THE African Development Bank (AfDB)-funded Tax and Accountability Enhancement Project (TAEP) has delivered significant gains in Zimbabwe’s tax administration, with a new digital tax platform boosting taxpayer registrations, improving filing compliance and reducing revenue collection costs.
The US$7,6 million project, which is aimed at strengthening domestic resource mobilisation and improving public financial management systems, has been largely rated a success, achieving most of its targets through the rollout of the Tax and Revenue Management System (TaRMS) and related governance reforms.
According to the bank, the programme achieved three of its four key outcomes and met 94,4% of its output targets, driven mainly by the successful implementation of TaRMS.
The project’s main objective is to enhance domestic resource mobilisation, improve public sector accountability and strengthen institutional integrity by streamlining and automating tax administration systems while building the capacity of oversight institutions.
“The project’s performance at the outcome level is rated satisfactory. It has fully achieved three outcomes, and the fourth is likely to be achieved. At the output level, overall achievement is also rated satisfactory, with 94,4% (17 out of 18) of outputs either fully achieved or on track,” the bank said in its report.
The bank noted that timely assessments such as the Tax Administration Diagnostic Assessment Tool (TADAT) and the Public Expenditure and Financial Accountability (PEFA) framework remain critical in strengthening independent evaluation of performance and supporting policy, strategic and capacity-building interventions.
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TADAT is an internationally recognised diagnostic tool developed by institutions including the IMF and World Bank to assess the effectiveness of tax administration systems, while PEFA evaluates the quality of a country’s public financial management systems.
“Government has expressed commitment to developing and implementing governance reforms in line with the National Development Plan (NDP) and Staff Monitored Programme (SMP),” the bank said.
It added that project monitoring and evaluation would not only track progress against set targets but also provide early warning signals of potential risks and recommend corrective measures where necessary.
“The bank will remain engaged with and sensitise the authorities to ensure the project remains relevant and supports the implementation of SMP priorities,” it said.
NewsDay Business understands that financial management and procurement risk mitigation measures have been agreed to ensure compliance with the bank’s fiduciary requirements.
On-site reviews will be conducted at least twice a year, covering internal control systems, transaction tracing from bidding to disbursement, internal audit reports, and audited financial statements.