ZIMBABWE

Zimbabwe is a constitutional democracy with a president as head of State and government elected for a five-year term that runs concurrently with that of parliament. The president is directly elected by the citizens for a maximum of two terms, whether continuous or not. He or she appoints members of the cabinet from parliament including a limited number of members who do not have to be parliamentarians. A parliamentarian ceases to be a member of parliament once appointed as a member of the cabinet. On the other hand, the parliament consists of the National Assembly and the Senate. The National Assembly has 270 members, including 60 seats reserved for women, while the Senate has 80 members, including 18 seats reserved for traditional chiefs. Zimbabwe has a unitary form of government organised vertically on the basis of decentralisation and devolution. The Constitution of Zimbabwe of 2013, amended in 2021 (Constitutional Amendment No. 2), institutes a three-tier governmental organisation: national, provincial and local. It also requires decentralisation and devolution of governmental powers, responsibilities and resources to provincial and local governments.

The provincial and metropolitan councils at the provincial level have broader powers than local governments. The Constitution requires provincial councils to govern the 10 provinces of Zimbabwe. The latest constitutional amendment reformed the composition of provincial and metropolitan councils, even though these had not yet been established. The regional level also counts with a provincial assembly of chiefs, whose members appoint representatives to the national council of chiefs and parliament. The Provincial Councils and Administration Act of 1985, which regulates provincial governance in Zimbabwe, has yet to be aligned with the new Constitution. The Provincial Councils and Administration Amendment Bill was gazetted in March 2021 and it has yet to be passed into law.

The local tier of government is constituted by urban and rural local authorities established to manage the affairs of people in urban and rural areas (sections 274-279 of the Constitution). Prior to the adoption of the 2013 Constitution, local governments lacked constitutional recognition and derived their authority from ordinary acts of Parliament such as the Urban Councils Act of 1995, the Rural District Councils Act of 1988 and the Regional Country and Town Planning Act of 1998. This local government legislation, which has yet to be fully aligned with the 2013 Constitution, grants unfettered power to the minister of local government, public works and national housing to interfere in the realm of action of local authorities. For instance, the minister can reserve or alter a council resolution and his or her approval must be sought before a local authority can implement certain resolutions. Every local authority area is governed by a democratic council elected for a five-year term under the first-past-the-post electoral system during the same election for the president and members of parliament. A 2021 constitutional amendment established that at least 30% of the membership of a local council elected on ward basis through a system of proportional representation should be women.

After the adoption of the Constitution in 2013, and the entry to power of a new government in 2017, the implementation of devolution gained pace in 2018. The new government adopted the Transitional Stabilisation Programme and Reforms Agenda in 2018, which identifies devolution as a key reform agenda. The commitment to implement devolution was followed through in the Pre-Budget Strategy Paper of the National Treasury of 2019. In August 2020, the government adopted the Devolution and Decentralisation Policy to guide the implementation of devolution. This was followed in November 2020 by the adoption of a new economic blueprint for the period January 2021 – December 2025, the National Strategy Development 1 (NDS1), which has a chapter dedicated to devolution. The government aims to create and equip entities at provincial and local levels with the necessary powers and resources to promote development.

TERRITORIAL ORGANISATION
MUNICIPAL LEVEL	INTERMEDIATE LEVEL	REGIONAL LEVEL	TOTAL NUMBER OF SNGs (2021)
32 urban councils and 60 rural district councils		8 provincial councils and 2 metropolitan councils
Average municipal size: 161 553 inhabitants
92		10	102

OVERALL DESCRIPTION: At the regional level, Zimbabwe is divided into eight provinces that are made up of a combination of urban and rural areas (Mashonaland Central, Mashonaland East, Mashonaland West, Manicaland, Masvingo, Matabeleland North, Matabeleland South and Midlands) and the two provinces of Harare and Bulawayo that are urban metropolitan regions. In addition, there are 59 deconcentrated administrative districts, whose boundaries often align with the boundaries of local authorities, particularly in rural areas. However, some districts contain more than one local authority. The jurisdiction of a local authority never transcends provincial boundaries. At the municipal level, there are 32 urban local authorities and 60 rural local authorities. The local authority area or district is subdivided into wards which currently total 1958. These are further subdivided into neighbourhoods and villages, depending on whether the area is urban or rural. The only land not governed by local authorities in Zimbabwe are military, mining and wildlife areas, game reserves and national parks. Local authorities provide services such as water supply to some of these areas.

