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HARARE — Zimbabwe is preparing to tighten the integration of its informal economy into the national tax system by linking the renewal of local authority vendor licences to compliance with presumptive tax requirements administered by the Zimbabwe Revenue Authority (ZIMRA).

Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has proposed that councils and ZIMRA share registration and payment information through integrated digital platforms, effectively making tax compliance part of the process through which vendors and other small traders retain their operating licences.

The proposal comes as Treasury seeks to broaden the country’s tax base beyond formal companies, employees and established businesses, which currently account for a significant share of government revenue.

Zimbabwe collected ZiG137.8 billion, equivalent to approximately US$5.15 billion, during the first half of 2026, exceeding its ZiG124.4 billion target by ZiG13.4 billion, or 10.8%.

Value-added tax remained the largest source of revenue, contributing 28% of collections, followed by personal income tax at 17%, corporate income tax at 14%, excise duty at 8% and the Intermediated Money Transfer Tax at 6%.

Informal economy becomes the next tax frontier

The proposed reform reflects Treasury’s growing focus on economic activity that is visible to local authorities but remains outside the formal national tax system.

Councils already hold information on traders operating from markets, stalls, shops and designated vending areas, including their names, locations, business categories, licence histories and renewal dates. ZIMRA, meanwhile, administers presumptive taxes through a separate system.

Integrating the two databases would allow Government to use existing municipal records to identify businesses, allocate appropriate tax categories, record payments and verify tax compliance during licence renewals.

Rather than relying entirely on costly inspections to identify informal businesses, the system would turn the annual licensing process into a recurring tax-registration and compliance mechanism.

Formal businesses face competitive pressure

The move could also address concerns from Zimbabwe’s formal private sector, where registered businesses face a wider range of tax and regulatory obligations, including corporate income tax, VAT, PAYE, withholding taxes and various statutory charges.

Informal and micro businesses can sometimes compete in the same markets while carrying a substantially lighter formal compliance burden. This can create differences in operating costs, pricing and margins across sectors such as retail, transport, food services and personal services.

Broadening the taxpayer base would allow Treasury to raise additional revenue from a larger segment of economic activity rather than placing increasing pressure on businesses and consumers already inside the tax system.

Fiscal space remains constrained

The proposed reform also comes against a backdrop of significant fiscal constraints.

Government spent ZiG123.6 billion during the first six months of 2026, leaving revenue ZiG14.2 billion above expenditure. Treasury directed the resulting surplus towards public debt and arrears owed to service providers.

The significance of expanding the taxpayer base therefore extends beyond simply increasing revenue. Sustained domestic collections could strengthen Government’s capacity to service debt, clear arrears and finance public services from current income.

VAT’s dominance, however, highlights another challenge for policymakers. While strong VAT collections provide a reliable source of government revenue, the tax is ultimately embedded in the prices paid by consumers. Excessive reliance on consumption taxes can place pressure on household purchasing power and potentially weaken demand if tax costs continue to rise.

Formalisation could improve access to finance

The proposed tax integration could also have implications beyond revenue collection.

A trader who becomes formally registered and develops a consistent record of licence renewals, tax payments and digital transactions would begin creating an identifiable business history.

That information could potentially help banks, insurers, suppliers and microfinance institutions assess the creditworthiness of small enterprises that currently struggle to demonstrate verifiable turnover or an established operating record.

Formalisation could therefore improve access to working capital, merchant payment facilities, asset finance, supplier credit and insurance, creating a potential bridge between informal trading and the formal SME sector.

Councils could benefit from integrated system

Local authorities would also stand to benefit from a unified digital system.

Integrated licensing and tax records could improve trader identification, reduce duplicate or fraudulent licences, strengthen revenue collection and provide councils with a clearer picture of commercial activity within markets and urban centres.

Better data could subsequently support planning for sanitation, security, infrastructure and market facilities.

However, the success of the policy will depend heavily on how the presumptive tax system is designed.

