• Version
• Download 4
• File Size 1.69 MB
• File Count 1
• Create Date December 10, 2024
• Last Updated March 12, 2025

NATIONAL ASSEMBLY HANSARD 10 DECEMBER 2024 VOL 51 No. 17

PARLIAMENT OF ZIMBABWE

Tuesday, 10^th December, 2024

The National Assembly met at a Quarter–past Two o’clock p.m.

PRAYERS

(THE HON. DEPUTY SPEAKER in the Chair)

ANNOUNCEMENT BY THE HON. DEPUTY SPEAKER

NON-ADVERSE REPORT RECEIVED FROM THE PARLIAMENTRY LEGAL COMMITTEE

         THE HON. DEPUTY SPEAKER: I have to inform the House that I have received a Non-Adverse Report from the Parliamentary Legal Committee on the Civil Aviation Amendment Bill [H. B. 4, 2023].

MOTION

FINANCE BILL: BUDGET DEBATE

     HON. CHIDUWA: INTRODUCTION: Thank you Madam Speaker Ma’am. The Minister of Finance, Economic Development and Investment Promotion presented the 2025 National Budget to the National Assembly on the 25^th November 2025. This is in line with the provisions of section 305 of the Constitution as read with subsection (1) of section 28 of the Public Finance Management Act [Chapter 22:19], and paragraph (m) of section 2(1) of the Public Finance Management (General) (Amendment) Regulations, 2021 (No. 1), published in Statutory Instrument 127A of 2021.

The budget is underpinned by a projected growth rate of 6%.  The Macroeconomic Framework provided did not give figures on some key macroeconomic indicators like projected inflation and the exchange rate.

The 2025 economic growth projections are underpinned by the following broad assumptions:

• Normal to above-normal rainfall;
• Stable exchange rate;
• Low inflation; and
• Tight fiscal and monetary policies.

The projected strong economic performance is expected to benefit from the recovery in the agriculture sector (12.8%), electricity generation (10.6%), information technology (9.9%) and mining (5.6%).

In light of the above, revenue collections are estimated at ZiG270.3 billion (19.6% of GDP), comprising of tax revenues estimated ZiG218.2 billion and non-tax revenues of ZiG52.1 billion. Notwithstanding the proposed new revenue measures, a 1.2% of GDP gain in revenue is relatively too high, considering that the sectors that are expected to record significant growth, that is agriculture and energy have minimal contribution in terms of revenue generation. The proposed tax measures also included tax relief measures such as increased PAYE tax free bands, VAT exemptions, duty reduction, rebate of duty and suspension of duty which have the effect of reducing revenue collections, and consequently the revenue to GDP ratio.

Planned expenditures amount to ZiG276.4 billion or 20.1% of GDP, with recurrent expenditures of ZiG236.8 billion or 17.2% of GDP and acquisition of financial and non-financial assets (capital expenditure) set at ZiG39.6 or 2.9% of GDP. This suggests that the 2025 budget is a consumptive budget.

METHODOLOGY

Following the presentation of the National Budget on the 28^th November 2024, the Committee conducted an analysis of the 2025 revenue and expenditure proposals. The Committee also invited the Ministry of Finance, Economic Development and Investment Promotion and the Departments under its purview as well as other stakeholders to get their views on the proposed Budget.

The Committee met the following stakeholders on the 3^rd December 2024:

• Ministry of Finance, Economic Development and Investment Promotion
• The Zimbabwe Statistics Agency (ZIMSTAT)
• The Zimbabwe Economic Policy Analysis and Research Institute (ZEPARI)
• Infrastructure Development Bank of Zimbabwe (IDBZ)
• Deposit Protection Corporation (DPC)
• The Reserve Bank of Zimbabwe (RBZ),
• The Zimbabwe Revenue Authority (ZIMRA),
• The Securities and Exchange Commission of Zimbabwe (SECZIM),
• The Insurance and Pensions Commission (IPEC),
• Cross Boarders Association for Economic Development,
• Institute of Chartered Accountants of Zimbabwe (ICAZ),
• The Chamber of Mines,
• The Confederation of Zimbabwe Industries (CZI)
• The Zimbabwe Chamber of SMEs,
• The Zimbabwe Economic Society (ZES),
• The Zimbabwe Congress of Trade Unions (ZCTU),

As a follow up to submissions from the Chamber of Mines, the Committee conducted a fact-finding visit to ZIMPLATS to get an appreciation of the progress they have made with mineral beneficiation.

SUBMISSIONS FROM STAKEHOLDERS

CONFEDERATION OF ZIMBABWE INDUSTRIES (CZI)

The CZI welcomed the move to broaden the tax base and to promote industrialisation as well as the VAT deferment for the energy sector to improve access to power.

They expressed concern over the reduction of the degree of export orientation from 100% to 80% for manufacturing companies under SEZ, as it difficult to penetrate export market due to high costs of production. The proposal is that the degree of export orientation be further reviewed down.

They are of the view that the 25% tax on rental income too high as there are other costs to be met by rental income collections, like renovations, maintenance costs among others. The proposal is to ensure that the tax is applied on net rental income as opposed to gross revenue from rentals.

CZI further submitted that IMTT taxes the whole value chain resulting in up to 10% additional costs to products. Local products are thus priced relatively higher than regional products, thereby undermining country competitiveness. This is cognisant of the fact that the AfCFTA opened up to regional competition hence there is need to extend relief to industry where they would have demonstrated factors that negatively impact their products.

CZI welcomed the sugar tax reduction on cordials and noted that sugar tax still has impact on other sectors.

While they appreciate the need by Government to meet its salary obligations, they bemoaned the difficulty of alignment of tax collection dates for industry.

CONFEDERATION OF ZIMBABWE RETAILERS (CZR)

CZR proposed the removal of the proposed tax on fast foods and betting tax which seem to target the poor. There are a number of taxes charged purchase of food such as VAT, IMTT and the proposed fast-food tax which further burdens the poor. Such taxes need stakeholder consultations before they are introduced.

The CZR noted that the cost of doing business is relatively too high (energy costs, smuggling of goods etc) and needs to be addressed to enable companies to be competitive in view of the operationalisation of AfCFTA.

They noted that the dollarised sector is more thriving than those that are using local currency, and emphasized the need to strengthen the local currency and for government to promote more use of the ZiG for its services.

They suggested the need to enforce measures to tax the informal sector lest the measures further chase away players from formalising.

The CZR pointed out that the formal retail sector is on the brink of collapse due to overregulation and unfair competition from the informal sector.

They suggested that there is need to support the clothing sector by addressing smuggling of second-hand clothes, remove duty on fabric meant for local production and noted the need to support local companies like Edgars who play a pivotal role in formalising the informal sector through contracting small-scale informal sector to supply key services on condition that they are tax compliant.

CHAMBER OF MINES

The Chamber of Mines noted that the 2025 National Budget Statement was announced at a time the mining industry is operating below its potential on the back of a challenging environment characterised by weak commodity prices, foreign currency shortfalls, capital shortages and fragile power supply.

Coupled with a high-cost structure on the backdrop of high royalty and taxes, high electricity tariff, exchange rate loses and high cost of funding mining projects, the viability of mining companies has been severely compromised. These challenges have combined to weigh down on the performance of the mining industry with mineral revenue coming down significantly and mining companies struggling to meet their production targets.

The Chamber noted that a number of measures that they proposed to improve viability were not considered in the 2025 National Budget Statement.

Extension of royalty on coal to all forms of coal

The proposal to extend the royalty on coal to all types of coal, including coking and industrial coal, will increase production costs in the energy sector. This extension translates into higher operational expenses, impacting various downstream industries. Specifically, the cost of generating thermal power is likely to rise, as this additional cost will be passed down to ZPC.

Furthermore, the agriculture industry, particularly the tobacco sector, will be directly affected by the increased cost of industrial coal used for tobacco curing. Other sectors, such as iron and steel, which rely on coking coal, will also experience increased costs.

Deemed Date of Sale of Minerals

The 2025 National Budget announced that, with the exception of (PGMs) and gold, minerals will be deemed sold at the value determined on either the date the sales contract is entered or the date on which the purchaser receives the product, whichever is higher. The Chamber of Mines proposes that royalties be paid based on the actual proceeds realized by producers or mining companies to avoid being charged royalties on proforma invoices, which may not reflect the actual price at the time the product is valued.

The proposed measure may lead to disputes between ZIMRA and taxpayers, as during periods of price declines, ZIMRA may require miners to pay royalties on unrealised cash proceeds.

Special Capital Gains Tax

The Chamber of Mines commended the Government for removing the retrospective aspect of Capital Gains Tax payments for disposals of mining rights. However, they noted that investors remain concerned about the following:

• The rate of tax of 20% which is too high compared to regional averages.
• The principle of levying the tax on gross proceeds as well on the buyer, contrary to best practice where capital gains tax is chargeable on the transaction gain and is levied on the seller who would have realised a profit on disposal.

The application of this tax has potential to undermine the country as a potential recipient of investments in mineral exploration.  The Chamber of Mines recommends for a review of the SCGT in line with best practice where the tax is levied on the actual gain and is chargeable to the seller.

In addition, they were of the view that the tax must not be applied in retrospect and that the rate be maintained at 5% as effected in 2017.

Beneficiation Tax on PGMs concentrates

The Government position on beneficiation tax on PGMs concentrates stipulates that Government will commence collection of the tax effective 1 January 2025. Meanwhile, affected producers, specifically Mimosa Mining Company have since signed a Memorandum of Agreement with ZIMPLATS to toll treat their concentrates in-country. Smelters, just like power plants are commissioned in stages, wherein the operating company gradually ramps up smelting at the same time assessing the plant’s compatibility and its ability to run continuously without breakdowns. 

In line with the foregoing, ZIMPLATS will be ramping up smelting, accommodating Mimosa concentrates beginning January 2025.

Related to the above, PGMs producers that are running smelters are currently facing acute power outages, resulting in smelting stoppages and production losses. With the power supply situation expected to remain depressed, it will remain difficult for the PGMs producers to continue running the smelters, thus there would requests to export concentrates until the power supply situation improves.

VAT on Lithium

Lithium producers have received directives from ZIMRA to pay VAT on lithium concentrates. ZIMRA is citing the VAT Act, particularly section 12B as the basis for collecting the 5% VAT on un-beneficiated lithium.

This is notwithstanding that the Base Minerals Export Control (Un-beneficiation Base Minerals Ores) Order 2023 (SI5 and SI57) defines a minimum level of beneficiation for purposes of export, meaning lithium bearing ores which in the case has lithia content of 3% or more and in the case of petalite and lepidolite has a lithia content of 2.5% and above.

The petalite and spodumene concentrate which the producers are exporting are approved by the Ministry of Mines and Mining Development and a precondition for exports by the Minerals Marketing Corporation of Zimbabwe. The Chamber of Mines appeals for the alignment of the definitions of the two pieces of legislation that will enable ZIMRA not to charge and collect the VAT. The 2025 National Budget remained silent on this matter and thus it requires attention.

Commodity Price Linked Royalty

Royalty specifically for platinum, diamond and lithium has remained high, impacting negatively on the viability of the subsectors. Royalty is a direct cost of production; thus, high royalty increases the cost structure for mining companies. Price linked royalty allows Government to maximise revenue collections during price booms while ensuring viability of producers during periods of depressed prices

Platinum

Royalty for platinum is high at 7%. The Chamber of Mines recommends a commodity price linked royalty framework for platinum as follows: a base royalty of 3 % for platinum price of up to US$1,100 / ounce, a royalty rate of 5% for platinum price between US$1,100 /ounce and US$1,400, a royalty rate of 7% for platinum price between US$1,400/ounce and US$2,000/ounce and a royalty of 10% for platinum price above US$2,000 ounce.

Diamond

Royalty for diamond at 10% is also impacting negatively on the viability of diamond projects. Producers of alluvial diamonds which are predominantly low quality are the most affected as their prices have taken a huge knock. The Chamber of Mines appeals for a diamond price linked royalty framework with a base royalty of 5% payable on gross revenue and a progressive royalty structure as follows: Prices up to $500 per carat: Base rate applies, around 5%, above $500–$1,000 per carat: royalty 7%, and above $1,000 per carat: Rate of 10%.

Lithium

Royalty for lithium, which went up from 2.5%, to 7% is high and unaffordable. The increase in royalty came at a time lithium prices were slowing down, declining from a pick of US$81,427/ ton in November 2022, to the current price of around US$10,600/ ton. To note, the Country’s lithium industry is still new, with the majority of producers having commenced production in the past 2 years.

The Chamber of Mines recommends the following lithium royalty structure: Base royalty of 5% that applies for lithium prices of up to US$15,000/ ton (paid regardless of the fluctuating market price and secures a minimum revenue flow to the government), Royalty of 7% for prices between US$15,000 – US$20,000/ ton and Royalty of 10% for lithium prices exceeding US$20,000/ ton.

ZIMBABWE CHAMBER OF SMEs

The Zimbabwe Chamber of SMEs proposed that the Budget should consider the broader definition of SMEs and categorise them and make interventions in line with their peculiarities.

The proposal Is that SMEDCO be adequately funded considering its huge mandate. SMEs cuts across all Ministries hence all activities should be synchronized though SMEDCO.

SMEDCO has the task of empowering small businesses to be competitive under the AfCFTA.

The Ministry of Skills Development needs adequate funding to address the skills gap, which can contribute to reduce imports.

Taxing betting is a welcome development as it discourages betting which was eating into productive time for employees.

Cross Border for Economic Development

The Cross Border for Economic Development submitted that high customs duty and artificial delays and corruption at the border are significantly affecting their business.

They proposed that instead of banning import of particular commodities, it is better to tax them and get revenue.

They requested the reduction of the high charges by ZimBorders which is contributing to border evasion and smuggling.

ICAZ

They noted that the proposed list of Fast Foods for taxation is not exhaustive and should include other items or consider the definition of Fast Food Restaurant and charge a gross sales tax on the same.

Zimbabwe Economics Society (ZES)

The ZES noted that the 2025 Budget is not quite showing the drive to move the economy up the value chain, nor to create employment, for example the high taxes on the formal sector.

They noted the need for realignment of allocations to support productivity and employment.

Zimbabwe Congress of Trade Unions (Z.C.T.U)

The Z.C.T.U. noted that the taxing of fast foods, betting and plastic taxing has added to the already existing tax burden on the already suffering poor and that the cost of living is too high and needs to be addressed.

Submissions from Other Stakeholders

Stakeholders from the health sector noted that the National Budget does not address the critical issue of absorbing Village Health Workers onto the Government Payroll System despite assurances by the Government in the affirmative.

A strong village health workforce is the cornerstone of every health system, and is essential to ensuring Universal Health Coverage, advancing Primary Health Care approaches and the attainment of Sustainable Development Goals.

Stakeholders expressed concern that not enough consultations were done on the new tax measures, considering that people want to be engaged and to have a say on how they are taxed.

Stakeholders were apprehensive that ZIMRA continues to issue foreign currency additional assessments for taxes that they deem should have been paid in foreign currency for the period March 2019 to November 2022. These are for taxes fully paid in local currency arising from the ambiguities in the legislation leading to different formula applied by ZIMRA and taxpayers.

The requirement for VAT registration punishes those that are tax compliant but are below the VAT registration Threshold.

The change of the current tax legislation to force the use of the single taxpayer’s account should be avoided. It will create further complications relating to penalties and interest arising from poor accounting at ZIMRA.

FURTHER REFLECTIONS ON REVENUE MEASURES

The submissions from various stakeholders prompts a thorough and balanced analysis of proposed new tax policy measures in view of the need to stimulate industry whilst ensuring that Government generate adequate revenue to fund its programmes.

Suspension of Duty on Semi Knocked Down Kits

The proposed Suspension of Duty on Semi Knocked Down Kits is an important step to facilitate local value addition, cognisant of the NDS1 thrust of moving the economy up the value chain.

Review of the Taxation Regime for Special Economic Zones (Removal of Tax holiday on Special Economic Zones and introduction of 15% Corporate Income Tax and Introduction of 10% withholding tax)

Special Economic Zones have for long been proposed by business as a way of maximizing profit through advocating for soft tax regime. Corporate Income Tax is only payable when an entity makes profit, otherwise the business would submit a nil tax return to ZIMRA. This suggest that a tax holiday is not necessary. The review is therefore an important step in ensuring that all economic activities contribute to fiscal revenue and consequently to national development. Further, the proposed 10% withholding tax limits revenue losses that may arise from payment relating to technical fees, royalties, dividends and related payments.

Introduction of 10% withholding on gross winning of Sports Betting

Person generating income from employment and other sources are subject to personal income tax. A 10% withholding tax on betting proceeds levels the playing field between persons generating income from betting and those generating from other sources.

Comparatively, Ghana introduced a 10% betting tax in August 2023, South Africa employs a 15% withholding tax on gambling winnings above R25 000 while Kenya charges a withholding tax of 20% on all winnings.

However, the measure affects the vulnerable groups, predominantly with no alternative employment.

Introduction of a 0.5% fast food tax applied on the transaction value

There are a number of taxes charged on fast foods including VAT, IMTT and the proposed Fast-Food Tax. The burden of multiple taxes incurred by the consumer on a single transaction is huge.

The proposed tax pushes up the retail price of fast food. This may induce consumers to shift to self-catering, without necessarily reducing consumption, thus the policy may not allay the challenge of obesity and related illness as proposed. However, self-catering implies a slowdown of business for retail outlets and restaurants, without the envisaged reduction in consumption of fast foods.

In this regard, the tax is burdensome to the consumer and regressive on business.

Duty on Electric Motor Vehicles

The Committee welcomes the reduction of duty for electric vehicles and rebate of duty on solar powered stations, which is in line with climate friendly budgeting.

Tax Incentives for the Arts Industry

Rebate of Duty on capital equipment imported by Arts Organizations.

Importation of capital equipment is associated with huge costs that may discourage business especially if the business is at its infancy stages.

The proposed rebate of duty affords businesses in the Arts Industry an opportunity to invest and grow, hence is a positive initiative that ensures that the Arts Industry is similarly treated as other industries like manufacturing, mining among others.

Deductibility of expenditure incurred in the production of films, movies, and related content.

The Allowable deductions reduce the Corporate Income Tax burden of businesses in the Arts Industry. This may incentivise business to venture into the Art Industry.

Mandatory Registration for Corporate and Personal Income Tax (Fabric & Clothing Merchandisers, Spare Parts Dealers, Car Dealers, Grocery & Kitchenware merchandisers, Hardware Operators and Lodges).

In light of the need to generate revenue to fund Government programs, it is a noble idea for the identified businesses to register with ZIMRA. However, the requirement to transact through a point-of-sale machine requires a further review, considering that different clients may prefer to use a variety of payment platforms.

Further, the empowerment of ZIMRA to enforce “temporary closure” of business that fail to adhere to the registration requirements would require a proper definition in the Act.

Apart from the above, the proposal is to levy presumptive taxes on non-complaint businesses payable on a quarterly basis is akin to the usual presumptive tax regime as follows:

Proposed Quarterly Corporate Tax Payments for Non-Compliant Taxpayers

Spare parts dealers	US$9 000
Car dealers	US$15 000
Grocery and kitchenware merchandisers	US$9 000
Fabric merchandisers	US$12 000
Clothing merchandisers/Boutiques	US$12 000
Hardware operators	US$15 000
Lodges	US$5 000

 

What is critical is enforcement by the revenue authority. It is also important to clarify whether the proposed quarterly payments are chargeable at “establishment level” or at “enterprise level”

Tax on Plastic Carrier Bag

The introduction of this tax is a noble idea to protect and preserve environment whilst raising tax revenue. An average shopping bag is between 6g and 8g and the average price of a bag in Zimbabwe is US0.10 cents and 20% adds 2 cents to the price.

The proposal is in line with international best practice. For instance, the European Union charges about €0.80 per kg which is about €0.0064 per bag and recently South Africa announced an increase in the plastic bag levy from ZAR 0.25 to ZAR 0.32, whilst in Germany it was postponed until 2026 due to practical modalities (tax base and rate).

The proposed measure is a welcome initiative which will generate revenue for the Government, whilst at the same time limiting pollution of the environment.

Rental Income Tax

Properties converted from residential to business purposes will attract a 25% tax. This is a welcome development that ensures that rental income does not escape the tax net.  The disclosure requirement for persons using rented premises closes the tax avoidance loop.

However, a tax rate of 25% chargeable on gross rental income is relatively higher, unless it was charged on net rental income. In this regard, it is proposed that taxation of such income be reviewed to 15%.

VAT exemption on Liquefied Petroleum Gas (LPG)

The proposed exemption of vat on LPG is a welcome measure because it provides a relief for consumers, especially low-income households that heavily rely on gas as a source of energy.

VAT exemption suggest that operators trading in gas cannot claim input VAT incurred in the process of supplying gas, hence operating at relatively higher cost than before.

Excise Duty on Alcoholic Beverages

The budget proposed to review excise duty on alcoholic beverages from USD 0.25 per litre to USD 0.30 per litre, effective January 1, 2025.

In view of the widespread and irresponsible consumption of alcoholic beverages, the proposed review is critical to ensure that alcoholic beverages are out of reach for the youth. It is also a significant source of government revenue that is relatively easier to administer.

Royalties on Quarry Stones

The budget proposed a 0.5% royalty rate applied on the sales value of the quarry stones. Quarry stones, like other mineral resources are finite, hence the need to ensure that extraction contributes to the fiscus. 

However, proposed rate is relatively low and should be reviewed upwards to ensure revenue efficiency.

Changes to VAT Payment Deadlines

VAT remittance deadlines reduced from 25 days to 15 days after collection. Given that VAT is the major contributing revenue head, a shorter remittance period ensures that the fiscus generate timely resources to meet inescapable expenditures. This should not affect businesses cashflows since the business is merely collecting on behalf of Government

However, VAT is triggered by issuance of an invoice, the short remittance period will significantly affect players that offer credit terms since they will be expected to remit money they possibly would not have collected.

 

EXPENDITURE MEASURES

The Committee notes that the available resource envelope ZiG270.3 billion results in a budget deficit of ZiG6.1 billion, equivalent to 0.4% of GDP for 2025.

The Committee notes that recurrent expenditure accounts for 87% of the total expenditure budget, leaving just 13% allocated for the acquisition of both financial and non-financial assets. This heavy focus on recurrent spending, such as salaries and operational costs, limits the government's capacity to invest in long-term capital projects or infrastructure development.

While recurrent spending is crucial for sustaining essential public services, the limited allocation to capital expenditures may hinder infrastructure development, economic growth, and future resilience.

Agriculture

The Ministry of Lands, Agriculture, Fisheries, Water and Rural Development was allocated ZiG22,934,997,000.00, representing 10.53% of the total budget—an increase from the 9.74% share in the 2024 National Budget.

Programme 4: Agricultural Advisory and Rural Development was allocated ZiG12,318,939,000.00, constituting 54% of the Ministry’s 2025 budget, with ZiG10,216,000,000.00 (83% of this allocation) earmarked for Social Assistance Benefits.

This significant allocation is crucial in the aftermath of an El Niño-induced poor 2024 harvest, which has strained income-earning opportunities and left low-income rural and urban households increasingly reliant on markets for food amid soaring prices.

By prioritising social assistance, the programme aims to mitigate the adverse effects on household purchasing power, ensuring vulnerable populations can access basic necessities while also supporting recovery efforts to stabilise food security and livelihoods until the 2025 harvest.

Transport

The Ministry of Transport and Infrastructure Development was allocated ZiG5,443,641,000.00, accounting for 2.5% of the total budget, which is significantly lower than the 5% share it received in the 2024 budget. Despite this reduction, the Government has increasingly focused on leveraging Public-Private Partnerships (PPP) under Build-Operate-Transfer (BOT) terms for road and infrastructure projects.

This shift highlights the Government’s strategy to attract private sector investment to finance, construct and maintain key infrastructure, thereby reducing the strain on public finances.

Of the allocation to the Ministry of Transport and Infrastructure Development, ZWL$4,321,895,000 has been dedicated to Programme 2: Road Infrastructure and Transportation, emphasising the Government's commitment to maintaining and upgrading road networks crucial for economic activities and connectivity.

While investment in road infrastructure is essential, it is equally imperative to ensure the equitable allocation of resources to other modes of transport, such as rail, which received a comparatively lower allocation of ZWL$564,897,000.00.

A strengthened rail system can significantly reduce the pressure on road networks by providing a cost-effective, sustainable, and efficient alternative for bulk goods and passenger transport.

Health

Table 1 below presents the budget allocations to the Ministry of Health, broken down by programme, along with the corresponding percentage of each programme's allocation relative to the total vote allocation for the Ministry of Health and Child Care:

Table 1: Budget Allocations to the Ministry of Health and Child Care by Programme:

	2025 Budget Allocation	% of Health Allocation
Programme 1: Policy and Administration	3,937,630,000	13.90%
Programme 2: Public Health	2,187,079,000	7.72%
Programme 3: Curative Services	22,050,640,000	77.87%
Programme 4: Bio Medical Engineering	143,249,000	0.51%
Total Allocation	28,318,598,000

 

The Ministry of Health and Child Care's allocation of ZiG28,318,598,000.00, constituting 13% of the total national budget, falls short of the Abuja Declaration's 15% target, reflecting a critical gap in prioritising health funding. This shortfall has far-reaching implications, including weakened healthcare infrastructure, limited access to essential services and heightened vulnerability to public health crises.

Failing to meet such international commitments undermines progress toward achieving universal health coverage and Sustainable Development Goal 3, worsens health disparities, and diminishes the quality of life, particularly for marginalised communities. Moreover, insufficient health financing hampers the nation’s capacity to address emerging health challenges and reduces economic productivity due to poor population health,

Bridging this gap requires innovative funding strategies, stronger policy commitments and effective resource utilisation to ensure a resilient and equitable healthcare system that aligns with global standards

The allocation of 73% of the Ministry of Health and Child Care's budget to Curative Services is consistent with national statistics, which report a 9% year-on-year increase in outpatient attendance from 2021 to 2022. This rise is attributed to a growing prevalence of conditions such as acute respiratory infections, diarrhea and dysentery, burns, road traffic accidents, other injuries, skin diseases and eye disorders.

This prioritisation reflects an acknowledgment of the growing burden of these diseases on the healthcare system and the need to address immediate treatment demands. However, while this alignment with current health challenges is necessary, it highlights the importance of balancing curative efforts with preventive measures to reduce disease prevalence and alleviate long-term strain on the healthcare system.

The allocation of almost a third of the Curative Services budget to the Quaternary Care subprogram reflects a deliberate effort to address complex health challenges posed by non-communicable diseases (NCDs) such as cancer and cardiovascular diseases. However, given the increasing prevalence of NCDs and their associated costs, this allocation may still be insufficient to meet the growing demand for specialised care, advanced medical technology, and skilled personnel required to manage these conditions effectively.

To enhance healthcare funding, revenue generated from the Sugar Volume Tax and the recently introduced Fast Food Tax should be strategically allocated to support initiatives focused on preventing and managing non-communicable diseases (NCDs). Given that excessive sugar consumption is a significant risk factor for many NCDs, this targeted use of tax revenue could provide a sustainable mechanism to address both immediate treatment needs and long-term strategies for reducing the prevalence and impact of these conditions.

Social Protection

The Ministry of Public Service, Labour, and Social Welfare received an allocation of ZiG 10,710,480,000.00, representing 3.79% of the total national budget.

Programme 3: Social Welfare received 84% of this allocation reflecting the government’s commitment to social protection programmes and to support vulnerable and marginalized groups such as orphaned children and People with Disabilities. This allocation is crucial in the aftermath of an El Niño-induced poor 2024 harvest, which has left low-income rural and urban households vulnerable.

Child Welfare was allocated over half of the Social Welfare budget, demonstrating the government’s prioritization of programs aimed at supporting child education through initiatives such as the Basic Education Assistance Program, as well as ensuring child protection and food security through strategies like the Food Deficit Mitigation Program. This allocation highlights a focused commitment to addressing the needs of children, particularly in vulnerable communities.

Education

The Ministry of Higher and Tertiary Education, Science and Technology Development and the Ministry of Primary and Secondary were allocated a total of 26% of the National Budget. This means that the 2025 budget allocation's top priority is the education sector. This allocation surpasses the Abuja Declaration commitment of 20%, demonstrating a strong commitment to prioritising education as a cornerstone for national development.

The 2025 budget has an allocation for the BEAM ZWL$83.5m which is very positive as it helps reduce inequality by providing opportunities for disadvantaged groups to access education and improve their socio-economic status. This initiative aligns with the Sustainable Development Goals (SDGs), particularly SDG 4, which aims to "ensure inclusive and equitable quality education and promote lifelong learning opportunities for all."

Ministry of Primary and Secondary Education

The Ministry of Primary and Secondary Education received an allocation of ZiG48,638,014,000.00, representing 21% of the total 2025 budget. This substantial allocation reflects the Government's prioritisation of foundational education as a critical investment in the nation’s future.

Upon further analysis of the Ministry of Primary and Secondary Education's budget, it was revealed that 58% of the allocation is earmarked for the Compensation of Employees. This significant proportion highlights the government's focus on ensuring adequate remuneration for educators, which is essential for maintaining teacher morale and attracting skilled professionals to the education sector.

However, it also raises concerns about the sufficiency of remaining funds for critical needs such as infrastructure development, procurement of learning materials, and implementation of programs aimed at improving educational outcomes. Balancing employee compensation with other priorities will be crucial to achieving the ministry's objectives and ensuring that all students have access to quality education.

Ministry of Higher and Tertiary Education

The Ministry of Higher and Tertiary Education was allocated ZiG10,323,772,000.00, constituting nearly 5% of the total 2025 budget.

Over half of the Ministry's allocation has been directed to Programme

2 Skills Training and Development, with a significant portion allocated to capital grants for universities, colleges, polytechnics, teacher training, and vocational institutions. This strategic investment aims to enhance the infrastructure and capacity of higher learning institutions, ensuring they are equipped to deliver quality education and training.

By focusing on skills development, the allocation supports the creation of a skilled workforce, aligned with national economic priorities and the demands of a rapidly evolving job market.

However, while the allocation reflects a commendable commitment to strengthening higher and tertiary education, it may not be entirely adequate given the extensive infrastructure and resource needs of these institutions. The growing student population, coupled with the demand for cutting-edge facilities and technology to align education with global standards, places considerable pressure on the available funds.

It is crucial to explore alternative financing mechanisms that could complement government funding and ensure that institutions are not only adequately resourced but also positioned to drive innovation and contribute effectively to national development.

Local Government

The Ministry of Local Government was allocated ZiG4,507,792,000.00, which accounts for 2.25% of the total national budget.

A total of ZiG2,680,281,000.00 has been allocated for the construction and maintenance of public buildings, a commendable step considering the pressing need for adequate office space for Government departments nationwide. This allocation is expected to address critical infrastructure gaps, improving the working conditions for civil servants and enhancing the efficiency of service delivery. However, given the scale of infrastructure development required across the country, this funding may only partially meet the demand.

Also, of concern is the ZiG194,774,000.00 allocated for Disaster Risk Management, accounting for less than 5% of the Ministry's total budget. This figure appears insufficient, especially in light of the increasing frequency and severity of disasters such as floods, droughts and other climate-related events that require robust preparedness, mitigation and response strategies.

An underfunded disaster risk management programme could compromise the country’s ability to safeguard lives, infrastructure and livelihoods in the face of emergencies.

Environment and Climate Change

The 2025 National Budget allocates ZiG516,846,000.00 to the Ministry of Environment, Climate and Wildlife for implementing adaptive measures aimed at reducing the country's vulnerability to climate change.

Further analysis of the Ministry of Environment, Climate, and Wildlife’s budget reveals that 28% is allocated to rental and hire expenses, foreign travel allowances, and domestic travel allowances.

This allocation raises concerns about the prioritisation of resources, as a significant portion of the budget is being directed toward operational costs rather than direct climate adaptation initiatives. While administrative expenses are necessary, the disproportionately high expenditure in these areas could detract from critical programmes and projects aimed at mitigating the impacts of climate change.

Is the 2025 National Budget Pro Poor?

In relation to the country's Gross Domestic Product (GDP), the current allocation for Social Protection accounts for approximately 1.9% of GDP. This is a positive step, as it exceeds the 1.5% of GDP recommended by UNICEF for Sub-Saharan Africa to combat poverty and deprivation, suggesting that Zimbabwe's spending on social protection is above the regional average.

