Evaluating adoption of tax administration digitisation by food-processing SMEs in Zimbabwe

Might Pawarikanda and Ivan Gunass Govender
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Might Pawarikanda: Durban University of Technology
Ivan Gunass Govender: Durban University of Technology

International Journal of Business Ecosystem & Strategy (2687-2293), 2026, vol. 8, issue 2, 52-67

Abstract: The aim of this study was to determine the adoption level, barriers, and opportunities related to the digital transformation of tax administration in food-processing Small and Medium Enterprises (SMEs) in Harare, Zimbabwe. In particular, the research focused extent of adoption of digital tax systems, challenges faced in using them and how the digitalisation could be used to enhance the level of tax compliance. The research design adopted a quantitative approach involving the use of a structured questionnaire as the data collection method on a sample of 65 randomly selected SMEs. The data was analysed using SPSS with descriptive statistics, correlation and multiple regression analysis. Findings showed that digital tax tools, such as e-filing and e-payment were moderately adopted while significant barriers including poor internet connectivity, high ICT cost, limited digital skills, usability challenges, and system downtimes were identified to have a negative impact on adoption. Although SMEs were aware of the benefits of digital tax systems in terms of efficiency, accuracy, and transparency, the lack of infrastructural and capacity-based factors restricted the adoption of the system. The study recommended that policymakers and Zimbabwe Revenue Authority (ZIMRA) reinforce digital infrastructure, lower the cost of access to technologies, improve the usability of digital platforms, and offer ongoing training in digital skills to facilitate the successful and extensive adoption of digital tax administration systems in Zimbabwe. The research is important as it offers a better understanding of the major barriers and opportunities associated with the adoption of digital tax administration among food-processing SMEs in Zimbabwe adding to the local and regional knowledge of e-tax systems. Practically, the findings inform policymakers and tax authorities on critical areas needing attention, including infrastructural improvement, capacity building, and system reliability to improve SME compliance. Key Words: Digital transformation, tax administration, food-processing SMEs, Adoption barriers, Adoption Opportunities, Tax Compliance

Date: 2026
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