Fuel Dealers Under Scrutiny, They Operate Like Informal Traders:ZIMRA

By Shingirai Vambe

HARARE – Since the ouster of long-time ruler Robert Mugabe in 2017, Zimbabwe has witnessed a dramatic and suspicious surge in the number of fuel service stations across urban and peri-urban landscapes. What initially appeared to be a sign of investment and liberalization in the energy sector is now being unmasked as a possible money laundering scheme, with corrupt elites, politically connected cartels, and foreign currency barons at the center of the boom.

From the capital Harare to small towns like Chegutu, Rusape, and Gwanda, new fuel stations have sprung up with stunning speed and frequency. Some are clustered within walking distance of each other, despite low fuel demand in those areas. While on the surface these investments suggest economic confidence, industry experts and revenue authorities are sounding the alarm.

Appearing before Parliament recently, Zimbabwe Revenue Authority (ZIMRA) Commissioner-General Regina Chinamasa raised serious concerns over the conduct of fuel dealers, accusing them of operating like informal traders, despite being registered as formal businesses.

“Most of these fuel station operators behave informally. They are not remitting taxes accordingly, they do not keep proper records, and they often transact in cash or through backdoor foreign currency exchanges,” Chinamasa told Parliament.

Her revelations have deepened suspicions that many of the mushrooming fuel outlets are being used as fronts for illicit financial flows, including smuggling, tax evasion, and offshore currency laundering.

Investigations by The Post On Sunday and whistleblower reports have revealed that fuel smuggling, especially through Mozambique and South Africa, has become widespread, with tankers avoiding official channels to evade import duties.

Many service stations do not issue fiscal receipts, depriving ZIMRA of millions in potential revenue. Several fuel companies are linked to politically exposed persons (PEPs) and known business fronts of government-aligned individuals while fuel stations are used as cash-intensive businesses, allowing dirty money from corruption, gold smuggling, or tender kickbacks to be “cleaned” under the guise of retail operations.

A former ZERA (Zimbabwe Energy Regulatory Authority) insider, speaking anonymously, confirmed that licensing procedures post-2017 were heavily relaxed, making it easy for individuals with unexplained wealth to set up fuel outlets with little scrutiny.

“It became a gold rush. Everyone with access to foreign currency or state contracts started opening fuel stations. Some of these owners had never worked in energy or retail before. The motive was never fuel — it was always about moving money.”

Despite mounting evidence, regulatory bodies like ZERA and ZIMRA appear either overwhelmed or compromised. While some crackdowns have been launched, they often target small, independent operators, leaving the politically connected untouched.

A report by the African Forum for Transparency and Accountability (AFTA) found that over 60% of new fuel stations opened between 2018 and 2022 could not show verifiable sources of capital or valid import records.

For the public, the irony is bitter. While fuel stations continue to multiply, fuel remains scarce or unaffordable for many. The appearance of development has not translated to improved access or economic benefit for the average citizen.

Economist Prof Gift Mugano earlier told this publication that, “Fuel stations have become part of Zimbabwe’s corruption architecture — symbols of wealth with no accountability. They contribute nothing to development because they’re not built to serve, but to hide and move money.”

The public is now demanding greater transparency in how fuel station licenses are awarded, who owns them, and how much tax they contribute. Civil society organizations are also pushing for lifestyle audits of known fuel moguls and stricter enforcement of anti-money laundering laws.

What should be a vibrant and productive sector has instead become a mirror reflecting Zimbabwe’s deeper economic rot one where corruption, weak regulation, and political protectionism have turned fuel into not just a commodity, but a currency of crime.

Without urgent reform and enforcement, the proliferation of fuel stations may continue to represent not progress, but the entrenchment of a shadow economy, one in which the fuel pump is not a symbol of service, but a front for the flows of dirty money.