However, the total allocation to social protection is ZiG21 billion, which, although essential and above the regional benchmark, represents a modest portion of the overall budget when compared to other sectors like general public services (ZiG104 billion) and Public Order and Safety (ZiG28 billion). Ideally, a pro-poor budget would allocate a larger share to social protection programs that directly benefit vulnerable groups, such as cash transfers, healthcare, food security initiatives and educational support.

Possible Impact of Expenditure Priorities on Overall Economic Activity

The 2025 budget’s focus on supporting productive value chains in agriculture and mining is designed to address short-term recovery and long-term growth. By strengthening rural economies, promoting local value addition, and increasing production capacity, these interventions are expected to lead to a more diversified and resilient Zimbabwean economy.

The strategic focus on revitalising both the manufacturing and tourism sectors through targeted expenditure and reforms could significantly boost Zimbabwe's economic growth in the coming years. By addressing current constraints, enhancing sectoral capacity, and promoting domestic value chains, the economy can become more resilient and competitive on the global stage. Both the tourism and manufacturing sectors are labor-intensive and will provide more employment opportunities, particularly for youth and women, through initiatives like MSME support and vocational training programs.

Investments in tourism infrastructure, such as airports and sports facilities, will have a multiplier effect on related industries like construction, logistics, and hospitality.

The economic impact of the climate adaptation and infrastructure expenditure in Zimbabwe is likely to be multifaceted, creating a more resilient, diversified, and sustainable economy. It will help mitigate climate-related risks, generate employment, boost infrastructure development and foster economic growth in both urban and rural areas.

Budget Deficit

The allocation of ZiG282.6 billion to Ministries, Departments, and Agencies (MDAs) in Zimbabwe for the 2025 fiscal year has resulted in a budget deficit of ZiG6.2 billion, which is equivalent to 0.4% of GDP, significantly below the maximum target deficit of 1.5% of GDP.

While this is a positive development in terms of fiscal performance, the impact on the economy remains complex. The reduced deficit indicates improved fiscal management, but Zimbabwe faces substantial debt servicing obligations, which account for 7% of overall Government expenditure.

This heavy debt burden underscores the need for continued consolidation of fiscal reforms and strict discipline to ensure long-term economic sustainability. Without addressing these challenges, the country risks compromising economic stability, as high debt servicing costs could limit resources available for productive investments and hinder efforts to foster growth.

Therefore, maintaining fiscal discipline and advancing structural reforms remains critical for achieving a balanced and resilient economy.

SUBMISSIONS FROM MINISTRY OF FINANCE, ECONOMIC DEVELOPMENT AND INVESTMENT PROMOTION

The Ministry was allocated ZiG 9.1 billion which translates to 4.79% of the National Budget. The Ministry is requesting for an upward review of the allocation to facilitate the purchase vehicles required to enhance staff mobility as well as secure office accommodation, among other needs. The Ministry has 33 staff in post who are sharing only 223 offices.

ZIMRA

The 2025 Budget envisages a 16.6% increase in revenue collection by tapping into emerging markets and this requires ZIMRA to meet that target.

Out of its bid of ZiG 9.3billion, ZIMRA was allocated ZiG5.1 billion which is 55% of the requirements. ZIMRA therefore needs an extra ZiG 4.1 billion to enable them

1. to buy office accommodation and reduce costs incurred on rentals
2. to enhance digital tools to improve operations and probably reduce staff numbers
3. to procure additional motor vehicles (109 required but funding only caters for 37) to enhance mobility and visibility.
4. to ensure that the data management system is fully functional. Approximately USD20 million is forgone due to the absence of a data management system.
5. To undertake network upgrade initiatives to ensure systems are at the right levels
6. To put in place cyber security systems

The Insurance and Pensions Commission (IPEC)

IPEC raised concern that the USD175 million which was allocated in the 2024 Budget for compensating the 2009 pension fund members’ losses was not disbursed.

In addition, no further allocation was made in 2025.

IPEC thus requested for a premium subsidy for small scale USD500 000 as a starting, on a phased approach to reduce dependency

Further, IPEC requested for an exemption of pensioners on payment of rental income tax on pensioners.

Infrastructure Development Bank of Zimbabwe (IDBZ)

The IDBZ is operating below the minimum capital requirement of USD20million.

They made a requested for USD10 million and or land allocation to enable them to pursue housing development and other projects.

Zimbabwe Statistical Agency (ZIMSTAT)

The agency got only 4% of their bid for the rehabilitation of Kaguvi Building

ZIMSTAT requires ZiG117million to renovate its offices.

Economic Census, Household Budget Surveys, Agriculture and Livestock Surveys had a total bid ZiG399 million but received only 23% of bid.

ZIMSTAT requests for an additional ZiG1.8 billion to enable them to carry out and complete the surveys.

Deposit Protection Corporation of Zimbabwe (DPCZ)

The DPCZ is not supposed by Treasury. However, the DPCZ requires USD10 million capital to increase compensation level for depositors from $1000 to $2000

Securities and Exchange Commission of Zimbabwe (SECZIM)

SECZIM welcomed the proposal to introduce the capital gains tax.

To enable effective supervision, the Commission requires an additional funding of ZiG60 million, with ZiG50 million earmarked for computerization and automation since they are currently operating manually.

The Commission lost about 30% of staff due to poor conditions of service.

COMMITTEE OBSERVATIONS

As a Committee, our observation was that the Ministry of Finance, Economic Development and Investment Promotion has taken onboard the inputs we submitted, that is the people’s voice, particularly as far as appropriation is concerned. We want to comment the Ministry for that. This has made our work relatively simpler as we deliberate on this budget.

Notwithstanding the above, the Committee recommends the following:

The reprieve on beneficiation tax will end on 31^st December 2024, implying that the beneficiation tax will be triggered on 1^st January 2025.  The Committee conducted a fact-finding visit to ZIMPLATS, and observed the following:

2025. The PGM beneficiation plant from concentrate to matte is complete and will be operational by January 2025.
2026. The beneficiation plant has capacity to absorb all platinum produced within the country
2027. Significant progress has been made in the procurement of equipment for the Base Metal Refinery (BMR).

The Committee observed that some of the proposed measures, for example deemed date of sale of mineral, are difficult to administer.

ZIMRA is not adequately funded to perform its mandate of revenue collection and trade facilitation. This may undermine the performance of the whole Budget.

The Committee noted the informal sector largely remains outside the tax net due to use of cash.

ZIMSTAT is constrained to deliver on its mandate due to inadequate resources.

There are legislative provisions that limit SECZIM from introducing new products on the market.

The Committee welcomes the reduction in Sugar Tax on cordials.

There are several taxes (VAT, IMTT and the proposed Fast Food tax) charged on fast foods which are burdensome to the consumer.

There is need for synchronization of data between central and local Government to enhance tax collection.

The regulatory costs accounts for accounts for 18% of costs on industry hence, needs a review. Further, ZimBorder fees are too high and also need to be reviewed.

There are weak value chains since most SMEs are traders of finished imported goods.

There is need to address security at the borders to reduce smuggling.

There is need for cross border traders’ education to encourage declaration of imported goods

There is need to balance between reduction of customs duty and protection of local industry.

ZIMRA launched an e-tariff platform to enable importers to check tariff rates.

RECOMMENDATIONS:

In view of the observations and concerns raised by stakeholders, the Committee recommends the following:

• In view of the observed progress in the installation of the beneficiation plant, we recommend that exportation of raw PGMs and concentrate be banned. All PGM producers are encouraged to use the recently completed PGM beneficiation plant.
• As far as the deemed date of sale is concerned, the Committee recommends that payment of royalties be based on the actual proceeds realized by producers and not on proforma invoices, which may not reflect the actual price at the time the product is valued.
• ZIMRA should be allocated 3% of the net revenue collected, subject to a submission of a Programme Based Budget.
• Government should secure a loan for the purchase of a building for ZIMRA.
• To enhance revenue collections from the informal sector, Government should make use of the existing registration databases of local authorities.
• The Committee welcomes the reduction in sugar tax on cordials. However, the Committee recommends a further downward review to US$0.00025/g but exempt the first 4 grams per 100ml.
• The Committee further recommends that ready to drink beverages should maintain the rate of US$0.001 but exempt the first 4 grams of sugar per 100ml.
• On high regulation costs to industry, the Committee recommends that the Government should commission a study to determine the cost of regulation with a view to inform possible reviews.

On the betting tax, government should threshold off the winnings which are subject to tax to USD500 and above.

• Reduce customs duty on basic commodities to discourage smuggling.
• On the Changes to VAT Payment Deadlines government should adjust the effective date for changes to VAT remittance deadlines from 1^st January to 1^st February to allow smooth transition.
• BEAM funds should be removed from the Ministry of Public Service, Labour and Social Welfare to the Ministry of Primary and Secondary Education to ease administration of the funds.
• The currency of payment for PAYE should be in the ratio of 50-50 basis to increase the demand for the local currency.
• The Fast-Food tax is burdensome to the consumer and regressive on business, hence must be scrapped.
• The Committee recommends that for businesses that fail to adhere to the registration requirements by ZIMRA, ZIMRA must be empowered to close the business until they comply.
• Considering that the rental income tax is charged on gross revenue, the Committee recommends that the applicable tax rate be reduced to 15%.
• The proposed rate of 0.5% royalty rate applied on the sales value of the quarry stones should be reviewed upwards to 1%.

Overall, the Committee recommends that the disbursement of funds to MDAs should mirror the allocations made by Parliament. I submit.

         HON. MATANGIRA: 

INTRODUCTION

Thank you Madam Speaker Ma’am. The Ministry of Mines and Mining Development plays a crucial role in shaping the future of Zimbabwe's mineral wealth. Its mandate encompasses the formulation of innovative mining policies that promote sustainable exploration, attract responsible investments, and enhance value addition and beneficiation. These efforts aim to ensure that the management and marketing of mineral resources ultimately benefit all Zimbabweans. This report encapsulates the pivotal discussions and key observations made by the Parliamentary Portfolio Committee on Mines and Mining Development during the post-budget review meeting held on December 3, 2024 at the Monomotapa Hotel. It provides an in-depth analysis of the 2025 budget allocations in relation to the Ministry's expenditure bids, highlighting critical insights and offering well-considered recommendations for the way forward.

METHODOLOGY

On December 3, 2025, the Portfolio Committee on Mines and Mining Development convened its post-budget meeting with various stakeholders, including the Ministry of Mines and Mining Development, key parastatals such as the Zimbabwe Mining Development Corporation (ZMDC) and the Minerals Marketing Corporation of Zimbabwe (MMCZ), and the Mining Promotion Company (MPC). Representatives from civil society organizations, including the Zimbabwe Environmental Law Association, Action Aid, and the Centre for Natural Resource Governance also attended. The meeting provided an opportunity to scrutinize Vote 9, allocated to the Ministry of Mines, the Budget Statement, and the draft Finance Bill.

OVERALL ANALYSIS OF VOTE 9 ALLOCATION

Budget Allocation for the Ministry of Mines and Mining Development.

The Ministry of Mines submitted a budget request of approximately 2.1 billion ZIG but was allocated 664.7 million ZIG. While it is commendable that the Ministry of Finance increased the budget from the initial ceiling of 227 million ZIG, the allocated amount remains woefully inadequate. This allocation represents only 31.5% of the Ministry's requirements and constitutes 0.023% of the total national budget announced by Minister the Minister of Finance. Notably, the allocation for 2025 is less than that of the previous year, which stood at 132.7 million ZIG—of which 118 million ZIG was released, accounting for 77% of the total allocation. The allocation for the Ministry of Mines in 2024 represented 0.031% of the national budget, compared to 0.023% for 2025.

The Ministry has two primary programmes: Policy and Administration and Mining Development and Management. The Policy and Administration programme received 350.6 million ZIG, against a bid of 635.5 million ZIG, leading to a deficit of 284.9 million ZIG. Meanwhile, the Mining Development and Management programme, which covers the Ministry's operational needs, was allocated 314.1 million ZIG against a bid of 1.47 billion ZIG, resulting in a deficit of 1.15 billion ZIG.

Budget Allocation by Economic Classification

The table below details the budget allocations for the Ministry of Mines, broken down by economic classification, along with corresponding percentages of the total vote allocation:

	Budget Allocation	% of Vote Allocation
Compensation of Employees	162,539,000	24.45%
Use of Goods and Services	277,965,000	41.81%
Other Expenses	12,290,000	1.85%
Buildings and Structure	850,000	0.13%
Transport and Equipment	72,367,000	10.89%
Other Machinery and Equipment	44,483,000	6.69%
Capital Grants	93,900,000	14.12%
Loans	400,000	0.06%

Persistent challenges such as inadequate transport vehicles, delays in the operationalisation of the computerized cadastral system, and underfunded metallurgical laboratories highlight significant gaps in the Ministry’s ability to fulfil its core mandates. Addressing these critical gaps will enable the Ministry to harness the full potential of Zimbabwe’s mineral wealth, foster inclusive economic growth, and contribute to national development goals while aligning with global sustainability standards.

IMPACT OF THE BUDGET ALLOCATION ON THE MINISTRY OF MINES AND MINING DEVELOPMENT

Misalignment of Allocations

The Ministry of Mines expressed concern that Programme 1 (Policy and Administration) received more funding than Program 2 (Mining Development and Management), where revenues are primarily generated for the Treasury. Given that the mining sector accounts for nearly 70% of the country’s export earnings, it is essential that more resources are allocated to its operational aspects.

SERVICE DELIVERY TO THE MINING SECTOR

Underfunding will severely impact the Ministry's service delivery. For example, the Ministry requested 70 vehicles for 2025 but was permitted to purchase only 22, which is 30% of the total request. Additionally, many existing vehicles require maintenance, with some currently out of service. The Ministry requested 95.1 million ZIG for vehicle maintenance but was allocated only 39.8 million ZIG, accounting for 41.8% of the request. This limitation hampers the Ministry's ability to conduct mine inspections, resolve disputes, and prevent leakages.

MINERAL LEAKAGES AND ILLICIT FINANCIAL FLOWS

The absence of a government-owned metallurgical laboratory for accurate mineral export valuation is concerning. The current budget allocates 34.5 million ZIG against a bid of 40 million ZIG. Legislators have raised concerns that minerals are not being properly accounted for before export. Establishing a metallurgical laboratory is crucial to prevent undervaluation and mineral leakages and requires coordination with weighbridge systems managed by the Ministry of Transport.

EXPLORATION OF THE COUNTRY'S MINERALS

The budget allocation for the Mining Promotion Company (MPC) is 400,000 ZIG, falling short of the requested 106.8 million ZIG. This underfunding limits the MPC's ability to effectively facilitate mineral exploration and negotiation of mining contracts, which are vital for revenue generation.

CAPACITATION AND FORMALISATION OF SMALL-SCALE MINERS

The Minister of Finance proposed that no mining company should apply for mining rights without registering for personal and corporate income tax. This initiative aims to curb leakages and formalize the mining sector, especially among small-scale miners. However, it is essential that this proposal aligns with the Ministry's formalization strategy to prevent informal operations.

During consultations, the Committee learned that Treasury had only disbursed USD 2.5 million of the USD five million loan facility secured two years ago. Timely disbursement of this loan is crucial to empower small-scale miners, particularly in the gold sector, to improve production and sustainability.

CORPORATE SOCIAL RESPONSIBILITY

The Ministry of Finance introduced a 1% levy on certain minerals in 2024 for corporate social responsibility. The Finance Bill of 2025 has expanded this levy to include all types of coal. However, clarity is needed on how the revenues generated in 2024 will be disbursed to affected communities.

MINES AND MINERALS AMENDMENT BILL

The Committee was informed that more work is required to finalise the Mines Bill and the Minerals Development Policy, which have been pending for an extended period. It is vital to complete these policies in the upcoming year to address challenges related to licensing, registration, and dispute resolution.

COMPUTERISED CADASTRE SYSTEM

The computerised cadastre system's hardware has been purchased, but the management information system remains incomplete. The Ministry requested 223.8 million ZIG but was allocated only 45.3 million ZIG, leading to a deficit of 178.4 million ZIG. Resolving the disconnect between the Ministry of Finance and the Ministry of Mines regarding the cadastre system is critical as it impacts boundary disputes and investor confidence.

ADMINISTRATIVE EXPENSES

Programme 1 covers administrative expenses, including tools of trade and office accommodation, which are significantly underfunded. The Ministry is in rental arrears of 3.2 million ZIG, and the allocated 5.8 million ZIG for 2025 will primarily go towards debt servicing. The Ministry should explore innovative solutions, such as public-private partnerships, to secure permanent accommodation.

RECOMMENDATIONS

• Fully fund the metallurgical laboratory to curb mineral leakages and ensure accurate valuation, thus improving fiscal revenues.
• Release the entire USD 5 million fund under the Special Drawing Rights (SDR) to empower small-scale miners and promote sustainable practices.
• Facilitate dialogue among the Ministry of Finance, the Ministry of Mines, and the Ministry of Lands for the establishment of a national cadastre system, avoiding duplication and resource wastage.
• Encourage the Ministry of Mines to engage multinational corporations for public-private partnerships in constructing provincial and district mining offices.
• Adequately resource the Mining Promotion Company to attract private sector investment for mineral exploration.
• Ensure that the 1% CSR levy is disbursed to local communities benefiting from resource extraction, in accordance with constitutional provisions.
• Expedite the finalisation of the Mines Bill to address licensing, registration, and dispute resolution challenges, thereby enhancing productivity and revenue generation.

CONCLUSION

In conclusion, the budget allocation for the Ministry of Mines and Mining Development for 2025 falls significantly short of the Ministry's needs, impeding its ability to deliver essential services and fulfill its mandates. The underfunding of critical programmes threatens the sustainable development of the mining sector, which is vital for Zimbabwe's economic growth. Immediate actions are necessary to address these gaps and ensure that the Ministry is adequately equipped to harness the country's mineral wealth for the benefit of all Zimbabweans. The recommendations outlined in this report are crucial for fostering a more effective and sustainable mining sector that can contribute meaningfully to the national economy.

FIND THE ATTACHED SUMMARY

MINISTRY OF MINES AND MINING DEVELOPMENT

2025 BUDGET ALLOCATION

Vote Appropriations                                    282,619,700,000.00

Proposed Allocation                                           664,794,000.00

Ministry’s Bid                                              2,108,096,944.00

Percentage Allocation to National Budget                        0.023%

Percentage Allocation to Bid                                            31.5%

USD Equivalent-Allocation                                     18,4 million

PROGRAMMES

Programme 1 Policy and Administration  

Bid              635,595,944.00

Proposed Allocation         350,681,000.00

Deficit         284,914,944.00

Programme 2 Mining Development and Management    

Bid           1,472,501,000.00

Proposed Allocation         314,113,000.00

Deficit               1,158,388,000.00

ANALYSIS OF THE BUDGET AND IMPLICATIONS

• Of concern is the misalignment between Policy and Administration and Mining Development and Management (Operations) as well as the deficit of 1.4 billion
• 24% of the budget will go towards Compensation of Employees
• The budget is insufficient to fully support and enable the Ministry to achieve its targets and goals for the year 2025

Vehicle maintenance and Servicing

The Ministry is field based and needs to be highly mobile. Their fleet requires servicing and maintenance at least twice per year. Given the allocated resources, this will be another difficult year and will further worsen the condition of the fleet due to non-adherence to maintenance standards. Failure to continuously service vehicles will result in increased mine accidents, mineral leakages, lack of monitoring as well as reducing the life span of the vehicles. Treasury allocated ZiG 39,840,000.00 against a bid of ZiG 95,134,900.00. Additional Resources amounting to ZiG 55,294,900.00 is still required, otherwise the Ministry fleet will be grounded, thereby affecting operations.

Institutional Provisions

Staff motivation is of paramount importance and providing staff with provisions is key. Prerequisites cannot be met. Treasury allocated ZiG12,380,000.00 against a bid of ZiG108,780,375.00.

Office Rentals and Securities

The Ministry is renting office accommodation in Gwanda, Gweru, Bindura, Marondera and Mutare. The Ministry currently owes these landlords ZiG 3,206,196.56 as rental arrears to October 2024 and Security Services ZiG 573,089.68. This means the entire allocation will go towards debt servicing in 2025. Failure to get additional resources may result in evictions as a result of non-payment. Security companies may withdraw their services leaving premises at a high risk of intrusion by outsiders. Treasury allocated ZiG5,838,000.00 against a bid of ZiG31,566,000.00

Acquisition of Office Buildings in Provinces

Allocation 0,056% of Price Offer for Mutare building, before even mentioning Bindura, Hwange, Geo Survey Department, and Zvishavane. Ministry will remain with the risk of being evicted since even rentals are not being fully supported by Treasury. Treasury allocated ZiG 850,000.00 which is equivalent to USD 23,526.16 against a bid of ZiG 29, 000,000 with USD equivalency of USD 990,000.00

Mining Exploration-MPC

This provision under plays the importance of exploration. The bid has been completely ignored Treasury allocated ZiG 400,000.00 which is equivalent to USD 11,000.00 against a bid of   ZiG106,890,000 which has USD equivalency of USD 2,96 million

Mineral Leakages

The bid was to cover Minerals Unit established under SI 82/2008 to curb Mineral Leakages as well as 4 Gold Mobilisation exercises. The funds availed will only be able to cater for 2 Gold Mobilisation Exercises only. With no support for Minerals Unit to curb leakages. Treasury allocated ZiG 5,300,000.00 which is equivalent to USD 146,692.50 against a bid of ZiG105, 000,000 with USD equivalency of USD 2, 9 million

Acquisition of Motor Vehicles

Off the road vehicles (all terrain) considering most of the work is field based. Inadequate vehicle fleet inhibits field service provision and in particular inspections and backlog clearance. Treasury allocated ZiG 72,367,700.00 which is equivalent to USD 2million against a bid of ZiG 164,500,000 with USD equivalency of USD 4,6 million.

Research Value addition and Beneficiation (Institute of Mining Research)

Research is of paramount importance in order to enhance modern techniques and new methods of mineral processing. Treasury allocated ZiG 1,340,000.00 which is equivalent to USD37, 088.29million against a bid of ZiG 13,920,000 with USD equivalency of USD 385,382.06

Department of Research, Value addition and Beneficiation

There doesn’t appear to be any allocation from Treasury towards research under the Department. A bid of ZiG20, 000,000 which has a USD equivalency of USD553, 709.85

Mining Cadastre Information Management

The resources are inadequate for the operationalisation of the already developed Mining cadastre management information system. Key requirements are service level and software maintenance agreements, additional equipment, verification and validation of data. Treasury allocated ZiG 45,333,500.00 which is equivalent to USD1, 254,732.91 against a bid of ZiG 223,814,808 with USD equivalency of USD 6,196,423.26

Capacitation and formalisation of Small Scale Miners (MILF)

Capacitation of SMEs remains grossly underfunded in comparison to Agriculture in spite of its high contribution to mineral production (60%). Treasury allocated ZiG 23,950,000.00 which is equivalent to USD662, 884.03 against a bid of ZiG 152,154,000 with USD equivalency of USD 4,212,458.47.

Tools of Trade

Furniture, ICT equipment, software, survey equipment - failure by the Ministry to provide will result in it lagging behind in as far as international best practices are concerned. Treasury allocated ZiG 44,483,000.00 which is equivalent to USD1, 231,192.91 against a bid of ZiG 658,624,041 with USD equivalence of USD 18,234,331.15.

Mining Inspections

The Ministry is extremely concerned that there does not appear to be any allocation on these critical operational areas except for a paltry ZiG11, 000,000.00 set aside for RMA. This is against a bid of ZiG 614,340,620.00.

Metallurgical Laboratory capacitation

To ensure accurate valuation of mineral exports thereby avoiding under valuation and leakages on undeclared minerals, the department require additional funding. Treasury allocated ZiG 5,410,000.00 which is equivalent to USD149, 737.06 against a bid of ZiG 40,000,000.00 with USD equivalence of USD 1,107,419.71

Geological Survey capacitation

The department is still using old tattered maps which require digitalisation in line with global trends, acquisition of state-of-the-art equipment for use, ideally geological information is key as a starting point for mining prospects. Capacitation of library, museum, rock cutting and mineralogy laboratory. Treasury allocated ZiG 17,000,000.00 which is equivalent to USD470, 523.11 against a bid of ZiG 36,000,000.00 with USD equivalence of USD996, 677

Subscriptions to Various Organisations (International organisations)

Though it was funded fully the Ministry now fears current year obligations won’t be met. The allocated support will go towards debt servicing.

Budget releases for the years              

Allocation                     National Budget   Minister’s Budget         %

2023	4.5trillion	12.9billion	0.25%
2024	44 trillion	132.7billion	0.30%
2025	282.6billion	664,700,000	0.23%

 

         HON. MAPOSA: Thank you Madam Speaker Ma’am. I rise to present the report on the Portfolio Committee on Public Accounts on the Auditor General’s 2025 budget allocation.

INTRODUCTION

Following the 2025 National Budget presentation on 28 November 2024 by the Hon. Minister of Finance, Economic Development and Investment Promotion, the Public Accounts Committee was obliged to conduct Post-Budget Consultative Meetings with the Auditor General. In this context, the Committee sought the Auditor General's insights regarding the proposed allocations for various budgetary items in the budget of the Office of the Auditor General. Her perspectives were instrumental in enabling the Committee to prepare this Budget Analysis Report on the Audit Office Budget

Significance of the Audit Office and the Necessity for Sufficient Resources in 2025.

       The Office of the Auditor-General is one of Zimbabwe's key Constitutional oversight bodies. To fulfil its mandate and run efficiently, the Office requires substantial financial resources to fund its operations. While acknowledging the difficult economic environment the government is operating in, the Committee believes it is paramount to allocate sufficient financial resources to the Audit Office. The Audit Office, on its part, reinforces its commitment to efficient and prudent financial management.

        Overall Budget Allocation for 2025

        The Committee acknowledges and appreciates the Treasury’s decision to increase the Audit Office’s initial budget allocation from ZWG394 million to ZWG589.2 million. The Audit Office was allocated ZWG589.2 million against a bid of ZWG 923.7 million, resulting in a shortfall of ZWG334.5 million (57% of the ceiling). The shortfall of ZWG 334.5 million indicates a significant discrepancy that will have a detrimental effect on the Audit Office's performance.

Areas of Concern in the 2025 Budgetary Allocation for the Audit Office

Employment Costs

        The Audit Office submitted a budget request of ZWG $147 million for employment costs and was given a ceiling of ZWG104 million, leaving a shortfall of ZWG42 million (40%). The Committee established that the Office faces a significant shortfall in funding, primarily due to the assumption that they would have a fully established staff. From the research and the 2021 job evaluation conducted by the Audit Office, it was revealed that professional auditors in the country and SADC region earn a minimum of USD$1,000. Currently, auditors are being paid salaries of approximately US$300 and ZWG2000. Hence, the shortfall of ZWG42 million requested will make it possible for the Office to pay near-market salaries of USD$1,000.

        It is the Committee’s view that the ceiling of ZWG104 million would be unsustainable in the event of an unexpected change in the official exchange rate and changes in the economic variables, the Audit Office needs a total rewards policy to efficiently carry out its mandate, including talent attraction, employee engagement, benefits, and market competitiveness. It also needs to be professionalised to enhance audit quality and staff motivation.

        Digitalisation

        The Committee learned that the proposed allocation for digitalization was ZWG33.5 million against a bid of ZWG35.7 million, leaving a shortfall of ZWG2.2 million. The Committee commends the Treasury for allocating adequate resources requested by the Audit Office regarding digitalisation, as this will help the Office acquire modern auditing software.

        Retooling

        The office needs retooling to support the work of professional auditors and ensure efficiency in various activities. Equipment and other tools of trade are needed to support the processes, which will amount to ZWG16.1 million. This area of retooling was not provided with any funding in the budget.

        Most of the equipment or tools of trade have gone past their recommended useful lives by a wide margin.  The Office needs to procure 200 laptops, software and other ICT equipment. The budget ceiling on retooling is insufficient. Funding is required for the re-tooling so that the auditors move from outdated manual systems and can expeditiously complete their assignments. 

Renovation of Burroughs House

        The Committee is concerned that the renovation of the Burroughs House, which houses the Auditor-General’s Office, had been on the cards for years and in 2024, no disbursements were made towards the renovation of the House.

        The Committee established that the Audit Office was allocated a budget ceiling of ZWG64.8 million against a bid of ZWG96 million, leaving a gap of ZWG31.2 million. Additional funding will ensure that the project is a success. It was noted with appreciation that the Ministry of Finance, Economic Development and Investment Promotion reaffirmed its commitment to provide financial support towards the renovation and upgrading of Burroughs House.

        Transportation of Staff to Audit Workstations

        The Committee believes that due to insufficient funding in prior budgetary allocations, transport remained a needy area. The absence of buses and vehicles to transport staff to and from auditees is reported to be negatively impacting the timeous production of reports.

        The Audit Office budgeted for the procurement of three minibusses and twenty-five (25) double cab motor vehicles to ease the logistical challenges the Office is currently facing in transporting auditors from the Office to clients and outstations. It was submitted that the proposed allocation of ZWG50.6 million might not have accurately reflected the actual costs of purchasing motor vehicles, resulting in a shortfall of ZWG62.2 million. Also, fluctuations in exchange rates could have an impact on purchasing power, which will lead to a shortfall. Transport has a significant influence on the audit coverage, which the Committee believes should be enhanced to provide a more accurate picture of the state entities' financial management situation.

Training and development

The Committee established that the Audit Office is a learning organisation; therefore, training and development were ongoing. One of the Audit Office’s objectives, as highlighted in its 2021-2025 Strategic Plan, was to have enhanced human capital capacity and professional development. The Audit Office requested ZWG40.0 million for training and development and subsequently was allocated ZWG27.2 million, leaving a shortfall of ZWG12.2 million (47%).  Training and development is key for the office to provide staff with high-quality tuition support to complete their professional studies and career progression.

        Domestic travel expenses

        The core business of the Audit Office is conducting different forms of audit and preparing reports as provided for in Sections 10 and 11 of the Audit Office Act [Chapter 22:18]. The Committee learned that the Audit Office was centralised in Harare, but Ministries Departments and Agencies (MDAs) had outstations in all the provinces and districts and auditors need to visit these outstations where the source documents are kept.

        Most outstations have not been audited for some time, yet devolution funds have also been accounted for in the provinces. Failing to audit outstations may result in many reportable issues going undetected, compromising transparency and accountability. However, the Audit Office was allocated ZWG40.8 million against a bid of ZWG60 million, leaving a shortfall of ZWG19.2 million (47%). The Committee learned that the realistic budget of ZWG60 million will enable the office to cover more stations that have not been audited for a long time due to lack of funding.

        Staff Loan Revolving Fund

        The Staff Loan Revolving Fund was allocated a budget of ZWG3 million against a realistic budget of ZWG18 million and had a shortfall of ZWG15 million. The Staff Loan Revolving Fund plays a critical role in achieving the objective of providing loans to staff, thus improving their welfare. The Office requires additional seed capital for the Staff Loan Revolving Fund to be loaned out to staff to help retain them.

Committee Recommendations

       The Treasury should fully fund the employment cost of the Audit Office to enable the office to do more audits. This would raise income from audit fees, hence reducing reliance on the Treasury allocation in the long term.

       The Treasury should promptly disburse the allocation for digitalization and retooling in the first quarter to accelerate the automation of all Audit Office processes by the Government’s e-governance, e-procurement and international auditing best practices.

        The Treasury should disburse 50% of the budget allocated towards the renovation of the Burroughs House in the first quarter of 2025 to kick start renovations and avoid prolonging paying rentals at PAX House, which are USD$11 551.56 per month.

       The Treasury should allocate foreign currency to the Office of the Auditor General so that they can directly purchase motor vehicles from the suppliers. This would avoid challenges related to fluctuations in exchange rates that could impact the delivery of the vehicles, as is the case across all MDAs.

       The Treasury should fully fund the training and development so that the Audit Office can enhance human capital capacity and professional development.

       The Treasury should fully fund the staff loan revolving fund to enable the Audit Office to retain staff.

       Training and Development should be fully funded as it is fundamental for auditors to be continuously trained and developed.

       The Treasury must release the Audit Office’s Budget allocation in the first and second quarters, as audit work is at its peak in these periods.

Conclusion

        The Office of the Auditor-General’s contribution to the national vision “Towards a Prosperous and Empowered Upper Middle-Income Society by 2030” can only be realised if the Audit Office is adequately resourced. Strengthening the Supreme Audit Institution is key to improving the country’s transparency and accountability. If the funding shortfalls are not addressed, the Audit Office will be underfunded; hence, it will be challenging to discharge its constitutional mandate. The Committee hopes the Treasury will consider revising specific allocations on items whose deficits concern the Committee.

