AfDB tax reform project delivers gains for Zimbabwe

Published: 11 June 2026

A US$7.6 million tax administration and governance reform programme funded by the African Development Bank (AfDB) has delivered significant improvements in Zimbabwe's revenue collection system, with a new digital tax platform driving higher taxpayer registrations, improved compliance and lower collection costs.

The Tax and Accountability Enhancement Project (TAEP), which seeks to strengthen domestic resource mobilisation and improve public financial management, has been largely rated a success after achieving most of its key performance targets through the implementation of the Tax and Revenue Management System (TaRMS) and related institutional reforms.

According to an AfDB project assessment report, the programme achieved three of its four primary outcomes and met 94.4 percent of its output targets, reflecting strong implementation progress and positive results across key areas of tax administration and governance.

"The project's performance at the outcome level is rated satisfactory. It has fully achieved three outcomes, and the fourth is likely to be achieved. At the output level, overall achievement is also rated satisfactory, with 94.4% (17 out of 18) of outputs either fully achieved or on track," the bank said.

The project was designed to enhance the country's ability to mobilise domestic resources, strengthen accountability in public institutions and improve institutional integrity through the automation and modernisation of tax administration systems.

Central to the programme has been the rollout of TaRMS, a digital platform aimed at improving efficiency in tax administration, expanding the taxpayer base and streamlining revenue collection processes.

The AfDB noted that diagnostic and evaluation tools such as the Tax Administration Diagnostic Assessment Tool (TADAT) and the Public Expenditure and Financial Accountability (PEFA) framework remain critical in assessing institutional performance and informing future reforms.

TADAT is an internationally recognised assessment framework developed with support from organisations including the International Monetary Fund and the World Bank to evaluate the effectiveness of tax administration systems. PEFA, meanwhile, measures the quality and performance of public financial management systems.

The bank said the Zimbabwean government had demonstrated commitment to implementing governance reforms aligned with national development priorities and economic reform programmes.

"Government has expressed commitment to developing and implementing governance reforms in line with the National Development Plan (NDP) and Staff Monitored Programme (SMP)," the report said.

The AfDB indicated that monitoring and evaluation mechanisms embedded within the project are designed not only to track implementation progress but also to identify emerging risks and support timely corrective action where necessary.

It added that the bank would continue engaging authorities to ensure the project remains relevant and supports broader economic and governance reform objectives.

"The bank will remain engaged with and sensitise the authorities to ensure the project remains relevant and supports the implementation of SMP priorities," it said.

The report also highlighted measures agreed between the bank and government to strengthen financial management and procurement oversight, ensuring compliance with international fiduciary standards.

As part of these safeguards, regular on-site reviews will be conducted at least twice annually, covering internal control systems, procurement processes, transaction verification, internal audit assessments and audited financial statements.

Analysts say improved tax administration is critical for Zimbabwe's efforts to increase domestic revenue mobilisation, reduce dependence on external financing and create fiscal space for public investment and service delivery.

The successful implementation of TaRMS is also expected to enhance transparency, improve taxpayer experiences and strengthen the efficiency of revenue collection, supporting broader efforts to modernise public sector institutions and improve governance outcomes.

With domestic resource mobilisation increasingly viewed as a key pillar of sustainable economic development, the project's achievements are expected to contribute to stronger fiscal management and improved public sector accountability in the years ahead.
- newsday

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