Ray Bande
Senior Reporter
THE country’s tax regime, which includes taxes on fast food and sugar, among others, will prove useful in covering the funding gap for Anti-Retroviral (ARV) drugs and HIV-related services — created by the withdrawal of funds from US-backed programmes such as PEPFAR, Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, has said.
PEPFAR, which was instrumental in saving lives, preventing millions of HIV infections, and supporting countries like Zimbabwe in achieving HIV epidemic control, was abruptly suspended due to President Donald Trump’s freeze on foreign aid.
In his keynote address during the opening of the Mutare post-budget breakfast meeting and investment conference yesterday (Thursday), Professor Ncube said Zimbabweans will now see the usefulness of the current country’s tax regime.
“On the issue of the withdrawal of foreign aid funding by the United States of America, I did a lot of work in my previous life on the macroeconomics of HIV in Africa. The biggest funder of HIV programmes in the world and Africa, in particular, is PEPFAR, which is basically the White House.
“So, any suspension of aid, even for 90 days, will have a negative impact on the fight against HIV and AIDS. You can be sure that we will be impacted, but we have countermeasures. Now, you will see the usefulness of the fast food tax, sugar content tax, and all other taxes that will support the health sector.
“However, we await the review of these cut-offs on the sector. If we are cut off, the country will lose about US$200 million that comes into the country annually for various programmes. But that amount never comes through the budget, anyway,” he said.
According to a report by the Ministry of Health and Child Care, in collaboration with the National Aids Council and the United Nations Development Fund (UNDP), titled: “Towards ending AIDS as a public health threat by 2030” — approximately 1,3 million people in Zimbabwe were living with HIV in 2022, with adults accounting for 94 percent of those affected.
Notably, Zimbabwe has made significant progress in combating HIV and AIDS, ensuring that 95 percent of people living with HIV are aware of their status, 98 percent of those who know their status are receiving antiretroviral treatment, and 95 percent of those on treatment have suppressed viral loads.
These three key conditions are crucial for saving lives and preventing transmission.
In another development, Minister Ncube said Government is pleased to offer competitive salaries to its workers, surpassing those offered in the private sector.
He noted that Government has made significant strides in paying its workers better than the private sector, citing the timely payment of bonuses as an example.
“We care deeply about our civil servants, and their welfare is one of our top priorities. Government is now paying its workers better than the private sector. Although our claims are often met with scepticism, the facts speak for themselves — civil servants are indeed faring better. A case in point is the timely payment of bonuses, which the private sector struggled with last year,” said Minister Ncube.
Minister Ncube also highlighted the benefits of Public-Private Partnerships (PPPs) in infrastructure development, speaking glowingly about their potential to drive growth and progress.
“In terms of infrastructure development, we have learnt valuable lessons from the Built Operate Transfer (BOT) or Public-Private Partnership (PPP) arrangement. A prime example is the Plumtree-Bulawayo-Harare to Mutare Highway. The model has proven effective, with the highway being well-maintained. We intend to adopt a similar approach for the Beitbridge-Harare to Chirundu Highway.
“Our approach involves partnering with private sector investors, who will operate and maintain the roads on a 25-year concession basis. This allows them to recover their investment through tollgates, while ensuring that Government receives its due share. We believe this model is essential for developing major roads, including the Bulawayo-Victoria Falls Road,” he said.
Minister Ncube said Zimbabwe’s economy is expected to grow by six percent in 2025.
“The economy is expected to remain on a positive growth trajectory, with 2021 having registered 8,5 percent, 2022 at 6,1 percent and 5,3 percent in 2023. Projections for 2024 indicate a growth of two percent, on account of the impact of El Nino-induced drought.
“However, in 2025, GDP growth is projected to be around six percent, driven by anticipated normal to above-normal rainfall. Beyond 2025, steady growth of five percent is expected.
“The growth rate in Southern Africa is projected to accelerate from 2,7 percent in 2023 to 2,5 percent in 2024, and further strengthen to 3,3 percent in 2025. This growth is largely attributed to gradual improvements in supply chains and recovery from earlier weather shocks.
“Global growth in 2024 and 2025 is projected at 3,2 percent, a modest growth compared to historical averages. This subdued growth rate reflects a cautious outlook on the world economy. Sub-Saharan Africa’s growth is projected at 3,6 percent in 2024 and 4,2 percent in 2025, respectively, due to gradual improvements in the supply chain. Global economic activity is being suppressed by the effects of elevated central bank interest rates aimed at combating inflation, as well as the withdrawal of fiscal support due to the burden of high debt levels,” he said.
