Zimbabwe loses $24 million annually due to unpaid vehicle licences & toll fees! A recent report from Zimbabwe’s Parliamentary Portfolio Committee on Transport and Infrastructural Development has highlighted the substantial annual revenue loss due to unpaid vehicle licenses and tollgate fees.
Knowledge Kaitano, chairman of the committee, disclosed that approximately 200,000 vehicles are evading toll and licensing obligations, costing the government an estimated $24 million each year. During a pre-national budget seminar held in Bulawayo, Kaitano outlined potential solutions, including an upgrade to toll plazas, to prevent further revenue losses.
Lack of Integrated Database Hinders Revenue Collection
Kaitano pointed out that the lack of an aggregated motor vehicle database in Zimbabwe makes it challenging to enforce vehicle licensing and toll payment compliance. Currently, there is no centralized system linking the Central Vehicle Registry (CVR), Zimbabwe Revenue Authority (ZIMRA), Zimbabwe National Road Administration (ZINARA), the police, and the Insurance Council of Zimbabwe.
The absence of this interconnected system enables vehicles to bypass paying essential fees, which deprives the country of substantial revenue.
According to Kaitano, the funds lost annually could finance the drilling of 7,000 boreholes each year, amounting to 35,000 boreholes by 2030—a critical investment given the country’s need for reliable water sources. He emphasized, “The time is now to roll out these toll plazas which were mooted as far back as in 2019.”
Toll Plaza System to Enhance Revenue and Safety
To address this issue, the committee has recommended implementing a toll plaza system, which would enhance revenue collection by ensuring all vehicles passing through specific points contribute to road maintenance and development.
Kaitano noted that the toll plaza system’s software can be upgraded to include various regulatory features, such as Vehicle Inspectorate Department (VID) certification, road permits, number plate verification, and third-party insurance.
This technology upgrade could also improve road safety by reducing the number of unregistered or unlicensed vehicles on the roads, thus curbing road accidents. The toll plazas could serve as checkpoints to verify that all passing vehicles meet the necessary standards, which Kaitano suggested could significantly decrease accident rates in the country. “This will also greatly reduce road accidents,” he added.
Calls for Increased Toll Plaza Numbers on Major Highways
Kaitano proposed expanding the toll plaza network on heavily trafficked roads, such as the Harare-Masvingo and Bulawayo-Victoria Falls highways, to maximize revenue and ensure that high-usage routes contribute fairly to national infrastructure upkeep. A more extensive toll plaza system could streamline fee collection and reinforce vehicle compliance with national transportation regulations, according to Kaitano.
ZINARA’s Ongoing Toll Plaza Development
In line with the committee’s recommendations, ZINARA (Zimbabwe National Road Administration) is already constructing new toll plazas. ZINARA’s acting chief executive, Moses Juma, recently announced plans to complete nine toll plazas along the Plumtree-Mutare highway by the end of the year. Five of these toll plazas are already operational, while the remaining four are expected to be completed soon. ZINARA projects that these toll plazas could generate approximately $100 million in revenue this year alone, demonstrating the financial potential of a fully operational toll plaza network.
The anticipated completion of these toll plazas underscores ZINARA’s commitment to boosting infrastructure funding and aligning with the government’s vision for improved road management. This approach not only promises substantial economic benefits but also reinforces the government’s ability to maintain and develop road networks crucial for national connectivity and commerce.
Potential Impacts and Future Outlook
The rollout of toll plazas could drastically reduce Zimbabwe’s revenue losses from vehicle license and tollgate evasion, enabling the government to reinvest in infrastructure and other essential services. By centralizing vehicle data and linking multiple government agencies, authorities would gain a clearer picture of vehicle compliance, effectively reducing evasion and increasing transparency.
This upgraded system could also address long-standing issues such as unroadworthy vehicles, insufficient insurance coverage, and illegal vehicle registrations. Through streamlined processes and increased enforcement, toll plazas could improve road safety and foster a more accountable transportation sector.
Conclusion
Zimbabwe’s annual loss of $24 million due to unlicensed vehicles and unpaid toll fees represents a missed opportunity for infrastructure investment. The proposal to establish toll plazas across major highways reflects a strategic move to close these revenue gaps. If implemented effectively, toll plazas could transform road fee collection, enhance vehicle compliance, and contribute significantly to national development initiatives.
