FAST FOODS chain Simbisa Brands Limited this week warned that new tax measures introduced in Zimbabwe this year could erode consumer spending power, potentially weighing on demand.
The company said fiscal tightening measures introduced in January were likely to place additional pressure on disposable incomes, a key driver for consumer-facing businesses such as quick service restaurants.
Among the measures are a 0,5 percentage point increase in value-added tax to 15,5%, as well as the continued application of the 2% Intermediated Money Transfer Tax on United States dollar transactions, despite a slight reduction on Zimbabwe Gold (ZiG) transfers.
Authorities have also introduced a 15% rental income tax on business leased premises, while calls to increase the income tax free threshold were rejected.
According to the Zimbabwe Tax Perception Survey 2025 conducted by the Zimbabwe Taxpayers Platform, nearly nine out of 10 citizens believe the tax burden no longer reflects their ability to pay.
For a consumer-driven business such as Simbisa, which relies heavily on high sales volumes and affordable pricing, shrinking disposable incomes could translate into slower spending and heightened price sensitivity among customers.
Simbisa chairperson Addington Chinake said the group expected the broader operating environment to remain relatively stable despite the tax pressures.
“The trading environment is expected to remain broadly stable through to the financial year end, through anticipated currency stability, firm commodity prices and a strong agricultural season in Zimbabwe,” Chinake said in a statement accompanying the company’s half-year results for the period ended December 31, 2025.
- Awards target married couples
- Awards target married couples
- Sibanda living his writing dream
- Pomona deal under spotlight as experts meet
Keep Reading
“However, additional fiscal tightening and tax increases introduced from January 2026 in Zimbabwe are expected to place further pressure on consumer disposable incomes.”
Despite the headwinds, Simbisa intends to continue expanding its footprint while strengthening its brands.
Chinake said the group would pursue a customer-focused growth strategy supported by value-driven promotions, new product development and continued store refurbishments.
The company also plans to accelerate digitisation initiatives to improve operational efficiency and enhance customer convenience, while expanding delivery services and increasing the rollout of drive through outlets.
