• The government will apply a 15% tax on all payments to foreign digital platforms starting Jan. 1, 2026.

• The measure targets major platforms such as Netflix, Spotify, Amazon Prime, ride-hailing apps, and Starlink.

• Zimbabwe counts 12.5 million Internet subscriptions in 2025, more than double the 2015 level, driving digital-service consumption.

Zimbabwe prepares to tax foreign digital service providers as demand for online platforms continues to rise across Africa since the COVID-19 pandemic. Governments increasingly seek to capture revenue from platforms headquartered abroad.

Finance Minister Mthuli Ncube introduced a 15% levy on digital services for all payments made to foreign online platforms starting January 1, 2026. He announced the measure last week during the 2026 national budget presentation, according to local media.

The new tax applies to streaming platforms such as Netflix, Spotify and Amazon Prime, to ride-hailing applications, to digital-content subscriptions and to satellite-Internet access, including Starlink. Under the rules, banks and mobile-money operators must withhold the 15% tax at the point of transaction before transferring funds abroad.

Ncube said the rapid digitization of economies has increased consumption of online services mostly supplied by foreign companies with no physical presence in Zimbabwe. “These transactions escape our tax system, causing revenue losses and unfair competition for domestic businesses,” he said, as quoted by The Zimbabwean. He added that foreign platforms enjoy an unfair advantage because local providers face full taxation.

The minister said many countries now adjust their tax systems to the digital economy and cited Nigeria, Kenya, Uganda, Tanzania and Sierra Leone as examples.

Zimbabwe records strong growth in telecom use, especially Internet access. Internet subscriptions rose from 5.6 million in the second half of 2015 to roughly 12.5 million in the same period in 2025.

Authorities expect the digital-services tax to boost public revenue. However, local media report significant public dissatisfaction. Some users worry that platforms such as Starlink or InDrive already charge VAT, raising fears of double taxation. Others argue the levy may push consumers to use foreign bank cards to bypass the tax.

The initiative raises questions about potential price hikes by foreign digital-service providers in response to the tax. Any increase could slow adoption and usage in Zimbabwe and reduce the revenue the government expects from the measure.

This article was initially published in French by Isaac K. Kassouwi

Adapted in English by Ange Jason Quenum