THE Zimbabwe National Organisation of Associations and Residents Trust (ZNOART) has called for urgent reforms to stop local authorities from linking business licensing to property rates arrears.
The organisation warned that the practice is crippling compliant businesses and undermining economic growth in the country.
In a statement yesterday, ZNOART said many businesses across Zimbabwe were being denied renewal of operating licences due to unpaid rates owed by property owners.
The organisation described the situation as unfair, noting that tenants — especially small and medium enterprises (SMEs) — are being penalised for obligations beyond their control.
“Compliant businesses are increasingly being denied licences because of landlords' arrears, a practice that is neither clearly supported by law nor economically sustainable,” ZNOART national chairperson Shalvar Chikomba said.
He said local authorities were demanding rates clearance certificates tied to landlords and, in some cases, applying enforcement measures that affected all tenants within a building. This, he added, led to increased costs, operational uncertainty and a rise in informal business activity.
Chikomba warned of a policy gap between the Shop Licences Act, which regulates business licensing, and the Urban Councils Act, which governs the collection of municipal rates.
He argued that no clear legal provision explicitly links business licensing eligibility to property rates payment compliance by landlords.
The trust warned that the current system reflects a “misalignment of accountability,” where tenants are effectively held liable for debts incurred by property owners.
It also accused councils of administrative overreach by using licensing processes as a tool for debt
recovery.
Chikomba said SMEs were the hardest hit due to their limited bargaining power, while landlords remained non-compliant despite indirect pressure.
The organisation added that the practice risked discouraging investment and weakening Zimbabwe’s ease of doing business.
Chikomba urged the Local Government and Public Works ministry to issue a directive to the effect that business licencing should not be hindered by rates arrears beyond the applicant’s control.
He also called on councils to accept tenant-specific compliance documentation and provide written reasons for licence refusal.
In the medium to long term, the organisation proposed legislative reforms to separate tenant licensing from landlord obligations, introduce tenant protection measures and establish a standardised national licensing framework.
It also advocated for the digitisation of licensing and rates systems, alongside the introduction of dual compliance mechanisms distinguishing between business and property obligations.
ZNOART said international best practice supported entity-based licensing systems, where municipal debts are pursued directly against property owners rather than tenants.
The organisation plans to engage key stakeholders, including government ministries, local authorities and business groups, through consultations and technical working groups to push for reforms.
“Compliant businesses must be allowed to operate independent of landlord arrears, while property owners remain fully accountable,” Chikomba said, adding that a balanced approach was necessary to promote economic growth and improve governance.
ZNOART is an umbrella body representing residents and associations across Zimbabwe, focusing on service delivery, infrastructure development and accountability.