HON. MANDIWANZIRA: Thank you Madam Speaker.   I rise to present the post budget analysis report on the Portfolio Committee on Local Government, Public Works and National Housing, which touches on two ministries which are the Ministry of Local Government and Public Works as well as the Ministry of National Housing and Social Amenities.

• INTRODUCTION
  • Background

The Ministry of Local Government and Public Works’ mandate is to promote socio-economic development of rural and urban communities in a well-built devolved environment. The Ministry’s vision is ‘devolved governance for prosperous communities by 2030’.

The Key Result Areas for the Ministry are:

1. Sound local governance
2. Infrastructure development and

• Social services delivery

The Ministry has five programmes which are:

1. Policy and administration
2. Spatial planning
3. Local governance
4. Construction, maintenance and management of public buildings
5. Disaster risk management
   • Methodology

Following the presentation of the 2025 National Budget by the Minister of Finance, Economic Development and Investment Promotion, the Portfolio Committee on Local Government, Public Works and National Housing engaged officials from the two ministries and stakeholders to gather their views.  The Committee consolidated the views and came up with its own analysis of the budget.

• LOCAL GOVERNMENT & PUBLIC WORKS BUDGET ANALYSIS
  • Overview of the 2025 budget

The Ministry was allocated a total budget estimate of ZWG 4,907,792,000 (ZWG4, 9 billion) in the recent 2025 budget presentation, which represents a 30% allocation of its total bid of ZWG16,186,695,489 (ZWG16,1 billion). The allocation is in sharp contrast to the Ministry’s comparative share of the 2024 budget which stood at 2.21% of the national budget whilst in the 2025 budget, the allocation to the Ministry has reduced to only 1.8% of the national budget. Taking into consideration the ongoing projects which still await funding, the Ministry has been underfunded, particularly in key mandate areas of local governance, construction and maintenance and the critical support services.

In terms of the constitutional allocation for Inter-Governmental Fiscal Transfers (Devolution funding), the Ministry was allocated a total of ZWG13,8 billion which translates to 5% of the estimated national revenue collections has been allocated. However, the major determinant is the actual disbursement of the allocation which from 2019 to date has not been consistent. As of November 2024, the actual disbursement of Intergovernmental Fiscal Transfers stood at 7% of the revised allocation, a paltry figure which has undermined the vitality and importance of the IGFT in stimulating service provision across rural and urban local authorities in Zimbabwe.

• The 2024 Ministry of Local Government and Public Works Budget performance

The Ministry was allocated a revised total budget of ZWG 1,523,250,491.00 (ZWG1,52 billion) against a budget bid of ZWG 4,304,359,573,811.00 (ZWG4,3 billion) for the year 2024. This translated to 4% of the expected budget for the year. The Ministry only utilised 57% of its budget owing to low of disbursements by Treasury. Despite the low and inadequate disbursements made by Treasury which were further compounded by the volatile inflationary environment and environmental factors such as the El Nino-induced drought, the Ministry managed to make significant progress and achieved some of its targets.  The Ministry managed to facilitate construction projects under the New City through approval of designs for all infrastructure projects, completed Master Plans and local plans for example, Tugwi-Mukorsi, Manhize and Kanyemba. Furthermore, the Ministry successfully hosted the 44^th SADC Session, among other key achievements. The major component of the Ministry budget was for goods and services which incurred a major cost driver in the form of hire and rental expenses for State Occasions.

The Ministry also accounts for constitutional and statutory allocation for Inter-Governmental Fiscal Transfers (Devolution) funding which had a total allocation ZWG 2,256,266,632.00 (ZWG2.2 billion) which translated to 5% of the estimated National Revenue collection. Nonetheless, Inter-Governmental Transfers have been a contentious issue primarily due to the fact that the actual disbursements do not meet the 5% threshold mandated by Section 301 of the Constitution. Since its introduction in 2019, the devolution funds have never reached the 5% of annual revenue as provided under Section 301 of the Constitution but have ranged between 0.5% and 2.9% (see Figure 1).

Figure 1: Share of Devolution Funds Allocation between 2019 and 2024 (%)

It is critical for the Ministry of Finance, Economic Development and Investment Promotion to prioritise the disbursement of Intergovernmental Funds Transfer in 2025 guided by the May 2024 Devolution Manual. Devolution funds are now the life line and a key compliment for all local authorities across the country as they endeavour to provide services, hence the prioritisation of devolution funds in the 2025 fiscal year is of utmost importance. 

• Economic Classification of 2025 Local Government and Public Works Budget

The economic classification of the Ministry’s 2024 and 2025 budgets reveals that more priority was given to goods and services compared to capital expenditure. This category was allocated 38% of the Ministry’s revised budget in 2024 compared to 64% in 2025.  Capital expenditure received 30% in the 2024 revised budget but this was significantly reviewed downwards to 14% in 2025. This limited allocation on capital expenditure will greatly affect the timely completion of construction projects which are at various stages of completion. Similarly, procurement of ICT equipment, furniture, motor vehicles and plant equipment will also be affected creating a knock-on effect on execution of both programmes and projects.

Table 2: Comparison of the 2024 and 2025 Local Government and Public Works Budgets by Economic Classification (%)

• Programme Budget Allocations vs Bids for 2025

The Ministry of Local Government and Public Works submitted a bid of ZWG16.1 billion to Treasury for its programmes but received an allocation of ZWG4,9 billion (or 30% of its funding needs) leaving a funding gap of ZWG12,2billion (see Table 3). Construction, Maintenance and Management of Public Buildings anchors the local government budget allocation. It was allocated about ZiG1.07 billion in 2024 but the budget allocation increased to ZiG2.68 billion for 2025, translating to 151.6% increase. The share of Construction, Maintenance and Management of Public Buildings to total local government budget slightly increased from 50.1% in 2024 to 54.6% for 2025 budget allocation. This is followed by Policy and Administration which constituted 20.7% of 2025 local government budget allocation and Local Governance which constituted 13.1 during the same period. Spatial planning budget was significantly reduced by 37.2% from ZiG595 million in 2024 to ZiG373.63 million proposed for 2025. The reduction in spatial planning budget may result in less optimal use of land and resources as well as the clustering of economic activities. The Minister of Finance set aside a small proportion of ZiG50.4 million for Disaster Risk Management in 2024, which translated to 2.4% of local government budget. In 2025, the allocation was increased to ZiG194.77 million, which translates to 4% of local government budget.

Table 3: 2025 Local Government and Public Works BID vs Allocation by Programme (ZWG)

Programme 1: Policy and Administration 

The programme only received 37% of its bid although consisting of a large portfolio which consists of the following sub-programs: Ministers’ and Permanent Secretary, Finance, Administration and ICT, Internal Audit, Legal Services and State Occasions.  The total budget estimates for the programme is ZWG1billion. The major component of this budget is for rental and hire service with estimates of ZWG206 million which will mainly cater for State occasions. This aspect is a recurring aspect from the 2024 financial year which indicates that the major component of the Ministry budget is for goods and services exacerbated by the hire and rental expenses for State Occasions. It is critical for the Ministry of Finance, Economic Development and Investment Promotion to assist the Ministry of Local Government and Public Works to procure its own tents and equipment to host state occasions and avoid unnecessary and debilitating expenditure on rental and hire services.

It is critical to note that the allocation on policy and administration is inadequate to cover the financial obligations pertaining to the renewal of the Ministry’s current vehicle fleet. The Ministry is currently operating with an aged and unreliable fleet which is unsustainably expensive to maintain. A total of 96 unserviceable vehicles were disposed during the year and 30 earmarked for boarding due to age high cost of repairs and frequent breakdowns. It is important to note that of the Ministry’s fleet of 331 only 131 are below 10 years and the rest above 12 years and have outlived their life span, which is five years. Therefore, there is an urgent need to renew the current fleet.

Programme 2: Spatial Planning

The programme on Spatial planning was only allocated ZWG373million, which translates to 21% of the budget bid of ZWG1,5 billion despite being critical in maintaining the momentum towards planned housing delivery, regularisation of informal settlements, urban renewal and regeneration, and support to local authorities in terms of the Call to Action milestones.

Important to note is that the programme involves a lot of on-site plan preparation and management activities relating to all service centres, urban centres and other settlements countrywide. In 2024, the programme utilised only 12% of its ZWG515 million revised budget due to lack of actual disbursement by Treasury. This affected the department of Spatial Planning to carry out on-site plan preparations, and site inspections and mapping projects. In this regard, it is fundamental to capacitate the department of Spatial Planning in terms of mobility and important tools of trade such as mobility for all stations, survey equipment, drones and GPS, heavy duty plan printers, computers, software, amongst to meet the set targets for 2025.

Programme 3: Local Governance

Local Governance programme that deals with local authorities was allocated a total budget estimate of ZWG641million, which is only 27% of its funding needs for 2025. Urban Local Authorities were allocated (ZWG 192 million); Rural Local Authorities (ZWG 83 million) and Provincial and District Administration were allocated (ZWG 366 million). This programme is a key instrument towards attaining vision 2030 especially in the provision of infrastructure, municipal and social services. It is fundamental that the allocation to this crucial programme be up-scaled to at least ZWG700million, which is 50% of the bid made by the Ministry for the programme. This programme is at the forefront of as instructed in the Call to Action No Compromise to Service Delivery made by His Excellency the President, Dr. E.D. Mnangagwa.

It is critical to highlight that the department now has Minimum Service Delivery Standards (MSDS) in place, which have already been piloted in six local authorities and now await roll out. This roll-out could potentially transform local authorities to deliver services as mandated by law. This therefore requires the MLGP to embark on monitoring and inspection processes to track the actual performances of individual local authorities, henceforth the utmost need for Treasury to commit to upscaling the budget to at least 50% of the bid made by MLGPW to upscale the uptake of minimal service delivery standards.

Programme 4: Construction, Maintenance and Management of Public Buildings  

The programme was allocated ZWG2.6 billion against a bid of ZWG 10.4 billion, which translates to 21% of the bid. This programme is instrumental in maintaining government buildings and undertaking construction projects through the department of Public Works. Under Design and Construction, the Ministry seeks to fund the construction of government complexes in Lupane to relocate Matebeleland North government departments from Bulawayo to Lupane, Siakobvu composite offices, Hwedza and Mutoko composite offices. Under the Maintenance of Buildings, Plant and Equipment the MLGPW is focusing on the refurbishment of Harare, Gweru and Bulawayo furniture workshops. Under the sub-programme of Public Buildings Estates Management and valuations the Ministry seeks to;

1. Purchase of a composite office building in Masvingo Province at ZWG126million
2. Government Asset Register (IPSAS) at ZWG2million
3. Insurance of foreign government properties at ZWG1.02million
4. Rates clearance for John Boyne building at ZWG1million
5. Valuation of Government Properties at ZWG2.5million
6. Valuation for compensation purposes (dam construction projects) at ZWG1.5million
7. Purchase of two project vehicles at ZWG320,000.00

The budget inadequacy will further prolong the completion cycle of the projects in Mutoko, Siakobvu, Lupane and Hwedza. It is critical to tap into the potential of utilising the government asset register and valuation services to create a significant stream of revenue for Treasury through reviewing the rental fees of government properties to be at par with the market rates. In conjunction with the Valuer General and the Ministry of Finance, Economic Development and Investment Promotion, a rent sharing agreement can be made with the MLGPW, wherein the Public Works Department retains 15-20% of the reviewed rentals on government properties to capacitate its structures particularly the Public Works Unit and fulfil its mandate of construction and maintenance.

Programme 5: Disaster Risk Management

The Programme was allocated ZWG174 million against a bid of ZWG 374 million and this translate to 47% of the bid. The department was allocated ZWG19 million budget for motor vehicles, machinery and equipment and other non-financial assets projects outstanding. In view of the forecasted 2024/25 La Nina Climate phenomenon, more resources are required for disaster response given the January-March period where most rainfall related incidents occur, including tropical cyclones. Disaster Planning, Community Based Disaster Risk Management (CBDRM) and the National Command Centre require additional resources in the wake of the increase in natural and human made disasters.

It is important to note that the funding received for recovery projects (ZWG19,890,000) is insufficient to cater for the 58 outstanding recovery houses in Chimanimani (Runyararo) and access roads in both Chimanimani and Tsholotsho while outstanding payments for the security services remain pending. The proposed allocation for Disaster Risk Management shows that Zimbabwe set aside limited resources for prevention or mitigation of disaster risks, preparedness planning and timely early warning and response to rehabilitate affected elements.

• COMMITTEE OBSERVATIONS, ISSUES AND CONCERNS
  • Uptake of recommendations from Pre-budget seminar into the 2025 proposed budget. The Committee commends the move by the Minister of Finance to increase the budgetary allocation from the original ceiling of ZWG1,8 Billion during the pre-budget process to ZWG4,9 billion. This moved the budget allocation from 11% to 30% of the bid.
  • Funding gap too wide, Local Government and Public Works 2025 policy targets may not be met. The Committee is concerned that the Ministry of Local Government and Public Works only received 30% of its funding requirement of ZWG16,2 billion in 2025. Further compounded by the late disbursements from Treasury and potential inflationary turbulence, the Ministry through its ZWG4,9 billion may not meet its policy targets in 2025.
  • It is of concern to the Committee that since the introduction of the Inter-Governmental Funds Transfer, the 5% Constitutional threshold of devolution fund has never been met between 2019 and 2023. Instead, it only ranged between 0.5% and 2.9%. This is misaligned with Section 301(3) of the Constitution that states that not less than 5% of the national revenue raised in any financial year must be allocated to the provinces and local authorities as their share in that year. The Committee notes that the 2025 Budget meets the 5% requirement but the daunting prospect will be that of disbursement and cash release by Treasury.
  • The Committee notes with concern that the maintenance budget that is allocated to all government ministries is always subject to virement yet the Public Works Department is grossly incapacitated. The virement of the allocation to ministries, departments and agencies of maintenance budgets in the face of dilapidated government infrastructure is a worrying trend than needs to be stopped through ring fencing all maintenance budgets of MDA to be utilised by the Ministry of Local Government’s Public Works Department.
  • The Committee notes that, despite the Presidential call to action on service delivery, corresponding budget support through adequate resource allocation to the Ministry’s Local Governance programme will undermine the realisation of progress towards service delivery. It is critical that the Ministry’s programme on local governance be funded to at least 50% of its bid to create significant inroads towards implementing the call to action blueprint.
  • The Committee noted with concern the operational challenges that continue to hinder service delivery at the Ministry. These include high staff turnover and skills shortage; obsolete equipment in workshops, non-availability of tools of trade, obsolete and inadequate vehicle fleet to monitor and support local authority operations and projects, delays in contract approvals by PRAZ, price instability that eroded value of allocated funds as well as partial disbursements of devolution funds to local authorities.
  • The Committee noted from 2024 high budget consumption drivers have been through rental and hire service for state occasions. The Ministry’s lack of equipment and tents for occasions is a cause of concern on unnecessary expenditure which can be addressed by procuring tents for the Ministry of Local Government, which can always be utilised by all MDA for any occasion without cost. It is important to introduce cost cutting measures in 2025 to wisely utilise the scarce resources that the high cost driver for the MLGPW.
  • Huge funding gap to the National Council of Chiefs. The Committee further noted with concern that the National Council of Chiefs was allocated a total budget estimate of ZiG196 360 000 (ZWG196 million) against a budget bid of ZWG 2,408,704,000.00 (ZWG2,4 billion) which is inclusive of Goods and Services and Capital Expenditure. This translates to 8% of the funds allocated to the needs of National Chiefs’ Council leaving a shortfall of 92%.  The Committee notes with concern that the allocated funds are far too short to achieve the anticipated goals of the National Council of Chiefs, especially in relation to the convening of statutory meetings which are critical in the discharge of their mandate. The bid for statutory meetings was ZWG 488,800,000 (ZWG488 million) and the allocation is ZWG 13,317,600 (ZWG13 Million), leaving a shortfall of ZWG 475,482,400 (ZWG 475 million).

  The Committee notes that statutory meetings are important meetings prescribed in terms of the Traditional Leaders Act, and they constitute 50% of the core business of National Council of Chiefs. Availing at least half of the 2025 bid will enable Council of Chiefs to carry out its mandate on at least 2 Provincial Assemblies per province, two Council of Chiefs meetings and one Chiefs’ conference. Key to note is that the allocation towards maintenance of vehicles is grossly inadequate to maintain 307 chiefs’ vehicles and for the secretariat. The bid for this item was ZWG 46,050,000 (ZWG46 million) and allocation is ZWG 897,300.

  On the procurement of the Chiefs’ vehicles, the allocation of ZWG18,000,000 (ZWG18million) is far short to purchase vehicles for new appointees and replacements for those that have reached their useful lives. The Committee noted that the allocation can only purchase 13 vehicles against a requirement of 80 vehicles for 2025, which require ZWG 108,000,000. (ZWG108million).

• RECOMMENDATIONS
  • Treasury must increase the share of the budget allocated to the Ministry of Local Government and Public Works to at least 5% of the total national budget or 50% of the ZWG16,1 billion bid to enable it to adequately deliver on its mandate. At the minimum, Treasury must increase the Ministry allocation to ZWG8 billion to enable it to discharge its mandate. This must be complemented by timely disbursements of allocated resources, in full.
  • Treasury must raise the National Chiefs’ Council allocation from the current 8% to 50% of its original bid which translates to ZWG1,2 billion. This will enable the Chiefs’ Council to carry out its mandate of holding at least two Provincial Assemblies per province, two Council of Chiefs meetings, and one Chiefs’ conference. These funds must be disbursed timely.
  • Government to take the lead in funding disaster management. Disaster planning, Community Based Disaster Risk Management (CBDRM) and the National Command Centre should be funded to finish disaster legacy issues in Tsholotsho and Chimanimani.
  • Allocation of intergovernmental fund transfers to local authorities is a statutory requirement in line with Section 301 of the Constitution. Further, Treasury must ensure the timely disbursements of allocated funds in full to facilitate service delivery by local authorities as well as the operationalisation of the provincial and metropolitan councils. Furthermore, 20% of devolution funds must be channeled towards WASH - provision of water given the acute water challenges experienced across the country in 2024.
  • The Ministry of Finance, Economic Development and Investment Promotion must aide the MLGPW to resuscitate Public Works furniture workshops in Harare, Bulawayo, and Gweru. These workshops have the capacity to supply all MDAs, as per specification, the required office furniture. It is important to note that MDAs have been sourcing expensively from the market placing pressure on Treasury for funding. Similarly, there is also opportunity for the furniture shops to sell excess production on the open market, thereby generating additional revenue for Government.
  • Treasury must capacitate the MLGPW’s State Occasions preparedness by procuring its tentage, chairs, mobile toilets and other equipment such lorries/cherry pickers in order to strengthen Public Works’ capacity to host to a maximum of 100 000 participants. Building this capacity should ease the burden currently piling on Treasury in terms of hiring costs from the open market, particularly in light of the prestige associated with these important events as well as the increased frequency of the same. The Ministry, working within the Whole of Government Approach principle, is sufficiently equipped in respect of the human capital base to undertake and coordinate state occasions.
  • The Ministry of Finance, Economic Development and Investment Promotion must grant concurrence to the MLGPW to retain between 15-20% of revenue accruing from commercial rentals of Government property and the sale of urban State land. The request is based on a compelling need to empower and capacitate the Public Works Department to become a leading player in the construction industry. This will further enable the department, which is the ultimate Government contractor, to also undertake servicing of land and add value to the land being disposed to clients and hence increase revenue to Treasury. Similarly, a retention on commercial rental would strengthen the MLGPW’s periodic maintenance programme of Government properties that would onward, attract better and firmer rentals and increase revenue contribution to the fiscus.
  • The Ministry of Finance, Economic Development and Investment Promotion must ring-fence construction and maintenance budgets for MDAs in 2025 for it to be only expended by the Public Works Unit under the MLGPW. It is important to note that MDAs are not releasing funds to enable the undertaking of maintenance works at Government buildings and this has affected the functionality and ambience of Government buildings and properties in furtherance of the beautification programme that is now a hallmark of the urban renewal/regeneration programme.
  • Treasury must prioritise the tooling and retooling of Ministry staff at all levels in the Ministry to enhance service delivery to clients, in terms of tools of trade for the technical aspects of the Ministry’s mandate, inclusive of ICT equipment, mobility, amongst others,
  • Allocation of offices to the National Chiefs’ Council at the Parliament Building must be treated with urgency by the MLGPW.
  • Rather than allocating 30% of capital expenditure to the New City project, the Committee recommends that the government develop a policy framework to encourage Public-Private Partnerships (PPPs) to drive the initiative.

 MLGPW must auction all idle and old equipment, furniture and vehicles in all ministries-Improving Asset Management.

• Ministry of Finance must explore the modalities of allowing local authorities to use Treasury bills at local banks to acquire the equivalent Devolution Fund Allocation made by Treasury so as to fund capital projects on time.
• Treasury must re-Introduce Public Sector Investment Programmes (PSIPs) to fund capital project in local authorities particularly in road construction and maintenance.
• Ministry of Finance must explore non-punitive taxing opportunities for local authorities to support service delivery such as introduction of a municipal levy in retail and hotels.
• Ministry of Finance must create a Diaspora Investment bond in order to encourage investment by the diaspora and crowd in funds for infrastructure development in water supply, road infrastructure, housing and social amenities.
• Local authorities through guidance from the Ministry of Finance, must re-introduce Municipal Bonds for local authorities infrastructure development.
• The MLGPW and associations in Local Government must create Investment Prospectus showcasing investment opportunities within our local authorities.

 

 

 

2024 Ministry of National Housing and Social Amenities

Post Budget Analysis Report

VOTE 24. NATIONAL HOUSING AND SOCIAL AMMENITIES ZWG696,2 Million

1. Introduction

The Ministry of National Housing and Social Amenities’ (MoNHSA) mission is to lead in the provision of human settlements in a coordinated and sustainable manner through the facilitation and promotion of functional housing and social amenities. This is anchored on the vision of achieving modern and affordable human settlements for Zimbabweans by 2030”. As custodians of the nation's human settlements, the Ministry carries a solemn mandate - to ensure that every citizen has access to dignified, secure and sustainable living spaces.

2. Budget Allocations for 2024 and 2025
   • In 2024, the Ministry was allocated a revised budget of ZWG571million and only ZWG82.4 million (15,2%) had been utilised as at 30 September 2024 for the key programme of Human Settlement. This was necessitated by the late release of funds from Treasury which delayed the completion of houses, the servicing of stands and construction of social amenities. Despite suffering from unfunded mandates and non-disbursement of funds, the Ministry managed to make significant strides in the housing sector, compromise the Ministry’s ability to meet human needs particularly addressing the social ills in informal and dysfunctional settlements.  The Ministry managed to commission the Dzivarasekwa Flats Project which accommodated 48 families, completed the Binga Housing Project for 37 families and completed civil servants accommodation in Lupane accommodating 19 households. These are key achievements which further underscore the importance of the Ministry.
   • The Ministry received a proposed ZWG696.2 million budget allocation for 2025 against a bid of ZWG5.7 billion, which translates to 12.19% of the Ministry’s bid. The Ministry’s contribution towards NDS 1, NDS 2 and Vision 2030 through provision of new housing units, stands and maintenance of existing housing stock will to a large extent be constrained. This is in spite of the ever-growing housing backlog (currently estimated at two million) which the Ministry is mandated to address.

3.0 National Housing Bid vs Programme

The Ministry administers two programmes, namely Policy and Administration and Human Settlements Planning. In respect of Programme 1, the Ministry bid was ZWG1.37 billion and was allocated ZWG60.96 million, translating to 4% of the bid, a figure which falls short of the Ministry requirements. The key facets within Programme 1 include but are not limited to; policy formulation, general administration, communication and advocacy, gender and mainstreaming, risk and compliance monitoring and evaluation issues and training. In respect of Programme 2, the key pillar of the Ministry received an allocation of ZWG635million against the Ministry bid ZWG4.3 billion translating to 14.6% of the bid, a figure which falls short of the Programme requirements, therefore compromising the Ministry’s operations and delivery of its mandate. The key facets within Programme 2 include but are not limited to construction and maintenance projects.

  Implications on ongoing projects

3.1 Senga Flats – Construction of 4x4 Storey 2 bedroomed Flats (64 units)

The Ministry bid for ZWG175 million in 2025 and got only ZWG7.5 million (4%), which is too little to achieve significant progress. With these levels of funding, the projects ultimately becomes too expensive due to remobilisation and demobilisation as well as re-works. To avoid stalling the project, an upward review of the allocation is needed to benefit 64 civil servants. This was a recurring factor in 2024, the cancelling of contracts by contractors and the Ministry being caught in a vicious expensive cycle of retendering contracts and tenders.

3.2 Beitbridge Redevelopment Programme

Due to budgetary constraints in 2024, the Ministry decided to phase the project into two. The first phase with 12 units and associated civil works requires ZWG25 million. The second phase has 52 units and associated civil works, at an estimated cost of USD6 million. Therefore, phase 2 remains stalled.

3.3 Kasese Kariba Housing Project – Servicing of Stands

Key to note is the Kasese project which is now more than eight years since inception in 2017. Amongst key beneficiaries of the project, is a community from Mahombekombe which is at risk of developing none-communicable as a result of exposure to electro-magnetic pulse due to their proximity to high voltage electric pylons.  In order to complete the project, the Ministry bid for ZWG140 million in 2025 and got only ZWG4.7 million (3%), which amount is too little to achieve significant progress for the benefit of 1417 beneficiaries.

3.4 Maintenance – All Properties

Maintenance of government houses remains a challenge in all provinces and districts. Over 90% of government pool properties are in a deplorable state due to lack of funding of maintenance budgets. Despite the importance of maintenance, there was a shortfall in 2024 of ZWG9 million. The Ministry bid for ZWG300 million in 2025 and got only ZWG19.6 million (7%). This shortfall places the management of government housing in a predicament and potential depletion of government housing stocks as the properties become inhabitable, threat to limb and life, and loss of revenue to the state.

Committee Observations and Concerns

• The National Budget recognises housing development as an integral part of economic growth and a component of an inclusive economy, which is very plausible. The Committee further commends the recognition that housing is not government burden alone but requires private sector investment through either public private partnerships or direct investment.
• The Committee further observes that it is critical for the Ministry of Housing and Social Amenities to aggressively pursue PPP to adequately support its activities under the Human Settlements programme.
• The Committee’s biggest observation is the significantly low pace in the provision of offsite and onsite infrastructure to drive the regularisation efforts of informal settlements. This protracted delay undermines the effective implementation of the Zimbabwe National Human Settlements Policy in line with NDS1.
• The Committee noted that the Ministry of National Housing and Social Amenities is undertaking a number of construction projects around the country that are at various completion levels. Given the ZWG692 million proposed allocation to the Ministry against a bid of ZWG5,7 billion, the Ministry’s key focus for 2025 will only be to complete the ongoing projects and less on embarking on new ones.

3. Recommendations

The Committee recommends that:

• Access to shelter is a fundamental human right and increased investment towards it is in line with the country’s vision of attaining an upper middle-income status by 2030. Treasury must therefore increase the Ministry’s budget allocation to at least 50% of its bid to enable it to deliver on its mandate.
  • There is need to review the value of State land to match the land value intrinsic model. All State land must be based on the real market value to reduce speculative buying of land. This is a low hanging fruit that can bring significant streams of revenue to the fiscus.
• Ministry and Treasury to explore alternative housing funding models. These include:
• Guiding local to re-introduce Municipal Bonds for to lure domestic investment for infrastructure development particularly in the provision of bulk infrastructure in water and sewer.
  • Recapitalisation of the National Housing Fund (NHF) and the Housing and Guarantee Fund (HGF). As provided in the Housing and Building Act (Chapter 22:07), these funds should be used solely for housing and social amenities development. Therefore, the Ministry of Finance must allocate a significant amount of money to kick-start the recapitalisation of the National Housing Fund.
  • Enhance budgetary allocations for the Spatial Planning Programme and increase funding for the Disaster Risk Management budget to ensure more effective planning and response mechanisms.
  • There is need for a vigorous pursuit of Public-Private Partnerships (PPPs) in 2025; The Ministry of National Housing and Social Amenities must leverage on its land as equity to attract private players into the housing sector.

 

• The Ministry of Finance, Economic Development and Investment Promotion must create modalities of tapping into employer assisted schemes as guided by the Ministry National Human Settlements Policy. This will include courting pension funds to invest in housing.
• There is need for the Ministry of Finance to broaden its re-engagement strategy to rope in the diaspora community who through remittances inject US$1.9 billion every 10 months into the economy. The Ministry of Finance can create an Infrastructure Development Bond to lure the diaspora community to invest in key infrastructure such as water and housing and the government through the Reserve Bank of Zimbabwe can guarantee the bond.
• There is need for the review the SI of housing regulations under the Housing and Building Act which sets 10 years as the maximum number of years for a housing investor to recoup their investment. This is a punitive regulation that makes the housing sector expensive and less attractive. There is need to review the SI and make the number of years 25 for investment recuperation in tandem with any practicable mortgage arrangement prevailing in the region and beyond.

 I thank you Madam Speaker.

         HON. DR. MUTODI:

Introduction:

Thank you Madam Speaker Ma’am. I rise to present a report of the Portfolio Committee on the Ministry of Justice, Legal and Parliamentary Affairs, the Attorney General’s Office and independent commissions namely, the Judicial Services Commission (JSC), the Zimbabwe Human Rights Commission (ZHRC), the Zimbabwe Electoral Commission (ZEC) and the Zimbabwe Anti-Corruption Commission (ZACC).

The importance of the justice delivery system in any country cannot be overemphasised as it is at the centre of a country’s observance of its Constitution, thus ensuring democracy. Equally important is the resourcing of these institutions to enable them to discharge their Constitutional mandates. In observing the Constitution, Parliament has a duty in terms of Section 322, which provides that:

 “Parliament must ensure that sufficient funds are appropriated to the Commissions to enable them to exercise their functions effectively”.

The Committee, on behalf of Parliament dutifully exercises its role by requesting the Minister of Finance Economic Development and Investment Promotion to allocate adequate funds to the Ministry and Commissions mentioned earlier on in this Report.

 The Committee commends the Minister for the allocations made to the Ministry and Commissions’ programmes. However, some programmes require upward reviews to ensure that citizens derive tangible benefits from the services provided.

Ministry of Justice, Legal and Parliamentary Affairs

The Ministry of Justice, Legal and Parliamentary Affairs (Vote 19) was allocated ZiG 5 644 932 000. Out of all the Votes, the Ministry ranked number 11. In his Budget Speech, the Minister of Finance, Economic Development and Investment Promotion, Professor M. Ncube stated that “Government prioritises improving access to justice for all citizens, ensuring equality before the law and promoting a fair and just society”. He indicated that the Zig 5,6 billion allocated was “meant to support court infrastructure development in Districts, provision of legal aid services for vulnerable groups, modernising judicial processes through digitalisation and enhancing judicial and prosecution capacity”. The Committee agrees with Government’s priorities. However, the Committee is requesting for additional funds for the Ministry of Justice, Legal Parliamentary Affairs to ensure that Government’s intentions are achieved. The breakdown of the allocations according to the Ministry’s Programmes below is instructive. Vote 19, Breakdown according to Programmes against Bids Programme Proposed Allocation Bids Programme 1- (Policy and Administration) 768 312 000 Programme 2 -(Access to Legal Services) 593 079 000 5, 581, 384, 458 688, 120, 630 Programme 3 - (Incarceration, Rehabilitation & Reintegration of Offenders 3 816 449 000 13, 519, 804, 613 Programme 4 -(Registration of Proprietary Rights) 467 042 000 2, 763, 430, 287 TOTALS 5 644 932 000 22, 552 739 987

 Whilst the Committee appreciates the amount allocated to Programme 2 as adequate, it requests the Minister of Finance, Economic Development and Investment Promotion to reconsider additional financial resources to Programmes 1, 3 and 4.  The Committee prioritises additional financial resources under Programme 1, for the acquisition of 25 vehicles valued at ZiG 39 542 000, printing of 12 versions of the Constitution, purchase of furniture at a cost of ZiG 62 225 656 and allocation of funds for political parties which currently is in arrears of ZiG 22 000 000.

