The Rise of Capitalism in Zimbabwe: How Wicknell Chivayo’s Wealth Outshines the State While the Poor Face Heavy Taxation
12 January 2025
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By Prosper Tiringindi, Citizen Journalist and Human Rights Activist

Zimbabwe’s economic landscape has increasingly mirrored a system of predatory capitalism, where wealth is concentrated in the hands of a privileged few while the majority struggle under oppressive taxation policies. Figures like Wicknell Chivayo, a businessman with close ties to the political elite, represent how the nation’s resources have been captured for personal enrichment, while ordinary citizens bear the financial burden of state failure.

Capitalism, in its truest sense, rewards innovation, productivity, and entrepreneurship. However, Zimbabwe’s version of capitalism has devolved into a crony capitalist system, where wealth is acquired through political connections, state contracts, and corruption rather than genuine market competition. This phenomenon is evident in how Chivayo has accumulated significant wealth, largely through government-awarded tenders that have yielded no public benefit.

The most glaring example is the Gwanda Solar Project, a $200 million state-funded tender awarded to Chivayo despite his lack of expertise in energy infrastructure. The project remains incomplete, yet no significant legal action has been taken against him, reflecting how politically connected individuals can exploit state resources without accountability. Meanwhile, public services such as hospitals, schools, and infrastructure crumble due to depleted public funds—further proof that the government has prioritized protecting wealth among elites rather than ensuring national development.

While Zimbabwe’s wealthiest figures continue to thrive under this capitalist structure, ordinary citizens are forced to endure aggressive taxation policies under the leadership of Finance Minister Mthuli Ncube. The 2% Intermediated Money Transfer Tax (IMTT) introduced in 2018 has become one of the most criticized revenue policies. It applies a flat tax on all electronic transactions, disproportionately impacting low-income earners who rely on mobile money services for daily purchases. Wealthy elites, on the other hand, often bypass this tax through cash reserves and foreign currency holdings, making it a regressive measure that punishes the poor more than the rich.

Further exacerbating the situation, Value-Added Tax (VAT) and excise duties on essential goods such as fuel, bread, and electricity continue to rise, increasing the cost of living for Zimbabwe’s poorest citizens. This regressive taxation model, where those with limited resources pay a higher percentage of their income compared to the wealthy, has become a hallmark of Zimbabwe’s capitalist shift. Instead of wealth creation being shared equitably, it has been hoarded by a small elite while the majority face deeper poverty and economic exclusion.

At its core, capitalism in Zimbabwe has become a tool for wealth extraction rather than national prosperity. Public resources are funneled into the hands of politically connected elites who continue to enrich themselves at the expense of the state’s capacity to deliver basic services. The consequences of this wealth concentration are dire:

Public Service Collapse: Hospitals, schools, and infrastructure are chronically underfunded while tax revenue is funneled into questionable state projects.

Widening Wealth Gap: The rich, shielded by their connections, continue to thrive while the poor face rising taxes and living costs.

Public Distrust: The failure to hold figures like Chivayo accountable for misappropriated public funds erodes public trust in governance.

Increased Poverty: Rising taxation without corresponding public benefits has deepened poverty across the nation.

The Path to Economic Justice

To reverse this dangerous capitalist trend, Zimbabwe must adopt progressive reforms that redistribute wealth and prioritize public welfare over elite enrichment. Key solutions include:

Progressive Taxation: Introduce wealth and inheritance taxes targeting high-net-worth individuals while reducing excessive taxes on low-income earners.

Anti-Corruption Enforcement: Implement stronger mechanisms to hold elites accountable for misuse of public funds, regardless of their political connections.

Public Financial Transparency: Ensure the national budget and public spending are transparent, preventing funds from being siphoned by corrupt elites.

Monetary Stability: Control inflation and stabilize the currency to prevent further erosion of public wealth.

Zimbabwe’s current trajectory reflects a capitalism where power and wealth are monopolized by a few, while the masses bear the burden of sustaining a broken system. True progress can only be achieved when economic justice takes precedence—ensuring fairness, accountability, and a government that serves its people, not just the elite. Until then, figures like Wicknell Chivayo will continue to symbolize how Zimbabwe’s capitalist model has failed its citizens.