Source: Govt disburses ZiG2 billion for devolution – herald
Zvamaida Murwira
Senior Reporter
GOVERNMENT disbursed ZiG2 billion (about US$74 million) towards devolution and decentralisation programmes last year, as authorities step up efforts to promote equitable development and reduce regional disparities across the country.
Devolution in Zimbabwe refers to the constitutional transfer of power and resources from central Government to provincial and local authorities, enabling communities to identify and implement development projects tailored to their needs.
The policy is a key pillar of the Second Republic’s inclusive development agenda, which seeks to ensure that no region is left behind.
Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, said the funds have already had a positive impact in communities by improving infrastructure and livelihoods.
He made the remarks in the National Assembly last week during a question-and-answer session, in response to Mbizo legislator Mr Corban Madzivanyika, who had requested a breakdown of devolution funding since 2020.
Prof Ncube said although disbursements remain below the constitutionally mandated threshold of five percent of national revenues, Treasury has recorded notable progress.
He said in 2024, total national revenue was subdued at ZiG$116 billion, with devolution disbursements amounting to ZiG$170 million.
“However, in 2025, the financial landscape shifted again with total revenue rebounding to ZiG223 billion and disbursement rising to ZiG1.9 billion, leading to an improvement in disbursement from 0.15 percent in 2024 to 1 percent in 2025,” he said.
He acknowledged that Government is yet to meet the five percent constitutional requirement but said the funds released so far have made a tangible difference in communities.
“We have said that going forward, we just want to work harder to improve this ratio as we drive towards the full 5 percent,” said Prof Ncube.
“I can say that even though we have disbursed less than five percent, we have seen the positive impact of these funds; the differences that they have made.
He added that there is a need to assess and document the impact of devolution funds to demonstrate their effectiveness.
“I think at some point, it will be necessary to just check the impact of these funds, no matter how small, and how they have changed people’s lives in those areas,” he added.
“Parliament ought to know about that and appreciate those examples.”
Mr Madzivanyika had raised concern over Treasury’s failure to meet the constitutional threshold, prompting Prof Ncube to explain that disbursements are largely driven by demand from local authorities.
“That gap between what was actually disbursed is explained by the fact that the disbursements are driven by an identified expenditure or investment-ready project,” said Prof Ncube.
“It basically follows what we call a pull and push effect, where the pull means that there has to be demand or request for the resources at that local authority level and we cannot just push.
“There has to be a pull, that is how it works. So, it is quite an arduous process.”
Prof Ncube said Treasury has been working to capacitate local authorities to develop viable projects that qualify for funding, noting that coordination among stakeholders is key to accelerating disbursements.
“We, as Treasury, have tried hard to also capacitate local authorities, who originate most of these projects, to work out how best to get their projects to be ready to receive funding,” he said.
“It is not automatic.
“We often say that for very successful constituencies, you find that the local MP working with the chief executive officer of the local authority, the village headman and also the chiefs, the local traditional leaders, should really come together.
“We find that in those constituencies where that happens, disbursements move faster.
“There are good, clear examples where this has been the case but I do not want to single out those.”
He added that limited fiscal space has also constrained disbursements, as Government operates under a tight cash flow system.
“Everyone should know we operate on a quasi-cash budget system. We live within our means.
“So, the cash is not available for disbursement, even if it is clear what it is for on the ground, in terms of the multi-year project, that cash will not be extended. It will not be disbursed because of its unavailability. “
He noted that Government revenues are typically low in the first half of the year and peak in the final quarter, creating challenges in timing disbursements.
“You will find that in the first quarter and second quarter, cash flows are typically below target and then they pick up in the third quarter. Then we are awash in the last quarter when disbursements cannot be done quickly and so forth,” said Prof Ncube.
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