REGIONAL LEVEL: The provinces of Zimbabwe are heterogenous in terms of demographical makeup, resource base, citizen’s access to public services and geography. The Zimbabwe National Statistics Agency (ZIMSTAT) estimated that in 2015, Harare, the most populous province, had a total population of over 2 million while Bulawayo and Matabeleland South each had less than 700 000 inhabitants.

Provincial and metropolitan councils make up the provincial tier of government and govern the country’s eight non-metropolitan and two metropolitan provinces, respectively. According to the former 2013 version of the Constitution, provincial councils were composed of members of parliament (MPs), senators, mayors and chairpersons of local authorities, 10 directly elected members (elected under a system of proportional representation) and representatives of traditional leaders in non-metropolitan provinces. The Constitution also provided that the mayors of Harare and Bulawayo automatically become the chairpersons of their respective metropolitan council. In addition, each provincial council was to be led by a chairperson appointed by the council among its membership from a list of two candidates submitted by the political party which gained the highest number of seats in the province in the general election for members of the National Assembly. The constitutional amendment of 2021 removed MPs and senators from provincial and metropolitan councils. It also removed the requirement that the mayors of Harare and Bulawayo chair the relevant metropolitan council and instead requires that they are elected in the same way as chairpersons of provincial councils. The amendment makes it mandatory for 10 directly elected members of provincial and metropolitan councils to be women. Despite the constitutional amendments taking legal effect, the councils have not yet been established. The new governance of the councils is likely to be implemented after the harmonised elections scheduled in 2023.

Until then, in practice, the president appoints a resident minister for each province (commonly referred to as minister of State for provincial affairs and devolution and previously known as provincial governors) as a representative of the president at the provincial level. The resident minister is responsible for the coordination of government programmes at the subnational level. The national government has many other deconcentrated agencies at this level in areas such as police, security, health, planning and education.

MUNICIPAL LEVEL: Out of the 32 urban local authorities, there are seven city councils, nine municipal councils, 13 town councils, and three local boards. These councils are ranked in order of status, power, authority and resources. City councils, such as the capital Harare, have the highest status in the country, followed by municipal councils (the largest municipality being Chitungwiza, with 400 000 inhabitants) and town councils. Local boards, such as Hwange, where mining and tourism are the main economic activities, are established in settlements with a very small population or in areas that are not able to sustain themselves without central government assistance. The population in local boards varies greatly, ranging from less than 20 000 in Lupane to over 170 000 in Epworth. On the other hand, there is a single category of rural local authorities which vary in size, geography, demographical composition and financial resource base. For instance, some rural districts have a population of less than 100 000 inhabitants while others have over 200 000.

The Constitution requires that all members of a local council are directly elected, while under the old constitutional order, some of the members of a council were appointed by the minister responsible for local government. Cities and municipal councils are led by a mayor who is elected amongst the membership of the council. Town councils and local boards are led by a chairperson, who is also elected from the membership of the relevant council. Although section 274(5) of the Constitution confers executive powers to mayors and chairpersons, currently, they exercise ceremonial roles because there is no act of parliament ratifying this. The administrative arm of a city and municipal council is led by a town clerk while that of a town council and local board is headed by a secretary.

Like their urban counterparts, rural local authorities are governed by elected councils. A rural local authority is led by a ceremonial chairperson, who is the political head, elected from the membership of the relevant council. The administrative head, or chief executive officer, is appointed with the consent of the minister responsible for local government. Rural local authorities govern their areas alongside the institution of traditional leadership of chiefs, headmen and village heads- in order of authority and power. The role of traditional leaders is regulated by the Constitution and the Traditional Leaders Act of 1998. Traditional leaders have representation in local councils, but they do not have voting powers.

As with the provincial level, there are national government officials including the district development coordinator (formerly district administrator) and several other national deconcentrated agencies stationed at the local (district) level.

HORIZONTAL COOPERATION: The 2013 Constitution (section 265(1)d)) requires provinces and local authorities to cooperate with one another within their level of government and to harmonise and coordinate their activities. The Urban Councils Act (section 223) recognises various ways of promoting horizontal cooperation at the local level. The Act empowers an urban local authority to enter into an agreement with another local authority if it helps carry out their functions more efficiently and effectively. The agreement may include the use of joint facilities or involve the sharing and employment of personnel in the performance of functions. Section 224 of the same Act also allows an urban local authority to establish joint committees and joint boards with another local authority. The Rural District Councils Act (sections 82 and 83) provides similar provisions for rural local authorities. As associations of local authorities, the Urban Councils Association of Zimbabwe (initially established as the forum of municipalities in 1923) and the Association of Rural District Councils (established in 1993), promote partnerships among their members. This has incentivised local authorities to cooperate in many areas such as the exchange and borrowing of equipment for road construction.

