Government has acknowledged that high aviation taxes and charges could be affecting Zimbabwe's competitiveness as the country seeks to position itself as a regional aviation hub.
Transport and Infrastructural Development minister Felix Mhona said authorities have recognised that the level of aviation taxes influence airline decisions, passenger demand and cargo development.
"Government appreciates that taxes and aviation charges play a critical role in financing infrastructure development and supporting public services," Mhona told delegates at a recent aviation summit in Harare.
"At the same time, we recognise that the level and structure of taxes can influence airline decisions, passenger demand, tourism competitiveness and cargo movement."
The comments come as African countries position themselves to benefit from the Single African Air Transport Market (SAATM), the continent's flagship open-skies initiative aimed at improving connectivity and stimulating competition among airlines.
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Industry executives have long argued that passenger taxes, airport charges and statutory levies increase ticket prices and reduce Zimbabwe's competitiveness relative to regional rivals such as South Africa, Zambia, Kenya and Ethiopia.
For Zimbabwe, the debate carries significant implications.
Government has invested heavily in upgrading Robert Gabriel Mugabe International Airport, Victoria Falls International Airport and Joshua Mqabuko Nkomo International Airport as part of efforts to transform the country into a regional aviation and tourism hub.
However, Mhona acknowledged that infrastructure investment alone would not guarantee success.
"Aviation infrastructure alone is not enough for Zimbabwe to become a preferred aviation hub," he said.
The transport minister said government was seeking to strike a balance between maintaining fiscal revenues and ensuring the aviation sector remains competitive.
"Our challenge, therefore, is to strike a balance — one which ensures sustainable revenue generation without undermining the competitiveness of our aviation industry," Mhona said.
Passenger traffic through Zimbabwe's airports rose 10% to 2,53 million travellers last year, while overflight traffic increased by 5% to 33 730 aircraft, reflecting the recovery in regional aviation demand.
Industry players argue that policy reforms that improve the cost competitiveness of Zimbabwe's aviation sector could unlock additional growth in tourism, trade and investment as competition for airlines intensifies across the continent.