 Under Programme 3, the Committee prioritises additional funds for the construction of smart prisons in Hurungwe and Gwanda at a cost of ZiG 4 288 000. The production of food for prisoners is a low hanging fruit to the Committee, something achievable through an injection of ZiG 48 700 000 for the purchase of irrigation equipment earmarked for the Hurungwe Prison Farm. Fully funding the requirements of the prisons will go a long way in feeding inmates as well as taking care of other financial constraints. In view of the women and girls who go to prison, the Minister is urged to allocate funds to cater for their sanitary needs as the current situation where donors provide them is unsustainable.

 Under Programme 4, the Committee’s priority is the construction of a modern building for the Deeds Office requiring ZiG 906 000 000 and an allocation to enable the Deeds Office to successfully host of a symposium on Intellectual Property in 2025 at a cost of ZiG 250 000 000. The total additional allocation required amounts to ZiG 1 332 755 000.

 Zimbabwe Human Rights Commission

 The Zimbabwe Human Rights Commission was allocated ZiG 176 291 000 against a bid of ZiG 291 774 304. The Committee appreciates the Minister of Finance, Economic Development and Investment Promotion for the amount allocated to the Commission’s three Programmes namely Human Rights Protection, Human Rights enforcement and Human Rights Promotion. In its analysis of the Commission’s operations, the Committee noted with concern that the Commission is currently represented in only six of the country’s ten Provinces, thereby necessitating the establishment of offices in the other Provinces to enable citizens in those areas to the access the Commission’s services. To be able to establish at least three offices in three more Provinces, the Commission requires additional financial resources estimated at ZiG 15 900 000. The recruitment of 55 staff required for the new offices also requires funding of about ZiG 5 200 000. In addition, the Committee requests the three Minister to consider additional funds amounting to ZiG 2 700 000 for the purchase of four minibuses for staff who are unable to use the Public Service Commission buses to and from work as well as the purchase of vehicles for conditions of service and operations.

The Committee leant from the Commission that the role of the Ombudsman or Public Protector under its Administrative function needs to be adequately capacitated in order to be fully operationalised. As such, the Committee requests the Minister of Finance, Economic Development and Investment Promotion to allocate funds for the recruitment of 20 additional staff. The total additional amount requested for the Commission is ZiG 23 800 000.

 Judicial Service Commission

The Judicial Service Commission’s mandate can be summarised as that of ensuring the well-being, good administration of the Judicial Service and its maintenance in a high state of efficiency. For its Programmes, the Commission was allocated ZiG 1 284 621 000 against a bid of 3 413 548 614. It is the Committee’s view that whilst the amount allocated is sufficient for employments costs, certain line items will not be adequately funded for the efficient operations of the Commission, hence the need for the Minister of Finance, Economic Development and Investment Promotion to revise the allocations upwards. From the submissions made by the Commission, the Committee prioritises the completion of ongoing projects namely, the construction of the Gwanda and Mutawatawa Magistrates Courts which requires ZiG 1 500 000 000. Funds provided must be adequate to complete the projects before focussing on new projects. The Committee also requests the Minister to provide more funds for the acquisition of equipment and infrastructure for rolling out of the Integrated Electronic Case Management System (IECMS) to the Magistrates’ Courts. The Minister is encouraged to consider allocating ZiG 81 000 000 for the Judicial Service Training Institution for ongoing training of new judges and staff as well as presiding officers and assessors in customary law courts. For the construction of a high Court in the Midlands Province, the Committee requests that the Minister allocates an additional ZiG 243 000 000. The total additional allocation requested for the Judicial Service Commission is therefore, ZiG 1 824 000 000.

Zimbabwe Electoral Commission

The Zimbabwe Electoral Commission was allocated ZiG 467 362 000. Its bid submitted to the Ministry of Finance, Economic Development and Investment Promotion amounted to ZiG 2 900 000 000. The Commission’s work has seen an increase in the number of by-elections, whose number is unpredictable. In 2024 there were 10 by-elections for the National Assembly positions. Based on that average, it would be prudent for the Minister of Finance and Economic Development to allocate ZiG 800 000 000 for by-elections and an additional amount for by-elections in local authorities. The Committee was informed that the Commission is saddled with unpaid bills from past elections of ZiG 200 000 000, which could not be paid from the disbursements made in 2024. It is the Committee’s plea to the Minister to allocate funds in order to extinguish the debt owed to suppliers of goods and services.

 The Committee also consider the filling of critical posts in the Commission as a priority for the smooth running of elections. In addition, the Committee strongly advocates for additional financial resources to the Commission for the construction of at least three warehouses for storage of election materials at a cost of ZiG 12 150 000. In the next financial years, financial resources can be allocated for construction in other Provinces. For easy access to districts, it is also imperative that the Commission gets financial resources to construct district offices progressively out of the 68 districts in the country. The allocation for at least five district offices in 2025 amounts to ZiG 6 750 000. It is acknowledged that the Commission’s work is mostly field work in nature and the provision of vehicles to staff is critical in facilitating movement of staff and distribution of material. For that to be realised, the Committee requests financial resources to enable the Commission to acquire 25 vehicles. The purchase of vehicles requires an additional allocation of ZiG 30 375 000. The cost of hiring vehicles by far exceeds the requested amount.

 The Committee observes that whilst the Commission is currently outsourcing the printing of ballot papers, it is worth considering the long-term financial benefits of printing ballot papers in-house. To that end, the Minister in conjunction with the Commission should conduct a cost-benefit analysis for procuring the necessary printing equipment and  if it proves viable to do so, provide a budget for the equipment in the coming years. The additional allocation requested for ZEC is ZiG 1 049 625 000.

 Office of the Attorney General

The Office of the Attorney General whose roles include representing the Government in constitutional and civil proceedings, legislative drafting and provision of legal advice to the Government and the public is still being established. The Office of the Attorney General was allocated ZiG 218 725 000 against a bid of ZiG 99 890 245. The Committee commends the Minister for the generous allocation. The Committee expects the Office of the Attorney General to utilise the funds for the benefit of the citizens.

From the outset, the Committee wishes to point out that the failure by Ministries, Departments and Agencies to present Bills, particularly those outlined in the President’s Legislative Agenda at the beginning of each Session of Parliament has been attributed to the critical shortage of drafters in the drafting section. This calls for the Minister to address the challenge by allocating funds for the recruitment of drafters and housing of legal officers from Ministries.

 Other areas the Committee prioritises from the list submitted by the Office of the Attorney General are an allocation for office accommodation for staff, amounting to ZiG 96 000 000. The Office also requires furniture and equipment, which includes laptops at a cost of ZiG 14 000 000. The Minister is encouraged to allocate financial resources amounting to ZiG 142 000 000 for the acquisition of condition of service motor vehicles and some for operations. The total amount of additional resources requested for the Office of the Attorney General is ZiG 252 000 000.

 Zimbabwe Anti-Corruption Commission

The Zimbabwe Anti-Corruption Commission was allocated ZiG 236 225 000 against its ideal budget of ZiG 226 080 000. The Committee commends the Minister for allocating the Commission an amount surpassing its needs.

 The Committee was, however, informed that there were emerging issues after the submission of bids. One of the emerging issues relates to the expiry of the Commissioners term of office. Once the Deputy Chairperson, seven Commissioners and a new Executive Secretary are appointed, ZiG 7 000 000 would be required for their remuneration. In order to comply with a recent Cabinet Circular, the Commission requires ZiG 1 000 000 to pay for consultancy services for a job evaluation exercise. To launch the National Anti-Corruption Strategy 2, the Commission requires additional funding amounting to ZiG 10 000 000 and ZiG 5 000 000 to facilitate the establishment of an Integrity Committee. The Commission received a budget for the acquisition of 20 vehicles when it requires 40 vehicles and the Committee requests for an additional ZiG 25 000 000 to purchase the additional vehicles. Decentralisation of the Commission’s services is also critical in combating corruption and the Committee supports the Commission’s bid of ZiG 30 000 000 for the acquisition of offices in two provinces and furniture and tools of trade. The additional allocation requested for the Zimbabwe Anti-Corruption Commission amounts to ZiG 78 000 000. Recommendations

Given the above analysis on specific gaps to be prioritized, the Committee makes the following general recommendations:

 The Zimbabwe Electoral Commission in consultation with Treasury must explore the feasibility of purchasing a printing machine for ballot papers in 2026 as opposed to the continued outsourcing of the services.

 In all entities and particularly in the Judicial Service Commission where allocations for construction work were involved, adequate funds must be allocated to prioritised projects where completion is guaranteed as opposed to spreading the funds to multiple projects which are not completed.

 Treasury is encouraged to initiate the necessary procedures for Cabinet approval by mid-2025, to enable the Zimbabwe Prisons and Correctional Services to court partners for its projects in order meet its needs particularly food rations for the prisoners.

 Treasury and the Reserve Bank of Zimbabwe are encouraged to implement fiscal and monetary policy measures to stabilise the exchange rate to promote macro-economic stability.

 Treasury must make timeous disbursements for utilisation of funds and the Commissions by the Ministry of Justice, Legal and Parliamentary Affairs.

Accounting Officers and other public officials must exercise prudential management of public resources and implement recommendations by the Auditor General in her Audit Reports. 9.0 Conclusion

It is the Committee’s hope that the Minister of Finance, Economic Development and Investment Promotion will seriously consider and take on board the Committee’s recommendations for additional resources to the Ministry of Justice, Legal and Parliamentary Affairs and the Commissions. The maxim, “Justice delayed is justice denied” should not be allowed to apply in our case.

HON. S. MOYO: Before I start my report, may I recognise that today marks the last day of 16 Days of Activism against Gender based Violence. Given the various Committees, we are doing our part to speak up on all forms of abuse today, emotionally or physically.

1.0 INTRODUCTION:

The Ministry of ICT is mandated to provide an efficient national information communication technology delivery framework in order to transform Zimbabwe into a knowledge-based society so as to enhance the country’s competitiveness in the world and to stimulate and sustain economic growth. According to NDS-1, the Digital Economy is one of the 14 national priorities for the period 2021 to 2025. The Ministry of ICT plays a crucial role in realizing the vision of a connected knowledge-based society with secure information systems by 2030. With adequate support and resources, the Ministry can continue to drive the digital economy, improve the standard of life for Zimbabweans, and contribute to the country's overall socio-economic development. However, the Ministry has faced several challenges, including budgetary constraints and missed targets, which have hindered the full implementation of its strategic projects.

2.0 2025 BUDGET ANALYSIS

The budget allocation trend for the Ministry of ICT (2020-2025) reveals a significant disparity between requested bids and actual allocations, which raises serious concerns about the Ministry's capacity to achieve its goals related to Vision 2030. In 2020, only 15.29% of the bid was allocated, which decreased drastically to a mere 2.52% in 2025, despite escalating bid amounts each year, reflecting a systemic undervaluation of the ICT sector's role in national development. This consistent underfunding hampers the implementation of critical ICT initiatives and infrastructure projects, ultimately undermining the Ministry's efforts to drive a robust digital economy. Given that the Digital Economy is a national priority for 2021-2025, such financial constraints may thwart the country’s ability to leverage ICT for socio-economic transformation, create jobs, enhance service delivery, and facilitate technological advancements, thereby jeopardizing the overall attainment of Vision 2030.

 

The strategic thrust of the NDS1 initiative aims to systematically exploit the potential of Information, Communication and Technology for national development and transformation through facilitating the achievement of an e-enabled economy where all sectors embrace ICT to improve efficiency by exploiting opportunities that ensure a conducive business environment that enables access to ICT services through putting  in place measures to develop smart programmes such as smart Government systems, smart agriculture, smart health and smart transport and safe cities (NDS1, p130). Moreso, the Government of Zimbabwe through the National Development Strategy (NDS1) set under the National Development Strategy the expected sector outcomes includes improved access to ICTs; increased ICT usage, improved ICT skills, increased consumer satisfaction and protection on use of ICTs and increased investment in ICTs. 

The 2025 National Budget, running under the theme “Building resilience for sustainable economic transformation “as a critical ingredient in generating economic growth that promotes social development and is sustainable. Furthermore, the OECD in 2022 advises that nations committed to a digital economy for sustainable and balanced socio-economic development should allocate a minimum percentage of their GDP to this end. Minimum of 3% of their national budget to ICTs. OECD (2023) goes further to reiterate that for nations which walk the-talk, they allocate at least 2.5% of their national GDP which is an imperative input that drives the innovation and competitiveness components of a digital economy. 

The budget allocation trend for the Ministry of ICT from 2020 to 2025 indicates a concerning pattern of inconsistent funding relative to the increasing bids made by the Ministry. Throughout the five years, the proportion of the national budget allocated to the Ministry's requests remains alarmingly low, never exceeding 0.46% of the national budget in 2021. In 2025, the allocation dropped to just 0.23%. These figures are significantly below the OECD's recommendation of

3.5%, reflecting a serious underinvestment in the ICT sector. 

 Table 1 Budget allocation trend (2020 – 2025)

 

Year	Bid	Allocation	Variance	Percentage of allocation vs Bid	Percentage to National al budget
2020	406,145,000	62,100,000	344,045,000	15.29%	0.18%
2021	4,355,600,000	1,336,000,000	3,019,600,000	30.67%	0.46%
2022	22,100,500,000	3,294,554,000	18,805,946,000	14.91%	0.42%
2023	43,858,619,000	17,386,696,000	26,471,923,000	39.64%	0.39%
2024	2,315,822,239,06 6	185,280,612,000	2,235,722,510,0 66	8.00%	0.289%
2025	12,448,581,808	641,447,000	11,807,134,808	5.15%	0.23

 

2.1.1 Implications on ICT Development

The consistent underfunding suggests that the Ministry may struggle to implement key initiatives tied to national digital transformation. This includes infrastructure development, cybersecurity, digital literacy programs, and public sector ICT services. Furthermore, the Ministry’s efforts to achieve Vision 2030, which likely includes advancing the digital economy, increasing connectivity, and fostering a tech-savvy populace, are at risk due to these funding disparities. Without adequate funding, strategic projects aimed at enhancing national competitiveness in the digital realm could fall short. 

2.2.2 2025 Budget allocation to ICT, Postal and Courier Services by Programme

The Revised Proposed Expenditure Ceiling for the Ministry of Information Communication Technology (ICT) in 2025 reflects the maximum amount that the Ministry can expect to spend across its programs. As of December 31, 2024, various outstanding arrears, particularly to SAP related service providers and other essential service providers, amount to significant sums that could severely influence the Ministry's operational ability and budgetary revisions.

The 2025 National Budget proposed an allocation to the Ministry of Information Communication and Technology was ZWG 614 447 000 which is approximately 5.15% of the total amount ZWG 12 448581808 and 0, 23% to the National budget. Out of the proposed total of the allocation to the Ministry, went to ZWG 212 786 000 was allocated to the Policy and Administrative Programme whilst the ICT Development and Promotion received ZWG 428 661 000. 

2.2.1 Impact Analysis of the Arrears

The Committee was informed that the total outstanding arrears of ZwG 109,644,882 plus unfunded batches since 01 October 2024 of ZwG 86,744,972, totalling ZwG 196,389,674 represents a significant financial burden for the Ministry. This amount is approximately 30,61 % of the Revised Proposed Expenditure Ceiling if unfunded during this year as per Treasury Circular number 07 of 2024 which highlighted the issue of budget constraints. If the unpaid obligations are prioritized for payment, it will reduce the effective budget available for new projects and operational expenses under the Revised Proposed Expenditure Ceiling.

The expected outstanding arrears of ZwG 109,644,882 and unfunded beaches since 01 October 2024 of ZwG 86,744,972 create a critical challenge to the Revised Proposed Expenditure Ceiling of $641,447,000. The substantial percentage of outstanding debts necessitates urgent attention as it poses threats to cash flow, operational functionality, and the successful implementation of pivotal ICT projects within the framework of national development goals. Effective resolution and planning around these arrears are imperative for the Ministry to navigate financial stress while aiming to achieve its strategic objectives. Whether through fiscal reallocation, renegotiation of contracts with service providers, or seeking additional funding sources, proactive measures must be taken to mitigate these financial pressures and ensure that the Ministry can fulfil its mandate and contribute effectively to the national agenda.

The absence of appropriate funding for SAP-related service providers creates a looming fiscal crisis that poses a risk not only to the immediate operations of the Ministry but also to broader government functions reliant on the PFMS. With a shortfall of ZWG 398,091,988, it is critical for the Ministry to seek alternative funding solutions, rationalize its budgetary priorities, renegotiate existing contracts, or advocate for a more robust allocation to the Ministry's budget that aligns with the crucial role of ICT in national governance and growth.

2.2.3 SADC Expenditure Requirements

According to Treasury Budget Call Circular number 2 of 2024, each Ministry, Department, and Agency (MDA) is required to assess its role and responsibilities to effectively discharge its mandate during Zimbabwe's SADC Chairmanship from August 2024 to July 2025. This period represents a critical opportunity for Zimbabwe to showcase its capabilities as a regional leader and to facilitate important dialogue among member states. The Ministry is playing a pivotal role in this regard, having been tasked with providing seamless ICT and telecommunications services. 

Moreover, hosting SADC events provides Zimbabwe with the chance to bolster diplomatic relations, attract investment, and promote tourism, all of which require robust infrastructure. A well-funded initiative could elevate Zimbabwe's stature on the continental stage, demonstrating the nation’s readiness to lead and collaborate with its neighbours. Therefore, an appropriate budget allocation is not just a necessity but an investment in Zimbabwe's future as a competitive and collaborative member of the Southern African Development Community.

3.0 Areas of Concern in the 2025 Budgetary Allocation for the Ministry of ICT, Postal and Courier Services Messenger Services 

3.1      The 2025 National Budget seems to have not addressed this issue as there was no allocation enough to cover the arrears owed to major service providers. Non-payment of SAP-related service providers will not only affect the service providers alone but also affect service delivery in all MDAs, taking into cognisance the fact that all MDAs were instructed to adopt SAP PFMS to minimise the cost of procurement of other systems. The ZWG 641 447000 million allocated to the Ministry of ICT does not cater for these arrears. The total budget requirement for SAP-related service providers is given as approximately ZwG 443,956,749, which comprises two integral components which are SAP-Related Bandwidth: Totalling ZwG 328,640,400 and SAP-Related Other Services: Totalling ZwG 115,316,349. The total SAP-Related budget represents 69.21% of the Revised Proposed Expenditure Ceiling for the Ministry of ICT is ZwG 641,447,000, of which only ZwG 30,066,000 was provided for and ZwG 413,890,749 is still required so that the PFMS uptime of 98% is maintained. 

3.2      The Ministry will likely face immediate cash flow constraints due to the need to meet these outstanding payments. This pressure may force certain projects or initiatives in the proposed budget to be delayed or scaled back. Meeting outstanding debts is essential for maintaining operational efficiency relationships with service providers, particularly SAP related ones crucial for ICT infrastructure and service provision. Delaying payments could lead to service disruptions, potential legal actions from service providers, and loss of trust, which can jeopardize planned ICT initiatives and timely completion of current projects.

3.3      The Ministry of Finance, Economic Development and Investment Promotion did not take into cognisance the critical role being played by the Ministry of ICT for the SADC Meetings. The allotted amount of the Ministry has incurred expenses exceeding ZwG 45,695,740 related to SADC activities, while there are additional batches amounting to ZwG 6,429,146.53 that have yet to be funded. The absence of a budget allocation for 2025 to cover these essential SADC-related expenses poses a significant risk to the success of these events. Without adequate funding, the Ministry may struggle to maintain the quality of services that are crucial for hosting such high-profile international engagements.

Additionally, insufficient support could undermine Zimbabwe’s leadership role within SADC, limiting its ability to influence pivotal regional discussions and initiatives.

3.4 The Ministry has unfunded project schedule 

4	Sub-Program	Project Name	Contract Sum (USD)	Contract              Sum (ZWG)
1	Infrastructure Development and Management	DRP Upgrade	10,000,000	500,000,000
2	Infrastructure Development and Management	Presidential internet scheme (Community WiFi)	1,000,000	50,000,000
3	ICT Applications Development & Management	Harmonization of government ICT ecosystem (Identification and procurement of ERPs)	10,000,000	500,000,000
4	ICT Applications Development & Management	Digital ID and interoperability platform	2,500,000	125,000,000
5	ICT Applications Development & Management	Capacity Building for Civil Servants & Citizens	8,000,000	400,000,000
6	ICT Applications Development & Management	Government Intranet	1,500,000	75,000,000
7	ICT Applications Development & Management	ICT       Gaming             -              (Targeting         youth empowerment)	2,500,000	125,000,000
8	ICT Applications Development & Management	ICT referral handbook for MDAs	27,800	1,390,000
9	ICT Applications Development & Management	Printing Management Solution	250,000	12,500,000
10	ICT Applications Development & Management	Document Management Solution	250,000	12,500,000
11	ICT Security Systems	Public Key Infrastructure	4,000,000	200,000,000
12	ICT Security Systems	National Computer Incidents Response Team	5,000,000	250,000,000
	Total		164,277,800	8,213,890,000

 

3.5      The Committee was informed that Zarnet as a granted aid institution which is funded under the Ministry of ICT should be adequately capacitated to carry out its mandate hence the need for the Ministry of ICT to be prioritised.

 4.0 Recommendations 

Despite the aforementioned areas of concern regarding the Ministry's allocation, a number of recommendations have been highlighted by the Committee which are as follows;

4.1      The Committee recommends that the Minister of Finance, Economic Development and Investment Promotion revise upwards the allocated amounts to at least 0.5% of the requested funds. The Ministry of ICT is like a net weaving Ministry as it supports different line ministries and stakeholders. Increase in allocation of the funds to 0.5 % will allow the Ministry to operate efficiently.

4.2      The Ministry of Finance, Economic Development and Investment Promotion must allocate funds for clearance of arrears also settle the outstanding arears requirement for SAP-related service providers which is given as approximately ZwG 443,956,749.

4.3      The Committee recommends that the Ministry of Finance and Investment Promotion revisits the tax rebate on importation of ICT gadgets to allow increase of usage of ICT s in order to promote availability and accessibility of ICT’s.   

4.4      The Committee recommends that the Ministry of ICT looks into making use of Public, Private Partnerships, and as an avenue for funding some of their projects that have not received adequate funding for example make use the Universal Service Fund.

4.5      The Committee recommends that since the Ministry of Finance, Economic Development gives a special procurement dispensation to the Ministry of ICT in order to expedite the digitization of our economy. The procurement threshold should be increased to allow some of the procurements to be concluded at ministry level.

4.6      Treasury ensure timely and full disbursement of allocated funds on monthly basis for Opex expenditure and on quarterly for Capital Expenditure to avoid delays in implementation of projects and accumulation of arrears. The Committee recommends that budgeted allocations be timeously disbursed so that ICT programmes and projects are quickly concluded rather than remaining in the pipeline for some time. 

4.7      The Ministry of ICT should be innovative to come up with smart solutions which can assist in terms of revenue generation to support the sector.

5.0 Conclusion

The Ministry of Information Communication Technology (ICT) is currently grappling with significant funding limitations that substantially impede its capacity to foster meaningful digital transformation within the nation. The alarming disconnects between the proposed budget of ZWG 12,448,581,808 and the allocated support of merely ZWG 641,447,000 illuminates a systemic neglect of the ICT sector, which is critical for socio-economic progress in Zimbabwe. 

Adding to this challenging landscape are substantial outstanding arrears and unfunded batches, which, combined, amount to ZWG 196,389,674. This figure represents a significant financial burden that exacerbates cash flow constraints and threatens the Ministry's ability to meet its obligations to service providers, particularly those related to SAP, whose functionalities underpin essential public financial management systems. The severe shortfall in funding for SAP related service providers—where only ZWG 30,066,000 has been allocated against an estimated requirement of ZWG 443,956,749 - further jeopardizes the operational integrity of crucial systems that support government functions.

Urgent action is required to mobilise domestic resources, explore potential enhancements to the Universal Services Fund, and forge partnerships with development entities to improve funding outcomes. A united effort from all stakeholders, particularly government entities, is essential to guarantee that the ICT sector receives the necessary financial backing to fulfil its vital role in national development. Without decisive interventions, a strategic plan for addressing outstanding arrears and unfunded obligations, and a renewed commitment to adequately fund the Ministry, Zimbabwe's aspiration of building a connected and knowledge-based society may remain an elusive goal, undermining the potential benefits that a vibrant digital economy can yield for all citizens.

HON. SHAMU:

INTRODUCTION.  Thank you Madam Speaker Ma’am.  I stand up to present the foreign Affairs Post Budget Report.  The Ministry of Foreign Affairs and International Trade was allocated a revised Expenditure Ceiling Envelope of ZiG 3,989,780,000 (US$150.6 million). The allocation reflects a significant shortfall of 25% relative to the Ministry's optimal funding requirement of ZiG 5,289,000,000 (US$212 million), corresponding to 75% of the ideal budgetary request. The allocation is slightly lower by 8.3% to the 2024 budget provision. However, the Committee expressed gratitude to the Minister of Finance, Economic Development, and Investment Promotion for the upward review of the Ministry’s Expenditure Ceiling by 37% from the pre-budget allocation. It is imperative to note that, although the budget is quantified in Zimbabwean Dollars, an overwhelming 80% of the Ministry’s expenditures are conducted in US dollars, a necessity driven by the Ministry's operational mandate.

IMPLICATIONS OF THE REVISED BUDGET ON THE MINISTRY’S MANDATE.

The budget shortfalls are expected to result in the following risks:

Compensation of Employees

The Committee acknowledges the enhancement of the budget allocated for employment costs, which has risen from the initial amount of ZiG 740,470,000 to ZiG 1,341,036,000. Despite this increase, it is essential to recognise that the expenditures associated with Zimbabwe's foreign missions are predominantly denominated in United States Dollars. This is necessitated by the requirement to comply with the labour regulations of host countries, as stipulated by the Vienna Convention on Diplomatic Relations. Consequently, any adjustments to the minimum wage levels in these jurisdictions, coupled with fluctuations in foreign exchange rates have a substantial impact on the Ministry’s financial allocations.

 Use of Goods and Services

The predominant expenditure within this category pertains to rentals at Missions, which are subject to annual reviews in alignment with inflation rates or potentially higher, as dictated by the economic conditions of the host countries. The proposed budget of ZiG 1,800,000,000, as put forth by the Ministry, would more effectively accommodate the anticipated financial increments. Furthermore, substantial financial commitments are anticipated in relation to hosting the Southern African Development Community (SADC) conferences throughout Zimbabwe's Chairmanship of the regional block, spanning from 2024 to August 2025. This responsibility entails hosting the majority, if not all, of the Summits, as well as the Council of Ministers and Senior Officials meetings that may arise unexpectedly in response to regional developments. Additionally, Zimbabwe will host the Nordic-Africa Summit in June 2025, further underscoring the need for robust financial planning to facilitate these engagements.

Subscriptions to International Organisations

The Committee expressed concern regarding Zimbabwe's outstanding 2024 assessed contributions to the Common Market for Eastern and Southern Africa (COMESA) and its associated organs, which totals US$712,000. It is crucial to recognise that the timely remittance of these subscription fees is integral to Zimbabwe's full engagement in international collaborations and significantly enhances the country's stature and reputation within the global community. Consequently, the Committee recommended that the Ministry of Finance, Economic Development, and Investment Promotion allocate supplementary funding to the Ministry of Foreign Affairs and International Trade for the settlement of these arrears before the conclusion of the current fiscal year. However, it is important to highlight that if the arrears are not settled, the requisite funds would be drawn from the Ministry's already strained budgetary provisions for 2025.

Acquisition of Non-financial Assets

Pursuant to its mandate of improved country perception and image, the Ministry intends to continue with various construction plans, major repairs and facelift projects for Chanceries, Ambassadors’ residences and officers’ houses at various Missions. However, the Ministry was only allocated ZiG 933 000 000 (US$35 207 547) against an ideal budget of ZiG 1.2 billion (US$45 283 000). Even though the revised budget is commendable, the funds are inadequate to cater for the Ministry’s on-going projects in Abuja, London and Berlin that require US$3 548 400 to be completed. Additionally, the Ministry has outstanding certificates amounting to US$473 000, for completed projects. These arrears are going to be paid from the 2025 Capital Expenditure provision that is already underfunded.

The continuation of the aforementioned projects in 2025 will face significant challenges due to budgetary constraints. This poses potential risks to diplomatic missions that require urgent renovations to remain in their undesirable state. This will not only negatively affect the image of our nation but also result in a loss of investor confidence, hindering the growth of business activities within our beloved country.

ZimTrade

The Committee expressed concern regarding the allocation of ZiG 32.93 million (US$1.3 million) to ZimTrade for Zimbabwe’s participation at the 2025 Osaka Expo in Japan. The amount falls short of the optimal budget by ZiG 27.36 million (US$1.08 million). The shortfall compels Zimbabwe to redesign the proposed pavilion, a process already delayed since the organisers have approved the immersive pavilion at the end of November 2024. Furthermore, the funds provided are insufficient to cover the personnel expenses necessary for managing and operating the pavilion, thereby diminishing the programme’s overall effectiveness.

CONCLUSION AND RECOMMENDATIONS

In light of the significant budgetary shortfall of 25% and the fact that 80% of the Ministry of Foreign Affairs and International Trade's expenditures are denominated in U.S. dollars, the Ministry faces the potential of considerably underachieving its set targets. Consequently, the Committee puts forth the following recommendations:

The Ministry of Finance, Economic Development and Investment Promotion should come up with a special plan to disburse the Ministry’s budgeted funds at the prevailing foreign exchange rate to preserve the value of the money.

The Ministry of Finance, Economic Development and Investment Promotion should provide the Ministry of Foreign Affairs and International Trade with US$712,000 to clear subscription arrears to COMESA, USD 3.8 million to clear salary arrears at missions and US$473 000 for certification of completed works/projects.

The Minister of Finance, Economic Development and Investment Promotion should allocate the shortfall of US$1.08 million to ZimTrade required to ensure Zimbabwe’s full participation at the 2025 Osaka Expo in Japan as all payments for the event are made in foreign currency.

The Ministry of Foreign Affairs and International Trade should pursue land swap deals and Public Private Partnerships for the construction and refurbishment of Zimbabwe’s missions abroad.  I thank you. 

 HON. MURAMBIWA: I rise to present the post-budget report on the Portfolio Committee on Primary and Secondary Education.

Introduction

The Ministry of Primary and Secondary Education (MoPSE) is pivotal in shaping the future of Zimbabwe through the provision of quality education. With the Heritage-based Curriculum now in full swing, political will and financial commitments towards the ministry’s key priorities are fundamental to ensuring equitable, inclusive quality education is attained come 2030. The 2025 National Budget, presented by the Minister of Finance, outlines the financial resources allocated to MoPSE to address its key priorities. This report analyzes how the budget responds to these priorities, highlights underfunded key programs, and discusses the impact of funding gaps on the Ministry's performance and achievement of targets set in the National Development Strategy 1 (NDS1), Vision 2030, and the Sustainable Development Goals (SDGs).

Budget allocation for MOPSE

The Minister of Finance, Economic Development and Investment Promotion tabled a budget of ZiG$322.6 billion, inclusive of statutory funds, wherein the Ministry of Primary and Secondary Education (MoPSE) was allocated ZiG$46.6 billion, representing 14.5% of the total budget. It should be noted that MoPSE received the highest vote allocation by the Government, which is a commendable effort towards education financing. 

Key Priorities for MOPSE in 2025

The 2025 Budget Strategy Paper outlines several key priorities for the Ministry of Primary and Secondary Education (MoPSE), aiming to enhance the overall quality and inclusivity of education in Zimbabwe. These priorities include a strong focus on infrastructure development, particularly in rural areas, to build and improve school facilities, ensuring a conducive learning environment for all students. Inclusive education policies are also highlighted, aiming to guarantee that all children, including those with disabilities, have access to quality education.

Further, the budget emphasizes teacher training to enhance the skills and capacity of educators, especially in science and technology-related fields, which is crucial for advancing modern education. Curriculum reforms are set to update the education curriculum to promote lifelong learning and entrepreneurship skills, preparing students for future challenges.

Support for the School Feeding Programme is increased to ensure children receive adequate nutrition, which is essential for their learning and development. The provision of sanitary facilities for girls is also a priority, with a focus on providing sanitary wear and menstrual health facilities to promote menstrual health and reduce absenteeism among girls. Additionally, significant emphasis is placed on special needs education, with resources allocated to support children with special needs, ensuring that all learners receive the necessary support for their educational journey.

MOPSE’s budget by Programme and Economic Classification

The table below shows allocations per programme in ZWG and USD equivalent calculated at ZWG30.