Section 270(1) of the Constitution provides that a provincial or metropolitan council is responsible for social and economic development of its province, including planning and implementing social and economic development activities, coordinating and implementing government programmes, undertaking natural resource management activities and promoting tourism. The act of parliament to clarify the exact parameters of this social and economic development function is yet to be enacted. The Constitution (sections 274(1) and 275(1)) states that urban and rural local authorities must ‘manage’ and ‘represent’ the affairs of people living in urban and rural areas, respectively. According to section 276(1) of the Constitution, a local authority has the “right to govern, on its own initiative, the local affairs of the people within the area for which it has been established, and has all the powers necessary for it to do so”. The existing local government legislation lists various responsibilities of local authorities such as roads, land use planning, water supply, hospital and clinics areas, road traffic control, public transport and environmental protection. While local authorities have a variety of responsibilities, one of the main challenges affecting them when carrying out their mandate according to the 2021-2025 National Strategy Development 1, is the absence of a clear and appropriate delineation of roles between the central government and local authorities.

Main responsibility sectors and sub-sectors
SECTORS AND SUB-SECTORS	Regional level	Municipal level
1. General public services (administration)	Administrative services; Public buildings and facilities (e.g., town houses); Administration and operation of general services (not assigned to specific functions)	Public buildings and facilities (e.g., town houses)
2. Public order and safety		Traffic Police (shared); Firefighting; Road traffic control (shared); Traffic signs and lights
3. Economic affairs / transports		Road networks and facilities (regional, local); Public transport; Agriculture (shared)
4. Environment protection	Conservation, improvement and management of natural resources	Parks and green areas; nature preservation; Waste management (collection, treatment and disposal of waste);Sewerage (waste water management); Street cleaning
5. Housing and community amenities		Drinking water distribution; Public lighting; Housing (subsidies, construction and renovation and management) (shared); Urban and land use planning
6. Health		Primary healthcare (medical centres); Hospital services (general and specialist); Preventative healthcare; Public health services; Paramedic services (ambulances) (shared)
7. Culture & Recreation	Tourism	Libraries; Museums; Cultural activities (shared)
8. Education		Pre-primary education; Primary and Secondary education (shared)
9. Social Welfare		Social care for children and youth; Support services for families; Social welfare centres; Housing subsidies and benefits (shared)

Scope of fiscal data: No data available

SNA 1993

Availability of fiscal data: Low

Quality/reliability of fiscal data: Low

GENERAL INTRODUCTION: The Constitution provides the general framework for taxation, borrowing, intergovernmental grants, reporting and auditing for all tiers of government. The Urban Councils Act and Rural District Councils Acts regulate other financial aspects of local authorities such as revenue-raising. The procurement of goods and services as well as the disposal of assets by government institutions, including provincial and local governments, is regulated by the Public Procurement and Disposal of Public Assets Act of 2017. It devolves the possibility for procurement and disposal of assets to the local government, while larger contracts must still be approved by the Procurement Regulatory Authority of Zimbabwe.

The Ministry responsible for local governments regularly issues policy directives and circulars to guide the formulation of local budgets, revenue-raising powers, expenditure and fiscal reporting. For instance, the Ministry’s 2020 budget circular “Annual Budget Preparation for Local Authorities: 2022 Financial Year” provides policy guidance on staff establishment, tariff setting, income generating projects, valuation rolls, intergovernmental grants, investment and borrowing, among other issues. The national government strongly interferes in local revenue-raising efforts. For instance, in 2009, it recentralised the collection of motor vehicle licensing fees which was a lucrative source of revenue for urban local authorities. In 2013, a month ahead of the elections, the national government required all local authorities to cancel the arrears owed by their customers. Since then, according to the auditor general of Zimbabwe’s 2018 and 2019 Audits reports on Local Authorities, a culture of non-payment of user-charges and fees has strengthened, as evidenced by the growing arrears of local authorities. The national government debt due to local authorities for unpaid services was estimated by the World Bank to be at USD 36 million in March 2016. These factors weaken the financial sustainability of the local government sector.

