By Newton Mambande
HARARE – FINANCE Minister, Mthuli Ncube, has introduced tax incentives designed to boost youth employment and stimulate economic growth. The Youth Employment Tax Incentive (YETI) provides a tax credit of $1,500 per month for each additional young employee hired. On paper, the measure looks promising. In practice, however, results have been mixed.
Despite these efforts, many companies remain reluctant to hire young people, citing bureaucratic hurdles and uncertainty around the rebate process. Some employers also argue that the $1,500 credit does not sufficiently offset the costs of recruitment and training.
The extended production cycles initiative, which encourages 24-hour manufacturing, has encountered similar challenges. While deductions on operational expenditure and accelerated allowances on machinery are helpful, concerns over energy supply and security remain significant obstacles.
Small and medium-sized enterprises—the backbone of youth employment—often struggle to access these incentives due to limited resources and complex procedures. Broader structural issues, including inadequate infrastructure and governance concerns, continue to deter investment and slow growth.
For these initiatives to succeed, government must simplify rebate processes, raise awareness among businesses, and address underlying economic constraints. Without such reforms, tax incentives risk becoming symbolic rather than transformative.
Possible steps forward include:
• Streamlining the rebate process for SMEs
• Adjusting the tax credit to better match hiring costs
• Expanding support for infrastructure and skills development
• Promoting public-private partnerships to drive youth employment
A more inclusive and thriving economy for Zimbabwe’s youth will require collaboration, clarity, and sustained commitment.
Newton Mambande is an entrepreneur and researcher with published scientific research scholarship in journals. He is reachable at newtonmunod@gmail.com or +263773411103.