Zim GBC News | Business Reporter
HARARE – Zimbabwe’s business community has issued a plea to Finance Minister Mthuli Ncube, urging the government to consult the private sector before introducing new health taxes, warning that a failure to do so could hamper business operations and undermine collaborative health financing.
The call comes amid revelations of stark disparities in the national budget, where some ministries have already overspent their 2025 allocations by more than double, while critical social sectors like health and education have received less than half of their approved funding.
Speaking at a recent stakeholder dialogue, Zimbabwe Business Council Executive Director, Mr. Reason Machengere, argued that while the private sector supports sustainable health financing, inclusive planning is crucial.
“A lot of levies are being introduced, and some of these have really bridged the gap left by the various funding partners who exited the country,” said Machingura.
“But we are also calling for business-friendly policies and inclusive domestic financing frameworks. The private sector should be part of the process of designing, collecting, and efficiently using these resources.”
He pointed to the AIDS Levy as a model of transparency that should guide new taxes.
“The AIDS Levy has shown that it is possible to collect, ring-fence, and use resources effectively… We believe this blueprint can guide the administration of other health taxes.”
Echoing the need for transparency, Dr. Tsitsi Apollo, Deputy Director for the AIDS and TB Unit in the Ministry of Health, emphasized the importance of ring-fencing all health levies.
“We hope that there will be continued planning for health sector shocks so that we do not experience similar funding crises in the future,” Dr. Apollo stated.
Budget Favoritism Reveals Deeper Imbalance
The plea for consultation coincides with a fierce debate over national spending priorities. Official figures presented at a pre-budget seminar revealed that the Office of the President and Cabinet and the Ministry of Transport had spent 102% and 223% of their 2025 allocations, respectively.
In stark contrast, the Ministry of Health had utilized only 32% of its budget, with other key ministries like Education and Local Government also facing significant funding delays.
Analysts say this pattern reveals a budget driven by political power rather than public need.
“The budget lacks credibility,” said Nqobizitha Mlambo of the Fighting Inequality Alliance.
“How do you spend more in the transport sector but you find critical areas such as the Ministry of Health having utilised 32 percent?… This signals weak enforcement of spending rules and possible off-budget expenditures driven by political priorities.”
This skewed allocation has tangible consequences. A local authority chairperson from Masvingo, who spoke on condition of anonymity, confirmed that the absence of devolution funds has stalled all community projects.
In defence of the government’s record, Finance Minister Mthuli Ncube asserted that the Abuja target for health funding would be met and criticized what he called a “schizophrenic” narrative that ignores the role of private healthcare.
However, this optimism contrasts with the reality in public hospitals, where shortages of staff, drugs, and equipment remain severe, highlighting the critical need for efficient and equitable resource allocation as Zimbabwe moves towards domestically financed health programmes.
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