Simbisa Expands, Goes Green to Counter New Taxes

Oscar J Jeke- Zim Now Reporter

Zimbabwe’s largest fast-food chain, Simbisa Brands, is taking an aggressive growth and sustainability approach to cushion the impact of new taxes introduced at the start of 2025.

Government doubled the proposed fast-food tax from 0.5% to 1% in January and imposed a 20% tax on plastic bags, increasing operational costs for businesses like Simbisa. Additionally, the company has seen a 3% decline in average customer spending, despite a 7% rise in customer visits to 24.8 million in the last half-year.

“We’re adapting to the 1% fast-food tax,” said Simbisa CEO Basil Dionisio. “On January 1, we were initially told it was 0.5%, then the Statutory Instrument came out, and it was 1%. Instead of raising prices, we’re focusing on growing our customer base, increasing volume, and passing those benefits to consumers.”

To offset the tax burden, Simbisa is accelerating its expansion. The company opened 38 new outlets between December 2023 and the end of 2024, with 16 of those in the last six months. By June 2025, it plans to add 10 more locations, and over the next 18 months, Simbisa expects to launch 81 new counters and refurbish 60 existing outlets.

At the same time, the company is eliminating plastic carrier bags entirely and transitioning to 100% paper-based packaging to sidestep the new plastic bag tax. Dionisio confirmed that Simbisa is also working on sustainable packaging solutions for its Creamy Inn ice cream range. “Once that is in place, we should have no more plastic in our operations,” he said.

Beyond expansion and sustainability, Simbisa is driving cost-saving initiatives, including energy efficiency improvements and better supplier negotiations.

The company is also strengthening its delivery services—an area still underdeveloped in Zimbabwe compared to other markets—aiming to tap into shifting consumer habits.