Simplifying tax processes for small businesses in Zimbabwe
Navigating tax compliance in Zimbabwe has long been a costly and complex endeavor for small businesses. Traditional requirements involve purchasing expensive fiscal devices and hiring consultants, often leading to additional informal payments. Enter Roundihmp—a $10/month mobile app developed by self-taught programmer Thamsanqa Bhala—that offers a streamlined, affordable solution for SMEs to meet Zimbabwe Revenue Authority (ZIMRA) standards.
The Traditional Tax Compliance Challenge
Zimbabwean SMEs face significant hurdles in adhering to ZIMRA’s fiscalisation process, which mandates real-time transmission of sales data via approved electronic fiscal devices. These devices can cost up to $1,000, with setup fees ranging from $200 to $300, and additional charges to expedite the process. Non-compliance isn’t an option, as penalties can reach $1,000.
Roundihmp: A Game-Changer for SMEs
Roundihmp, short for Round Internal Hub Management Portal, enables businesses to issue ZIMRA-compliant receipts, invoices, and quotations directly from their mobile devices. The app integrates with ZIMRA’s Fiscal Management Data System (FMDS), ensuring real-time compliance without the need for costly hardware or intermediaries.
Bhala, who began developing the app in 2023 after teaching himself to code via YouTube, continues to enhance its features based on user feedback. Currently, the app is available in English, with plans to include local languages like Shona and Chichewa to broaden accessibility.
Addressing Connectivity and Accessibility Issues
One significant barrier to digital solutions in Zimbabwe is the high cost of mobile data—1GB can exceed $43.75, among the highest in Africa. This expense limits the ability of SMEs to maintain consistent online access. Despite this, Bhala remains optimistic, believing that the app’s value will encourage continued use.
“They will have to pay taxes, and I have made it simple for them. I believe they will always return,” Bhala stated.
Here’s What This Means for Nigerians
- Inspiration for Local Solutions: Roundihmp exemplifies how homegrown tech can address bureaucratic challenges. Nigerian developers can take cues to create similar tools for local tax compliance.
- Potential for Cross-Border Expansion: With plans to extend services to countries like Zambia, South Africa, and Malawi, there’s an opportunity for Nigerian tech entrepreneurs to collaborate or develop parallel solutions.
- Highlighting the Need for Affordable Internet: The data cost issue in Zimbabwe mirrors challenges in Nigeria, underscoring the importance of affordable internet for digital solutions to thrive.
As Zimbabwe’s SMEs embrace digital tools like Roundihmp to simplify tax compliance, there’s a clear message: accessible, affordable technology can empower small businesses to navigate complex regulatory landscapes. For Nigerian entrepreneurs and developers, this presents both inspiration and a call to action to innovate solutions tailored to local needs.