Simplicity critical to compliance

A uniform tax charge could prove problematic because Zimbabwe’s informal economy contains businesses with vastly different levels of turnover and profitability.

A small street trader operating with limited daily sales should not necessarily face the same tax burden as a trader operating multiple outlets or generating substantially higher revenues.

A graduated system based on factors such as business activity, location, licence category and turnover would provide a more credible pathway from survivalist trading towards established SME status and eventually into the ordinary tax regime.

Excessive fixed charges could have the opposite effect, encouraging traders to abandon licence renewal and move further outside the formal system.

Vendors already face rentals, market fees, licence charges and other local authority levies. Adding national tax obligations without simplifying the payment process could create an excessive compliance burden.

A single digital platform showing all applicable charges, payment history and compliance status could therefore be critical to the reform’s success.

Digital infrastructure and trust will determine outcome

Technology will be central to implementation.

Incorrect records, delayed payment confirmations or mismatched taxpayer information could prevent compliant businesses from renewing licences. The system would therefore require clear procedures for correcting errors, resolving disputes and handling temporary compliance issues.

Data protection will also become increasingly important as councils and ZIMRA begin sharing commercially sensitive information, including identification details, business activity and payment records.

For the reform to gain acceptance, traders must be able to see what information Government holds on them and have mechanisms to challenge inaccurate liabilities.

From tax collection to SME development

The broader economic test will be whether the reform produces more than additional tax revenue.

Treasury could measure its success by tracking the number of new active taxpayers, licence-renewal rates, revenue collected per registered trader, administrative costs and the number of businesses graduating into higher turnover categories and eventually ordinary tax registration.

The extent to which newly formalised businesses gain access to credit, insurance and digital financial services could provide an even more meaningful measure of whether formalisation is creating economic value.

The Government could initially pilot the system in local authorities with established digital licensing infrastructure before expanding it nationally. Such pilots would allow authorities to test taxpayer identification, tax classification, payment confirmation and licence renewal processes before a wider rollout.

Professor Ncube’s proposal effectively transforms the municipal vendor licence from a local permission to trade into a potential national tax-administration gateway.

For Treasury, the immediate opportunity is to capture a larger share of economic activity already taking place. For businesses, the longer-term opportunity is to convert formalisation from a compliance cost into an economic asset that creates a verifiable business history and potentially improves access to finance.

The policy’s success, however, will ultimately depend on whether operating legally becomes simpler, cheaper and more commercially beneficial than remaining outside the system.

The post Zimbabwe Moves to Link Vendor Licences to Tax Compliance in Informal Economy Push appeared first on The Zimbabwe Mail.

HARARE — Zimbabwe’s admission as a borrowing member of the BRICS New Development Bank (NDB) has opened a potentially significant new source of long-term infrastructure finance, with the Government considering a pipeline of major energy, transport and urban development projects for possible funding.

Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the Government was assessing several strategic projects that could eventually be submitted to the NDB, positioning the multilateral lender as an additional source of development capital as Zimbabwe seeks to address its infrastructure deficit and accelerate economic growth.

Among the projects under consideration are the expansion of power generation at Hwange, the refinancing and asset recycling of the Beitbridge–Harare highway, Zimbabwe’s contribution to the Batoka Gorge Hydroelectric Project and the development of an urban mass-transit system linking Chitungwiza, Harare and Mt Hampden.

The proposed financing pipeline comes at a time when Zimbabwe is seeking to diversify its sources of external capital and reduce its dependence on traditional Western-led development finance institutions. Membership of the NDB gives Harare access to an institution established specifically to finance infrastructure and sustainable development projects in emerging and developing economies.

Hwange expansion on the agenda

In the energy sector, Government is considering financing for Hwange Power Station Units 9 and 10, building on the completion of Units 7 and 8.

The expansion would add to Zimbabwe’s domestic generation capacity and potentially reduce the economy’s exposure to electricity shortages, which have historically constrained industrial production, mining and investment.

