THE African Development Bank (AfDB) has US$1,42 million to be disbursed to Zimbabwe to support domestic resource mobilisation efforts, it has emerged.
In September 2020,AfDB approved a US$10,05 million loan to Zimbabwe to strengthen domestic revenue collection, an ongoing challenge given the persistent gap between formal and informal sector contributions.
This disparity was starkly illustrated last year when Finance Minister Mthuli Ncube presented the 2025 National Budget projecting ZiG276,4 billion (US$10,91 billion) in expenditures against anticipated revenues of just ZiG270,3 billion (US$10,66 billion).
The shortfall becomes even more apparent when compared with Reserve Bank of Zimbabwe estimates showing the informal sector generates approximately US$14,2 billion annually, highlighting potential untapped tax revenues running into hundreds of millions of dollars.
According to an AfDB implementation progress report, US$8,62 million of the loan had been disbursed as of April 4, with the project slated for completion in two months’ time.
“All outcomes and outputs are expected to be achieved. However, a public expenditure and financial accountability assessment is still needed to evaluate outcome-level targets. The Office of the Auditor-General must also expedite development of a forensic audit manual,” AfDB noted.
“The project remains on track. Enhanced oversight is critical to ensure full disbursement of funds. This is a non-problematic project, as none of its indicators—aligned with the goal to “improve quality of life for Africans” — are rated below satisfactory (level two), which would otherwise classify it as potentially problematic.”
The loan’s overarching aim is to “enhance domestic resource mobilisation, public sector accountability, and integrity by modernising tax management systems and strengthening oversight institutions’ capacity.”
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