Zimbabwe: African Development Bank Group funds new Tax Collection and Revenue Management System

Source: Zimbabwe: African Development Bank Group funds new Tax Collection and Revenue Management System | African Development Bank Group Government and African Development Bank officials at the launch of Zimbabwe’s new Tax and Revenue Management System, in Harare. The Government of Zimbabwe has completed the deployment of a new online Tax and Revenue Management System […]

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Source: Zimbabwe: African Development Bank Group funds new Tax Collection and Revenue Management System | African Development Bank Group

Zimbabwe: African Development Bank Group funds new Tax Collection and Revenue Management System

Government and African Development Bank officials at the launch of Zimbabwe’s new Tax and Revenue Management System, in Harare.

The Government of Zimbabwe has completed the deployment of a new online Tax and Revenue Management System (TaRMS), in a bold reform effort supported by the African Development Bank Group.

The new system was formally launched on 18 August 2025 in Harare by the country’s Deputy Finance Minister, Kudakwashe David Mnangagwa, the culmination of a process that kicked off in 2023 and has been implemented in phases since then.

The Tax and Revenue Management System was developed under a $10.4 million Tax and Accountability Enhancement Project supported by the African Development Bank as part of efforts to support the government’s efforts to enhance domestic resource mobilization.

The Bank provided a grant of $7 million for the design and development of the online system, while the Zimbabwe government funded the procurement of the hardware. The project also included training for internal and external stakeholders and users, as well as change management activities.

According to the Zimbabwe Revenue Authority (ZIMRA), revenue collected from new taxpayers increased by 238% in 2024—the first full year following commencement of rollout of the new system—compared to 2023.

Mnangagwa described the innovation as a bold step in the country’s economic reform agenda, aimed at enhancing revenue mobilization, improving taxpayer experience, and building a strong foundation for sustainable growth.

Zimbabwe’s Deputy Minister of Finance, Economic Development, and Investment Promotion, Kudakwashe David Mnangagwa, demonstrating the new online tax system.

Zimbabwe’s Deputy Minister of Finance, Economic Development, and Investment Promotion, Kudakwashe David Mnangagwa, demonstrating the new online tax system.

In his remarks at the event, ZIMRA Board Chairperson Anthony Mandiwanza, said; “TaRMS is fundamentally a nation-building instrument. It is a bridge connecting taxpayers and the Authority, cementing trust, transparency, and efficiency, while firmly aligning ZIMRA with the aspirations of Vision 2030.”
Kelvin Banda, Officer-in-Charge of the Bank Group’s Zimbabwe country office, highlighted the significance of improving the efficiency of revenue collection.

He said, “With dwindling development assistance and donor funding, as well as increased difficulties in accessing external loans, increased domestic resource mobilization is an essential policy mechanism to assist African countries in addressing their specific development challenges. This launch is a landmark milestone not only for the Government of Zimbabwe and the Zimbabwe Revenue Authority, but also for the African Development Bank.”
Cross section of attendees at the ceremony marking the official launch of the country’s new Tax and Revenue Management System, in Harare.

Cross section of attendees at the ceremony marking the official launch of the country’s new Tax and Revenue Management System, in Harare.

In recent years, public revenues in Africa have experienced stagnation and setbacks, amidst weak global economic growth and challenging macroeconomic conditions. Revenue to GDP levels in Africa lag those of other regions, with average tax-to-GDP revenues remaining below 15 percent for more than half of the continent’s countries.

The African Development Bank estimates that the median African tax-to-GDP ratio should increase from its current level — about 14 percent — to a minimum of 27.2 percent to close the estimated annual financing gap of $402.2 billion required to achieve the Sustainable Development Goals and the African Union’s Agenda 2063.

The introduction of TaRMS is expected to support Zimbabwe in closing revenue leakages, widening the tax base, and making it easier for compliant taxpayers to meet their obligations through reduced paperwork, faster processes, and clearer compliance rules for businesses.

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