In a strategic move to widen its dwindling revenue streams, Zimbabwe’s Government has enacted a new law mandating motorists to pay an annual $92 radio licence fee before obtaining vehicle insurance.
Touted by authorities as a fiscal lifeline, the policy is designed to shore up the financial base of the struggling State broadcaster, the Zimbabwe Broadcasting Corporation (ZBC), which has for years grappled with underfunding, low compliance in licence payments, and a shrinking advertising market.
With an estimated 1.2 million vehicles on Zimbabwe’s roads — but only about 800,000 insured — the law effectively turns every car radio into a potential revenue point for the state.
The Broadcasting Services Amendment Act, recently signed into law by President Emmerson Mnangagwa, ties radio licensing to motor insurance purchases, compelling motorists to comply or risk being uninsured. The quarterly fee of $23 has sparked immediate backlash from motorists and civil society groups, yet government insiders frame the measure as a “necessary recalibration” of funding mechanisms in a cash-strapped economy. Information Ministry official Nick Mangwana defended the law on social media, describing it as “fair” and essential for improving service delivery, while also helping eliminate loopholes that have historically undermined enforcement.
Revenue collected through the new levy is expected to not only support ZBC’s operations but also reduce its dependence on state subsidies, which have come under pressure in an inflationary climate. Although critics argue the fee is excessive and disproportionately burdens low-income citizens, the government sees it as a pragmatic instrument to stabilise the broadcaster’s finances. With exemptions planned for tourists and vehicles without receivers, the administration aims to present the policy as balanced — though opposition figures like Nelson Chamisa have labelled it “draconian” and a reflection of insensitive leadership.