Concerns mount over devolution fund shortfalls in Zimbabwe

The government's failure to meet the five percent constitutional threshold for devolution funding since 2019 has sparked widespread criticism. From its inception to 2023, the Inter-Governmental Funds Transfer has allocated only between 0.5 percent and 2.9 percent of national revenue, falling far short of the requirements outlined in Section 301(3) of the Constitution.

According to the Constitution, no less than five percent of national revenue raised annually must be allocated to provinces and local authorities to empower local governance. However, a post-budget analysis report by the Portfolio Committee on Local Government, Public Works, and National Housing revealed that this mandate has been persistently ignored.

The report, presented by Supa Mandiwanzira, highlighted that while the Ministry of Local Government allocated ZiG 2.2 billion (approximately five percent of estimated national revenue) for devolution in 2024, actual disbursements have consistently fallen below the constitutional benchmark.

"Since its introduction in 2019, the devolution funds have never reached the five percent of annual revenue as stipulated under Section 301 of the Constitution. Instead, allocations have ranged from 0.5 percent to 2.9 percent," Mandiwanzira said.

The committee urged the Ministry of Finance to prioritize devolution funding in the 2025 budget, referencing the May 2024 Devolution Manual as a guiding framework.

"Devolution funds are now the lifeline for local authorities as they strive to deliver essential services. Their prioritization in the 2025 fiscal year is critical," Mandiwanzira stated.

While the 2025 budget is set to meet the five percent threshold, concerns remain over the Treasury's ability to disburse funds efficiently.

Future Msebele, a political analyst and former ZAPU Treasurer General, criticized the government and opposition for treating the Constitution as optional.

"There is no political will to implement devolution fully," Msebele said. "Allocations of 0.5 percent to 2.9 percent are insignificant. Civil society must push for this progressive concept to be realized."

Activist Chilumbo Mudenda went further, arguing that the government misunderstands the essence of devolution.

"Devolution means decentralizing social, political, and economic powers to provinces," Mudenda explained. "The five percent allocation is insufficient to meet provincial needs. Section 301 of the Constitution should be amended to reflect meaningful devolution."

Mudenda also criticized the centralization of revenue collection in Harare. He suggested that provinces should collect their own revenue, remitting only a portion to the central government, citing South Africa's model as an example.

"In places like Beitbridge, revenue is collected in foreign currencies like US dollars and Rands but converted to ZiG when returned to councils. This distorts the devolution process," Mudenda argued.

The Portfolio Committee also reviewed the 2024 budget performance of the Ministry of Local Government and Public Works. The Ministry received a revised allocation of ZiG 1.52 billion—only four percent of its original budget bid of ZiG 4.3 billion. Despite this, only 57 percent of the allocated funds were utilized due to low Treasury disbursements, compounded by inflation and external factors such as drought.

Nevertheless, the Ministry recorded some achievements, including the facilitation of infrastructure projects under the New City initiative and the completion of master plans for Tugwi-Mukosi, Manhize, and Kanyemba.

"Additionally, the Ministry successfully hosted the 44th SADC Session and approved designs for key infrastructure projects," Mandiwanzira said.

As the government prepares for the 2025 fiscal year, pressure is mounting for adherence to constitutional provisions on devolution funding. Experts and activists alike emphasize the need for structural reforms and greater political will to ensure provinces and local authorities receive the resources necessary for meaningful development.