Is Zimbabwe's Sugar Tax Achieving Its Intended Purpose?

New research by CZI explores the economic impact of the Sugar Content Tax on manufacturers, consumers and Government revenue.

Public policy works best when it is informed by evidence. Introduced to promote healthier consumption and increase revenue, Zimbabwe's Sugar Content Tax has generated significant debate across industry. To better understand its impact, CZI undertook a comprehensive study examining how the tax has affected manufacturing, employment, consumer behaviour and Government revenue.

The study found that the tax generated an estimated US$73 million in 2025. It also revealed broader economic effects that deserve careful consideration. Manufacturers reported higher production costs, while consumers increasingly shifted towards products sold through the informal market, with an estimated 60% of sugary beverages now being traded informally. These trends have implications for formal sector production, employment, tax compliance and long-term industrial competitiveness.

Rather than arguing for or against the tax, the study provides an evidence base for constructive policy dialogue. Following stakeholder validation with Government and industry, the findings will be submitted to the Ministry of Finance to support discussions on how public health objectives can be achieved while maintaining a competitive manufacturing sector. Through research such as this, CZI continues to provide practical insights that support informed policymaking and sustainable industrial growth.