FINANCE, Economic Development and Investment Promotion deputy minister Kudakwashe Mnangagwa has challenged tax authorities to ensure developing countries’ resources are used to uplift lives, build communities and drive sustainable growth.
Speaking during the 12th Competent Authorities Conference of the Global Forum on Transparency and Exchange of Information for Tax Purposes in Victoria Falls, Mnangagwa said Africa lost an estimated US$88 billion annually through illicit financial flows.
Zimbabwe is hosting the conference after making significant strides in aligning with international best practices, including signing and domesticating the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.
The country has also endorsed the Yaoundé Declaration and joined ATAF’s Mutual Administrative Assistance platform including being active participants in the Africa Initiative.
It has also established frameworks for beneficial ownership transparency and preparing to implement the Automatic Exchange of Information (AEOI), a critical tool in detecting offshore tax evasion.
Mnangagwa said resources lost through illicit financial flows should have been used to finance schools, hospitals, infrastructure and jobs had they not been siphoned away through secret jurisdictions, shell companies and opaque structures that created tax havens for illicit wealth.
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“Such practices erode sovereignty, undermine trust and deprive citizens of opportunities. Accordingly, as competent authorities, you have been assigned the responsibility to address these challenges,” he said.
“By facilitating information exchange, you equip governments with necessary tools to trace hidden wealth, enforce tax laws and promote accountability.
“Beyond revenue mobilisation, your work strengthens accountability and builds the confidence of citizens in public institutions, assuring them that justice and fairness are not ideals, but realities that can be delivered.”
The deputy minister said many developing countries faced constraints in capacity, technology and access to information despite progress achieved over the years.
“These obstacles can hinder efforts to enforce tax laws, combat illicit financial flows and fully participate in global initiatives,” he said.
“To build an inclusive and fair international tax system, technical assistance, infrastructure investment sustained knowledge-sharing must be sustainably scaled up.”
Mnangagwa called on governments, international organisations and development partners to deepen partnerships ensuring no nation is left behind.
“Through such collective commitment, we ensure that tax transparency and co-operation become tools for shared growth, justice and sustainable development,” he said.
Meanwhile, Zimbabwe Revenue Authority (Zimra) commissioner-general Regina Chinamasa made a rallying call for strengthened global co-operation in combating tax evasion, warning that revenue losses are undermining critical public services in developing countries.
Chinamasa said every dollar lost through tax evasion represented a missed opportunity for investment in education, healthcare and infrastructure across the global south.
“For us in Zimbabwe, tax transparency is not just a compliance obligation; it is an enabler of sustainable development,” she said.
Chinamasa underscored the growing role of AEOI and tax transparency frameworks, stating that these tools are no longer optional, but essential for countries seeking to bolster domestic resource mobilisation.
“The exchange of information, both on request and automatically, has become a cornerstone of international tax co-operation,” she said.
“Through these frameworks, we can detect illicit financial flows and ensure multinational corporations and high-net-worth individuals contribute their fair share.”
Chinamasa acknowledged the global forum’s role in equipping Zimbabwe with capacity-building support and technical tools, adding that such international collaboration helped to bring the country’s legislative framework closer to global standards.
“We remain committed to further reforms that enhance accountability, foster good governance and build public trust in our tax system,” she said.