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

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.

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.

Source:


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

|
African
Development
Bank
Group