EU withdraws funding after Zimbabwe signs PVO Bill into law

President Emmerson Mnangagwa's decision to sign the controversial Private Voluntary Organisations (PVO) Amendment Bill into law has sparked widespread condemnation, most notably from the European Union (EU), which has now cut its planned support for Zimbabwe's good governance initiatives. The move represents a significant blow to the country's relationship with the EU, which has expressed deep concerns about the new law's potential to curtail civic freedoms and transparency in the country.

Mnangagwa's signing of the bill, which took place just hours before the commissioning of Mbare's revamped informal traders' market, did not go unnoticed. Many have criticized the timing as a deliberate attempt to overshadow civil society concerns, and to ignore international calls for greater political and civil freedoms.

Jobst von Kirchmann, the EU Ambassador to Zimbabwe, delivered a blunt assessment following the signing, accusing Mnangagwa of "insincerity" in his approach to governance reforms. The EU, which had previously been engaged in supporting Zimbabwe's good governance framework, has now withdrawn its backing for the government's initiatives under the structured dialogue framework, a key part of the EU's engagement with Zimbabwe.

"The PVO Act is disappointing and ill-considered, sidelining the views of diplomats and civil society organisations," von Kirchmann stated in a sharp rebuke. "Zimbabwe has over USD 21 billion in debt and arrears with bilateral and multilateral creditors, and the government had initiated a commendable debt resolution process. It is disheartening to see Zimbabwe fail to uphold its own commitments, especially regarding the expansion of civic space."

The PVO Amendment Bill, now officially gazetted as Act No. 1 of 2025, grants authorities extensive new powers to monitor and control the operations of Private Voluntary Organisations (PVOs), raising alarms among human rights groups and independent advocacy organisations. The law mandates that PVOs disclose their ownership structures, funding sources, and affiliations, and introduces harsh penalties for anyone found in breach of the law, including criminal charges and imprisonment for up to 35 years for offences related to illicit financing or misrepresentation.

Critics argue that the law represents a serious threat to freedom of association in Zimbabwe, as it allows the government to deregister or seize assets from organisations deemed non-compliant with the new regulations. The creation of a PVOs Board, ostensibly to oversee the sector, has also been criticized as a mechanism for increasing government control over civil society.

In response to the backlash, government officials have defended the amendments, claiming they are necessary to prevent the financing of terrorism and money laundering. However, critics point to the sweeping nature of the law and its potential to suppress dissent, curbing the ability of organisations to challenge state policies or expose official corruption.

Von Kirchmann emphasized that the EU remains willing to reconsider its position, should the government demonstrate a genuine commitment to addressing concerns about civic space and governance. "The EU remains engaged and ready to reconsider its position should the government show a sincere commitment to meeting governance targets outlined in the process," he said.

The EU's decision to withdraw its funding for good governance initiatives is seen as a direct consequence of what it perceives as Zimbabwe's regression in terms of political and civil freedoms. The withdrawal of support for governance programs, particularly those focused on democratic reforms, is expected to have a significant impact on Zimbabwe's ability to receive future assistance aimed at improving governance, human rights, and transparency.

As Zimbabwe moves forward with this new law, the international community will be closely watching to see how the government navigates the tensions between security concerns and the protection of fundamental freedoms. For now, the PVO Amendment Bill remains a contentious issue, one that could have far-reaching consequences for Zimbabwe's relationships with international partners and its reputation on the world stage.

The legal and diplomatic fallout from the bill is expected to dominate the conversation in the coming weeks, as Zimbabwe's internal governance policies clash with external expectations for democratic reforms and the protection of civic rights.