Online Reporter
Nelson Gahadza
THE economic census conducted by the Zimbabwe National Statistics Agency (ZimStat) from June 2024 to March 2025 will enable policymakers to come up with well-informed policies, while assisting businesses to make evidence-based decisions on investment.
ZimStat conducted the first-ever economic census in Zimbabwe in a bid to understand the structure and size of the economy.
Reviewing the census preliminary report, lead economic research officer at the Confederation of Zimbabwe Industries (CZI) Mr Macdonald Mutengo said the statistics were a useful tool for planning.
“This economic census is not only about statistics; it is also about understanding our economy at a general level for both policymakers and businesses,” he said.
“As the economy gears up for the development of National Development Strategy 2 (NDS2), the statistics will be helpful to understand the economy and be able to make tailor-made policies that address some of the challenges that we are facing in the economy.
“For businesses, this is very important for us to make evidence-based decisions as we invest, as well as plan.”
According to ZimStat, Zimbabwe’s economy is characterised by both formal and informal sectors, spanning across all industries and contributing to the gross domestic product (GDP).
The agency highlighted that, although the informal sector is increasingly becoming a significant source of livelihoods, its contribution to Government revenue remained minimal due to non-compliance with the formal tax system.
The census identified a total of 204 798 operational business establishments across the country, with the majority operating outside formal registration frameworks.
Of the total business establishments surveyed, 76,1 percent of the operations were categorised as informal, meaning they were not registered by the Registrar of Companies, the Registrar of Cooperatives, the Zimbabwe Revenue Authority or the National Social Security Authority, or did not consistently keep records.
The remaining proportion comprised formal businesses.
The report further highlighted that 87,9 percent of all establishments were micro-enterprises, adhering to the criteria set out in the Small and Medium Enterprises Act.
Mr Mutengo said the rising informality is a critical risk for the economy.
“Almost 76 percent of businesses operating in Zimbabwe are informal, and that is more than three quarters.
“That means less than one quarter of the businesses that are formal are carrying the tax burden, and they are highly taxed and highly regulated,” he said.
He noted that the contribution of corporate tax was declining from about 30 percent in 2021.
“At CZI, we did a survey, and we found that about 18 percent of overall costs are regulation costs, and this is affecting businesses. Treasury has a duty to expand the tax base; hence, there is a need to encourage formalisation,” said Mr Mutengo.
He noted that policymakers must make a case study on the informal sector and streamline the regulations, a move that will encourage them to formalise.
ZimStat director-general Mrs Tafadzwa Bandama said the economic census, being the most comprehensive enumeration of business and economic activities in the country, was a cornerstone of national planning, policy formulation and evaluation.
“Today we present to you the preliminary findings which offer an early insight into the structure of the economy, as well as the distribution and scale of activities that are carried out in the country, in the provinces and districts, even at the ward level,” she said.
“The results are critical for identifying growth opportunities in the country, mapping investment strategies and potential in the country, and addressing structural challenges within the economy to inform evidence-based and decision-making in the country.”
Presenting the census findings, ZimStat director for production statistics Mrs Mationesa Phiri said the report showed that the wholesale and retail trade sector dominated the business landscape, comprising 73,13 percent of establishments; followed by manufacturing, at 8,24 percent.
“However, the census revealed that only 23,9 percent of all establishments were operating formally, with Bulawayo province having the highest proportion of formal establishments, at 46,4 percent,” she said.
The census looked at capacity utilisation in various sectors, and in the mining and quarrying sector, it ranged from 44,7 percent to 68,1 percent, while in manufacturing, it ranged from 40,9 percent to 61,9 percent.
Commenting on the census results, University of Zimbabwe Business School’s Professor Albert Makochekanwa said the figures on provincial levels were good for policymakers, in line with the devolution agenda.
He noted that the census should have presented data that takes into account the dollarisation nature of the informal sector, for instance, the contribution the players in this sphere make in the value chains.
Online Reporter