
ZIM SITUATION CHANNEL
June 10, 2025 at 05:30 AM
*📰Zimbabwe plugs aid gaps with domestic revenue*
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DOMESTIC resource mobilisation, including through taxation, is essential for Zimbabwe and other African countries to bridge the gap left by the withdrawal of donor support, Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, has said.
This follows the decision by United States President Donald Trump, upon taking office in January this year, to temporarily suspend nearly all foreign assistance as part of his “America First” policy.
He stated that the US would no longer “blindly dole out money with no return for the American people” — a move that has placed critical sectors such as health and education across Africa at risk of collapse unless innovative domestic funding strategies are adopted.
In an interview, Prof Ncube stressed the need for Zimbabwe and other African nations to explore sustainable ways of generating revenue to fill the void left by the suspension or withdrawal of official development assistance (ODA).
However, some Zimbabweans — particularly on social media — have raised concerns over rising taxes, arguing that they are driving up the cost of goods and services.
Responding to these concerns, Prof Ncube defended the tax measures, stating they are necessary to support national development.
“You know what, I think it’s fair to say that all countries, especially African countries, are under pressure. So, there’s a need to do something about domestic resource mobilisation. This is to support critical sectors like health, education, social protection — including productive social protection in agriculture.
“These are vital sectors that affect around 60 percent of our citizens. Take the Pfumvudza/Intwasa programme, for example — 60 percent of the population lives in rural areas and needs support. So, all these taxes — not regulatory fees, which go to agencies — are directed towards such programmes,” he said.
Among the taxes introduced are the sugar tax, fast food tax, betting tax on winnings, and a levy on plastic carrier bags.
The sugar tax, introduced in the 2024 National Budget, raised US$8 million in the first half of last year. These funds were used to procure essential cancer diagnosis and treatment equipment, as well as medication for public hospitals across the country.
Prof Ncube emphasised that taxes collected by central government are budgeted for by Parliament, and their allocation is transparent.
He noted that the decline in ODA, particularly in the health sector where funding for HIV/AIDS programmes has been reduced, necessitates a complete rethink to safeguard millions of lives dependent on services such as antiretroviral therapy (ART).
“. . . I am pleased that some of the taxes will go a long way in plugging those holes,” he said.
Zimbabwe currently has around 1,2 million people on ART. Health experts warn that if donor funding — mainly from the US — is eventually withdrawn, lives could be lost.
Zimbabwe is one of only five African countries to have achieved the UNAids 95-95-95 targets: 95 percent of people living with HIV know their status, 95 percent of those diagnosed are on ART, and 95 percent of those on ART have achieved viral load suppression.
The US decision to freeze foreign aid threatens to reverse the progress Zimbabwe has made over the past two decades. To avert this, additional domestic measures are urgently needed to sustain the health sector.
UNAids Director of Data for Impact, Dr Mary Mahy, has warned that the global HIV response could suffer severely, with an estimated 6,3 million Aids-related deaths expected between now and 2029.
There are also fears that up to 8,7 million new HIV infections could be recorded globally during the same period.