Zimbabwe is making progress towards strengthening domestic resource mobilisation, with the country’s tax revenue-to-Gross Domestic Product (GDP) ratio projected to reach 18,9 percent in 2027.
The projected increase would bring Zimbabwe in line with the 18,9 percent average cited for middle-income countries in the latest global data compiled by the Organisation for Economic Co-operation and Development (OECD).
The development is also in line with the National Development Strategy 2 (NDS2), which seeks to raise the country’s broader revenue-to-GDP ratio to above 22 percent by 2030.
Speaking at the Zimbabwe Economic Development Conference (ZEDCON) 2026, ZIMRA Commissioner-General Regina Chinamasa said increasing domestic revenue was critical to supporting the country’s development ambitions.
“The size of our tax revenue must match the size of our 2030 dream of an upper-middle-income Zimbabwe,” she said.
According to projections, Zimbabwe’s tax revenue-to-GDP ratio is expected to rise from 17,3 percent in 2026 to 18,9 percent in 2027, before increasing to 19,9 percent in 2028, 20,9 percent in 2029 and 21,9 percent by 2030.
Ms Chinamasa said the projected 2026 performance could reach between 17,5 and 18,2 percent, placing the country ahead of its annual target, although still below the cited 18,9 percent benchmark.
“Despite being ahead of target, the projected performance remains between 0,7 and 1,4 percentage points below the cited OECD upper-middle-income benchmark of 18,9 percent,” she said.
She said the projections indicated that Zimbabwe could reach parity with the benchmark in 2027 as efforts to broaden the tax base, improve compliance and strengthen revenue administration gather pace.
The gap between Zimbabwe’s tax revenue-to-GDP ratio and the NDS2 target of 22 percent is also expected to progressively narrow, falling from 4,7 percentage points to just 0,1 percentage points by 2030.
Chinamasa said higher and sustainable tax revenues were essential for financing infrastructure, social services and economic transformation.
“Our 2026 to 2030 strategic pillars are mandate pillars powered by two enabling pillars, underpinned by robust governance and risk management,” she said.
She identified revenue mobilisation and tax-base expansion, ease of doing business and trade facilitation, digital transformation and innovation, as well as human capital excellence and people transformation as key strategic pillars.
Under NDS2, Government has placed greater emphasis on domestic resource mobilisation as it seeks to maintain fiscal sustainability and finance national development priorities.
The strategy identifies tax reforms, broadening the tax base, improving compliance among formal and informal businesses and increasing the use of technology in tax administration as key measures.
ZIMRA’s 2026–2030 strategy similarly places domestic resource mobilisation at the centre of its contribution to NDS2 and Vision 2030.
The authority is pursuing measures including integrating more informal sector operators into the formal tax system, improving voluntary compliance and leveraging technology to strengthen revenue collection.
The growing focus on locally generated revenue comes as Zimbabwe seeks to strengthen its capacity to finance economic and social programmes while reducing reliance on external sources of development finance.
