Vendors Initiative for Social and Economic Transformation (VISET) has applauded the government of Zimbabwe for tax reduction in the country while calling for a further review of taxes to be paid by the players in the informal sector as a way of achieving equity.
Speaking during a VISET National Open Policy discourse on informal Economy held in Harare on Thursday 26 February 2026, VISET panelist Mr. David Mutambirwa expressed that there was need for the review of tax policies in the informal economy since there existed different variables.
“Firstly, as VISET we applaud the government of Zimbabwe for the reduction of taxes in the country.However, we feel that there is more need to be done so that we do not have a case whereby all the informal traders pay the same tax yet they are in different income levels.
“We do not want all size fits all approach considering that we have vendors who sell sweets and some who are doing carpentry for instance, the two different classes should have different tax charges.Small traders should also pay small taxes and that is the only way that we can make them survive and grow,” said Mutambirwa
Speaking during panel discussions at the same event, economist Eddie Cross bemoaned exorbitant charges on legal infrastructure that has been built for informal traders saying that it is one of the constraints that is slowing down the formalization of the local informal economy.
He further condemned the act of confiscation of vendor’s goods saying that their dignity must be protected.
“In Zimbabwe we have too many taxes that are overburdening the ordinary members.We are calling for the simplification of the tax systems in the country.
“Also we are appealing to the government that there should be inclusion and consultation of the interested players inorder to avoid a situation of having exorbitant charges being set.For example, some of the infrastructure that has been built for the informal traders remain unoccupied because of high fees and if that trend continues we will not achieve formalization, affordability and inclusion.
“It is also worrisome that sometimes some of the vendors are having their goods confiscated.As a nation let us not treat them as criminals although they might be operating illegally, let us use ways to deal with the issue while giving dignity to the informal sector since we are saying that the sector is massively contributing to the growth of the economy,”he said
Meanwhile, speaking as the guest of honor, Ministry of Women’s Affairs, Community, Small and Medium Enterprises Development Deputy MinisterJennifer Mhlanga acknowledged the significance of the informal traders to the economy of the country and further expressed government’s committment to capacity building and formalization of the sector, infrastructure development and financial support for Micro Small to Medium Enterprises (MSMEs) among others.
“We acknowledge that MSMEs are the backbone of our economy in terms of job creation and poverty alleviation.They contribute to 70% of jobs and 60% to the Gross Domestic Product of our economy.
“The situation is that 86% of the MSMEs are operating within the informal sector and that is why as the government we are scaling up efforts towards the formalization of these businesses.
“However, we are aware of the challenges that these MSMEs are facing that include limited access to finance, regulatory requirements which cause others to abandon operations and infrastructure challenges among others.
“Therefore, we stand to assist these MSMEs by establishing strategies and policies that allow them to survive and grow.We are always working on sustainable business growth and capacity building strategies that include policy reviews, financial support, access to market and technology adoption.
“We have also realised that inadequate work spaces for MSMEs has negatively affected product quality, workers safety and regulatory compliance therefore we are investing in the construction of MSMEs dedicated work spaces across the country.So far we have built formal structures in Harare, Chivhu and Gweru.We are also supporting the growth of these businesses through the Women Developmemt Fund and Community Development Fund,” said Mhlanga
Vendors Initiative for Social and Economic Transformation is a non-profit organization in Zimbabwe that advocates for the socio-economic rights of vendors and informal traders, working to promote transparency and accountability in local government finances, especially in the health sector.
VISET has been involved in various initiatives, including policy dialogues on informal economy taxation, capacity building for local authorities, and empowering communities to engage in budget processes.