ⓘ No detailed data available for this country

EXPENDITURE: Even though the Constitution equips local authorities with the right to govern their areas, their expenditure powers are limited by the national legislative and policy framework. A 2017 World Bank report established that in 2014, around 40% of local government expenditure was spent on remuneration, while only 6% was spent on repairs and maintenance. Despite the adoption of the circular, the auditor general has pointed out that many local authorities were not complying with the 70:30 ratio.

DIRECT INVESTMENT: Subnational governments authorities in Zimbabwe undertake limited investment in local infrastructure compared to their counterparts in the region. In the 2018 budget law, the government committed itself to facilitating the strengthening of the partnership between the relevant ministries, respective local authorities and development partners to address infrastructure deficiencies in urban areas. The unstable and hyperinflationary macroeconomic environment makes it difficult for local authorities to undertake realistic budgeting. Moreover, local authorities in Zimbabwe often fail to mobilise adequate resources to meet their expenditure needs, which leaves little resources available for investment after covering recurrent expenditure.

While public private partnerships (PPPs) are an option for mobilising revenue, acquiring skills from the private sector and developing infrastructure projects, few local authorities have successfully entered or executed such partnerships, despite the presence of enabling legislation through the Zimbabwe Investment and Development Agency Act of 2019. This legislation provides for the promotion, entry, protection and facilitation of investment in Zimbabwe and regulates the process by which local authorities are permitted to establish PPPs. Attracting investors has been a challenge for the public authorities due to the prevailing political and economic challenges. The few PPPs of which local authorities are a part of cover areas such as housing development, parking management and road construction. The lack of adequate investment in infrastructure (whether for repairs, maintenance and expansion) has resulted in its deterioration and serious service delivery challenges. For example, according to the NDS1 of November 2020 only “29.7% of households in the country have access to improved water sources and sanitation”.

ⓘ No detailed data available for this country

A 2017 Word Bank report established that in 2015, urban local authorities spent an average of 26% on general public services (administrative, finance and management costs). Roads and works, under the economic affairs and transports function of government, were the second category to which most budget was dedicated (16%). The supply of potable water, and sanitation accounted for 16% and 5% of local budgets respectively. Health and education consumed a combined 11% of the budget. These two social services are not self-funded: a majority of their funding comes from the national government, which pays the teachers directly. The national government also pays directly the health staff of some local authorities while in other local authorities, the national government transfers grants to meet health expenditure, including salary costs. National funding to these social services is not enough to cover expenditure requirements year after year and there is always a shortfall between the funds generated from user fees (e.g. health fees) and expenditure needs. Overall, local authorities are left with limited resources to respond to needs and preferences of their communities.

ⓘ No detailed data available for this country

OVERALL DESCRIPTION: One of the objectives of devolution listed in the Constitution is the transfer of “responsibilities and resources from the national government in order to establish a sound financial base” for each provincial and local government. The parliament has the power to decide whether provincial and metropolitan councils should exercise revenue-raising powers or not, and according to the Provincial Councils and Administration Act, provincial councils are not entitled to this possibility. However, the Constitution does envisage local authorities exercising revenue-raising powers. Section 276(2)(a) provides that an act of Parliament may confer local authorities the “power to levy rates and taxes and generally to raise sufficient revenue for them to carry out their objects and responsibilities”. The Urban Councils and Rural District Councils Acts provide local authorities the possibility to set property tax (rates), user charges and fees and to borrow.

In practice, however, local authorities often fail to mobilise sufficient revenue to meet their needs and the NDS1 attributes this failure to factors such as gaps in the legal framework, fiscal incapacity, lack of administrative and technical capacity and the inability of local authorities to design appropriate cost recovery systems for delivered services. The Constitution also makes provision for intergovernmental grants to enhance the financial base of provincial and local governments.

TAX REVENUE: The main local taxes are the property tax/rates imposed by urban local authorities, and land development levies (also known as unit tax) imposed by rural local authorities. Property rates are levied on all properties within the jurisdiction of an urban local authority except on exempted property such as that which is owned by the national government. Land development levies are imposed on all persons who own land such as heads of households, mining companies, licenced businesses and holders of permits authorising the occupation and use of a portion of rural land. These rates and levies are imposed on the basis of a property valuation roll that each local authority must establish and update every three to 10 years.