Additional generation capacity is particularly important as Zimbabwe seeks to expand energy-intensive industries, including mining and mineral beneficiation, while improving the reliability of electricity supplies to businesses and households.

Beitbridge–Harare highway could unlock capital

Government is also considering an asset-recycling model for the Beitbridge–Harare highway, potentially allowing it to recover capital already invested in the road while retaining the infrastructure as a revenue-generating asset.

Under the proposed structure, financing would be repaid through toll revenues over a concession period of between 25 and 30 years.

Such a model could allow Government to recycle capital from an existing infrastructure asset into new projects rather than relying exclusively on additional borrowing. It would also potentially demonstrate how completed infrastructure can be converted into long-term financing capacity.

The Beitbridge–Harare corridor is strategically important because it forms part of Zimbabwe’s principal north-south trade route, connecting the country to South Africa and providing a major transport artery for regional commerce.

Batoka Gorge seeks financing breakthrough

Another major project on the Government’s radar is the Batoka Gorge Hydroelectric Project, a joint Zimbabwe-Zambia development that has long been viewed as one of the region’s most important untapped power-generation opportunities.

Zimbabwe is considering securing NDB financing for its estimated US$150 million contribution to the project.

The proposed development would significantly increase regional electricity-generation capacity and could strengthen Zimbabwe’s position in the Southern African regional power market.

For Zimbabwe, participation in Batoka would also represent an opportunity to secure a long-term strategic energy asset without having to finance the entire project from domestic resources.

Monorail proposal signals shift towards urban infrastructure

Government is also considering NDB financing for a proposed monorail linking Chitungwiza, Harare and Mt Hampden, reflecting growing pressure on Zimbabwe’s urban transport infrastructure.

The project is intended to provide a modern mass-transit alternative to road-based public transport while addressing congestion along one of the country’s busiest urban corridors.

If developed, the rail system could have wider economic implications by improving labour mobility, reducing commuting costs and connecting residential areas with major employment and commercial centres.

New financing channel for Zimbabwe

Professor Ncube said Government was still preparing its project portfolio for submission to the NDB, meaning the proposed projects remain at the pipeline and financing-preparation stage rather than representing approved loans.

However, Zimbabwe’s new borrowing status could materially expand the country’s financing options at a time when access to long-term development capital remains constrained by high debt levels, external arrears and limited fiscal space.

The NDB, established by Brazil, Russia, India, China and South Africa, has increasingly positioned itself as an alternative source of infrastructure finance for emerging markets, with an emphasis on transport, energy, water, urban development and other large-scale projects.

For Zimbabwe, the immediate significance of NDB membership may therefore extend beyond individual projects. It gives the country another institutional platform through which to structure commercially viable infrastructure projects, mobilise foreign capital and potentially attract additional private-sector investment.

The challenge will now be to convert the membership into a credible, bankable project pipeline. Zimbabwe will need to demonstrate that proposed projects have robust feasibility studies, reliable revenue models, transparent procurement arrangements and sufficient capacity to service the resulting debt.

If it succeeds, NDB membership could become an important component of Zimbabwe’s broader infrastructure-financing strategy, particularly as the country seeks to modernise its energy and transport networks while laying the foundations for renewed industrial growth.

The post Zimbabwe’s BRICS Bank Borrowing Status Opens Door to Major Infrastructure Financing appeared first on The Zimbabwe Mail.

HARARE – The high, grey walls of Chikurubi Maximum Security Prison often swallow the dreams of many, but for Leah Chikwekwe, they are reminder of a night where greed, desperation, and a craving for drugs led to her downfall. The 27-year-old Mbare woman, whose life was once a whirlwind of illicit deals in the capital’s […]

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CAPE TOWN – South Africa’s Sports Minister Gayton McKenzie has urged African football authorities to resist calls for the removal of FIFA President Gianni Infantino, arguing that the continent should not allow political tensions within world football to undermine a relationship that has delivered significant benefits to African football.

