Revenue leakages a security threat: Zimra

Trust Freddy-Herald Correspondent

REVENUE leakages through smuggling, tax evasion, corruption and illicit financial flows have become a major threat to national security as they weaken the State’s capacity to fund development, Zimra Commissioner-General Ms Regina Chinamasa has said.

Addressing participants during a lecture at the Zimbabwe National Defence University (ZNDU) in Harare yesterday, Ms Chinamasa said protecting national revenue was critical to safeguarding Zimbabwe’s sovereignty, economic stability and institutional resilience.

Her lecture, titled “The nexus between revenue and national security”, was delivered on her behalf by Zimra director for loss control, Dr Tapiwa Manyika.

“Revenue security is broader than collections — it is the integrity of the whole revenue system.

“National security in the modern sense includes economic stability and institutional resilience,” she said.

“National revenue is part of the State’s capacity to function, decide, protect and endure.”

Ms Chinamasa said Zimra mobilises about 95 percent of Government revenue, making revenue protection a strategic national imperative.

She said the country’s revenue-to-GDP ratio is projected to increase from 14,3 percent in 2025 to 20,3 percent by 2030 under the National Development Strategy 2 (NDS2), underscoring the importance of strengthening compliance and plugging leakages.

Ms Chinamasa attributed improved revenue performance to digital transformation initiatives such as the Tax and Revenue Management System (TaRMS) and the Fiscalisation Data Management System (FDMS).

After recording average growth of 2,6 percent between 2019 and 2023, revenue collections are now growing by more than 27 percent annually.

Collections rose from US$6,18 billion in 2024 to US$7,65 billion in 2025, while US$4,71 billion was collected during the first half of 2026 alone.

The figure is 46,7 percent higher than collections recorded during the corresponding period last year and 16 percent above target.

Ms Chinamasa said 78,2 percent of the revenue collected above target was generated through compliance enforcement measures.

“Leakage is not a fixed cost. When the State can see and enforce, revenue appears,” she said.

Full-year revenue collections for 2026 are projected to reach between US$11,5 billion and US$12 billion.

Ms Chinamasa identified smuggling, tax evasion, fraud, corruption, illicit financial flows, informalisation and cyber-enabled fraud as the seven major channels through which revenue leakages occur.

She said illicit financial flows continue to drain significant resources from African economies. According to the United Nations Conference on Trade and Development (UNCTAD), Africa loses about US$88,6 billion annually through illicit capital flight.

Zimbabwe, she added, is estimated to be losing about US$1,5 billion annually through gold smuggling.

Ms Chinamasa said the protection of strategic minerals such as gold, platinum group metals, lithium, diamonds and chrome was vital to safeguarding national interests and maximising revenue generation.

She said this requires strengthened traceability systems, improved valuation mechanisms, tighter customs controls, enhanced transfer-pricing capabilities, effective mining tax administration, beneficial ownership transparency and stronger cross-border cooperation.

The mining sector contributes approximately 14,5 percent of the country’s Gross Domestic Product, while royalties from the sector are already running 30 percent above target this year. Ms Chinamasa also highlighted the growing role of customs intelligence in supporting national security.

She cited the interception of about 780 kilogrammes of marijuana and restricted medicines at Beitbridge Border Post on October 31, 2025.

The contraband, which was being transported on a cross-border bus, included 720 units of Benylin, 234 units of Astrapain and 561 units of Broncleer, with a combined street value exceeding US$94 000.

She said modern border posts have evolved into critical centres for trade facilitation, intelligence gathering and the protection of national sovereignty.

Source: Revenue leakages a security threat: Zimra – herald

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