Cross-Border Innovation
By Francis Maingaila
Lusaka, Zambia24 - (May 9, 2025) - The government of Zambia has announced a breakthrough in national tax collection—one inspired by Rwanda’s digital approach to revenue management.
Felix Mutati, Minister of Technology and Science, told journalists at a media briefing—following a courtesy call by Rwanda’s Minister of Trade and Industry at the Zambia Information and Communication Technology Authority (ZICTA)—that Zambia has successfully adopted and localised Rwanda’s digital system of value-added tax (VAT) collection, resulting in a marked improvement in revenue since the beginning of 2024.
Speaking earlier at a summit on regional integration and digital transformation, Mutati revealed that Zambia had studied Rwanda’s advanced digital revenue collection model and adapted it to suit the country’s local tax environment.
“We visited Rwanda to understand how they manage VAT collection digitally and without physical interfaces. I led a team that included the Commissioner General of the Zambia Revenue Authority (ZRA), and we imported that idea, adapted it, and implemented it here,” Mutati said.
He noted that the system has already begun yielding tangible results, reversing the long-standing negative trend in VAT performance.
“Since the start of 2024, VAT performance has moved from negative to positive. Cases of tax cheating and duplication are now being tackled through technology. The solution, which is now fully operational in Zambia, is contributing significantly to national revenue,” he explained.
Mutati emphasised that the increased revenue has expanded the government’s fiscal space, enabling greater investment in digital infrastructure.
He announced the rollout of 300 new digital communication towers in partnership with the private sector to improve national connectivity and access to e-services.
He stressed the importance of learning from regional peers.
“By sharing knowledge and collaborating with countries like Rwanda, we’re building capacity and accelerating growth. This is how we drive African solutions to African problems,” Mutati said.
He also cited improved intra-African trade as a key benefit of regional cooperation.
He highlighted Zambia’s shift from importing salt from countries like Ukraine to sourcing 80% of it from Botswana—cutting down on logistics costs and boosting regional trade volumes.
“Transporting a bag of salt from Botswana instead of Ukraine means we’re saving more and reducing the financial burden on our people. This is the kind of cooperation Africa needs,” he said.
Mutati concluded by announcing that Zambia will soon host the Innovation and Growth (InoGro) Summit, a platform aimed at promoting homegrown innovations and inclusive development strategies for Africa.
“Africa is rich in both problems and solutions. Through platforms like the InoGro Summit, we can learn from each other, create opportunities, and solve our own problems sustainably,” he said.
Meanwhile, Rwanda’s Minister of Trade and Industry, Prudence Sebahizi, described the inaugural African Continental Free Trade Area (AfCFTA) Digital Trade Forum held in Lusaka as a historic step toward accelerating intra-African trade through technology.
Speaking at the event, which was held under the patronage of President Hakainde Hichilema, Sebahizi said the summit came at a critical time—just as the AfCFTA concluded the Protocol on Digital Trade, which aims to harmonise regulatory frameworks for digital commerce across the continent.
“I had the honour to represent my President, His Excellency, who delegated me to attend this important forum. Rwanda has a long-standing partnership with Zambia, and as a champion of the AfCFTA, it was vital for us to be here,” she said.
Sebahizi stressed that digitising trade procedures would significantly reduce the cost and time of doing business on the continent.
“Digital systems will allow trucks to move across borders without manual checks. Customs procedures will be handled electronically, eliminating the need to offload goods for inspection,” he explained.
He added that the application of such technology would lead to “non-stop border crossing” and vastly improved trade efficiency.
“If we can reduce clearance times from 10 days to 2, we save both time and money—and this translates into real economic benefits for businesses.”
Sebahizi also highlighted that automation would help eliminate unnecessary manual charges and reduce border-related corruption.
Highlighting the low levels of intra-African trade—currently under 20% compared to over 60% in Europe and Asia—Sebahizi called for urgent reforms.
“If we’re not trading with our neighbours, then who are we trading with? Over 80 percent of our trade is with countries outside Africa, which makes no sense considering our proximity.”
He urged African nations to prioritise trade in food and agricultural goods to fight hunger and reduce food waste.
He also called for greater investment in the local textile industry and mineral processing, to ensure Africa builds high-tech industries from its own resources.
The forum, which attracted government representatives, digital innovators, and private sector leaders from across the continent, aimed to share best practices, build awareness, and define a roadmap for digital trade implementation over the next 5 to 10 years.
“This platform is not only about dialogue,” Sebahizi concluded, “It’s about action—creating the Africa we want through trade that is smart, fast, and inclusive.”
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