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Zimbabwe vendors required to use POS machines
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The Government has introduced a directive requiring all vendors to use Point of Sale (POS) machines and open bank accounts as part of their registration process. This initiative, implemented in collaboration with local authorities, aims to formalize the informal sector and enhance tax compliance.
Previously, the registration and licensing of vendors were solely managed by local authorities. However, under the new system, registration will now include tax compliance measures to ensure that all eligible vendors contribute to national revenue.
Announcing the initiative during a post-Cabinet briefing on Tuesday, Information, Publicity, and Broadcasting Services Minister Dr. Jenfan Muswere said the Government would also introduce a compulsory tax payment system for informal traders. To oversee its implementation, a Domestic Inter-agency Team will be established to enforce compliance within the informal sector.
The directive is part of broader economic stabilization measures approved by Cabinet following a presentation by the Minister of Finance, Economic Development, and Investment Promotion, Professor Mthuli Ncube. The measures are in response to economic challenges identified in the Reserve Bank of Zimbabwe's Monetary Policy Statement issued on February 6, 2025.
Dr. Muswere highlighted that the Government is focused on bringing all businesses into the tax net and improving the effectiveness of the foreign exchange market. Among the immediate interventions is the compulsory use of electronic money for all businesses, a move designed to promote financial transparency and efficiency.
Additionally, the Government has refined its foreign exchange management system by reducing exporters' foreign currency retention levels from 75% to 70%. Measures to lower bank charges and minimum deposit interest rates have also been introduced to reduce the cost of doing business. Medium-term strategies include streamlining regulatory processes, reducing fees and charges, and eliminating redundant administrative procedures. These efforts are expected to shorten turnaround times and lower operational costs for businesses.
Dr. Muswere emphasized that the Government will enforce strict compliance with the Indigenisation and Empowerment Act, which reserves certain sectors for local entrepreneurs. Measures to promote local procurement, expedite power plant construction, and upgrade electricity distribution networks have also been prioritized to improve the business environment.
In support of Micro, Small, and Medium Enterprises (MSMEs), the Government plans to formalize their operations through designated workspaces, a simplified tax regime, enhanced business development support, and expanded social protection coverage for informal sector participants. Efforts to enforce a ban on second-hand goods and engage informal sector players are also underway.
On food security, Dr. Muswere said Cabinet had reviewed the country's food security outlook and the 2024/2025 Summer Season Plan as presented by Lands, Agriculture, Fisheries, Water, and Rural Development Minister Dr. Anxious Masuka. He noted that current grain stocks at the Grain Marketing Board (GMB) are adequate to meet rural community needs until the next harvest in April 2025.
Dr. Masuka reported that over 1.3 million metric tonnes of grain, including maize and wheat, are in stock, with imports by the private sector ensuring sufficient supply. To address future food requirements, the Government has issued over 1,000 import permits for maize and continues to monitor stocks, import prices, and sources to prevent market distortions.
The 2024/2025 Summer Season Plan aims to increase cereal production to 3.2 million metric tonnes, a significant improvement from the 744,000 metric tonnes produced during the previous season.
These initiatives reflect the Government's commitment to stabilizing the economy, formalizing the informal sector, and addressing food security challenges as part of its broader developmental goals.
Previously, the registration and licensing of vendors were solely managed by local authorities. However, under the new system, registration will now include tax compliance measures to ensure that all eligible vendors contribute to national revenue.
Announcing the initiative during a post-Cabinet briefing on Tuesday, Information, Publicity, and Broadcasting Services Minister Dr. Jenfan Muswere said the Government would also introduce a compulsory tax payment system for informal traders. To oversee its implementation, a Domestic Inter-agency Team will be established to enforce compliance within the informal sector.
The directive is part of broader economic stabilization measures approved by Cabinet following a presentation by the Minister of Finance, Economic Development, and Investment Promotion, Professor Mthuli Ncube. The measures are in response to economic challenges identified in the Reserve Bank of Zimbabwe's Monetary Policy Statement issued on February 6, 2025.
Dr. Muswere highlighted that the Government is focused on bringing all businesses into the tax net and improving the effectiveness of the foreign exchange market. Among the immediate interventions is the compulsory use of electronic money for all businesses, a move designed to promote financial transparency and efficiency.
Additionally, the Government has refined its foreign exchange management system by reducing exporters' foreign currency retention levels from 75% to 70%. Measures to lower bank charges and minimum deposit interest rates have also been introduced to reduce the cost of doing business. Medium-term strategies include streamlining regulatory processes, reducing fees and charges, and eliminating redundant administrative procedures. These efforts are expected to shorten turnaround times and lower operational costs for businesses.
Dr. Muswere emphasized that the Government will enforce strict compliance with the Indigenisation and Empowerment Act, which reserves certain sectors for local entrepreneurs. Measures to promote local procurement, expedite power plant construction, and upgrade electricity distribution networks have also been prioritized to improve the business environment.
In support of Micro, Small, and Medium Enterprises (MSMEs), the Government plans to formalize their operations through designated workspaces, a simplified tax regime, enhanced business development support, and expanded social protection coverage for informal sector participants. Efforts to enforce a ban on second-hand goods and engage informal sector players are also underway.
On food security, Dr. Muswere said Cabinet had reviewed the country's food security outlook and the 2024/2025 Summer Season Plan as presented by Lands, Agriculture, Fisheries, Water, and Rural Development Minister Dr. Anxious Masuka. He noted that current grain stocks at the Grain Marketing Board (GMB) are adequate to meet rural community needs until the next harvest in April 2025.
Dr. Masuka reported that over 1.3 million metric tonnes of grain, including maize and wheat, are in stock, with imports by the private sector ensuring sufficient supply. To address future food requirements, the Government has issued over 1,000 import permits for maize and continues to monitor stocks, import prices, and sources to prevent market distortions.
The 2024/2025 Summer Season Plan aims to increase cereal production to 3.2 million metric tonnes, a significant improvement from the 744,000 metric tonnes produced during the previous season.
These initiatives reflect the Government's commitment to stabilizing the economy, formalizing the informal sector, and addressing food security challenges as part of its broader developmental goals.
Source - The Chronicle