Writing on social media, McKenzie said African countries should carefully consider their position before joining what he described as a campaign to publicly discredit the FIFA president.

“Africa should be cautious in joining the public lynching of Infantino. He has been very good to African football,” McKenzie wrote. “We can debate his ideas but let’s not forget who has been a friend to us.”

He warned that some of Infantino’s most vocal critics may ultimately be seeking a return to the traditional power structure within international football.

“Many of those calling for his head want the old status quo back too,” McKenzie said.

Growing divide over FIFA’s direction

The intervention comes amid increasingly visible tensions between European football authorities and the FIFA leadership over the future direction and commercial governance of the global game.

Infantino has sought to expand FIFA’s commercial and development activities while strengthening the financial position of member associations outside the traditional football powers of Europe and South America.

Supporters argue that his administration has increased financial flows to developing football nations and given smaller associations a stronger voice within FIFA’s decision-making structures.

Critics, particularly within parts of European football, have raised concerns about governance, transparency and the concentration of authority around the FIFA presidency.

The dispute has consequently developed beyond a disagreement over individual policies into a broader contest over the distribution of political and commercial influence within world football.

Africa urged to protect its interests

McKenzie’s intervention reflects a growing argument within African football that the continent should assess the FIFA dispute primarily through the lens of its own long-term interests.

Africa has 54 FIFA member associations and remains one of the largest voting blocs within the organisation. Alongside Asia, the continent represents a substantial constituency of countries whose influence has historically been smaller than that of Europe’s established football powers.

McKenzie suggested that African football should therefore be wary of supporting an attempt to restore an older balance of power without first considering what that could mean for the continent’s access to FIFA resources and development programmes.

Qatar and Sri Lanka have also openly expressed support for Infantino, while backing from a wider group of African and Asian associations is expected to strengthen the FIFA president’s position.

The support reflects the growing political importance of FIFA’s smaller and developing member associations, many of which have benefited from expanded development funding and increased participation opportunities under the current administration.

FIFA leadership reaffirms support

The FIFA leadership has meanwhile sought to project unity following its meeting in Rabat, Morocco.

In a statement issued after the meeting, FIFA said its Secretary General and members of the FIFA Management Board who attended had reaffirmed their “full support” for Infantino.

“FIFA leadership holds constructive and positive meeting in Rabat, Morocco,” the organisation said.

FIFA described Infantino as the only official elected by all 211 FIFA Member Associations, while also saying the president had reiterated his support for the Secretary General and the FIFA administration.

The statement was intended to reinforce the legitimacy of the current leadership amid mounting criticism and speculation over its future.

A battle over football’s political economy

The emerging confrontation is increasingly being viewed as a contest over more than Infantino himself.

At its core is a question over who controls the political and commercial architecture of global football and how its enormous financial resources are distributed between established football markets and the developing world.

European football remains the financial centre of the global game, with its leagues, clubs, broadcasters and commercial markets generating enormous revenues. However, FIFA’s 211-member structure gives developing football nations considerable collective voting power.

That creates a fundamental tension between economic power and institutional voting power.

For African and Asian associations, the current FIFA structure offers an opportunity to translate their numerical strength into greater influence over the distribution of football’s global resources.

McKenzie’s intervention suggests that South Africa, at least politically, does not intend to surrender that leverage easily.

For Africa, the debate may therefore ultimately be less about whether every decision made by Infantino is correct and more about whether removing him would strengthen or weaken the continent’s position within the global football economy.

As the political contest intensifies, African and Asian football associations are likely to face increasing pressure to choose sides. The outcome could determine not only the future of Infantino’s presidency, but also the balance of power between Europe’s established football interests and FIFA’s broader membership.

The post South African Sports Minister Backs Infantino, Warns Africa To Be Wary of Europeans’ “Mob-Lynching” appeared first on The Zimbabwe Mail.

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