Online Reporter
Rutendo Nyeve, Victoria Falls Reporter
ZIMBABWE has cemented its commitment to building a transparent and modern tax system, earning regional acclaim and positioning itself as a leading player in the global fight against illicit financial flows.
Finance, Economic Development and Investment Promotion Deputy Minister, David Mnangagwa, said this in his address at the 12th Competent Authorities Conference of the Global Forum on Transparency and Exchange of Information for Tax Purposes in Victoria Falls on Monday.
The conference has brought together tax authorities from across the globe to deliberate on one of the most pressing issues of the time -tax transparency, fairness and international cooperation.
Deputy Minister Mnangagwa said by hosting the event, Zimbabwe has demonstrated recognition of the growing role in advancing global tax cooperation, compliance and accountability.
He outlined some of the key milestones that underscore a strategic shift towards international best practices.
“Zimbabwe is proud to be a committed member of the Global Forum, a commitment that reflects our broader national vision to build a transparent, accountable and modern tax system that promotes investment, equity and development,” said Deputy Minister Mnangagwa.
“The concrete achievements highlighted include the signing and domesticating of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAAC), endorsing the Yaoundé Declaration and joining the African Tax Administration Forum’s (ATAF) Mutual Administrative Assistance platform.
“Furthermore, Zimbabwe is establishing frameworks for beneficial ownership transparency and preparing to implement the Automatic Exchange of Information (AEOI), a critical tool in detecting offshore tax evasion,” he said.
These reforms have not gone unnoticed.
In recognition of these efforts, the Minister of Finance, Professor Mthuli Ncube, was named the ATAF Exchange of Information Ambassador for Africa in 2024.
“More fundamentally, these milestones reflect Zimbabwe’s conviction that domestic resource mobilisation is the foundation of sustainable development and an imperative intervention to anchor the shift from a cycle of dependency on foreign development assistance,” he said.
Deputy Minister Mnangagwa emphasised on the devastating impact of illicit financial flows, a challenge particularly acute for Africa.
“The continent loses an estimated US$88 billion annually through illicit financial flows, resources that should be funding essential public services but are instead siphoned away through secrecy jurisdictions, shell companies and opaque structures,” he said.
Deputy Minister Mnangagwa charged the gathered Competent Authorities with the critical responsibility of addressing these challenges.
“Your work strengthens accountability and builds the confidence of citizens in public institutions, assuring them that justice and fairness are not ideals, but realities that can be delivered,” he said.
Looking forward, the Deputy Minister called for equity and sustained support, acknowledging that many developing countries still face constraints.
“To build an inclusive and fair international tax system, technical assistance, infrastructure investment and sustained knowledge-sharing must be sustainably scaled up,” he said.
The Deputy Minister Mnangagwa commended the OECD and the
Global Forum Secretariat for their invaluable support but called for deepened partnerships to ensure no nation is left behind.
He said the global financial landscape is evolving, including digital assets and cryptocurrencies.
He further highlighted new initiatives like the Crypto-Asset Reporting Framework (CARF) and the revised Common Reporting Standard (CRS) as vital tools.
“However, their success requires inclusivity, ensuring they reduce rather than widen global inequalities,” he said.
Deputy Minister Mnangagwa said the conference serves as a
platform for solidarity and shared responsibility, asserting that the fight against tax evasion and illicit financial flows cannot be won in isolation as it requires collective action.
“Transparency is not only a pillar of good governance, it’s also sound economics. By mobilising resources more effectively, we create opportunities for growth, fairness and improved livelihoods,” he said.
With this high-level endorsement and a clear roadmap, Zimbabwe signals its determination to continue on this path, aiming to foster a tax system that is not only modern and efficient but also a cornerstone of sustainable development and equitable growth for all its citizens.
