Online Reporter
Tapiwanashe Mangwiro, Zimpapers Business Hub
THE Zimbabwe National Chamber of Commerce (ZNCC) has thrown its full weight behind the Government’s business regulatory reform programme, describing it as bold, inclusive, and a foundation for sustainable growth.
One of Zimbabwe’s biggest and influential lobby groups believes the reform programme is critical to creating the required pathway towards achieving the country’s Vision 2030, of upper upper-middle-income economy.
In detailed submissions to the Ministry of Finance, Economic Development and Investment Promotion, ahead of the 2026 National Budget presentation, ZNCC commended authorities for maintaining an open and consultative approach that keeps the private sector at the heart of economic transformation.
“The 2026 National Budget is not just another fiscal exercise; it is the first proving ground of NDS 2 (National Development Strategy 2) credibility,” the Chamber said.
“Its success will be judged by whether it can maintain macroeconomic discipline, widen fiscal space through formalisation, support industrial transformation, and rebuild trust in monetary and fiscal institutions.”
The chamber hailed the Government’s insistence on dialogue with industry, saying it reflects commitment to inclusive policy-making and acknowledges the private sector’s pivotal role in driving economic growth, employment creation, and industrial transformation.
It welcomed the accelerated review of regulatory fees, beginning with the agriculture sector, and urged that momentum be rapidly extended to manufacturing, wholesale and retail, and services.
“Our proposals are designed to be constructive and actionable,” ZNCC said. “They build on lessons from NDS1 while positioning the private sector as a central partner in implementing NDS2 priorities.”
The chamber noted that delayed payments to Government contractors and unsettled export balances were straining business cash flows. It recommended a Contractor Payment Clearing System to ensure all certified invoices are settled within 90 days, supported by tradeable Treasury Bills, deductible against tax liabilities.
“Predictable settlement of public obligations will inject confidence and improve tax compliance while preserving the credibility of the fiscal system,” ZNCC said.
Following the rebasing of the gross domestic product, Zimbabwe’s tax-to-GDP ratio stands at about 14 percent, below the regional target of 25 percent. ZNCC said the focus should now be on expanding production rather than introducing new taxes.
“Raising revenue sustainably requires broadening the base, enhancing efficiency, and deepening compliance, not new tax heads,” the chamber stated.
It commended the Treasury’s digitisation of tax systems and recommended reducing the Intermediated Money Transfer Tax to 1 percent on US dollar transactions and zero percent on ZiG transactions by 2027.
ZNCC further proposed allowing Value Added Tax refunds to offset other obligations and permitting cross-currency tax offsets, arguing that formal businesses carry a disproportionate tax burden.
Turning to banking, the Chamber urged Zimra to reverse the disallowance of interest expenses as deductible costs for tax purposes.
“Interest expenses constitute a legitimate and significant component of the cost of sales for financial institutions,” ZNCC said. “Reinstating these deductions will strengthen intermediation and reinforce confidence among depositors and investors.”
It also applauded monetary authorities for stabilising the domestic currency and reducing exchange-rate volatility, saying fiscal-monetary coordination had restored predictability and improved business planning.
ZNCC stressed that the next phase of growth should focus on industrialisation, beneficiation and export diversification. It noted that under NDS 1, manufacturing capacity utilisation averaged 51 percent, with manufactured exports making up less than 8 percent of merchandise exports.
“Without beneficiation, Zimbabwe will capture little value from its mineral wealth,” the chamber warned.
It is recommended that by 2027, at least 30 percent of lithium and platinum exports be beneficiated locally, backed by corporate-tax incentives. It also called for the activation of special economic zones in Bulawayo and Mutare, each offering five-year tax holidays tied to strict job-creation thresholds.
“These measures will help anchor Vision 2030’s target of an upper-middle-income economy driven by industry and innovation,” ZNCC said.
Citing ZimStats data showing 76 percent of business activity happening in the informal sector, the chamber said simplified procedures would draw thousands of entrepreneurs into the tax net.
It proposed “One-Stop Business Formalisation Centres” in every province and mobile platforms for registration and tax payment. “Linking registration to access to finance, insurance and procurement opportunities will make formality attractive,” it said.
The chamber also lauded the Government’s ongoing review of fees and licences, describing it as a progressive step that reduces compliance costs and promotes fair competition.
ZNCC said corruption and smuggling, estimated at over US$1 billion a year, must be tackled through technology and stronger coordination.
“Automation, accountability, and incentives can reduce leakages by at least 10 percent within two years,” it said.
The chamber urged the roll-out of AI-powered cargo monitoring, drones, and CCTVs at high-risk border posts, alongside joint anti-corruption audits by the Zimbabwe Anti-Corruption Commission, Zimbabwe Revenue Authority, and the Office of the Auditor-General.
Backing the Treasury’s drive to rationalise incentives, ZNCC said publishing an annual tax expenditure report would enhance transparency.
It recommended phasing out market-distorting subsidies, particularly grain acquisition programmes, while refocusing the Presidential Input Scheme on vulnerable rural farmers.
“This approach preserves social protection while promoting market-led input distribution,” the Chamber explained.
In closing, ZNCC reaffirmed its confidence in the country’s economic trajectory under the Second Republic.
“We recognise and commend the Government’s ongoing reform efforts,” it said. “Our recommendations are framed with a pragmatic view, to unlock the full potential of Zimbabwe’s businesses and ensure that growth is inclusive, resilient and transformative.”
The Chamber said a sustained partnership between Government and business would guarantee the success of Vision 2030.
“If effectively implemented, the 2026 Budget can anchor stability, industrialisation and prosperity that benefits every Zimbabwean,” ZNCC declared.