PROGRAMME	ZWG ALLOCATION	PERCENTAGE ALLOCATION	USD EQUIVALENT @ZWG30
Programme                1: Policy                          & Administration	2,089,942,000	4.48	69,664,733.33
Programme                2: Education Research, Innovation                   & Development	1,949,538,000	4.18	64,984,600
Programme 3: Infant Education	7,608,235,000	16.31	253,607,833.33
Programme                4: Junior Education	15,837,818,000	33.96	527,927,266.67
Programme                5: Secondary Education	17,632,469,000	37.81	587,748,966.67
Programme                6: Learner              Support Services	1,520,012,000	3.26	50,667,066.67
TOTALS	46,638,014,000	100.00	1,554,600,466.67

Figure 1 Analysis of MoPSE's budget by Programme and Economic Classification

 4.1 2025 versus 2024 allocation

 

Given these allocations, it should be borne in mind that the Ministry of Primary and Secondary Education (MoPSE) has reported significant changes in its 2025 budget share analysis. Secondary Education saw a significant increase from 29% in 2024 to 38% in 2025, while Junior Education saw a drop from 38% to 34%. This shift suggests a reallocation of resources, potentially prioritizing other areas deemed crucial for immediate investment. Infant education witnessed a slight increase from 15% in 2024 to 16% in 2025, demonstrating a consistent commitment to early childhood education. Learner Support Services remained at 3%, indicating a stable approach to supporting student services. This consistency underscores the ongoing necessity to provide robust support mechanisms for learners. 

Education Research, Innovation, and Development increased from 5% to 7%, reflecting a greater focus on innovation and technology. Policy and Administration's budget allocation dropped from 7% to 5%, reflecting initiatives to reduce administrative expenses and reallocate funds more directly towards educational programmes.

Budget Expenditure Breakdown

Figure 2: 2025 Budget Expenditure Breakdown for MOPSE

Budget Impact on Key Priorities

The 2025 budget allocation for the Ministry of Primary and Secondary Education (MoPSE) reveals significant imbalances that could impact its operational efficiency and long-term goals. Employment costs and recurrent expenditure dominate the budget, consuming a substantial 93.2%, which underscores the high operational costs related to salaries, administrative expenses, and day-to-day running of the Ministry. This heavy skew towards recurrent expenditure, while essential for maintaining daily operations, leaves a mere 6.8% for capital expenditure, which is grossly inadequate for the much-needed infrastructure development and modernization projects. Consequently, this limited capital investment may delay or halt critical projects like the construction of new schools, rehabilitation of existing facilities, and technological upgrades, potentially compromising the overall quality and accessibility of education. Addressing this disparity is crucial for ensuring that MoPSE can not only sustain its operations but also advance towards its long-term objectives of educational excellence and infrastructure development.

Furthermore, it is also worrying to note that the Ministry's budget is threatened by arrears amounting to an equivalent of US$63 million which must be cleared to maintain good corporate practice. The table below shows the arrears.

SERVICE PROVIDER	DETAILS	AMOUNT
Universities	Teacher Capacity Development	US$7,964,000.00
SEACMEQ	International Professional Subscriptions	US$304,799.00
Welli-Welli Industries	Mobile Laboratories	US$1,789,458.00
Paza Buster	Vehicles (the USD component for 20 vehicles yet to be delivered)	US$1,425,449.50
Various Airliners	Air tickets	US$289,342.89
ZIMSEC	2023 Exams	US$17,945,000.00
ZIMSEC	2024 Exams	US$33,060,000.00
Naycom/Edutech	Secretary’s Merit	US$300,000.00
Total		US$63,078,098.89

 

Committee Observations

Given the constrained fiscal space and the 2025 budget allocation of ZiG46.6 billion, representing 14.5% of the total budget, MoPSE is likely to face challenges including:

 Purchase of second-line examination printing equipment (ZIMSEC)

The examination printing machine for ZIMSEC has become obsolete and unable to cope with the printing of examinations. Failure to have a backup machine (currently estimated at USD 4 million) will most likely affect the running of examinations in 2025 and beyond.

                  Delayed and Erratic Disbursements

Historical issues with delayed and erratic disbursements by the Treasury could persist, affecting budget execution and the timely procurement of essential supplies.

Arrears Clearance

Carryovers from previous years and reversals of unfunded batches could result in arrears, with services rendered but expenditures not yet recorded due to a lack of released budget. Currently, the estimated arrears amount to over USD 63 million.

                  Procurement Cycle Issues

The procurement cycle, coupled with inflation and suppliers' demands/conditions, could lead to delays and increased costs, impacting the timely delivery of educational materials and infrastructure.

                  Staff Shortages

Shortages of both teaching and non-teaching staff, exacerbated by a lack of incentives for specialists and experts, may lead to increased workloads and decreased morale among educators, thus negatively impacting service delivery.

Learner Welfare Support

The budget for learner welfare is insufficient to cater to school feeding programs, sanitary wear and support for learners with special needs, and the recruitment and retention of specialist teachers, affecting the overall well-being and educational outcomes of students.

            Funding for Infant Education 

The Infant Education Program, crucial for early childhood development, may suffer due to inadequate funding for infrastructure, teaching and learning materials, and teaching staff. With 95% of the budget consumed by staff compensation and only 1% dedicated to capital expenditure, efforts to strengthen foundational learning are severely limited.

                  Capital Expenditure Challenges

Due to insufficient funding for capital expenditure such as the construction of new schools, rehabilitation of existing ones, and completion of projects that have been stalled, the goal of addressing the school's deficit and improving educational infrastructure may not be achievable in the near future. 

Moreover, possible legal disputes with contractors arising from delayed payments and further project delays could significantly disrupt the Ministry's overall performance in this area.

 Underfunding in technology integration widens the digital divide, leaving many students without access to essential digital learning tools. This affects their ability to develop necessary skills for the modern workforce and undermines efforts to achieve SDG 4.

School Viability Threats

Delayed or non-payment of Basic Education Assistance Module (BEAM) funds could threaten the viability of schools, particularly in rural areas, affecting their ability to operate effectively.

              Little attention to Disaster Risk Management 

There is a critical lack of dedicated funds for disaster risk management, specifically targeting the rehabilitation of school infrastructure damaged by climate change-related disasters such as cyclones and floods. This unavailability of funds severely hampers the Ministry's ability to restore educational facilities promptly and ensure a safe learning environment for students.

Teacher Training and Development

Limited funding for teacher training impacts the quality of education, as educators may not receive the necessary professional development to stay updated with modern teaching methods and curriculum changes. This compromises the achievement of SDG 4 (Quality Education). Currently, local universities are owed about USD 8 million by the Ministry.

Lack of electricity and internet facilities

The lack of electricity infrastructure and internet facilities, particularly in rural areas, is a significant challenge. This inadequacy hinders the successful implementation of the heritage-based curriculum integral to Education 5.0 and affects the digitization of the education system, particularly for ICT subjects.

 Recommendations 

The Committee implores the Ministry of Finance, Economic Development and Investment Promotion to:

• Urgently review upwards the allocation for ZIMSEC to enable the buying of the second-line examination equipment to avoid disrupting the running of examinations in 2025 and beyond.
• Boost MoPSE’s Capital Expenditure by allocating sufficient funds for the construction of new schools, rehabilitation of existing ones, and completion of stalled projects to address the school deficit and improve educational infrastructure.
• Improve the timeliness and consistency of disbursements to ensure effective budget execution and timely procurement of essential supplies.
• Address MoPSE’s arrears by collaborating with the ministry to establish a clear plan for clearing arrears from previous years and prevent reversals of unfunded batches to ensure services rendered are promptly recorded and paid for.
• Streamline procurement processes and address inflation and supplier demands to reduce delays and costs, ensuring timely delivery of educational materials and infrastructure.
• Enhance learner welfare support by increasing the budget for school feeding programs, sanitary wear, and support for learners with special needs, and the recruitment and retention of specialist teachers to improve student well-being and educational outcomes.
• Increase funding for infant programs to enhance infrastructure, teaching and learning materials, and teaching staff, strengthening foundational learning.
• Commit to clearing arrears and ensure timely payment of BEAM funds (i.e. at the beginning of each school term).
• Allocate specific resources for the rural electrification of schools and installation of internet facilities to ensure all students have access to modern learning tools and technologies.
• Dedicate funds towards Disaster Risk Management, focusing on rehabilitating and reconstructing school infrastructure damaged by climate change-related events.
• Increase budget allocation for continuous professional development programs for teachers to enhance teaching quality and educational outcomes which are vital for the successful implementation of the Heritage-based Curriculum.
• Allocate additional funds to increase the recruitment and retention of both teaching and non-teaching staff, with a focus on providing incentives for specialists and experts to maintain high morale and service delivery.
• The Ministry of Primary and Secondary Education should prioritise finalising the School Financing Policy to provide options for funding the education sector, particularly, the implementation of state-funded education focusing on scaling up the grant in aid of tuition to reach the neediest P3, satellite and S3 in 2024.
• Establish an Education Levy modeled around the Aids Levy and extract a percentage from the resources generated from the mining sector or otherwise, to fund the education sector.

Conclusion

The 2025 National Budget allocation for MoPSE demonstrates a commitment to advancing education in Zimbabwe. However, the underfunding of key programs poses significant challenges to the Ministry's performance and the achievement of targets in NDS1, Vision 2030, and the SDGs. Addressing these funding gaps is crucial for ensuring that all students have access to quality education and that the education system can contribute effectively to national development goals.  I so submit, Hon. Speaker.  Thank you.

HON. D NKALA:   Thank you Madam Speaker, I rise to present the post budget analysis report on the Portfolio Committee on Health and Childcare

Introduction

The health care must be accessible, available, acceptable, affordable and of good quality to be fully enjoyed by the citizens. The right to access quality health care is well guaranteed in the Constitution particularly Section 29, 76, 81 and 82. In addition, the Constitution, Section 82 (b) emphasises the progressive realisation of the right to health which means the budget should reflect incremental increase towards health funding. The National Development Strategy 1 (NDS1) distinguishes the significant contributions of good health to economic progress, as healthy populations live longer, are more productive and accumulate more savings. Furthermore, the NDS1 acknowledges the significance of increasing funding to public health expenditure per capita from USD30.29 in 2020 to USD 86 by 2025. Therefore, the Government should take positive measures to ensure that everyone access quality health care.

The Government has made commitments to ensure that the health care sector is allocated 15% of the total budget under the Abuja Declaration. The national budget, through financial allocations remains a critical component for evaluating political commitment towards progressive realisation of health right. The 2025 National Budget provides an opportunity to relook, re-evaluate and refocus towards the health commitments well outlined in the NDS1 (2021-2025). This report, although analysing the MoHCC allocations, seeks to identify other sources within the framework of Domestic Resources Mobilisation and National Budget Statement, to strengthen health financing in Zimbabwe.

National Budget Outlook

The challenges facing the health sector in Zimbabwe are numerous, ranging from outbreaks of preventable diseases such as cholera, high maternal deaths, an increase in children’s illness, HIV and AIDS, malaria, tuberculosis, shortages of medical supplies, attrition of health cadres, infrastructural decay and deterioration of Water, Sanitation and Hygiene (WASH) among others. Notwithstanding the high death rate from Non-Communicable Diseases (NCDs), not forgetting that the health system is still recovering from the shackles of the COVID-19 pandemic, hence the prioritisation of health care sector for adequate funding remains of paramount importance for economic development.

In the 2025 National Budget, the MoHCC received a total amount of ZiG28,3 billion against the total budget of ZiG218 billion representing 12.9% of the total allocation. On the same note, in 2024 National Budget, the MoHCC was allocated 9.82% of total Government expenditure, therefore the 2025 budgetary allocations reflect an increment towards heath expenditure by 3%. This is progressive, and reflect Government commitment towards funding health, however it falls short of the 15% commitment made under the Abuja Declaration. It is worth noting that the budget allocation translates into per capita of USD56.00. This is optimistic, although falling short of the NDS1 target of USD 86.00 by year 2025. Whilst vote allocation is one thing, disbursement and budget utilisation remains low for the MoHCC throughout the year 2024, and the Committee would want to witness a different story for the 2025 financial year. The budget allocation should be consummate to budget disbursement and budget utilisation accordingly.

The 2025 National Budget identified two sources of revenue that are of interest to the Committee, because of their implications to the health sector, which is 0.5% tax on fast foods and reintroduction of custom duty on medical products previously exempted due to COVID-19 pandemic respectively. These are critical sources of revenues and should be directed towards funding health. The increase in tax basket is well appreciated, adding to the sugar tax introduced in the 2024 financial year to fight cancer. These taxes need to be ring fenced to ensure they are used specifically for health purpose.

Budget Allocation Trend Analysis Figure 1.

 

Year	2021	2022	2023	2024	2025
Budget Allocation	3,281bn	117.2 bn	473.4 bn	6, 311 tn	28.3bn
Allocation in %	12,87	12.16	12.85	9.82	13
Allocation                  per                  capita (USD)	42.29	71.66	47.20	63.33	56

 

The budget allocation trends reflect a fluctuating rate in budgetary allocations, although these allocations are decreasing in nominal value. The fluctuations are also depicted by per capita allocations. In 2022, capita allocation reached USD71.66, it is worrisome that in 2024 it has reduced to USD63.33 and it further reduced to USD56 in 2025. Budgetary allocation depict a different story, as an increase in the budgetary allocation is corresponding to an increase in total percentage but decreasing in per capita spending. The actual budget disbursement also reflects a totally different story, at the end of the financial year the figures would have gone further down reflecting both low disbursement and budget utilisation. Generally, this means an increase in out of pocket funding towards health. Out of pocket, is not the best strategy for funding health as the majority of the population cannot afford.

MoHCC Vote Allocation (Vote 14).

The significance of a healthy nation cannot be overemphasised, as a healthy nation can contribute to economic development. The MoHCC has always been prioritised as reflected by its position in the top five Ministries, with higher allocations. To effectively deliver on their mandate and in line with the Programme Budgeting, the MoHCC has four programmes which are Policy and Administration, Public Health, Curative services and Bio-Medical Engineering, Bio-Medical Science, Pharmaceuticals and Bio-Pharmaceutical Production. The table below reflects allocations by programme;

Clarification by Programme.

 

Programme	Allocation	% Allocation
Policy and Administration	3,937,630,000	14
Public Health	2,187,076,000	8
Curative	22,050,640,000	77.5
Bio Medical	148,249,000	0.5
TOTAL	28,323,595,000

 

In 2025, curative services account for 77.5% of the total health appropriation up from 75.2% in 2024, followed by Policy and Administration with 14%, Public Health at 8% and Bio Medical 0.5%, as illustrated in the above diagram. Therefore, health spending in Zimbabwe is skewed towards curative services at the expense of Public Health. The shows that the country is overburden with diseases that need immediate attention and there is need to avert/reverse the situation.  It is estimated that up to 90% of all essential health care services can be delivered through Primary Health care (PHC) and that investing in PHC can substantially increase life expectancy by as much as 6.7 years by 2030. Evidence has also shown that health systems that are built around PHC report lower hospital admissions, better health outcomes at a lower cost, and are more resilient in mitigating the negative impact of economic and health shocks. This asymmetric circumstance reflects how much burdened is the health system in Zimbabwe, and this can as well be attributed to low investment in PHC. To correct the situation, there is need to reconsider prioritising PHC.

Clarification by Expenditure.

 

Expenditure	Amount	Percentage
Employment Costs	17,432,107,000	61%
Recurrent	6,971,264,000	25%
Capital Expenditure	3,920,224,000	14%
Total	28,323,595,000	30%

 

The 2025 budget is skewed towards employment costs, consumed 61% of the total budget allocated to the MoHCC. This is in line with the Ministry’s recently launched Health Workforce Strategy which aims at doubling training of health care workers, curb staff attrition and return a huge of the trained workers. Recurrent expenditure is at 25%, critical for sustaining the operations of the Ministry. Generally, the total recurrent expenditure stood at 86%, means out crowding capital expenditure critical for health investment. Off concern is capital expenditure at only 14%, it means the Ministry has a mammoth task to achieve the health expectations from the 2025 budget;

• Improving availability of essential medicine from 48% to 60% and
• Aiming to reduce maternal mortality, especially in Central
• Reduction in perinatal mortality rates due to equipment shortages and service quality issues.
• Improving availability of theatre services of surgical sundries for optimal functioning of operating theatres, with a focus on specific
• Procuring more equipped ambulances to cater for medical

Committee Observations

After deliberations, the Committee observed the following;

1. The asymmetric relationship of providing 86% for recurrent expenditure and 14% for capital expenditure is not progressive, given the dire need of hospitals and clinics throughout the
2. The fast food tax and reintroduction of custom duty on medical products previously exempted due to COVID-19 pandemic adds to the basket of taxes including sugar tax is welcome and within the WHO and regional standards.
3. The National Health Insurance Scheme provides an opportunity to increase access to health care (Universal Health Care) and facilities for citizens to enjoy the right to right in accordance with section 76 of the
4. Allocation towards NCDs is insufficient and does not correspond to the challenges being faced by citizens and the increase in deaths associated with NCDs.
5. The budget does not recognise the centrality of Village/Community Health Workers in prevention and promotion of awareness on NCDs.
6. In the absence of a proper plan to compensate health care professionals, the attrition of health cadres is most likely to continue an unabated burden dominating the health care delivery system in Zimbabwe

Committee Recommendations

In-line with the above observations, the Committee is recommending the following;

1. The budgetary allocations for MoHCC should target per capita spending at USD86 in line with the NDSI projections.
2. The health budget must be screwed towards PHC investment and less spending on curative as a long strategy to curb outbreak of new diseases and arrest further increase in disease
3. Capital spending should take the biggest chuck of health expenditure, and the Committee recommends 70% of the total MoHCC allocation and less for recurrent spending at 30%, as a strategy to strengthen the health system, build more resilience and ensure adequate
4. Proposed taxes, the fast food and sugar taxes should be ring fenced through a legal framework, to ensure that the revenues collected are utilised for the right purpose as well as to ensure Treasury disbursements are The legal framework will facilitate proper planning by the MoHCC and implementation of the Health strategy
5. The National Health Insurance Scheme Bill should be expediently finalised and tabled during this second session of the 10th Parliament, as the Bill has potential to reduce Treasury burden in mobilising resources towards the health care sector at the same time increases universal health coverage.
6. The 2025 budget should prioritise adoption or simulation of Village Health Workers into the health profession by budgeting for their salaries and allowances.
7. Improvements in compensation of health cadres should aim to match regionally competitiveness.

          HON. TOGAREPI:  On a point of order Madam Speaker.  If you look at how we are faring at the moment with our Chairpersons reading the whole reports, we may not go anywhere.  I think they can summarise the report then concentrate on the recommendations – [HON. MEMBERS: Hear, hear.] – because the Chairperson of the Budget and Finance did exactly what our Chairpersons are repeating, there may be differences here and there, they can choose on those ones but go to recommendation to save time. 

  THE TEMPORARY SPEAKER (HON. TSITSI ZHOU):  Thank you Government Chief Whip, we are going to do as such.  Allow me to recognise Hon. Maburutse.

  HON. MABURUTSE: HON. MABURUTSE: The Ministry of Lands, Agriculture, Fisheries, Water and Rural Development was allocated ZiG22, 934,997,000, accounting for 8.4% of the total of the national budget. This allocation reflects an improvement, as it meets the 10% agriculture budget threshold outlined in the Maputo Declaration, which Zimbabwe endorses.

Table 1: Programmes and their Strategic Objectives                                                   

Programme Name	Strategic Objective
1. Policy and Administration a. Administration b. Strategic Planning, Monitoring and Evaluation (SPME) c. Business Development Markets and Trade (BDMT)	a. To improve service delivery b. Policy planning, sector coordination, monitoring and evaluation   c. Business development, markets development and trade facilitation
2.  Agricultural Education	Produce a competent agricultural graduate with analytical and entrepreneurial skills
3. Crop and Livestock Research and Technology Development	Develop, adapt and disseminate innovative research technologies that improve crop and livestock productivity and production
4. Agricultural Advisory and Rural development Services	Promote sustainable, competitive and viable agricultural production by providing technical, extension, advisory and coordination services
Rural Development 8.0	Agriculture Development, Rural development, Rural Industrialisation
5. Agricultural Engineering and Farm Infrastructure Development	Promote agricultural mechanisation, farm structures, and irrigation technologies as a means to increase crop and livestock productivity and production
6. Animal Health and Advisory Services	Increase farmer knowledge and skills in livestock production and health so as to enhance productivity
7.  Land Resettlement and Security of Tenure	Promote equitable land distribution and security of tenure
8. Land Survey and Mapping	Provide accurate and up to date geospatial information for Zimbabwe
9. Integrated Water and Irrigation Resources Development and Management	Improve water supply in the country through infrastructure planning, development and management

 

Parastatals and agencies which are under the ministry’s purview are infused in the nine programmes listed above depending on what their purpose in life entail, e.g. Pig Industry Board (PIB) falls under Animal Production, Health, Extension and Advisory Services programme and Tobacco Research Board (TRB) falls under Crop and Livestock Research and Technology Development.

   2024 BUDGET UTILISATION

 Revised budget as at 30 November 2024 amounts to ZWG7, 184,056,332 and cumulative expenditure of 69% was recorded as at 30 November 2024 amounting to ZWG4, 980, 087, 867.

  ANALYSIS OF 2025 BUDGET ESTIMATES

 Presented in Table 1 is the utilisation for 2024 and the 2025 allocation to programmes against their submitted bids.

Table 2: Ministry Summary

PROGRAMMES	Revised Budget Provision as at 30 Nov 2024	2024 Cum Exp as at 30 Nov 2024	% Cum Exp to Rev. Budg. Prov.	2025 Budget Bid	2025 BUDGET ALLOCATION	Variance   (  Bid less 2025 Budget Allocation)	% ALLOCATION ( Allocation/Bid)
Programme 1: Policy and Administration	1,700,217,541	1,087,871,252	64%	23,336,440,000	3,387,876,000	19,948,564,000	15%
Programme 2: Agricultural Education	94,728,928	34,829,717	37%	1,510,709,000	328,620,000	1,182,089,000	22%
Programme 3:Crops and Livestock Research & Technology Development	210,178,681	118,016,725	56%	4,390,452,000	742,441,000	3,648,011,000	17%
Programme 4: Agricultural Advisory & Rural and Rural Development Services	2,425,601,234	2,113,931,876	87%	26,795,136,000	12,318,939,000	14,476,197,000	46%
Programme 5: Agricultural Engineering & Farm Infrastructure Development	227,780,031	77,117,500	34%	16,811,560,000	420,703,000	16,390,857,000	3%
Programme 6: Animal Health and Advisory Services	595,866,553	413,076,146	69%	5,110,320,000	1,514,218,000	3,596,102,000	30%
Programme 7: Lands, Resettlement and Security of Tenure	408,928,614	273,121,067	67%	13,527,536,000	711,585,000	12,815,951,000	5%
Programme 8: Land Survey and Mapping	121,437,680	24,309,305	20%	1,321,250,000	369,877,000	951,373,000	28%
Programme 9: Integrated Water and Irrigation Resources Development and Management	1,399,423,461	837,814,279	60%	25,606,461,000	3,140,738,000	22,465,723,000	12%
Total	7,184,056,332	4,980,087,867	69%	118,409,864,000	22,934,997,000	95,474,867,000	19%

 

  The vote was allocated ZWG22, 9 billion for the 2025 budget year against a total bid of ZWG118, 4 billion. The 19% allocation was distributed across 9 sub-programmes based on 2025 priorities, however, the low allocation for capital expenditure is anticipated to stall progress in the Ministry’s programming in the quest to build resilience at national and household level.

 Policy and administration services offices of the Minister, Deputy Ministers, Permanent Secretary and six other administrative sub-programmes in addition to Grain Marketing Board (GMB) which was allocated ZWG3, 38 billion from the expenditure target of against the bid submission of ZWG23, 3 billion which translates to 15% of the bid. From this allocated amount, GMB received ZWG 1.27 billion for operations and capital expenditure, which is significantly below the requested budget. GMB allocated ZWG 810 million for Strategic Grain Reserves (SGR) against a total requirement of ZWG11,2 billion which is enough to purchase 54 126 metric tonnes of grain against a target of 750 000 metric tonnes. In this regard, the shortfall will prevent GMB from maintaining the SGR at the required 500 000 metric tonne level. In addition, GMB was allocated ZWG1, 3 billion for recurrent and capital expenditure against a bid of ZWG5.6 billion which is 23% of the required budget. GMB has been assigned additional responsibilities which include;

• Distribution of cotton inputs
• Distribution of stock feeds
• Milling of mealie meal for the school feeding programme
• Establishment of agro-shops
• Transportation of ARDA contracted wheat harvest to GMB depots

These additional responsibilities will necessitate increased operational costs beyond GMB’s usual budget. GMB’s current salary obligation is ZWG39, 5 million totalling to ZWG513.5 million annually. Therefore, the allocated ZWG457 million is insufficient to cover the existing salary commitments at GMB. With regards to operational costs, GMB requires ZWG87 million monthly for grain movement and utilities across 90 locations countrywide hence the allocated ZWG840 million falls short of GMB’s annual needs.

Agriculture and Rural Development Advisory Services submitted a total bid amounting to ZWG26, 7 billion and ZWG12, 3 billion was allocated from the expenditure target. The 46% allocation leaves a budget deficit of ZWG14.4 billion.  The programme is implementing Rural Development 8.0 which comprise of Presidential Input Support Programme, Presidential Poultry Scheme, Presidential Goat Scheme to mention a few. All the 7 elements of Rural Development were allocated ZWG10.2 billion. Assuming that the allocated 10.2 billion is channelled towards Pfumvudza/ Intwasa programme which is targeting to support 3. 5 million farmers, only a total of 1. 5 million farmers can be supported with the full input package leaving a deficit of 2 million farmers financing their own production. Historical trends have shown the consequences of self-financing production by small holder farmers in terms of low productivity, food insecurity and self-sufficiency. Therefore, the allocated budget presents us with two scenarios in this regard;

1. Distribution of full input packages but covering 1.5 million farmers
2. Distribution of half input packages covering 1.8 million farmers

These scenarios will potentially impede government efforts in steering the agriculture sector towards recovery and growth following the devastating impacts of the El-induced drought experienced during the 2023/24 summer season. Furthermore, Ministry is focusing on building resilience and adaptive capacities of small holder farmers, hence the need for adequate budgetary support to meet these demands.

 Animal Health and Advisory Services received ZWG1. 5 billion against a total bid of ZWG5. 1 billion. The budget is inadequate to cover all the programming which include cattle dipping, cattle vaccination, animal movement control, disease surveillance and control, dip tank rehabilitation, local production of vaccines and tsetse surveillance. The programme is critical in growing the national herd to 6 million cattle by 2025. The current budget allocation for cattle dipping sessions is grossly inadequate, threatening Zimbabwe's national herd. The allocated funds will only cover 12 out of 45 necessary sessions. This means cattle will only be protected until end of April 2025, leaving them vulnerable for 8 months.

As a result, the prevalence of tick-borne diseases will decimate our national herd by May 2025, causing cattle unprecedented deaths, economic instability and food insecurity. The current budget is insufficient to vaccinate against four deadly diseases that is, Foot and Mouth Disease (FMD); Anthrax, Rabies, and Newcastle - putting humans and animals at risk. With a USD3. 3 million debt owed to the Botswana Vaccine Institute for previous imports. Allocated funds are only enough to cover he debt. In addition, the budget allocated for vaccine production will severely compromise animal health in the country as these vaccines are key in protecting animals against future disease. The allocated budget means that the Directorate can only produce 100 000 doses of Theileria BOLVAC vaccine which is 30% of the 2025 target. It is important to note that animal vaccination is the primary method for prevention and control for several infectious viral and bacterial animal diseases of zoonotic origin across the globe. The budget allocated to laboratory diagnostics is severely inadequate, and will hamper service provision. 1.6.7. Laboratory testing plays a key role in animal disease surveillance and animal product certification for local and international trade. This allocated budget will only be enough to cover veterinary laboratory testing for the first two months of 2025, for 5 000 samples which is 22% of targeted samples for 2025. This will compromise animal disease surveillance in the country, with consequent increased incidence of animal diseases and also create barriers to local and international trade in animal products. Lastly, the allocated budget is affecting tsetse survey and surveillance, trypanosomiasis surveillance and tsetse target barriers resulting in tsetse reinvasion which causes nagana in cattle and sleeping sickness in humans. Availed funds in 2025 will be able to only procure, deploy the entry and dispersal of tsetse targets covering 2000Km² against a target of 12 500Km².

  Agriculture Engineering and Farm Infrastructure Development submitted a bid amounting to ZWG16 8 billion and received a total allocation of ZWG420 million from the expenditure target. The budget allocation is insignificant and does not address standing commitments and obligations to conclude NDS1 projects. This will negatively affect delivery of the Presidential Zunde Ramambo Grain Storage and Preservation Facility, the John Deere Facility, the Bain New Holland Facility, the Implements Local Manufacture Facility, The Pfumvudza Mechanisation Facility, the Livestock Health Infrastructure Facility as well as the completion of the Belarus Facility. All Soil Conservation construction projects to combat erosion and siltation will be affected.

        Lands, Resettlement and Security of Tenure received ZWG711 million from the vote allocation against a bid of ZWG13, 5 billion. Major projects targeted for 2025 include the establishment of Lands Information Management System (LIMS) and farmer compensation.  The ideal budget for LIMS and its activities was pegged at ZWG370 million in the bid but the project was allocated ZWG60 million from the expenditure target, the 16% allocation will severely affect completion of the projects despite its importance in capturing information in line with the new policy direction for security of tenure. Under compensation, a bid amounting to ZWG12. 5 billion was submitted, however, ZWG90 million was allocated from the expenditure target. The target will only cater for former farmer owners in humanitarian crisis. A huge chunk of the bid was for farmers under Global Compensation Deed, BIPPA and Mauritians. The gap on non-funding will affect the current thrust of engagement and re-engagement with the international Community.

 It is important to note that on the 8^th of October 2024 the Cabinet announced that all land held by beneficiaries of the land reform programme under 99-year leases, offer letters and permits will now be held under a bankable, registrable and transferable more secure document of tenure, to be issued by the Government of Zimbabwe. An indefinite moratorium on the issuance of any new 99-year leases, offer letters and permits for agricultural land was issued. In this regard, the new project for immediate implementation in the year 2025 is issuance of new secure tenure document that is bankable, registrable and transferrable. While some activities associated with new tenure document will remain the same like layout production and data collection, it is expected that they will be done in a more scaled up numbers. Therefore, the need for budget support to undertake the activities.   

 Land Survey and Mapping received 28% of the total vote allocation amounting to ZWG369 million against a bid of ZWG 1. 3 billion required for operational activities and major projects including E-Cadastre. The E-Cadastre project is expected to end in 2025 requiring ZWG300 million, however, ZWG50 million was allocated from the expenditure target. This allocation will result in the extension of contracts which in turn increase demand for more financial support from Treasury. The programme also targeted to conduct 1000 farms surveys in 2025 with a budget of ZWG80 million.

 Integrated Water and Irrigation Resources Development and Management received ZWG3, 1 billion against a bid of ZWG25, 6 billion which is 12% of the total requirement for 2025. The Ministry’s strategic focus areas for 2025 include dam construction (completion of Kunzvi and Gwai Shangaani dams) and irrigation rehabilitation and development and establishment of 10 000 Village Business Units. The programme has a deficit of ZWG22. 4 billion. Ministry thrust is to accelerate irrigation development and rehabilitation to climate proof agriculture in Zimbabwe. The planned target is to develop 496 000Ha area by 2030 with the support from private sector and development partners. The 2025 is to rehabilitate and develop 12.059Ha at an estimated cost of ZWG5.3 billion. However, the allocated appropriation is ZWG406 million representing 8% of the budget. From the approved appropriation, only 3679Ha can be implemented leaving a balance of 8560Ha to be developed.

1.6.12. It is expected that the finalisation of facilities under the Irrigation Development Alliance will bridge the irrigation financing gap for the achievement of the set national target of 496 000Ha by 2030.The procurement of construction plant and equipment provides a fundamental foundation towards drastically reducing the cost of irrigation development under the National Accelerated Irrigation Rehabilitation and Development. The budget bid for the acquisition of construction plant and equipment was ZWG2 billion while the allocated budget is ZWG68.4 million, representing 4% of the budget. However, the allocation is only 4% of the total requirement. This limited resource envelop means that major irrigation development cost movers that is land clearing, ripping and land levelling will be outsourced thereby increasing the irrigation development costs.

