, a Confederation of Zimbabwe Industries study has found.

While the study identified several costs emanating from a number of statutory regulatory authorities constituting between 1 percent and 3,5 percent of total costs, three regulatory institutions were found to be most common across sectors.

These include National Social Security Authority, Environmental Management Agency and local authorities. However, other regulators contributing to the costs include Medicines Control Authority of Zimbabwe, Health Professions Authority, Pharmaceutical Council of Zimbabwe and Forestry Commission of Zimbabwe.

According to findings of the study carried out by CZI, contained in a preliminary position paper, the costs from the regulatory authorities pertain to three sectors, namely timber/furniture, chemicals and pharmaceuticals. But the findings could be generalised to the rest of the industry.

CZI held a workshop yesterday to digest findings of the study, carried out with assistance from Danish Industry, a sister industrial lobby group from Denmark, which has also gave lectures about its members’ experiences on similar issues.

“Three regulators sighted cut cross all sectors in addition to the other sector specific regulators. These are EMA, NSSA and local authorities,” said CZI membership and marketing services executive Mr Kuda Matare at the workshop.

Presenting findings of the impact of regulation on cost of doing business study, Mr Matare said NSSA required registration for the factory, elevators, escalators and boilers prior to giving approval for manufacturers to start operations.

A manufacturer pays registration fees of between $100 and $300 for the factory, $200 each for elevators or escalators, between $100 and $1800 for boiler (depending on size) while inspection fees for elevators or escalators are charged at $1000 each and $50 to $600 for boilers depending on the size.

Regulatory authorities in the pharmaceutical sector charge separate premise licences with the Medicines Control Authority of Zimbabwe at levying US$6 000 or more while the Health Professions Authority charges $1 150.

The premise licence fee for HPA is renewed yearly upon payment of US$575. PCZ charges $75 to register pharmacists, $125 practising certificate fee, $185 and $110 of for renewal of practicing certificate and pharmacy technicians’.

The Forestry Commission of Zimbabwe charges an application fee of $20, traders licence fee of $100, application fee for renewal of licence of $20, traders licence renewal fee of $100, which adds to the high cost for businesses.

Before starting operations, firms are required to submit an EIA report to EMA. EMA charges 1,5 percent on the project cost for EIA (that excludes actual process of carrying out EIA. Once the business has begun its operations it continues to be subjected to other EMA regulatory requirements.

Manufacturing premises are also required to be inspected by local council officials under the Council Act before the business starts operations as well as to be issued with an inspection/health certificate in line with the Public Health Act.