HARARE – Zimbabwean businesses, including Micro, Small, and Medium Enterprises (MSMEs) are now required to adopt electronic payments as part of government measures to address challenges in the formal business environment, Information Minister Jenfan Muswere announced Tuesday.
The mandatory use of electronic money is among several short-term interventions approved by cabinet to increase tax compliance, formalise informal sector operations, and enhance economic stability.
Under these reforms, vendors must register with local authorities, open bank accounts, and acquire Point of Sale (POS) machines.
Muswere said the measures, presented by Finance Minister Mthuli Ncube, aim to ensure “every eligible taxpayer pays tax” through a compulsory payment system, enforced by a “Domestic Inter-agency Team” tasked with ensuring informal sector compliance with tax laws.
The government also endorsed refinements to the foreign exchange system, including reducing the foreign currency retention rate for exporters from 75 percent to 70 percent and lowering bank charges and minimum deposit interest rates.
Medium-term interventions include streamlining regulatory processes, improving electricity supply through power plant construction, enforcing local procurement policies, and incentivizing alternative energy use.
To further support MSMEs, the government pledged to create designated workspaces, simplify taxes, strengthen business development, and ban the importation of second-hand goods.
“These measures will provide the necessary support for MSMEs to transition into formal businesses, addressing long-standing challenges in the economy and fostering sustainable growth,” Muswere said.