  Gwayi Shangani and Kunzvi dam construction are targeted for completion in 2025. From the expenditure target, ZWG700 million was allocated for Gwayi-Shangani dam against a bid of ZWG3, 5 billion for completion of the dam. Kunzvi dam requires ZWG 1. 3 billion and ZWG500 million was allocated.

 In addition to availing funds for the works for both dams, clearing outstanding payments already pegged in USD is also crucial, Gwayi Shangani has an outstanding payment amount USD137 million and Kunzvi dam requires USD37 million to clear outstanding debts.

  CONCLUSION AND IMPLICATIONS

The 2025 budget, running under the theme, “Building Resilience for Sustained Economic Transformation” is not entirely addressing resilient building measures targeted in the agriculture sector. Only 8.4% of the national budget and 19% of our budget bid was allocated to the agriculture sector. Resilient initiatives such as; Irrigation development, Dam construction and water harvesting, Village Business Units have not been adequately funded. If the budget is not revised, we will continue to be vulnerable and at risk of climate induced food and nutrition insecurity. The following are the implications of the allocated budget;

1. Vulnerability to Climate Change- Inadequate funding on irrigation development projects potentially leave farmers more vulnerable to the effects of climate change. Ministry deliberately focused on irrigation development in the 2025 budget year as a deliberate strategy to climate proof agriculture and delink agriculture from rainfall
2. Low agricultural production and productivity- Both crop and livestock production and productivity will be significantly affected by low budgetary support. In the case of small holder farmers who benefit from the Pfumvudza/Intwasa programme, the likelihood of low production and productivity is very high since most of the small farmers will not access inputs such as fertilisers and seeds.

• Food insecurity- Since the country is bouncing back from the devastating effects of El-Nino, the low budgetary support will result in food security threats as the country seeks to build resilience among small holder farmers to ensure food security at household level.

1. Accessibility to clean and safe water in urban areas- Ministry is also focusing on dam construction projects particularly completion of Kunzvi and Gwayi-Shangaani dams. Besides supporting irrigation development, the aforementioned dams are also meant to provide domestic water for Bulawayo and Harare Metropolitan provinces which for the past decade experienced perennial water challenges.
2. Farmer payments- GMB has a mandate to maintain the SGR of 500 000 metric tonnes. Low budgetary allocations are going to significantly affect farmer payments which potentially fuel side marketing of strategic crops. Generally, GMB operations will be stagnant.
3. Global commitments- The allocated budget is 8, 4 % of the national budget which is short of the Maputo Declaration target of 10%. Continued failure to meet the 10% allocation negatively impacts the country’s capacity to meet the Comprehensive Africa Agriculture Programme (CAADP) where Zimbabwe is measured amongst other 54 countries in Africa on agricultural development commitments. This also has a negative bearing in luring regional and continental investors in the agricultural sector as preference is given to member states prioritising agricultural development. 

• Low exports and foreign currency generation- The projected economic growth of 6% hinges on the agriculture sector which has the multiplier effect to downstream industries. The given budget allocation is inadequate that the growth of the economy will be stagnant, exports will be low and retardation of rural industrialisation which is a catalyst to economic development.
• Projected GDP growth rate – the projected 6% growth rate is premised on 12.8% growth rate in agriculture, hunting, fishing and forestry. However, the projections do not take into account the budgetary allocation for the agricultural sector. As such, the realisation of the projected growth rate for 2025 based on crowding out effect should be back by adequate funding.

Recommendations

• Allocation of at least 10% of the budget in line with the Maputo declaration. Budget need to be revised upwards and go beyond the Maputo declaration if the country wants to realise real transformation which will translate to economic growth.
• Programme’s present budget should be seen as a starting point that needs considerable improvement and strategic realignment rather than as a final allocation. It is more than just an agricultural requirement to give irrigation development for the Gwayi-Shangani, Kunzvi and Tokwe Mukosi Dams first priority; it is also a vital national economic necessity.
• The Ministry may need to explore additional funding mechanisms, such as public-private partnerships, international development grants and concessional loans, to supplement these allocations and achieve its long-term goals effectively.

HON. NGULUVHE:  Thank you Madam Speaker.

Introduction

The Ministry of Defence’s mandate is to provide defence, security and protection to Zimbabwe’s territorial integrity, national sovereignty and its social-economic well-being as well as to play a part in the maintenance of international peace and security.  The Ministry aims to be the provider of a versatile and sustainable defence capability and in so doing, contribute optimally to the objectives of the National Development Strategy One and ultimately, the realisation of Vision 2030.  Its main role is to provide the much needed peace and stability for sustainable economic growth.

• Global Overview and Analysis of the Ministry’s 2025 Budget Allocation

The Ministry has two programmes namely, Policy and Administration; Defence and Security.

Out of the expenditure estimate of ZiG 133,619,184, 849 which, is based on the bare minimum required to fulfil the Ministry’s mandate, to contribute fully to the implementation of NDSI and the attainment of Vision 2030, the Ministry of Defence received a total budget allocation of ZiG 18 051 583 000 accounting to only 13.5% of the total bid and hence, falls way below expectation.

• The allocation by Treasury of $18bn against an ideal requirement of $133.6bn is compromising the Ministry’s capability to fulfil its constitutional mandate. The allocation leaves a funding gap of $115bn, and this will have multiple negative effects on the Zimbabwe Defence Force’s operational activities and hence the entire nation’s peace and security.
• The Committee noted that the Ministry of Defence has key expenditure items that cannot be half-funded because of their interconnectedness in nature. For example, rations, adequate fuel, military equipment and food are required to complete a full training programme, since training cannot be half-done.
• The budget shortfall affects employment costs, recurrent and capital expenditure in the two programmes as follows:

 

Programme	Ideal Bid	Budget Allocation	Budget Shortfall
Policy and Administration	ZWG 1 billion	ZWG 831.5 million	ZWG 197.5 million
Defence and Security	ZWG 117.9 million	ZWG 4.2 million	ZWG 113.7 billion
TOTAL	ZWG 119 billion	ZWG 5 billion	ZWG 113.9 billion

 

• Major Highlights of the Ministry’s 2025 Budget

The Ministry has a heavy debt burden of unfunded payments runs amounting to ZiG 49.1 million which has resulted from low budgetary support and the delay of all payments by Treasury as at 30 September 2024. The amount has since accumulated to ZiG 248.4 million as at 30 November 2024.  ZDF as at 30 November 2024, has an accumulated debt amounting to ZiG 9.2 billion dating back from the year 2021.The delays or non-release of cash support for processed payments and non-payment of creditors has resulted in some service providers withdrawing their services a situation which is crippling Ministry`s operations. As a result, the Ministry experienced the following:

1. Inadequate supply of rations,
2. Failure to conduct trainings
3. Failure to procure specialised military equipment
4. Low stock levels of drugs, fuels, oils and lubricants,
5. Delays in the procurement of essential spares and failure to maintain military equipment.
6. Failure to identify, develop, and implement cutting-edge technologies against perceived military threats to the Country.
7. Poorly kitted soldiers/airmen.
8. Serious accommodation shortages for officers.
9. Renovation of Defence House
10. Purchase of Equipment, CCTV installation and new Elevators
11. Purchase of Fuel, Oil and Lubricants
12. Logistical Training Obligations
13. Vehicle Purchase (ZDF)
    • Compensation of Employees

The Military Salary concept has not been fully implemented to fulfil all the conditions of services of ZDF members. The implications is that the Ministry likely to lose a number of its key personnel who will left the force to look for greener pastures. It has been noted that Treasury has not been paying the full rates for the allowances that were implemented in April 2022.

• Constitutional and Statutory Obligations

This covers rations, uniforms, medical care and institutional accommodation. Institutional provisions were seriously underfunded despite carryovers dating back to 2024. An allocation of ZiG 1 352 031 000 (1.3 billion) against an ideal bid of ZiG 12 578 182 (12.5 billion) will result in the Ministry failing to provide adequate rations and uniforms to its members. This creates a funding gap of 89.25% which makes it difficult for the Ministry to meet all its constitutional responsibilities in 2025. Members will have to supplement from their paltry salaries, thereby causing serious adverse effects on health and morale. The Committee recommend that Treasury consider review upward this figure to ensure that ZDF continue to provide maximum security to the nation.

• Re-equipment, refurbishment and upgrading of equipment, assets and infrastructure

Adequate budgetary support for this area is necessary to enable the Ministry to be able to maintain its internal capacities and efficiency. An allocation of ZiG 1 042 020 000 (1billion) for this purpose against a bid of ZiG 81 137 723 424 (81.1 billion) will creates a capacity gap of 98.72%. This will result in most of the ZDF assets dysfunctional and also make it difficult for the Ministry to ensure that urgent projects that needs refurbishment like Defence House which needs a standby generator and electronification of security systems at all key installations will not be catered for.

 Training is an integral part of the operations of the Defence Forces. The rapid changes in technology demand corresponding adaptation and continuous training in order to keep abreast of the technological changes. This is critical in order to keep the Defence Forces ready for any threat that might arise be it internally or externally. Despite this reality, an amount of ZWG 122 650 000 (122.6 million) which is only 44.38% of the ideal budget of ZiG 276 390 374 (276.3 million) was allocated.  This implies that the Ministry will not be able to train the required numbers to meet its training targets of 2025 if no additional resources are availed.

• Maintenance of existing equipment.

This item covers both mobile and fixed assets as well as infrastructure. The allocated amount of ZiG 311 664,000 (3.6 million) for this purpose, constitutes only 18% of the ideal bid of ZiG 1 722 115 078 (1.7billion) thereby creating a variance of ZiG  1 410 451 078 (1.4 billion). Treasury should also need to consider that the Ministry’s operations are capital intensive, hence the absence or inadequacy of these assets will negatively affect its performance.

• Maintenance of Security Buildings

The Ministry had budgeted in the previous year to spruce up Defence House which accommodate the Ministry`s headquartes and the ZDF headquarters. The building has developed cracks that require urgent attention. Ministry had also budgeted to upgrade electronic security systems at most key establishment, but however as a result of insignificant funding, these and many other targets could not be realised in 2024 as is likely to be the case in 2025. Thus the Committee implore Treasury to provide adequate funding towards this area.

• Progress has stalled on several high impact PSIP projects that would ease

accommodation problems in the Military. These projects include:

1. Dzivarasekwa housing units,
2. Imbizo housing units,
3. Josiah Magamba Tongogara Barracks
4. WOs’ & Sgts’ Mess, renovations at VVIP Officers Mess,
5. Rehabilitation of selected buildings within cantonment areas
   • The following are the outstanding debts which Treasury should clear

without affecting the 2025 budget allocation:

9. Unfunded DPs for Ministry of Defence ZWG 9 222 157 213 (9.2 billion)
10. Legacy Dept for Aircraft Spares          
11. Creditors                                             
12. Capacitation of Construction Regiment vehicles

and machinery retooling of plant                          

1. Aircraft Hangars and Hardstands
2. Drugs Dressing and Equipment        
3. Institutional Provisions (Uniforms and Rations)       

• Policy Recommendations

In light of the importance of national peace and security which is primarily provided by the Ministry of Defence, our Committee recommends the following:

• Treasury should Treasury should increase funding earmarked for mandatory expenditure items in the Ministry of Defence, These include: Training, rations, uniforms, health, vehicles, military equipment, accommodation, fuel lubricant and oils. In fact Ministry must be given its total budget requirement to provide maximum security to the nation as well as to ensure that the vision 2030 agenda is realised.
• The Military Salary Concept must be fully implemented to avoid loss of skilled personnel to other greener pastures and general brain drain.
• The military construction regiment should be capacitated so that it can compete for construction bids and be allowed to retain the funds generated. The funds would help to ease some funding challenges in the Ministry.
• Treasury should support partnerships and joint ventures which the Ministry have, for example in construction projects.
• Treasury must ensure that adequate funds are allocated to cater for the payment of the Ministry’s payment runs or carryovers in order to ensure an uninterrupted service delivery by service providers. In other words Treasury must assume the Ministry`s legacy debt in order to ensure that the Ministry start the year 2025 without any carryovers.
• Inescapable expenditure items must be prioritised and be adequately funded in the 2025 national budget. These include institutional provisions (rations, medical care, uniforms, institutional accommodation), acquisition and maintenance of military equipment, training and development needs; fuels, oils and lubricants.
• Procurement of specialised military equipment need to be given priority.
• The PSIP projects in the Ministry are low-hanging fruits hence should be completed in order to ease accommodation problems. Treasury can consider capacitating the construction regiment so that it can finish off these projects. Treasury is also implored to settle PSIP arears under the Ministry of Defence

4.0 Conclusion

It is evident that the Ministry of Defence is underfunded despite the need to increase the combat readiness of the Defence Force. It is the Committee`s prayer that the budget allocation for the Ministry be increased to 100% (ZiG 133.6 billion) as per their request in order to ensure that security of the nation is not compromised, if not at least 90% of the total bid will go a long way. Should this fail, most scheduled programmes and projects for the year 2025 may have to be shelved resulting in reduced defence and security preparedness of the ZDF.  Thus, regardless of the high cost of security business, Treasury must avail adequate funds to the Ministry’s key priorities. 

2025 POST BUDGET ANALYSIS REPORT FOR MINISTRY OF VETERANS OF THE LIBERATION STRUGGLE AFFAIRS

VOTE 25 (ZiG 970 517 000 MILLION)

• Introduction

The Ministry of Veterans of Liberation Struggle Affairs was created to honour the sacrifices of those who fought valiantly for our nation’s freedom and Independence as it reads, ‘To empower the Veterans community, Heroes and War Victims; accurately document, safeguard and preserve the nation’s Liberation War history and legacy. In its broadest sense, the Ministry is mandated to do the following; expedite the operationalisation of the Veterans of the Liberation Struggle Act (Chap 17:12); finalise the vetting, registration and documentation of bona fide Veterans of the Liberation Struggle, institute measures to accurately record, document and preserve the history of the Liberation Struggle, economically empower and improve the livelihoods of Veterans of the Liberation Struggle, administer funerals of Veterans of the Liberation Struggle other than National Heroes  and to maintain internal and external liaison channels to do with Veterans of the Liberation Struggle.

• Global Overview and Analysis of the Ministry’s 2025 Budget Allocation
  • The Committee is grateful to Treasury for increasing the Ministry’s budgetary allocation from the initial allocation of ZiG 238 143 000 (238. million) before the Call Circular to ZiG 970 517 000 (970 million) after the Call Circular which constitute 19.45% of the ideal budget.
  • The Ministry has expenditure items under various programmes which were seriously underfunded despite the additional budget allocations.
  • Employment costs

The Ministry was allocated only ZiG 44,674,000 against a total requirement of ZiG71, 373,070. This means that the Ministry will not be able to achieve its set targets in 2025.  Whilst some posts have been filled, the Ministry still has vacancies for critical posts at Head Office, in provinces and districts hence our bid for their salaries.  With an increased client base, individual officers at district offices can no longer cope with the workload.

• Major budget allocation shortfalls affect the following programmes:

1. Medical Benefits

Only ZWG 121,840,000 which represent 40% of an ideal Budget of  ZWG 312,830,000 was allocated towards this item. This amount is insignificant considering that most of the Veterans of the Liberation Struggle are above the age of 63 and they are affected by age related health complications that require a robust health service delivery system.  Several Veterans are undergoing dialysis, chemotherapy and physiotherapy sessions. Since September, Treasury has not been providing cash support and the Ministry already has shortfalls with various medical service providers of ZiG10, 250,000.  Outstanding surgeries that await cash support amount to ZiG6, 518,811.  In addition, annual costs for dialysis and chemotherapy are ZiG11, 175,105 and ZiG3, 026,591 respectively.  The cost of these services continues to increase.  The Ministry has decentralised the payment of medical services to provinces and ZiG160, 797,352 has been earmarked for the purpose.  Veterans should not travel to Harare for medical services unless they require specialist attention that is not available in provinces.  Thus the allocation of ZiG 121 840 00 meant that these funds will have been used up by May 2025.

1. Funeral Benefits

As indicated in the priorities for 2024, there is need for memorialisation, identification, exhumation, reburials, and closure for the families whose members joined the War of Liberation and never returned. The Ministry was allocated only ZiG 98,226,000 against an ideal Budget ZiG 189,897,850.  The cost of the burials has been captured under the funeral account together with the funerals of existing Veterans.  This means that only two hundred (200) Veterans who died during the Liberation War will be reburied instead of the projected one thousand (1 000).  The intention was to conduct the reburials in the shortest possible time but this will not be possible with the amount allocated.  This means that the reburials will be spread over a long period of time, thereby delaying closure to families who lost their beloved ones.

1. Educational Benefits.

The Ministry was allocated ZiG 137 2232 000 against an ideal budget of ZiG 315 255 000. From the total allocation for fees, the Ministry will only be able to settle the outstanding obligations of ZiG 110, 976,466.16 and will remain with ZiG 26,255,533.84 which is barely enough to cover fees requirement for term 1, 2025. The Ministry intends to provide 6,395 students with educational benefits at a total cost of ZiG218, 779,077.79.  Ideally a single term requires an average of ZiG 72,926,359 at current prices.  Indications are that fees could increase in 2025. Currently the Ministry has not paid part of the 1^st term fees of 2024 as well as the fees for the second semesters and the 2^nd and 3^rd school terms.  Outstanding fees for 2024 are as follows: -Term 1- ZiG 10,227,180.46; Term 2 and 2^nd semester ZiG 52,337,736.87; Term 3- ZiG 48,411,548.83 and Total ZiG 110, 976,466.16.

1. National Heroes Dependent Assistance Fund

Only ZWG 30,908,000 was allocated towards this against a total requirement of ZiG 370,957,000. Given the reduced allocation, the Ministry will only be able to conduct this exercise in two (2) provinces, which will cover fourteen (14) districts, intention was to conduct awareness and registration campaigns in the remaining seven (7) provinces of the country.  The other five (5) provinces will not be covered.

1. Investments and Projects

Given that the allocation of ZiG 196 869 000 represents 9% of the ideal requirements, it means that the plans set for 2025 will not be met from these allocated resources.  Within this amount, ZiG 158,867,000 was allocated for transfer to corporations.  The Veterans Investments Corporation had bided for ZiG 500,000,000 to operationalise established companies through staff recruitment, securing office accommodation and equipment, purchase utility vehicles and fund operations.  The ZiG 196,869,000 allocated is way below the ideal requirement and implies prioritising projects to derive maximum impact as follows:(i) ZiG100 million to be transferred to Veterans Investment Corporation (VIC) instead of the desired ZiG500 million; (ii) 1000 Veterans trained instead of 2000; (iii). Veterans mining claims surveyed and operationalized (10) instead of (38); (iv). Veterans’ business loans and startups (600) instead of (2000). Therefore, against the background of the Strategic Plan being implemented by the Ministry, the ZiG196, 869,000 provisionally allocated is a far cry from the minimum budget requirement urgently needed to support the economic empowerment of Veterans.

1. War Victims Compensation Fund

Only ZWG 163,233,000 was allocated against an   Ideal Budget of ZiG292, 090,255. This amount represents 55% of the Ministry`s requirements and the implications is that the Ministry will not be able to offer services to the existing clients. Costs under this item include purchase of boarding houses, assistive devices such as artificial limbs, wheelchairs, specialised bath and commode chairs, crutches, essential mobility aids, payment of medical bills, bus fare refunds, clothing allowance and provision of accommodation. The Ministry will only be able to conduct reassessments to 3 000 of the 17 000 War Victims on the dormant register whose applications could not be processed following the appointment of the Chidyausiku Commission.

The pending exercise of documentation of the liberation war history from a vast array of historical records and testimonies of surviving veterans and the people who participated in the war must also be prioritised.

• Policy Recommendations
  • The welfare of Veterans of the Liberation Struggles must be taken seriously and review upwards their benefits and outstanding allowances,
  • All revenue generating projects for the veterans of the liberation struggle must be fully

supported to ensure that everyone who qualifies to get the benefits has access to them.

• Treasury must consider reviewing upwards the allocation earmarked for the

operationlisation of investments and projects (VIC). Given its importance and core functions, all key expenditure items that justify the presence of this Ministry must be fully funded. These are:

1. War Veterans Fund and Heroes Dependents Assistance Fund
2. Medical, education and funeral benefits

• Compensation of war victims

1. The mop up vetting process.
2. Constitutional and Statutory obligations
   • The Committee recommends that, Treasury should intervene to assist the Ministry of

Veterans of Liberation Struggle Affairs to resolve the issue of the collaborators who were vetted and ensure that they are given what is due to them.

• Treasury should consider capacitation of Veterans Investment Corporation in order to engage into productive activities in order to empower Veterans of the Liberation Struggle.
• That Treasury should allocate enough funding towards medical benefits and school fees payment for children of War Veterans currently and such funds should be released timeously.

4.0 Conclusion

The benefits entitled to Veterans of the Liberation Struggle are a constitutional obligation as provided in Section 23 of the Constitution of Zimbabwe and the Veterans of the Liberation Struggle Act (Chapter 12:17) which Treasury cannot ignore. It is the Committee`s appeal to Treasury that Veterans of the Liberation Struggle through their personal sacrifices played a very crucial in liberating this country, hence they need to be recognised, honoured, respected and empowered as provided for in the Constitution of Zimbabwe. Hence, Treasury should ensure that all the funding request by the Ministry of Veterans of the Liberation Struggle are provided for.

 

2025 POST BUDGET ANALYSIS REPORT FOR MINISTRY OF HOME AFFAIRS AND CULTURAL HERITAGE

VOTE 18 (ZiG 16.1 BILLION)

  1.0 Global Overview and Analysis of the Ministry’s 2025 Budget Allocation

1.1 The Ministry has five programmes; namely, Policy and Administration, Civil Registration,    

       Police Services, National Heritage Management and Migration Management.

   1.2 The Committee bided for a total of ZiG 22 609 765 633 (22.6 billion) and was allocated      only ZiG 16 183 387.000 (16.1 billion) leaving a variance of ZiG 6 426 378 633 (6.3 billion)

• The Committee is grateful to Treasury for increasing the Ministry’s budgetary allocation

from the initial allocation of ZiG 7 767 505 000 (7.7 billion) before the Call Circular to (16. 1 billion) after the Call Circular.

• The Ministry has a heavy debt burden amounting to ZiG$ 2 084 657 456.39 (2.billion) and USD 224 962.59 as at 30 September 2024. In reality what this means is that the 2025 allocated budget of ZiG$ 16 183 387 000.00 is less ZiG$ 2 084 657 456.39 (2 billion)

Moreso, delays and non-release of cash support for processed payments and nonpayment of creditors has resulted in some service providers withdrawing their services from the Ministry. As a result, the Ministry experienced the following;

1. Failure to conduct pass-out parade for three years
2. Inadequate supply of uniforms and rations
3. Institutional accommodation challenges
4. Reduced morale and loss of key personnel who left the Ministry for greener pastures
5. Sharp increase in Crime rate and instances of robbery cases
6. Smuggling of goods
7. Failure to issue primary documents

• Major budget allocation shortfalls affect the following programmes:

2.1 Policy and Administration

This item was only allocated ZiG 504 482 000 which constitute 23% of the ideal budget of ZiG 2 191 887 450. This amount will not be able to cover all the expenditure items such as Acquisition of appropriate Forensic Science office and laboratory building, Procurement of Forensic Science equipment and instruments and Procurement of institutional houses.

• Civil Registry Department

       The department despite its critical role in the issuance of civil registration documents, it was allocated ZiG 1 318 609 000 which constitute 20% against a bid of ZiG 6 064 990 400, leaving a variance of ZiG 4.7 billion. The implications is that critical service provisions by the department will be crippled.

Department has an outstanding 2023 Mobile Registration arrears amounting to USD6,843,120.00 and if not cleared will affect the 2025 budget allocation. In 2022, the Department entered into a contract with Croco Motors for the supply and delivery of 30 brand new vehicles worth USD 2,100,000.00 equivalent to ZiG 54,000,000.00. Since then, the Department has not been given any budget despite bidding for budget allocation year in year out.  Additional funding to cover the following areas;

1. Roll-out of the Active Notification of Community Births and   Deaths to six provinces

    The Department bidded for ZiG 400 000 000.00 to cater for this exercise in 2025, however it is worrisome to note that Treasury did not allocate any resources towards this item despite its critical importance in reducing the backlog of primary documents. 

1. Purchase of Vehicle

    Despite having offices in all the 10 provinces, 63 districts and 202 sub offices across the country, the Department`s visibility is still low. Thus in order to enhance its mobility and visibility an additional amount of ZiG 500 000 000.00 is required for the procurement of new vehicles.

1. Outstanding Mobile Registration Allowances

    Department has an outstanding 2023 Mobile Registration arrears amounting to USD6,843,120.00 and this needs to be cleared.

• Police Services

    ZRP service standards have fallen to unprecedented levels due to gross underfunding that has persisted for more than ten years now. Police officers have remained loyal and continued to provide their services despite lacking the requisite tools of trade, operating from sub-standard offices without furniture and stationery and without institutional requirements. Therefore, the ZRP cannot modernize its policing without modern gadgets to detect, deter and investigate crimes, and with limited mobility due to continued use few and inefficient vehicles. The following are ZRP’s priority expenditures;

1. Constitutional and Statutory Obligations

Critical areas and items such as uniforms, rations and training require to be adequately funded. It is disheartening to note that detained suspects at police stations are not being provided with meals and members are being deployed at borders and critical operations without the necessary rations. In view of this, consideration should be made for an additional allocation of ZiG162 000 000.00.

Zimbabwe is to maintain a peaceful and tranquil environment conducive for economic development. Training and Development equips officers and members with requisite skills to effectively deal with ever evolving policing situation. This critical component in policing should therefore, be fully funded for the organization to provide quality service to the people of Zimbabwe. Thus, an additional allocation of ZiG16 900 000.00 have to be considered.

The Zimbabwe Republic Police intends to conduct a graduation ceremony for 924 police recruits who successfully completed their basic police training programme. Hindrance to the graduation ceremony is non-payment for critical issues that are required for the graduation to take place. A total amount of ZiG 8 840 118.29 (8.8 million) is required in order to cater for this aspect. It is also worrisome to note that ZRP has not conducted any graduation ceremony for the past three years due to financial challenges.

1. Fuel, Oils and Lubricants        

The organisation requires an average of 500,000 litres of petrol and 800,000 litres of diesel per month.  Insufficient fuel supply negatively affects the general operations of the organisation especially the critical aspect of timely scene attendance, general patrols, deployments and provision of escorts to VVIPs. It is therefore considerate to allocate an additional ZiG123 000 000.00

1. Office Supplies and Services   

Operations and activities of the Zimbabwe Republic Police must be documented for accountability purposes, court processes and the general administration of the Police Service. This requires sufficient provision of stationery and computer consumables for dockets compilation and production of orders and reports. An additional allocation of ZiG18 200 000.00 is required to ensure an uninterrupted supply of these critical office consumables.

1. Utilities and Other Service Charges:   

This budget item caters for electricity, water supply and municipal/council rates & charges consumed at all Police establishments countrywide. To avoid possible litigation and or disconnection that have been contemplated by the service providers, such services must be paid for on a monthly basis.

The allocated amount will not even cover the current outstanding bills amounting to ZiG 404 159 145.00 as at 31 October 2024. Technically there is no budget for 2025 consumption and therefore additional allocation of ZiG 480,000,000.00 may at least save the situation.

2.4 National Heritage Management

       An additional budget support of ZiG 85,000,000.00 is required to cater for the Extension of National and rehabilitation of Provincial and District Heroes Acres. Currently the National Heroes Acre is now left with few slots, hence adequate budgetary support is needed towards expansion of National Heroes Acre and rehabilitation of Provincial and District Heroes Acres.

2.5 Migration Management

The Department bidded for a total of ZiG 28 000 000.00 towards deportation expenses of irregular migrants and nothing was allocated. The Department is statutorily required to pay for the travelling costs of all Prohibited Persons. These irregular Immigrants are removed by air, road or rail to their respective countries of origin. At present the Department has two hundred and fifty five (255) Immigrants held at the Remand Centers awaiting removal. Out of these 40% will be removed by air and 60% by road.

1. Office Supplies and Services, the Department was allocated ZiG 105 000 000.00 out of a total requirement of ZiG 330 400 000.00 for the purchase of office supplies and services. This amount is far below ideal requirements for the Department to meet its statutory obligation.
2. Fuel, the provisional allocation of ZiG 60 000 000.00 for fuel will buy about 1 000 000 litres of fuel which is enough to cater for only five (5) months consumption. It is our humble plea for an additional budget of ZiG 100 000 000.00 on this line item. Considering that banking is done on daily basis and some banking facilities are quite distant. For example, Kazungula banks at Victoria Falls which is 70 kilometres away and Nyamapanda banks at Kotwa, a distance of 21 Kilometers away. Also compliance and Boarder Patrols- these are routine duties for all Stations in order to mitigate level of illegal immigrants and illicit operators by foreigners.

3.0 Policy Recommendations

    The Committee proposes the following key recommendations to Treasury:

• Treasury should allow the ZRP, Civil Registry, Immigration Control and the National Museums and Monuments of Zimbabwe (NMMZ) to retain a certain percentage of its revenue collections to sustain their operations and facilitate efficient delivery of service.
• Treasury should increase funding earmarked for mandatory expenditure items in the ZRP and Immigration. These include:

• Training
• Deportation of irregular migrants
• Regular border patrols
• Institutional provisions that cover rations, uniforms and travel and subsistence (T&S) allowances.
• Acquisition of modern and specialized tools of trade;
• Fuels, oils and lubricants which are part of the institutional requirements for the ZRP.
  • Treasury to prioritise training of the police service as such, a total amount of ZiG 8 840 118.29 (8.8 million) should be disbursed to enable ZRP to conduct a graduation ceremony for 924 police recruits who successfully completed their basic police training programme
  • Treasury must adequately fund ongoing and near-complete construction projects throughout the country particularly institutional accommodation and offices projects.
  • Treasury should allow both Civil Registry Department and Immigration Department to retain their retention fund in order to improve service delivery.
  • Treasury must ensure provision of additional resources to the Ministry’s civil registration department to facilitate that the Active Notification Programme will benefit every province simultaneously rather than doing it using a phased approach as some places will be left behind.
  • Urgent settlement of outstanding domestic allowances to avoid further court litigations.
  • In addition, Treasury should facilitate private public partnerships and joint ventures so that critical projects and programmes can be completed on time. Such priority projects and programmes include the digitalisation programme in the department of Records and Archival Management of Zimbabwe. Partnerships like these can also be extended to construction projects in the Ministry.
• Conclusion

The Ministry is aware of the fiscal challenges affecting Treasury. However, there are critical expenditure items that cannot be compromised. It should be known that state security, law and order are very expensive yet are prerequisites for any peaceful and prosperous economy. Therefore, Treasury should avail adequate funds to the Ministry’s major expenditure priorities earmarked for the year 2025.

         HON. SIHLABO:  I rise to present the post budget report for the Ministry of Energy and Power Development.

INTRODUCTION

Zimbabwe’s National Development Strategy 1 (NDS1) regards energy as a key enabler in the acceleration of the country’s modernisation and industrialisation agenda as well as sustainable socio-economic growth. Therefore, the Ministry of Energy and Power Development is mandated to provide adequate and sustainable energy supply through formulating and implementing effective policies and regulatory frameworks.

PRIORITIES FOR THE MINISTRY OF ENERGY AND POWER DEVELOPMENT

The Ministry of Energy and Power Development has developmental areas they need to pursue from 2025. The priorities include:

• Renewable Energy Projects: Focus on solar energy (Mutorashanga 90 MW Solar Project), biogas production to reduce reliance on imports as well as continuation with the wind energy.
• Fuel Security: Procurement of strategic fuel stocks to ensure uninterrupted supply and price stability.
• Energy Efficiency Programmes: Launch of the National Energy Efficiency Policy and Clean Cooking Strategy to promote sustainable energy use and public health.
• Rural Electrification: Expand electrification through community solar mini-grids and grid extensions to improve access in underserved areas.

MINISTRY OF ENERGY AND POWER DEVELOPMENT 2024 BUDGET PERFOMANCE

In 2024, Treasury revised the Ministry’s budget to ZWG 189. 1 million. However, as at 30 September 2024, the Ministry had spent ZWG 513. 8 million. The expenditure overrun of ZWG 324.7 million by September 2023 is beyond the budget. This means there is need for a condonation of excess expenditure bill in 2025 to account for the excess expenditure.

