HARARE – Simbisa Brands Limited, the leading quick service restaurant operator in Southern Africa listed on the Victoria Falls Stock Exchange, contributed close to US$1 million in Fast Food Tax to the Zimbabwe Revenue Authority (ZIMRA) during the financial year ended June 30, 2025.
The Fast Food Tax, a 1% levy introduced in Zimbabwe at the start of 2025, was fully absorbed by Simbisa to avoid passing on the costs to consumers in an already price-sensitive environment.
This tax absorption put pressure on profit margins amid other operational challenges, including power shortages, higher energy costs, and inflationary pressures.
“Higher IMTT charges and increased energy costs significantly increased operating costs during the financial year under review. Consumer demand remained fragile, pressured by inflation and reduced liquidity, despite relative exchange rate stability in the second half of the year.”
Simbisa Zimbabwe defended its market share from both the formal and informal sectors.
“Between January and June 2025, Simbisa contributed close to US$1mn in Fast Food Tax to the Zimbabwe Revenue Authority (ZIMRA). This substantial contribution underscores Simbisa’s position as the leading formal sector player, committed to transparency and compliance whilst supporting national development through our tax contributions.
“Simbisa absorbed the full impact of the Fast Food Tax in a highly price-sensitive consumer environment, allowing the Group to remain competitive and resilient in a challenging operating environment.,” the company noted.
Simbisa Zimbabwe reported resilient revenue growth of 5% year-on-year and a 7% increase in customer counts amid tough macroeconomic factors. Delivery volumes grew by 42%, reflecting a strategic shift to digital convenience and expanded delivery reach.
The introduction and increase of various new taxes in Zimbabwe and other markets have added to the group’s operating costs and squeezed consumer disposable income.
Economic analysts have been arguing that the IMTT and similar taxes exacerbate the socio-economic challenges by eroding consumer spending power and competitiveness of formal sector businesses relative to informal and unregulated competitors.
They have been calling for a more balanced and equitable tax framework that supports business sustainability while ensuring government revenues.
Despite these headwinds, Simbisa has remained optimistic about growth, citing ongoing strategic initiatives including expansion of store networks, digital delivery enhancements, operational efficiencies, and an emphasis on sustainability with the rollout of biodegradable packaging and electric vehicle delivery fleets.
The company’s financial results reflect a 7% group-wide revenue growth to over US$306 million, an 8.8% increase in operating profit before impairments, and a strong cash generation performance.
Simbisa closed the year with 604 company-operated stores and plans significant expansion and refurbishment programs going forward.
