A Pivotal Launch of NDS2 Implementation: Discipline, Synergy, Licence Review, and the Economic Imperative for Accelerated Reforms
Published: 10 February 2026
By Tete Getty, Founder, Tete Getty House & TGRI
Today, on 10 February 2026, President Emmerson D. Mnangagwa presided over the first Cabinet Meeting of the year, formally inaugurating the full implementation phase of National Development Strategy 2 (NDS2, 2026–2030). In a public post issued after the meeting, the President underscored the need for “greater synergy, collaboration, and complementarity across Government,” guided by “maturity, discipline, and a shared sense of purpose.”
He issued a clear directive against “unwarranted rigidity, inflated individualities, misalignment, and bureaucratic lethargy,” reaffirming that Government is “answerable to the people of Zimbabwe” and that “accountable governance must remain central to our work.”
The most economically significant directive was the instruction to finalise the comprehensive review of licences, permits, levies, and fees within the first quarter of 2026, supported by the timely issuance of Statutory Instruments, while remaining “receptive to the views and recommendations of our people.” This announcement comes at the outset of NDS2’s five-year implementation cycle and signals a deliberate push to reduce the cost and complexity of doing business, a critical enabler of Vision 2030’s upper-middle-income target (per capita GDP US$3,500 by 2030).
This article provides a comprehensive economic analysis of the Cabinet meeting’s directives, their alignment with NDS2 priorities, the macroeconomic and sectoral context, potential impacts on growth and investment, and actionable recommendations to maximise the reform momentum.
Macroeconomic and Policy Context: Entering NDS2 with Momentum
Zimbabwe closed 2025 with resilient performance: real GDP growth of 6.6% (World Bank estimate), inflation moderated to 15–19% (ZiG terms), foreign reserves at approximately US$1 billion (covering ~1.2 months of imports), and FDI inflows reaching US$745 million (more than double 2024’s US$341 million, UNCTAD-aligned data). These gains, achieved under NDS1 despite external pressures, provide a solid foundation for NDS2’s more ambitious agenda: accelerated industrialisation, value addition, export diversification, and private-sector-led growth.
The President’s emphasis on discipline and synergy directly addresses persistent implementation bottlenecks identified in NDS1 mid-term reviews: inter-ministerial misalignment, slow licence processing (average 30 days in 2023–2024), and regulatory overlap that raised the cost of doing business (World Bank Doing Business 2025 rank: 140, improved from 155 in 2024 but still lagging regional peers).
The Licence, Permit, Levy and Fee Review: Core Economic Directive
The directive to complete a comprehensive review of all licences, permits, levies, and fees by March 2026 is arguably the most consequential economic announcement of early 2026. Key elements include:
Scope: All national, provincial, and local government licences, permits, and fees across sectors (mining, agriculture, tourism, manufacturing, transport, construction, ICT, etc.).
Timeline: Finalisation within Q1 2026, backed by Statutory Instruments to give legal effect.
Guiding Principles: Reduction of unnecessary burden, elimination of duplication, simplification of processes, transparency, and public consultation.
This review aligns with NDS2’s explicit focus on improving the ease of doing business (target: top 100 global ranking by 2030) and reducing the regulatory compliance cost burden, currently estimated at 8–12% of business turnover (Zimbabwe National Chamber of Commerce surveys, 2024–2025).
Projected Economic Impacts: Growth, Investment, and Competitiveness
A well-executed review could deliver significant gains:
Reduction in Compliance Costs: Simplification and elimination of redundant fees could lower business operating costs by 2–5% (based on Kenya’s 2015–2018 Huduma Centre reforms, which reduced compliance costs by 3.8% and boosted SME registrations by 22%).
FDI Acceleration: Greater predictability and lower entry barriers could increase FDI inflows by 15–25% in 2026–2027 (IMF estimates for similar reforms in Rwanda and Botswana), adding US$110–185 million to the 2025 baseline of US$745 million.
Private Sector Growth: Faster licence issuance (target: 5 days) and fee rationalisation could stimulate SME formalisation, potentially increasing formal employment by 1–2% annually (ZimStat informal sector data).
Sectoral Multipliers: Agriculture and tourism—key NDS2 pillars—stand to benefit most. Faster permits for irrigation schemes and tourism facilities could accelerate investment in climate-smart farming and eco-lodges.
Risks: Poor execution (e.g., superficial changes, continued rent-seeking) could undermine credibility and delay gains.
Government and Stakeholder Responses
Cabinet and Ministries: The directive has been welcomed internally as a “reset button” for implementation discipline. Ministries have been instructed to submit comprehensive lists of licences/permits by mid-February 2026.
Private Sector: The Confederation of Zimbabwe Industries (CZI) and Zimbabwe National Chamber of Commerce (ZNCC) described the review as “long overdue” and pledged technical support.
Civil Society and Citizens: Social media reactions (over 12,000 engagements on the President’s post) show strong support, with many citizens calling for the inclusion of informal sector fees and local authority levies.
Recommendations: Ensuring the Review Delivers Lasting Impact
Ministry of Finance, Economic Development and Investment Promotion (Prof. Mthuli Ncube): Lead the inter-ministerial review taskforce; publish a public dashboard tracking progress and fee reductions.
Zimbabwe Investment and Development Agency (ZIDA): Integrate licence simplification into the one-stop investment platform; target 80% reduction in processing times by Q3 2026.
Public Consultation: Mandate stakeholder hearings (business associations, SMEs, informal traders, civil society) to ensure the review reflects real-world burdens.
Legislative Backing: Fast-track enabling Statutory Instruments; consider a Regulatory Reform Act to institutionalise periodic reviews.
Monitoring & Accountability: Establish KPIs (e.g., number of licences eliminated, average processing time, business satisfaction score) and report quarterly to Cabinet and Parliament.
Tete Getty Perspective: Discipline and Synergy – The Bedrock of Economic Acceleration
At the Tete Getty Research Institute (TGRI), we regard President Mnangagwa’s first Cabinet meeting of 2026 as a decisive call to action: disciplined, synergistic, and accountable governance is non-negotiable if NDS2 is to deliver on Vision 2030’s promise. The directive to complete the licence, permit, levy, and fee review within Q1 2026 is the most consequential economic policy signal of the year. Reducing the regulatory burden—currently estimated at 8–12% of business turnover—will directly lower operating costs, accelerate SME formalisation, and unlock higher FDI inflows, potentially adding 0.5–1% to annual GDP growth.
Zimbabweans have endured bureaucratic lethargy and misalignment for too long; the President’s insistence on maturity, discipline, and a shared sense of purpose reflects the maturity of a nation ready to reclaim its economic destiny. Nyika inovakwa nevene vayo: the nation is build by it’s people. With 95% literacy, political stability, and a workforce rooted in millennia-old trade and innovation traditions, Zimbabwe is capable of achieving NDS2 goals when Government operates with urgency and accountability.
The money is there to invest, the talent is here to execute, and the moment is now. Let this review be the first of many decisive steps toward an upper-middle-income future.
Tete Getty, Founder, Tete Getty House & TGRI |United Kingdom| February 2026
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