The budget overrun possibly reflects:

• Unexpected expenses - The Ministry may have incurred unforeseen or emergency expenses during the budget period.

These could include urgent infrastructure repairs, equipment replacements, or addressing energy-related crises or disasters. Such unforeseen expenses can significantly increase the overall expenditure.

OVERVIEW AND ANALYSIS OF THE MINISTY’S 2025 BUDGET ALLOCATION

The Ministry received an envelope of ZWG 136 674 000.00 against a target of ZWG 356 805 940.00 for its 2 programmes namely:

1. Policy and Administration
2. Energy Supply and Security

After the budget presentation the Ministry was allocated ZWG 259 768 000.00 (Equivalent to USD$7.2 million) which is 72.80 % of the Ministry total requirement.

Summary of 2025 budget bid against Treasury Allocation by programme.

 

Programme	ALLOCATION ZWG $	REQUIREMENTS ZWG $	VARIANCE	% ALLOCATION
Programme 1 Policy and Administration	121 860 000	197 295 300	(75 435 300)	61.77
Programme 2 Energy Supply and  Security	137 908 000	159 509 640	(21 601 640)	86.46
Total	259 768 000	359 805 940	(100 037 940)	72.20

 

 

 

ECONOMIC CLASSIFICATION OF THE MINISTRY’S BUDGET

 

 

• NB- the Ministry made a bid of ZWG 8 000 000.00 for Rural Electrification Fund but Treasury did not allocate any funds for them.

 

• In terms of the economic classification recurrent expenditure has been allocated ZWG 138 million whilst capital expenditure has been allocated ZWG 122 million. However, it is worth noting that in 2024, capital expenditure was ZWG 147 million and by 30 September the Ministry had incurred capital expenditure amounting to ZWG 425 million. This analysis gives evidence that the capital expenditure budget of ZWG 122 million will not be adequate for execution of capital projects in particular of the Ministry’s thrust in terms of the performance indicators that shows the intention by the Ministry to engage in capital projects that include power transmission construction, power distribution construction and increasing electricity capacity.
• The majority of the Ministry’s allocation has been directed towards the Use of Goods and Services. A closer examination of the budget reveals that a significant portion, amounting to 13% of the Ministry’s total allocation, has been earmarked for domestic allowances, foreign travel allowances, and institutional provisions.
• While these expenditures are necessary for operational efficiency and maintaining institutional functionality, there is a need to critically assess their proportion relative to the Ministry's broader objectives of improving energy supply, security, and infrastructure development.

IMPLICATIONS OF THE 2025 BUDGET FOR THE MINISTRY OF ENERGY AND POWER DEVELOPMENT AND THE ENERGY SECTOR IN ZIMBAMBWE

The Committee noted that the 2025 budget proposed a number of changes that have the potential to influence the state of energy sector in the country. The following are some of the changes and the expected effects:

POSITIVE IMPLICATIONS

1. VAT on Liquefied Petroleum Gas (LPG)

LPG will be exempted from VAT to reduce its cost. This is a relief for consumer’s especially low-income households that heavily rely on LPG for cooking because it will reduce costs of purchasing this alternative source of energy. Given Zimbabwe's ongoing energy challenges, promoting the use of alternative energy sources like LPG is essential for enhancing energy security and reducing the burden on the national grid.

To further support the VAT exemption on Liquefied Petroleum Gas (LPG) enhance its accessibility to consumers, the Government could promote the development of LPG infrastructure in rural areas by offering tax incentives to businesses that import, distribute, or sell LPG, particularly in rural areas. This will protect the environment through reducing deforestation as LPG is recommended by the International Panel of Climate Change as a key climate mitigation measure.

2. Reduction of customs duty on electric motor vehicles.

The reduction of customs duty on electric vehicles from 40% to 25% is expected to promote use of eco-friendly vehicles in the country. This is critical in terms of addressing climate change. This will also reduce the country’s fuel import bill.

3. VAT deferment on Independent Power Producers

The serious power outages that the country is facing requires an extra hand and the thus the VAT deferment on IPPs helps with additional project finance that can help speed projects.

NEGATIVE IMPLICATIONS.

1. Silence on currency convertibility will make the industry less lucrative to investors and delay resolution of the energy crisis.
2. Lack of budgetary support of Rural Electrification will result in slower rural electrification and failure to meet targets for total electrification by 2030.
3. Lack of funding for Mutorashanga Solar Project will delay resolution of energy crisis.
4. Failure to fully fund the Energy Efficiency Programme will result in failure to tap into the easiest source of energy.
5. Inadequate funding has compromised the Ministry’s dire need for new vehicles. The aging vehicle fleet, classified as "limited runners," hampers mobility, especially for provincial operations critical for decentralised energy access.

RECOMMENDATIONS

1. EXPENDITURE OVERRUNS

The Committee noted that in 202, the Ministry of Energy and Power Development experienced an expenditure overrun of 171.7%. The expenditure overruns can be attributed to a number of factors some of which include inflationary pressures, currency devaluation, Inadequate budgeting and forecasting; unrealistic budget allocations and inefficient financial management. To address these challenges, the Committee recommends the following:

Adjustments for inflation and currency fluctuations:

         Treasury should incorporate mechanisms to adjust budgeted amounts for inflation and currency devaluation. This may involve regularly updating budget figures based on current inflation rates and exchange rates. Alternatively, Treasury should consider using a stable currency like the USD as a reference point for budgeting to mitigate currency instability.

         Implement robust budgeting and forecasting processes:

         Strengthen budgeting and forecasting methods by incorporating inflation and currency devaluation projections. Use historical data, economic indicators, and expert opinions to make more accurate budget estimates. Consider implementing rolling forecasts that allow for adjustments as economic conditions change.

     Enhance budget flexibility:

     Build flexibility into the budget by creating contingency funds or reserves that can be utilised to address unexpected cost increases due to inflation or currency devaluation. This allows for agile responses to changing economic circumstances without disrupting planned projects or services.

2. SIMPLIFYING CURRENCY CONVERTIBILITY FOR IPPS

         The Ministry of Finance and Economic Development should establish a streamlined, transparent, and guaranteed currency convertibility framework to enable IPPs to access USD revenue seamlessly. This would improve their capacity to cover operational and capital costs, most of which are denominated in USD.

3. TIMELY DISBURSEMENTS OF FUNDS

         Treasury should normalise disbursing funds on time to avoid setbacks in project implementation. If funds are released on time this will help in the timely implementation of projects, effective service delivery and also Ministry’s budget planning and execution.

4. TOOLS OF TRADE

         Treasury should allocate funds that are enough for the Ministry to cater for its tools of trade such as motor vehicles and office equipment.

5. ALLOCATION TO RURAL ELECTRIFICATION FUND

         Treasury should allocate funds specifically for REF to increase its coverage to meet the vision 2030 deadline of electrifying all rural households by 2030.

6. ENERGY EFFICIENCY PROGRAMME

         Cabinet approved the Energy Efficiency Policy, therefore Treasury should allocate a specific budget towards its implementation and ensuring that it is timely disbursed.

         CONCLUSION

         It is crucial to ensure that the allocated funds are utilised effectively and efficiently to achieve the desired outcomes. The report identifies several areas where further attention and investment are needed. These include renewable energy development, transmission and distribution infrastructure rehabilitation, promotion of independent power producers (IPPs), and tariff reforms. Emphasizing these areas will contribute to achieving electricity self-sufficiency, reducing carbon emissions, and enhancing the resilience and reliability of the energy system.  I thank you. 

                  HON. MUDEKUNYE: 1.0       Introduction:

                         The 2025 National Budget was presented to the National Assembly by the Minister of Finance, Economic Development and Investment Promotion Hon. Prof. Mthuli Ncube on the 28th of November 2024 in accordance with Section 28 of the Public Finance Management Act [Chapter 22:19].  The total budget is ZWG276 billion, with ZWG550 million allocated to the Ministry of Industry and Commerce, accounting for 0.2 % of the total budget.

                         The Portfolio Committee on Industry and Commerce reviewed the 2025 National Budget under the theme, “Building Resilience for Sustainable Economic Growth.” The analysis aligns with

Zimbabwe’s Vision 2030 and the National Development Strategy 1 (NDS1), which identifies industrialisation—anchored in moving the economy up the value chain—as a cornerstone of sustainable development.

Industry is central to Zimbabwe’s economic growth, serving as the engine for job creation, export growth and diversification. It drives technological innovation, enhances productivity and fosters the development of value chains that maximise the utilisation of local resources. The sector’s growth has a multiplier effect, creating demand in agriculture, mining and services while reducing dependence on imported goods. For Zimbabwe to achieve Vision 2030’s goal of becoming an upper-middle-income economy, industrialisation must take precedence. Key initiatives such as rural industrialisation and the One-District One-Company strategy have the potential to transform local economies, create sustainable employment and enhance national revenue. Adequate funding for the Ministry of Industry and Commerce is, therefore, not just a necessity but an imperative for building resilience and achieving sustainable economic growth.

2.0 Analysis of the 2025 National Budget

The Ministry had a budget bid amounting to ZWG2, 520,284,944 which was anchoring on priorities and strategic areas of focus targeting to drive the Ministry’s mandate through:

• Implementation of the recently launched Zimbabwe Industrial Reconstruction Growth Plan,
• Operationalisation of the local content strategy for promotion of locally produced goods and services
• Enhanced industrial financing through provision of affordable short to long term financing options in the manufacturing sector amongst other Ministry priorities detailed below.

However, the Ministry’s approved 2025 allocation is ZWG550, 863,000 which is only 22% of the projected budget requirements for the budget year: 

2.1 TREND ANALYSIS

Year	2022                         2023		2024	2025
Percent Allocation to the Total National Budget	0.40%	0.35%	0.2%	0.2%

There has been a decline in the allocations of the ministry to the national budget since 2022 and all allocations are below 1%.

2.2 MINISTRY BUDGET ALLOCATION BY EXPENDITURE CLASSIFICATION

EXPENDITURE CLASSIFICATION	2025 EXPENDITURE TARGET	2025 FINAL APPROVED ALLOCATION	ADDITIONAL ALLOCATION AFTER CONSULTATIONS	% ALLOCATION AGAINST MINISTRY TOTAL BUDGET
Compensation of Employees	$             40,593,000.00	$         83,769,000.00	$          43,176,000.00	15.21
Use of goods and services	$           103,883,000.00	$      173,726,000.00	$          69,843,000.00	31.54
Current Grants- CPC	$             10,842,000.00	$         50,168,000.00	$          39,326,000.00	9.11
Acquisition of Non-Financial Assets	$             90,000,000.00	$      143,200,000.00	$          53,200,000.00	26.00
Acquisition of Financial Assets (Loans)	$             10,000,000.00	$      100,000,000.00	$          90,000,000.00	18.15
TOTAL	$           255,318,000.00	$      550,863,000.00	$        295,545,000.00	100

 

2.3 MINISTRY BUDGET ALLOCATION BY PROGRAMME

The Ministry’s 2025 Budget allocation is directed towards three Programmes through which the Ministry will deliver on its mandate. The programs are: Policy and Administration; Industrialisation and Consumer protection and quality assurance as shown below

PROGRAMME	PROGRAMME BID	2025 Approved Allocation	Variance	Programme Allocation as a % of the bid
Policy                      and Administration	298,066,000	144,038,000	154,028,000	48.3%
Industrialisation	1,420,317,453	311,054,000	1,109,263,453	21.9%
Consumer Protection and Quality Assurance	801,901,322	95,771,000	706,130,322	11.9%
Total	2,520,284,944	550,863,000	1,969,421,944	21.9%

 

 2.4 PROGRAMME-SPECIFIC ANALYSIS

 2.4.1 Programme 1. Policy and Administration

The program's total budget projections were amounting to ZWG298,066,169 including the capital expenditure requirements and has an approved allocation of ZWG144,038,000 from the Treasury which is 48% of planned requirements. Ministry oversight, coordination, policy formulation and guidance is a continuous process which entails a lot of consultative activities and processes which requires a sound budget provision. Going forward the Ministry will invest in evidence based researches which forms a good basis for sound decision making and resource allocations. The availed budget is limited to fund the essential support services for the Ministry to achieve its mandate.  

2.4.2 Programme 2 Industrialisation

The Programme had a budget bid of ZWG1, 420,317,452 and the Treasury allocation is amounting to ZWG311, 054,000 for both recurrent and capital expenditure requirements. The allocation is only 22% of the planned priorities. The programme is mandated to create and superintend a conducive policy environment for Industrial Growth and Development in the country.  Rural Industrialisation is one of the key projects that has been affected by a very low budget allocation. The Ministry is targeting to undertake the One-District One-company initiative through a phased sectorial approach where 7000ha of land has been reserved by a number of local authorities and to date. The project will create rural jobs and in line with the devolution agenda, there is need to promote rural industries. Development of such industries complements efforts to create fully functional value chains, empower communities and improves the standards of living of the people living in marginalised areas.

The programme was allocated a budget of ZWG100, 000,000 for industry financing through provisions of loans out of a budget bid of ZWG1 Billion. The Ministry is appealing for additional funding amounting to ZWG400, 000,000 towards lending and equity as this will go a long way in providing affordable financing options to the Industry.

2.6 Programme 3 Consumer Protection and Quality Assurance

This program’s strategic objective is to promote and protect the interest of consumers and ensure conformity to national and international quality standards and consists of the following Sub Programmes: Consumers Affairs &Quality Assurance. The allocated budget of ZWG95, 771,000 constitutes only 12% of the Programme Bid amounting to ZWG$801,901,322. Priority programmes and areas of focus which requires additional funding under the Programme are as follows:

• Awareness outreaches targeted at marginalized communities to protect them from unfair business practices. These are ongoing hence the need for additional funding amounting to ZWG$40 million. There is need for strong enforcement in the market to avert business mal practices hence the need to conducting market surveillance through a multi-faceted stakeholder involvement. An additional budget amounting to ZWG$15 Million is required for the exercise.

The Quality Assurance Programmes aims to enable and facilitate Zimbabwe manufactured products to meet the requisite standards in target export markets. The country has been and is still experiencing a surge in imported substandard products some of which cause fires, disease, skin cancer and products that do not give value for money. The Ministry implemented the Consignment Based Conformity Assessment (CBCA) Programme to ensure that only imported products that meet set standards are allowed into the country to ensure public protection in trade, safety, health and the environment. In order to achieve this, adequate funding is required for this sub programme.

3.0 COMMITTEE OBSERVATIONS AND RECOMMENDATIONS

3.1 Observations

1. The Ministry's budget allocation has consistently declined, accounting for just 0.20% of the total national budget in 2025, well below 1%.
2. Despite its already modest allocation of just 0.2% of the national budget, the Ministry has faced very low disbursement rates, with only 32% of the allocated funds released by September 2024.
3. Programme 3, Consumer Protection and Quality Assurance, received only 12% of its requested budget despite its critical role in combating smuggling, ensuring border efficiency, protecting consumers from harmful goods and addressing fake labelling.
4. Evidence-based research is vital for effective policy formulation and enables the Ministry to make informed, data-driven decisions.
5. Delayed payments to local manufacturers by the Government weaken efforts to promote local industries, as cash payments for imports are often prioritised over payments to domestic suppliers.
6. A well-funded Ministry of Industry and Commerce has the potential to drive revenue generation by fostering private sector growth, which serves as the backbone of the economy.
7. The lengthy approval processes by the Procurement Regulatory Authority of Zimbabwe (PRAZ), exacerbated by inflation and exchange rate volatility, negatively impact timely supplier engagement.
8. Excessive levies and regulatory burdens hinder the ease of doing business, discouraging businesses from formalising operations.
9. Economic stability is the biggest request from private sector (i.e.) the need for a stable exchange rate.

5.2 Recommendations

1. There is need for increased budgetary allocations especially towards rural industrialisation and consumer protection (programme 3).
2. Treasury must ensure timely disbursement of funds to prevent disruptions in program implementation.
3. Ministries that procure locally manufactured goods should be incentivised and payments to local suppliers must be expedited to support domestic industries effectively.
4. Allocate more funding to protect reserved sectors and promote industrial development.
5. Streamline PRAZ processes to reduce delays in supplier approvals, ensuring that procurement aligns with inflationary and exchange rate fluctuations.
6. The relationship between Government and business should be strengthened, and confidence restored through consistent policies that ensure an improved ease of doing business for local industries.

4.0 Conclusion:

In conclusion, despite the critical role of the Ministry of Industry and Commerce to promote sustainable economic growth and elevate our status to an upper middle-income nation by 2030 it continues to be underfunded. It is crucial to recognise that the growth of our industry sector has backward and forward linkages with our primary sector, particularly agriculture. By supporting this sector, we can create more employment opportunities not only in agriculture but also in the manufacturing sector, thereby empowering and generating decent jobs for our citizens. While we advocate for increased funding, it is equally important for the Ministry and its parastatals to work within the allocations and provide the possible goals. To ensure the successful realization of these goals, it is imperative that Treasury ensure timely disbursements of the allocations. 

         HON. MATEMA:

INTRODUCTION

Zimbabwe's natural treasures are safeguarded by the Ministry of Environment, Climate and Wildlife, a vital force in driving sustainable development. However, this critical mission is hindered by severe funding shortages and resource scarcity, despite the Ministry's broad economic influence.

BUDGET STATEMENT FOR ENVIRONMENTAL PROTECTION AND RESTORATION

The Committee welcomes the Ministry of Finance, Economic Development and Investment Promotion’s budget pronouncement that ZiG516.8 million has been set aside for the Ministry of Environment, Climate and Wildlife to implement the following; Hosting COP15 Ramsar Convention and SADC Trans-Frontier Conservation Summit; The Presidential Legacy Forests Project; Restoration of wetlands; Facilitate rehabilitation of degraded land in mining areas; and Upgrading of ZimParks infrastructure.

The Committee also acknowledges the pronouncement in the Budget Statement on the promise to fund and address pollution and environmental degradation, through supporting the Environmental Management Authority (EMA) programmes, including strengthening its capacity to safeguard the environment through the provision of essential equipment and necessary infrastructure.

2025 BUDGET ALLOCATION ANALYSIS

The table below presents the budget allocations to the Ministry of Environment, Climate and Wildlife, broken down by programme, along with the corresponding percentage of each programme's allocation relative to the total vote allocation for the Ministry of Environment, Climate and Wildlife:

	Budget Allocation	% of Total Allocation
Programme 1: Policy and Administration	95,717,000	18.52%
Programme 2: Environment and Natural Resource Management	213,329,000	41.28%
Programme 4: Weather, Climate and Seismology	207,800,000	40.21%

 

Table 1: Programme Allocation as a percentage of total Vote Allocation.

The Ministry of Environment, Climate and Wildlife's budget is

inadequate to address its broad mandate, especially in light of climate change and environmental degradation.

Focus on Natural Resource Management: Programme 2, Environment and Natural Resource Management, received the largest allocation (41%) but still faces challenges in areas like biodiversity conservation, deforestation, waste management and pollution control.

Weather and Climate Services: Programme 3, Weather, Climate, and Seismology, received 40% of the budget. While significant, this allocation is insufficient for modernising weather stations, adopting advanced forecasting technologies and establishing robust early warning systems.

Need for Increased Investment: The Ministry requires substantial investment to effectively address climate change, environmental degradation and illegal resource exploitation. This includes funding for mitigation and adaptation strategies as well as capacity building and technological advancements.

	Budget Allocation	% of Vote Allocation
Compensation of Employees	64,908,000	12.56%
Use of Goods and Services	284,860,000	55.12%
Current Grants	13,378,000	2.59%
Other Expenses	3,700,000	0.72%
Buildings and Structures	8,600,000	1.66%
Transport Equipment	43,500,000	8.42%
Other Machinery and Equipment	54,340,000	10.51%
Capital Grants	43,560,000	8.43%

 

The Ministry of Environment, Climate and Wildlife's budget is heavily weighted towards operational costs, particularly rental and travel expenses, leaving limited funds for crucial capital investments. This imbalance raises concerns about the Ministry's ability to prioritise high-impact environmental initiatives such as conservation projects, climate adaptation programmes and infrastructure development.

COMMITTEE RECOMMENDATIONS

The Committee recommends advocating for increased funding for capital investments to ensure the Ministry of Environment, Climate and Wildlife can effectively fulfill its mandate and contribute to national climate resilience. The Committee recommends that dedicated funding be allocated for the upcoming COP15 Ramsar Convention and KAZA Trans-Frontier Conservation Summit, given the Treasury's commitment to support these events.

The COP29 conference in Baku, Azerbaijan, concluded the full operationalisation of Article 6 of the Paris Agreement. This long-awaited agreement establishes a framework for international carbon markets, allowing countries to collaborate on climate action and trade carbon credits.  COP29's successful implementation of Article 6 presents a golden opportunity for Zimbabwe. However, the 2025 budget's failure to allocate funds for carbon market development risks hindering our nation's progress. The full establishment of a Designated National Authority (DNA) and the development of a robust framework require approximately USD 400,000. This investment is crucial to unlock the potential of carbon markets and contribute to our climate action.

 Therefore, the Committee recommends that Treasury should allocate USD 400 000 by January 2025 for the carbon market development through the full establishment of the DNA and the development of a robust carbon credit framework.

The Climate Finance Facility, a lifeline for our climate adaptation efforts, faces the threat of extinction due to a lack of funding in the 2025 budget. This facility, with an initial capital of USD 3 million, would be instrumental in unlocking significant additional funding from international partners. Furthermore, the critical task of finalising the Climate Change Bill which will provide the legal framework for our climate action, is being hampered by insufficient resources. These oversights jeopardize our ability to build climate resilience and transition to a sustainable future. Therefore, the Committee recommends Treasury to avail USD 3 million to finance the Climate Finance Facility through the Infrastructural Development Bank of Zimbabwe. It should also avail funding for the finalisation of the Climate Change Bill.

The lack of budgetary allocation for the development of a loss and damage framework poses a significant challenge to Zimbabwe's capacity to access essential financial resources for disaster recovery and resilience-building efforts. This framework which necessitates an investment of approximately USD 100,000, is crucial for conducting a comprehensive assessment of the country's vulnerability, identifying high-risk areas, and informing targeted disaster risk reduction strategies. Without this critical tool, Zimbabwe's ability to leverage loss and damage funds will be severely compromised. Therefore, the Committee recommends that Treasury should allocate an additional USD 100 000, for the development and operationalisation of a loss and damage framework.

ZIMPARKS tourist facilities are very vital sources of revenue for tourism and business development. These facilities require funding and urgent renovation to improve the quality of the guest rooms as well as improve access to these tourist facilities in National Parks. Thus, the Committee recommends that Treasury should find ways to recapitalise ZIMPARKS to renovate its tourist facilities a few at a time, starting with Victoria Falls, Hwange and Mana Pools.

Treasury should develop a guiding policy that allows the Authority to charge market-based prices or apply cost recovery tariffs to cover its budgetary deficit and be on its way to self-sustenance.

The Committee has also noted that the Budget Sstatement is silent on the policy requirement of the Treasury Circular No. 3 of 2005. According to the Circular, Government adopted a policy requiring duty to be paid on donated goods and this has hampered the Ministry's ability to acquire essential equipment and resources.

On four occasions from 2022 to date, the Authority has been denied duty exemption for operational and contractual vehicles, tourism construction equipment and other law enforcement goods either imported or donated by conservation partners. ZimParks’ conservation effort will not be complete without anti-poaching patrols which require operational vehicles for the deployment of rangers to their respective bases. The current provision gives duty free certificates to government excluding parastatals. With duty, the vehicles become very expensive and as a result, conservation partners are withdrawing their donated law enforcement vehicles if they are subjected to duty payments. Therefore, the Committee recommends that Treasury should waive the policy requiring duty to be paid on donated goods beginning January 2025.

According to section 46 (e) of the Environmental Management Act [Chapter 20:27], proceeds from Carbon Tax collected in terms of the Twenty-Eighth Schedule to the Income Tax Act [Chapter 23:06] should be allocated to EMA to finance pollution-based priority areas. This obligation has never been honoured.

EMA should not make a request for Carbon Tax because it is one of the Agency’s statutory funds. This fund helps in procuring air monitoring equipment, automated water monitoring and decentralisation of its laboratories and better still, the construction of a hazardous landfill. Therefore, the Committee recommends that 100% of the Carbon Tax be allocated to EMA to finance its priority operations and help it to be self-sufficient.

The Committee noted that the Afforestation Fund was established in terms of section 18 of the Public Finance Management Act [Chapter 22:19] for the Afforestation and re-forestation activities or Tobacco Wood Energy Programme (TWEP). TWEP is being collected from tobacco farmers and remitted to Treasury through ZIMRA and not allocated to Forestry Commission. This is a statutory fund that Forestry Commission should not beg for.  Thus, the Committee recommends that Treasury should release the Afforestation Fund to the Forestry Commission beginning January 2025.

Treasury should find ways to recapitalise Forestry Commission to fund for capital injection to rehabilitate the infrastructure (hunting and photographic safaris and the procurement of the equipment) to guarantee 100% revenue collection from the Forestry Commission.

This will allow the Commission to augment its revenue through safari operators lease payments, timber revenue sources, lease fees and dividend from Allied Timbers and other regulatory fees and fines.

                  CONCLUSION

While the Committee advocates for additional funding, it expects the Ministry and its parastatals to work within the allocations and provide the following possible strategies; efficient use of the allocated resources, create value from parastatals so that government can assist on capital expenditure and not recurrent and mobilise out of budget funds to complement Treasury in line with its central role in safeguarding our natural resources and driving sustainable development.  

HON. SAGANDIRA: I rise to present the post-budget report of the Portfolio Committee on Tourism and Hospitality Industry.

Introduction

The 2025 national budget has recognised Tourism as one of the economy’s main pillars, together with the mining and agriculture sectors. The three have been recognised as critical for Zimbabwe`s sustained Economic Transformation in the national budget. The Ministry of Tourism and Hospitality Industry appreciates and welcomes the Portfolio Committee`s concerted effort at the Pre Budget seminar that motivated the Finance Minister to exponentially increase the revised budget to ZiG 294.6 million (USD 8.2 million) from the initial Expenditure target of ZiG $168 million. This allocation still mirrors a significant deficit from the Ministry's ideal budget requirement of ZiG 1.1 billion. Of paramount importance, this revised budget for the Ministry and its Departments and Agencies (MDAs) translates to a mere 0.09% of the total national budget. The revised budget translates to 0.09% of the total budget. The budgetary allocation results in the Ministry’s compromise in discharging its mandate and attaining its targets such as attaining the projected $1.34 billion tourism receipts from about 1.9 million tourist arrivals which are premised on tourism promotion and development. The sector however notes that the allocated budget provides an opportunity to address some of the most pivotal priorities, but still falling short of the MDA’s full requirements, hence the need to increase Government allocation towards the revitalisation of the sector, and embracing other initiatives to support the budget.

Budgetary allocations are as follows:

MDA	Ideal	Revised Budget	Variance	Variance %
MOTHI	ZWG 562 m	262.6m	(299.4m)	(53%)
ZTA	ZWG287m	19.4m	(267.6m)	(93%)
MOSI	ZWG 37 m	12.6m	(24.4m)	(65%)
Vote Grand Total	ZWG 1.1 B	294,6 M	(806 M)	(73%)

Analysis by Programme

PROGRAMME	Ideal Budget	Final Allocation	% Final Allocation as % of Ideal Budget
1 Policy and Administration	$101.8 Million	$16.6 Million	16%
2 Tourism Promotion	$238.5Million	$22. 1 Million	9%
3 Tourism Development	$97.5Million	$12Million	12%
4 Grants ZTA and MTDC	$97. 5 Million	$13 Million	13%

Trend Analysis 2023-2025

Implication of Priority Areas

Product Development and Diversification

Tourism Promotion and Development has been allotted a total of ZiG 138 million which is not adequate considering that this is the nerve centre of the tourism sector. The tourism cluster approach to the development of tourism products can be a huge success, only if substantial investments are allocated to augment the efforts of the private sector. The Ministry had identified vast potential for 10 tourism products across the country and revised them downwards to four tourism products earmarked for implementation in the 2025 budget owing to the limited budgetary provision. The four projects are highly impactful products that have a huge appeal to both domestic and international markets.

Tourism Statistics Accounting

With the budgetary provisions for 2025, the Ministry will undertake the Domestic and Outbound Tourism Survey (DOTS) surveys as part of the bigger picture to establish a functional system that adequately measures the size and contribution of the sector. 

Tourism Fund Automation

With the set target of operationalisation of the Zimbabwe Tourism Fund at 100%, the automation of the Tourism Fund System is set to plug revenue leakages in the sector. ZTA has embarked on an automation programme that seeks to enhance accountability and administration of the fund. If the Ministry of Finance can avail the required USD 494 000 for this exercise. The unquestionable potential for the full operationalisation of the Tourism Fund Automation to boost the tourism sector and generate revenue that immensely contributes to the country’s economic growth will be funded by those available funds in the revised budget.

Domestic, Regional, and International Tourism Promotion

The Ministry of Finance to avail an additional ZiG 13 million towards the promotion and development of Domestic Tourism, particularly the uptake of tourism products by locals such as township and Rural Gastronomy Tourism through cultural festivals, cook out competitions, ZIMBHO among others campaigns which are revenue generation assets. For Regional and International Tourism, the Ministry will continue to promote brand Zimbabwe through road shows in key source markets and opportunity markets, participate at Osaka and deploy 6 attaches in Russia, Brazil, Canada, Nigeria, Turkey and Australia. This requires an additional ZiG 5 million to cater for such.

Digital Marketing

With the fast-growing use of digital technologies in tourism marketing, the destination cannot afford to remain behind as this negatively affects brand visibility across markets. The investment in digital technologies requires huge capital outlay and the sector underscores the importance of facilitating digital technologies to support tourism in line with international and regional trends. There is a need for increased funding in this regard.

Tourism Infrastructure Development

The Ministry using the revised provisions in the budget will in 2025, facilitate preparatory work such as benchmarking, curriculum development, site planning and the groundbreaking ceremony among others towards the establishment of the Tourism Academy in Victoria Falls as alluded to in the MoU signed during the United Nations Tourism Africa Regional Gastronomy Conference.  The actual construction work is envisioned to start in 2026 dependent on the availability of funds.

The promotion and uptake of MICE tourism

 Zimbabwe MICE tourism promotion and growth is anchored on the ability of the destination to provide adequate and modern infrastructure for hosting international conferences. The revised budget allocation of ZiG 5.7 million provided is grossly inadequate to allow the country to potentially position itself for hosting many revenue-generating events. MICE destinations have been limited to Harare, Victoria Falls, Bulawayo and Mutare due to limited facilities across provincial capitals, hence the Ministry`s appeal for public sector investment projects to close the infrastructural gaps towards support and expansion of MICE tourism. This is a huge driver to unlock the full potential for Tourism growth in Zimbabwe. Therefore, increased funding in this regard, positions the country at a competitive advantage in the tourism sector and bolster tourism promotion in general.

Marketing and Branding

Branding and Informative visitor facilities initiatives are critical in promoting the destination. The importance of branding for image building of the destination cannot be over-emphasised - there is a need for improved funding to support branding Zimbabwe as a premier destination. Branding consists of signage, billboards across airports, borders, major highways and collateral among others, highly important in enhancing destination appeal to visitors across all markets. The limited fiscal space provided translates to a reduced tourism market and entails a reduction in tourism receipts and targets. It is therefore imperative for increased funding which extends to the country’s participation in international tourism markets such as Osaka which better positions the country for increased and improved tourist arrivals.

Tools of Trade

The Ministry's allocated budget remains inadequate to acquire tools of trade (particularly, motor vehicles, mobile phones, computers, and office furniture), which continues to hinder the effective and efficient discharge of duties by departments. Tourism has a huge demand for equipment and vehicles to carry out development and promotion work across the country and the portfolio extends to Tourism Attaches outside Zimbabwean borders.

Zimbabwe Tourism Authority (ZTA)

Zimbabwe Tourism Authority (ZTA) is mandated with playing the tourism facilitator and supportive role through destination management and promotion among others. The Zimbabwe Tourism Authority (ZTA) required and submitted an ideal budget of ZWG 502 million of which the Zimbabwe Tourism Fund (ZTF) was to provide ZWG 216 million, leaving a shortfall of ZWG 286.4 million to the treasury. However, the ZTA was allocated a total of ZWG19.6 million from the 2025 National Budget, to cover both programs and capital expenditures and this translates to a deficit of ZWG267 million (93.2%). The Expenditure Target of ZWG19 million allocated to the ZTA for our 2025 programmes can only fund the Sanganai/Hlanganani World Travel Expo leaving no space for other marketing programmes.

