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Excessive Tax Burden Stifling Zimbabwe’s Economic Growth, Critics Say

“Critics argue that high taxes and poor management of public funds are stifling investment and hindering economic growth in Zimbabwe.”
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Zimbabwe’s economic development is being hampered by an excessive tax burden and mismanagement of public funds, say critics in the business community and civil society. Concerns have been raised over the country’s high taxation levels and the perceived lack of value returned to taxpayers through public services and investments.

Zimbabwe currently has 51 types of taxes, compared to South Africa’s seven, and 12 deductions from salaries. Critics argue that this heavy tax load discourages businesses from formalizing operations, as joining the formal system often leads to being overwhelmed by tax obligations. This situation, they say, has driven much of the economy underground, limiting economic growth and investment.

A key point of contention is the National Social Security Authority (NSSA), which has collected $25 billion over the past 20 years but is now reportedly valued at only $1.5 billion. Critics accuse NSSA of mismanagement and a lack of transparency, further eroding public trust. NSSA contributions are intended to provide social security, but many Zimbabweans feel the system fails to deliver on its promises.

“To attract greater investment and foster economic development, tax burdens must be lowered and public services improved,” one commentator said. “Economic progress will only be possible if investments are properly managed with a focus on value for taxpayers.”

Observers are now calling for policy reforms aimed at reducing taxes, improving the investment climate, and ensuring transparency in the management of public funds. Such measures, they argue, could help unlock Zimbabwe’s economic potential and foster sustainable development.

In addition to these concerns, Deputy Minister of ICT and Courier Services, Dingumuzi Phuti, speaking at a CEO Roundtable breakfast meeting in Harare, highlighted the detrimental impact of the complex tax structure on industry growth.

Phuti explained that the heavy tax load not only distorts the market but also forces service providers to pass the increased costs onto consumers, which limits affordability and slows the adoption of ICT services.

He called for a revision of the current taxation framework to create a more favorable environment for the ICT sector to thrive. Phuti stressed the alarmingly high tax burden on ICT players, warning that it impedes growth and negatively affects consumers.

editor
Abel Mavura is a journalist, editor, and writer whose work explores the intersections of cities, migration, and social justice. He tells stories about how people move, survive, and remake urban life under conditions of precarity, drawing on close field engagement and lived experience. Trained as a journalist at the Christian College of Southern Africa, Abel’s early work was rooted in media practice and community storytelling. Over time, his focus expanded into research and critical inquiry, allowing his writing to move fluidly between reportage, analysis, and long-form reflection. He is a graduate of Sciences Po Paris and is currently pursuing research at the University of Cambridge, where his work builds on earlier research into migration and informal housing. Abel is the author of three books, and his writing has appeared across platforms ranging from grassroots and community radio to international and policy-facing spaces. His work is grounded in clarity, ethical storytelling, and a commitment to centring voices often left out of mainstream narratives.

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