Zimbabwe will tax foreign digital services 15% starting in 2026 🇿🇼 💰📲

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Beginning January 1, 2026, Zimbabwe will start charging a 15% tax on all payments made to foreign digital platforms. Finance Minister Mthuli Ncube unveiled the measure during his presentation of the 2026 national budget.

A move to capture untaxed digital revenue 📊

Since the Covid-19 pandemic, digital consumption has surged across Africa. Streaming platforms, ride-hailing apps, premium content services, satellite Internet providers and cloud subscriptions have become everyday essentials for millions of users. But most of these companies operate from outside the continent, meaning their earnings often slip through local tax systems.

According to Ncube, this has led to substantial revenue losses and created an uneven playing field for local providers, who are fully subject to domestic taxes. Zimbabwe now joins a growing list of African countries — including Nigeria, Kenya, Uganda, Tanzania and Sierra Leone — that have introduced similar digital taxation measures.

The new tax will apply to services such as:

• Netflix, Spotify, Amazon Prime Video, and other streaming platforms
• Ride-hailing apps like InDrive
• Satellite Internet providers such as Starlink
• Premium digital content platforms and subscription-based online services

Banks and mobile money operators will be required to automatically deduct the tax before processing international payments.

A booming digital landscape 📱

The government argues that the reform reflects Zimbabwe’s rapidly increasing digital adoption. Internet subscriptions have more than doubled over the last decade — from 5.6 million in 2015 to 12.5 million in 2025 — fueling demand for global digital services.

Yet the decision is far from universally accepted. Local media reports highlight growing user concerns, including:

• possible double taxation, since some platforms already charge local VAT
• the likelihood of price hikes as foreign companies adjust to the new levy
• potential loopholes, such as using foreign bank cards to bypass the tax

What it means for Zimbabwe’s digital economy 🌍

The long-term impact remains uncertain. Higher prices could dampen usage of digital services, ultimately reducing the tax revenue the government hopes to collect. On the other hand, the measure may level the competitive landscape by reducing the advantage foreign platforms have over local startups.

For now, the policy signals Zimbabwe’s intent to modernize its tax framework and assert greater control over fast-growing digital revenue flows.

👉🏾 Is this kind of tax a smart move for Africa — or a barrier to innovation?