The cut in the budget will curtail the Zimbabwe Tourism Authority’s capacity to implement key priority areas including destination communication, stakeholder engagement and enhanced destination visibility online platforms. These focus areas are critical for tourism growth efforts. Accordingly, the following capital budget items are critical in facilitating enhanced organisational performance in 2025 which includes the Construction of the ZTA Beitbridge Office, the Replacement of Elevators at the Tourism House, Condition of Service Vehicles, Programme Vehicles and ICT Hardware among others.

The entity is at risk of losing the stand in Beitbridge, hence the need for allocation of funds for the development and utilisation of the stand which would go a long way in alleviating a myriad of challenges. Once the stand is developed, it serves as the face of the tourism sector in the southern gateway into the country. Office space will be available and also an opportunity to lease out to other stakeholders in the city and act as a revenue generation asset.

Summary of Impacts on budget cuts

The allocation falls short of the resources required for the organisation to deliver on its mandate as enunciated in the Tourism Act. The impact of cutting the required budget is as follows:

• Reduced marketing efforts have the potential to negatively impact tourism growth as measured by tourist arrivals and tourism receipts.
• Reduced compliance enforcement resulting in the mushrooming of unregistered facilities, decline in standards and service levels.
• Poor compliance enforcement may lead to tourism revenue leakages, loss of destination competitiveness to regional competitors, especially in the SADC Region
• Limited capacitation in terms capex e.g. office furniture and branding which has negative effect on organisational image
• MICE Subvention Financing Inability to bid for regional and international conference, thereby hampering the country to achieve regional competitiveness in attracting MICE Events (Advocacy)
• Reduced capacity to nurture and unlock the increased potential of the contribution of domestic tourism to the overall growth and development of the tourism sector
• Failure to get traction on gastronomy tourism promotion which is currently enjoying international acclaim
• Deferred procurement of the tools of the trade e.g. Programmes vehicles, thereby compromising on the overall organisational performance, efficiency and effectiveness.

Observations and Recommendations

In light of the significant budgetary shortfall of ZWG 806 million from the ideal requirement, the Ministry faces the potential of considerably underachieving its set targets. Consequently, the Committee puts forth the following recommendations:

1. That the Ministry of Finance, Economic Development and Investment Promotion timeously disburse funds allocated to the Ministry of Tourism and Hospitality Industry.
2. Funds to be availed to fill vacant posts within the Ministry and provision of office space, tools of trade which are instrumental in effective service delivery.
3. Provision of funds set for the ZTA stand in Beitbridge will among other things directly attract office rentals and the Government can therefore guarantee it in securing a mortgage or bank loans to finance construction.
4. A review of taxes, fees and permits which are passed on to the consumers, making our destinations very expensive and uncompetitive in the region. I thank you.

         HON. MUTANDI:   Introduction

National Budget Votes 17 and 37 are critical enablers of the vision of the Government to facilitate inclusivity in the economic development agenda. The ministry is responsible for delivering service to MSMEs that constitute 70% of employment in the country and contribute immensely to the GDP. On the other hand, the Commission and the ministry serves women that make up 52% of the population and are active participants in the socio-economic sphere.

As such, it endorses the need for adequate funding to the aforesaid Budgetary Votes as well as timely disbursement of the allocated resources. Accordingly, the Committee in this report reflects upon the 2025 National Budget with a view that the ministry houses two of the main active direct budgetary funds that support Vision 2030 of leaving no one and no place behind. These are the Women’s Development Fund and the Zimbabwe Community Development Fund.

Vote 17 further includes primary budgetary support to key institutions in the National Development Strategy for inclusion and economic development, namely the Small and Medium Enterprises Cooperative (SMEDCO) and the Zimbabwe Women’s Microfinance Bank (ZWMB). Consequently, budgetary resources allocated to Votes 17 and 37 become a reflection of the country’s commitment to its domestic policies on inclusivity and international commitments to reduce gender discrimination and achieve gender equality.

Allocation trend for the Ministry

The trend in the allocation has shown that the ministry continues to receive less than 1% of the total national budget and less than 50% of its requirement. Since 2022, the allocation as a percentage of the bid has averaged around 37% to 12%, with 12% allocated for the financial year 2025 being the lowest the Ministry has received. This shows that the final allocation is being downwardly reviewed each budget year.

The same applies to the allocation as a percentage of the national budget, it has averaged around 0.01% to 0.32% since 2021 to date and the highest allocation was 0.48% in 2022. The poor trend in allocation to the ministry raises concerns on the commitment of the country to achieving inclusivity and gender equality. The historical background of the Ministries of Small and Medium Enterprises Development and Women Affairs, Gender and Community Development shows that the aggregate budget for the two Ministries as a percentage of the national budget ranged from 0.45% to 0.51% except for 2017 when the Ministry was disbanded. Since the merger of the two Ministries, the allocated budget has dropped to 0.3% of the national budget yet the mandate and expenditure remains large.

Analysis of 2025 Budget Allocation: Analysis of Vote 17 Allocation for MoWACSMED

The 2025 National Budget stands at a total of ZWG$322.636 billion which is believed would help drive the country towards an upper-middle income society by 2030. The vote allocation for the Ministry stands at a total of ZWG1.016 billion against a requirement of ZWG8.660 billion, Page 2 of 7 resulting in a funding gap of ZWG7.644 billion. The allocated budget translates to 0.32% of the total national budget which is the same percentage allocated in 2024.

Effects of allocation on Ministry’s performance on some critical targets

The allocated resources will be able to meet only 0.12% of the Ministry’s requirements. As a result, the ministry will not be able to fulfil some of its strategic objectives for the financial year 2025. It targeted to fund 500 developmental projects through the Women Development Fund and Zimbabwe Community Development Fund. However, it will only manage to meet 350.

The Chikomba Vendor Mart was expected to reach 70% completion in 2025 since the project commenced in 2021 – however, it will only reach 30%. SMEDCO also expected to fund 4000 MSMEs inclusive of marginalised communities.  The allocation will only fund 400 MSMEs at an average loan size of ZWG290 000. As such, only 5 provinces will be able to benefit from this initiative. The Ministry will also fail to conduct commemorations of 16 Days against GBV in all districts as well as fund handicraft works of vulnerable and marginalised artisans.

Departmental Allocations: Programme 1 Policy and Administration

The ministry required around ZWG$1.274 billion but was allocated around ZWG$359 million. The Ministry implements projects from ward to provincial level. As such, it requires adequate human and financial resources to execute its mandate effectively. The Ministry has an approved establishment of 2348 but continues to notably operate below its establishment. Up to date, it has 656 vacancies. Most of these vacancies are Community Development Coordinators who are the key link between the Ministry and grassroot communities.

The Ministry plans to fill in 87 posts in 2025. The shortage in human resources will continue to affect the ability of the Ministry to meet the needs of the people it is mandated to serve. The operations of the Ministry will likely be hamstrung by failure to procure 28 motor vehicles in 2025. This remains a recurring priority under programme One because in 2024, the Ministry could not receive the United States Dollar component to finalise the procurement of 10 vehicles. Other needs that will not be met by the allocation include; capacity development for employees and procurement of tools of trade such as ICT equipment.

Programme Two, Women Empowerment, Gender Mainstreaming and Community Development

The programme was allocated ZWG$419 million against a requirement of ZWG$4.743 billion. The allocation is expected to fund three sub programmes namely; women empowerment, gender mainstreaming and community development. Sub Programme 2.1 on Women Empowerment managed to receive 6% of the total requirement which is insufficient to cater for various targets and these include formation of Apex Bodies in all Provinces; capacity building of women in entrepreneurship, financial literacy and technical skills as well as promoting women’s access to market and health services such as reusable sanitary wear.

Page 3 of 7 on the other hand, it is plausible to note that one of the critical drivers of women empowerment, the Women Development Fund received almost 98% of its bid to support projects that will have a transformative impact for women. As, investment in such financial inclusion initiatives advances the economic independence of women, which in turn, reduces GBV costs to the fiscus.

Sub Programme 2.2 on Gender Mainstreaming required ZWG$46 million but received around ZWG$36 million to cater for the construction of One Stop Centres and Safe Shelter for victims of GBV in Marondera and Tsholotsho. That allocation is also expected to cover meetings with all MDAs on mainstreaming of gender, in addition to, awareness campaigns, training of gender focal persons in public and private sectors as well as engagements with communities on ending child marriages.

The low allocation towards gender mainstreaming will further affect the operationalisation of the National Gender Policy and National Gender Machinery Framework. The resources will further possibly fail to support the development of a male engagement strategy for issues relating to gender.

Sub Programme 2.3 on Community Development houses a critical statutory fund, the Zimbabwe Community Development Fund (ZCDF) that promotes financial inclusion which is key in the achievement of the objectives of the National Development Strategy 1 aimed at wealth creation, poverty eradication and promoting sustainable livelihoods of Zimbabweans. The Fund received 98% of its requirement to support the growth of community-initiated projects through providing affordable loans and grants.

On another hand, Sub Programme 2.3 received an overall allocation of ZWG$119 million which translates to 33% of its requirement. This allocation is likely to hinder the achievement of numerous projects that were planned for 2025 and these include; skills and livelihoods development training, family and community development, refurbishment of training centres such as Duma, Dambatsoko and Golden Vile along with finalisation of the National Community Development Policy. Zimbabwe is already affected by the prevalence of issues such as drug abuse, that can be addressed through socio-economic initiatives that empower communities.

Hence, it becomes prudent for this sub programme to be adequately funded in order to ensure communities are productive and refrain from harmful practices. The Ministry also has ongoing projects in 2024 under Programme 2 that were expected to be completed in 2025 and these include; construction of Bulawayo manufacturing centre, Hauna Banana processing plant and Chinhoyi Safe Market. The funding gap will delay the completion of these ongoing projects and they will eventually become recurred priorities in following budget years. Yet, these infrastructural projects are a strategic way that the Ministry can use to contribute immensely to the revenue.

Programme Three, Small and Medium Enterprises and Cooperative Development

Programme 3 was allocated ZWG$237 million against a requirement of ZWG$2.642 billion. The allocation will negatively impact on the implementation of planned activities such as registration of MSMEs given that more than 70% are in the informal economy. The allocation Page 4 of 7 will also affect the construction of workspaces such as Chikomba, over and above, the training of MSMEs as well as market development and trade promotion. It will also stall the digitisation of the registration process for cooperatives and affect their capacity development. In addition to establishing cooperative structures, conducting inspections and resolving cooperative dispute.

Small and Medium Enterprises Development Corporation (SMEDCO)

The corporation required ZWG$2.1 billion but was allocated around ZWG$130 million which translates to 6% of its requirement. The corporation holds a massive task of providing credit finance, work spaces and capacity building to over 3.5 million SMEs. As a result, the corporation will fail to meet the targeted lending capacity, create SMEs database to contribute to tax revenue and supporting MSMEs schemes with machinery and job tools. It is important to note that failure to provide funding to SMEs leads to job losses and economic stagnation. Innovation and competitiveness suffer, weakening industries and supply chains.

This ultimately hinders national economic development and community well-being. Whereas funding MSMEs leads to increased job creation, driving economic growth and reducing unemployment. It fosters innovation and competitiveness, boosting local industries and supply chains. Empowered MSMEs contribute to poverty reduction, community development and overall national prosperity.

Zimbabwe Women’s Microfinance Bank

The establishment of the Women’s Microfinance Bank gave hope for financial inclusivity to women. For 2025, the bank received for ZWG$130 million against a requirement of ZWG$4.165 billion which meets 3% of its requirement. This allocation is meant to recapitalize the bank to be able to service its clientele which is 52% of the population.

The bank also plans to invest in ICT infrastructure in line with digitisation and provide capital to support projects that enhance value addition in various industries. The positive impact of funding the bank includes; empowering women through access to credit, fostering entrepreneurship, and reducing poverty. It further promotes gender equality by supporting financial independence and economic empowerment of women that are already lagging behind in terms of access to productive resources.

National Handicraft Centre

The Centre received an allocation of ZWG$33 million against a requirement of ZWG$129 million. The Centre aims to expand its operations and support more hand crafters through marketing in 2025. The Centre plays a vital role in the handicraft value chain, providing a platform for women and youth in marginalised communities to earn a living through craft production. It is significant to note that a thriving handicraft sector can enhance Zimbabwe’s international image and strengthen economic ties with other nations, contributing to the country's ongoing re-engagement efforts.

However, the allocation will not be able to support these initiatives. Page 5 of 7 3.3 Analysis of Vote 37 for Zimbabwe Gender Commission. The Commission was allocated ZWG$177 million against a requirement of ZWG$240 million and this translates to 74% of its budget bid. The final allocation as percentage of the national budget stands at 0.05%.

Programme One, Governance and Administration

The programme received 90% of its requirement. However, the variance was intended to equip the Commission with the means to decentralize to 4 remaining provinces which are Matabeleland South, Matabeleland North, Mashonaland East and Mashonaland Central. Lack of decentralized structures continue to limit the Commission’s visibility and accessibility. The variance was also expected to procure vehicles for the Commissioners as part of their conditions of service.

Programme Two, Gender equality promotion

The programme bid for ZWG$108 million was allocated ZWG$67 million. The variance will negatively limit the capacity to carry-out activities at full scale mainly research, gender audits, exhibitions, National and Provincial Gender Forum as well as public awareness events. With fewer resources, achievements of set goals and targets will be limited and superficial.

Programme Three, Legal and investigation variance

The variance of ZWG$13 million will negatively affect the Commission to resource a fully operative survivor friendly complaints handling section. It will also affect investigations on gender dynamics in Prisons, Detention Centres, Refugee Camps, Orphanages and Old People’s Homes. The Commission is likely to fail to lobby and advocate for the enactment of requisite laws such as the Gender Equality Bill, Sexual Harassment Bill and amendment of the Zimbabwe Gender Commission Act.

Observations and Recommendations

• The budget cuts to the bids jeopardise the target of “Leaving no one and no place behind” for critical enablers such as the SMEDCO and National Handicraft Centre. As such, the Minister of Finance, Economic Development and Investment Promotion should award a prescribed asset status to these institutions to enable them to participate in investment opportunities and generate revenue to support the sector’s priorities.
• ZWMB, SMEDCO and National Handicraft Centre should also venture into partial privatization partnerships as part of their extensive overhaul of becoming state owned enterprises. These institutions should be proactive agents of revenue generation in place of being passive recipients of the fiscus.
• The 0.32% allocation to the MoWACSMED will hinder the implementation of its priorities. Therefore, the budget allocation should be reviewed upwards to 1% given that it is responsible for 52% of the population and 70% economy players that contribute immensely to the GDP. Page 6 of 7
• The Ministry and Commission are likely to face inflationary pressure and unforeseen economy changes. Accordingly, it necessitates the need for early and timely disbursement of their allocations since it is a small fraction of the national budget. This will reduce the missing of essential targets and carrying over of priorities into the next budget year.
• The Women Development Fund and Zimbabwe Community Development Fund have potential to generate decent revenue in view of the numerous clients they have as well as their affordable interest rates that are easily repayable. The Ministry of Finance, Economic Development and Investment promotion should meet the variance in order to provide adequate support these two statutory funds as they are critical enablers of financial inclusivity.
• Though dependency on development partners can prove detrimental to the operations of the Ministry, its institutions and the Commission in the event that a donor withdraws funding. It is vital for the Ministry, its institutions and the Commission to take advantage of that opportunity whilst it still exits and strengthen the partnerships with international organizations and donors to support and invest into projects that can generate income for them to eventually be able to self-sustain.
• The MoWACSMED through SMEDCO should also charge low affordable fees for the Skills and Development training offered to support entrepreneurs.
• The Ministry has a habit of pursuing new priorities each budget year whereas there will be incomplete projects that end up taking long to reach completion. In that regard, it should prioritise the completion of ongoing projects that have been carried over from previous years and also focus on investing into one project at a time to avoid recurring priorities.

Conclusion

The Ministry holds a massive task of ensuring that Zimbabwe accomplishes critical sector outcomes of the National Development Strategy 1 that is fast approaching its end. The Ministry together with the Commission also hold a massive task to ensure Zimbabwe accomplishes international goals such as gender equality as well as empower all women and girls under SDG 5 and reduce gender inequalities under SDG 10. In that regard, the Committee is hopeful that the relevant authorities will consider its recommendations.  I thank you.

            HON. GUMEDE: Thank you Madam Speaker. I rise to present the post budget analysis report on the Portfolio Committee on Higher and Tertiary Education

1.0 Introduction

The 2025 National Budget, themed "Building Resilience for Sustained Economic Transformation," presents a comprehensive plan aimed at fostering economic growth and stability amidst global economic uncertainties. The Ministry of Higher and Tertiary Education, Innovation, Science and Technology Development (MHTESTD) plays a crucial role in this vision, focusing on developing a knowledgeable and skilled human capital to drive the nation's socio-economic transformation. This report explores the budget allocation for MHTESTD, analysing its impact on the Ministry's performance, key priorities, and how it addresses social, gender, and inclusivity issues.

From the onset, it is worth mentioning that the Committee commends Treasury for an upward review of the Ministry’s budget provision for 2025. The Ministry was allocated ZWG10.3 billion against its bid of ZWG9 890 723 142. Initially, the Ministry was provided with an expenditure ceiling of ZWG5 320 334 00. Notably, the allocation is almost 100% the initial target.

However, it is important to note that Recurrent Expenditure remains high at about 93.2% (ZWG9.6 billion) while Capital Expenditure remains low at 6.8% (ZWG696 million) of the total budget. While the allocation will have a significant impact on improving the quality of higher and tertiary education by supporting infrastructure development, enhancing research and innovation, and providing the necessary resources for quality assurance and curriculum development, the shortfall in capital expenditure means that many infrastructure projects may be delayed or partially completed, which could affect the overall educational environment and the Ministry's long-term objectives.

2.0 Analysis of the Allocation and Impact on Operations

The allocation of ZWL$10,323,772,000 is aimed at supporting various initiatives within the Ministry, including:

1. a) Skills Training and Development where ZWL$8,415,370,000 was allocated to universities, polytechnics, teacher’s colleges, industrial training colleges, and quality assurance, which also develops curricula, handles examinations, and manages apprenticeships.
2. b) Policy and Administration where ZWL$1,066,307,000 was allocated for the overall administration and policy-making functions.
3. c) Science, Technology, and Innovation for Industrialisation where ZWL$842,095,000 was allocated for promoting science, technology, and innovation to support industrialisation.

3.0 Strategic Priorities

1. a) Salaries: It is the hope of this Committee that the issue of salaries for university and college staff be addressed in the 2025 budget. The current salary packages are not competitive, leading to a significant loss of skilled staff to regional universities. This trend threatens the quality and stability of our higher education system.

To retain our talented educators and support staff, the Committee calls on the Treasury to provide enhanced financial resources. Additionally, the provision of other non-monetary benefits to institutions is also recommended. These could include housing allowances, health benefits and professional development opportunities, which would greatly enhance job satisfaction and retention.

1. b) Tertiary Education Services Council (TESC): Only four institutions received PSIP funding with 21 left out. Therefore, Treasury is implored to reconsider funding projects for the 21 institutions that were left out in order for them to complete their   
2. c) Newly Established Colleges: The newly established colleges, Hwange College of Education, Chivi College of Education, Plumtree College of Education, and Binga Industrial Training College have unfortunately not received any allocation from the Public Sector Investment Programme (PSIP). Despite having land available for development, the absence of funding has halted any progress on these crucial projects.

To address regional equity and restore community confidence in accessing affordable and relevant higher and tertiary education, it is imperative that Treasury allocates PSIP funds for the infrastructure development of these new institutions. Providing these funds will ensure that these colleges can commence construction and ultimately offer quality education to students in these regions.

1. d) Work for Fees/Work Study Programmes: The Committee applauds Treasury for including the "Work for Fees/Work Study" programme as a line item in the Ministry's budget for the first time. This initiative is a crucial step towards providing financial support to students who face economic challenges. However, the Committee requests that the budget allocation for this programme be extended to cover all universities and colleges. Currently, some institutions have not received this vital budget line, which could lead to disparities in student support services. Ensuring that every university and college has access to the "Work for Fees/Work Study" budget will promote equal opportunities for all students, enabling them to focus on their education without the         burden of financial stress. Such an extension will not only support individual students but also enhance the overall quality and inclusivity of our higher education system.
2. e) Accommodation: The Ministry expressed its appreciation to the Treasury for helping to finance the first-ever female hostel at the Kwe Kwe Campus and the Emmerson Dambudzo Mnangagwa Law School. Budgetary restrictions have caused         these projects to experience protracted delays. It is essential that these amenities be finished on time. In order to guarantee that these initiatives are finished within the first nine months of the next year, we kindly ask for more funding.
3. f) Zimbabwe National Geospatial and Space Agency (ZINGSA): The Zimbabwe National Geospatial and Space Agency is at the forefront of pioneering scientific research and technological advancements in the geospatial and space sectors. However, the agency is currently hampered by inadequate funding, which affects its ability to acquire essential basic equipment and retain its highly skilled staff.
4. g) Zimbabwe Council for Higher Education: It has been noted that the Zimbabwe Council for Higher Education (ZIMCHE) has been relocated from their current premises to facilitate the construction of a new building. The Committee is pleased to- have learnt that all architectural drawings and quantity surveying for the project have been completed. However, it is concerning that ZIMCHE did not receive any allocation from the Public Sector Investment Programme (PSIP) budget. This oversight poses a significant challenge to the project's continuation and completion.
5. h) Zimbabwe Academy of Sciences (ZAS) and Biotech Pharmaceuticals: The Zimbabwe Academy of Sciences and Biotech Pharmaceuticals are critical entities that drive scientific research and pharmaceutical advancements in our nation. Despite having fully staffed operations, these entities were not allocated any operational budgets in the current financial plan. This lack of funding hampers their ability to carry out essential research and development activities which are vital for national health and innovation.
6. i) Finealt Engineering: Finealt Engineering, despite having a significant workforce, did not receive any operational budget from the Treasury. This lack of funding poses a serious threat to the successful implementation of His Excellency's Rural Industrialisation Agenda. The entity is currently engaged in three major rural industrialisation projects in Mashonaland East and Midlands, all of which are crucial for regional development. To ensure the completion of these critical projects, it is imperative that Finealt Engineering receives the necessary financial resources.
7. j) Verify Engineering: Verify Engineering requires funding to install a solar plant which is crucial for ensuring adequate power backup. The installation of this solar plant is not just a matter of operational efficiency; it is a strategic investment that will significantly enhance the reliability of power supply for Verify Engineering's operations.

4.0 Strategies for Domestic Resource Mobilisation

• To address the funding gaps, the Ministry of Higher and Tertiary Education, Innovation, Science and Technology Development suggested the following:
• Public-Private Partnerships (PPPs)-Collaborating with private sector entities to fund infrastructure projects and research initiatives.
• Alumni Contributions-Engaging alumni to contribute to the development of their alma matters through donations and endowments’
• Grants and Donations-Seeking grants and donations from international organisations and philanthropic entities.
• Exploring innovative financing models such as education bonds and social impact bonds to raise additional funds.

5.0 Recommendations

The Ministry of Finance, Economic Development and Investment Promotion is implored to:

1. Allocate additional financial resources to ensure that university lecturers receive competitive salaries.
2. Allocate PSIP funding for 21 affected institutions to enable the completion of vital infrastructure projects.

• Provide Public Sector Investment Programme (PSIP) funds specifically for the infrastructure development of new institutions such as Hwange College of Education, Chivi College of Education, Plumtree College of Education, and Binga Industrial Training College. Prioritise these projects to support the establishment and operationalisation of these colleges, fostering educational advancement and regional economic growth.

1. Extend the budget allocation for the ‘Work for Fees/Work Study’ programme to cover all universities and colleges.
2. Ensure timely release of funding to ensure accommodation female hostel at the Kwekwe Campus and the Emmerson Dambudzo Mnangagwa Law School of the Midlands State University are completed within the first nine months of 2025. This will significantly enhance accommodation for female students and improve the infrastructure for legal education.
3. Provide additional funding for the acquisition of state-of-the-art equipment to enhance ZINGSA’s research capabilities and ensure global competitiveness. In addition, increase funding to improve the salary structure, providing competitive salaries and benefits to retain talented professionals and mitigate the risk of losing them to better-funded institutions.

• Allocate the necessary PSIP funds to support the relocation, construction and operational needs of ZIMCHE to enhance its operational effectiveness which is vital for maintaining high standards in higher education across the country.

 

1. Provide the necessary operational budget to Finealt Engineering to enhance the completion of critical projects under the Rural Industrialisation Agenda, thereby contributing to regional development and economic growth specifically in Mashonaland East and Midlands
2. Provide the necessary operational budgets to the Zimbabwe Academy of Sciences and Biotech Pharmaceuticals
3. Overall, the Committee implores the Ministry of Finance to ensure timely release of allocated resources to ensure efficiency by the Ministry and its agencies.

6.0 Conclusion

The 2025 National Budget aims to promote economic growth and stability amidst global economic uncertainties. As has been noted, the Ministry of Higher and Tertiary Education, Innovation, Science and Technology Development (MHTESTD) plays a crucial role in this vision, focusing on developing skilled human capital for socio-economic transformation. However, the budget allocation for MHTESTD is high, with 93.2% recurrent expenditure and 6.8% capital expenditure. This imbalance may delay or partially complete critical infrastructure projects, potentially impacting the educational environment and the Ministry's long-term objectives. Addressing these funding disparities is crucial for building a resilient and high-quality higher and tertiary education system, aligning with NDS1, Vision 2030 and the Sustainable Development Goals. The Committee looks forward to continued collaboration with the Treasury to optimize resource allocation and ensure successful implementation of the Ministry's programmes.  I thank you.

         THE TEMPORARY SPEAKER (HON. MAUNGANIDZE):  Order Hon. Mashonganyika.

         HON. TOGAREPI:  Madam Speaker, we are about to go to 7 p.m. and there will be an automatic adjournment.  I think we need to sanitise some of the things before we proceed.  So, I move that the debate do now adjourn.

         HON. NYANDORO: I second.

         Motion put and agreed to.

         Debate to resume: Wednesday, 11^th December, 2024.

MOTION

LEAVE TO MOVE SUSPENSION OF STANDING ORDERS NO. 33, 53, 66, 68 AND 147

         THE MINISTER OF JUSTICE, LEGAL AND PARLIAMENTARY AFFAIRS (HON. Z. ZIYAMBI):  Madam Speaker, I seek leave of the House to move that the provisions of Standing Orders Number 33, 53, 66, 68 and 147 regarding reporting period of the Parliamentary Legal Committee, the automatic adjournment of the House at Five Minutes to Seven o’clock p.m. and at Twenty-Five Minutes past One o’clock p.m. on a Friday, Private Members motion taking precedent on Wednesdays after Question Time and that Question Time shall be on Wednesdays and Stages of Bills respectively be suspended with effect from tomorrow until all business relating to the Budget and all other Government Business has been disposed of.  I so submit Madam Speaker Ma’am.

         Motion put and agreed to.

MOTION

SUSPENSION OF STANDING ORDERS NO. 33, 53, 66, 68 AND 147

         THE MINISTER OF JUSTICE, LEGAL AND PARLIAMENTARY AFFAIRS (HON. Z. ZIYAMBI):  Madam Speaker,  I move that provisions of Standing Orders Standing Orders Number 33, 53, 66, 68 and 147 regarding reporting period of the Parliamentary Legal Committee, the automatic adjournment of the House at Five Minutes to Seven o’clock p.m. and at Twenty-Five Minutes past One o’clock p.m. on Friday, Private Members’ motion taking precedent on Wednesdays after Question Time and that Question Time shall be on Wednesdays and Stages of Bills respectively be suspended with effect from tomorrow until all business relating to the Budget and all other Government Business has been disposed of. 

         Motion put and agreed to.

ANNOUNCEMENTS BY THE TEMPORARY SPEAKER

ADJUSTMENTS TO PARLIAMENTARY LEADERSHIP COMMITTEE CHAIRPERSONS, DELEGATIONS TO PARLIAMENTARY BODIES AND THE CHAIRPERSONS PANEL

THE TEMPORARY SPEAKER: I have to inform the House that at its meeting held on Friday, 6^th December, 2024; the Committee on Standing Rules and Orders made the following adjustments to parliamentary leadership Committee Chairpersons, delegations to Parliamentary bodies and the Chairpersons Panel.

The CCC party in a letter dated 28^th November, 2024 had advised of vacancies in the offices of:

1.Leader of the Opposition in the National Assembly

2. Chief Whip in the National Assembly.

Consequently, in terms of Section of 151 (7) of the Constitution of Zimbabwe, the party advised the following appointments:

1. Parliamentary Leadership

Hon. M. Kademaunga replaces Hon. L. Karenyi as the Leader of the Opposition in the National Assembly;

Hon. Sen. Mlotshwa is confirmed as the overall Chief Whip for the CCC party;

Hon. C. Moyo replaces Hon. E Mushoriwa as the CCC Chief Whip in the National Assembly;

Hon. S. Chapfudza is appointed CCC party Deputy Chief Whip in the Senate.

The following appointments were also made to Committees of Parliament in terms of Standing Order Number 19 of the National Assembly Standing Orders:

CC:   t645655                       10^th December, 2024

         Changes of Committee Chairpersons.

         Hon. Dr. T. Khupe – Committee on Higher and Tertiary Education, Innovation, Science and Technology;

Hon. I. Ndudzo – Committee on Justice, Legal and Parliamentary Affairs;

Hon. J. Tshuma – Committee on Local Government, Public Works and National Housing;

Hon. D. Malinganiso – Committee on Public Service, Labour and Social Welfare;

Hon. E. Mutodi – Committee on Budget, Finance and Economic Development;

Hon. E. Maoneke – Committee on Defence, Home Affairs, Security Services and War Veterans;

Hon. T. Karikoga – Committee on Transport and Infrastructural Development;

Hon. S. Mandiwanzira – Committee on Primary and Secondary Education;

Hon. F. Jere – Committee on Sports, Recreation, Arts and Culture;

Hon. C. Chiduwa – Committee on Industry and Commerce; Hon. J. Samkange – Parliamentary Legal Committee

Parliamentary Delegation Association of Senates, Shoora and Equivalent Councils in Africa and the Arab World (ASSECAA), Hon. Sen. T. Kabondo, replaces Hon. Sen. M. Ngwena; Hon. R. Fanuel replaces Hon. Sen. Mupfumira.

         Chairperson’s Panel; Hon. A. Nguluvhe has joined the Presiding Officers’ Panel. I thank you – [HON. MEMBERS: Hear, hear.] –

         HON. CHIGUMBU: On a point of privilege Madam Speaker.

         THE TEMPORARY SPEAKER: What is your point of privilege?

         HON. CHIGUMBU: Thank you Madam Speaker. I feel that as a Member of Parliament from this side, my rights are being infringed upon.  I feel that what is happening in Parliament is not acceptable.  Why Madam Speaker, I feel that ….

         HON. NYANDORO: On a point of order Madam Speaker?

         THE TEMPORARY SPEAKER: Order, please take your seat. I think your point of privilege is misplaced and you cannot continue.

         HON. CHIGUMBU: Apparently, I was kindly asking that…

         THE TEMPORARY SPEAKER: Hon. Member, take your seat you cannot proceed.

         HON. CHIGUMBU: I have two issues that I want to raise Hon. Speaker. I understand what you are saying but I kindly ask that…

         THE TEMPORARY SPEAKER: Honourable, your point of privilege is misplaced, can you please take your seat.

         HON. CHIGUMBU: I am a Member of Parliament and how can I seek clarification…

         THE TEMPORARY SPEAKER: Hon. Member, please take your seat, you cannot proceed with your conversation.

         HON. CHIGUMBU: If you understand, please take your seat – [HON. MEMBERS: Inaudible interjections.] –

         THE TEMPORARY SPEAKER: I have not given you the platform, can you please take your seat.  Please, call yourself to order.  Thank you. Hon. Nguluvhe, you may take your seat as a Presiding Officer – [HON. MEMBERS: Hear, hear.] –

         Hon. Nguluvhe joined other Members of the Speaker’s panel [HON. MEMBERS: Hear, hear.] -

         On the motion of HON. TOGAREPI, seconded by HON. C. MOYO, the House adjourned at Ten Minutes to Seven o’clock p.m.