A 2017 World Bank report revealed that in 2014, property tax was the second source of funding for local governments in Zimbabwe, at around 24.2%, and the main source of revenue for specific local authorities, particularly cities. Property rates generate significantly more revenue in cities than in other areas (municipal areas, small towns and areas governed by local boards) because cities preside over areas characterised by a higher concentration of high value property. In 2020, the City of Harare planned to raise ZWD 1.93 billion from the imposition of property tax, which was about 46% of its total own revenue income of ZWD 4.11 billion. Rural local authorities, on the other hand, do not generate much revenue from property-related taxes due to the lower concentration of valuable properties in their areas.

Outdated, inaccurate and incomprehensive rolls that do not reflect economic changes and property developments that have taken place since they were established, is a common challenge among local authorities. The report of the auditor general on local authorities for the 2018 financial year reveals that the City of Mutare was relying on a valuation roll produced in 2000 and which was yet to be updated. Besides, local authorities do not have the necessary GIS technology for mapping or the skilled personnel to establish such rolls. As a result, some properties that are placed in the wrong rating zone are either excluded from the roll or undercharged. The exemption of certain properties from property tax also undermines local revenue mobilisation through property rates.

GRANTS AND SUBSIDIES: Section 301(3) of the Constitution requires that at least 5% of nationally-raised revenue are allocated to provincial and local governments annually. The Constitution further requires the enactment of legislation to provide for the allocation of capital grants to provincial and local governments, depending on the national interest, national debt, service and development needs, fiscal capacity and efficiency at subnational level and economic disparities across provinces.

The national government effectively began transferring subnational governments their share of the nationally-raised revenue in 2019. These intergovernmental grants are locally known as “devolution funds” and must be spent towards the construction and maintenance of schools, clinics and roads; the acquisition of plants and equipment (physical or tangible long-term assets); and the development of water and sewer infrastructure, among other capital projects. A portion of the devolution funds is used to cover recurrent expenditure, particularly in rural local authorities. The government has adopted a demand driven approach where disbursements to local authorities are based on their readiness to spend the grants. The 2019 national budget made provision for the allocation of USD 310 million (about 3% of the general government budget) to subnational governments as devolution funds, versus 133.1 USD PPP million in 2020, or 4.5% of the general government budget, as “devolution funds”. However, the 2020 Annual Budget Review indicates that only ZWD 1.05 billion (USD 47.7 million PPP) or 35.8% of the planned amount, were actually disbursed to local authorities. The failure to provide the required documentation was cited as the reason for the non-disbursement of the remaining amount.

Local authorities also receive financial support from the national government through the Public Sector Investment Programme (PSIP) to fund development projects. The PSIP has been the main vehicle for funding infrastructure projects at the local level for the past three decades. The Zimbabwe National Road Administration also extend grants to local authorities to fund road construction and maintenance. A 2017 World Bank report established that in 2011, before the introduction of devolution funds, grants constituted 3% of total local government revenue, which went down to 2% in 2014. The NDS1 notes that the delivery of public services by local authorities is partially hampered by financial imbalance.

OTHER REVENUE: The Urban Councils Act and the Rural Councils Act empower local authorities to impose user charges on the provision of water, sewerage and garbage collection and any other services they may provide. These user charges must be approved by the national government. Urban local authorities tend to generate significant revenue from charges imposed on water delivery related services, unlike their rural counterparts that usually do not have piped water. Local authorities may also impose fees on certificates, licenses and permits that they issue or on inspections they may conduct. They may also generate revenue from renting and selling land and buildings. Despite these revenue-raising options, local authorities often struggle to mobilise sufficient revenue, partially due to capacity constraints, corruption and mismanagement, according to NDS1.

Local authorities may engage in commercial, industrial, agricultural or other activities such as brick moulding, beer halls and farming activities in order to generate additional income. A 2017 World Bank report indicates that most of these projects are poorly managed and not profitable. As a result, many local authorities have been forced to close these business ventures. Some local authorities, particularly rural ones, also derive revenue from the exploitation of natural resources such as mineral and wildlife. The contribution of this revenue source towards the budget varies from one local authority to another but does not generally constitute a large portion of the budget.

ⓘ No detailed data available for this country

FISCAL RULES: The Public Finance Management Act (as amended in 2016) requires local governments to follow the “generally accepted accounting practices”. It further requires that local governments put in place systems for planning, allocating, budgeting and reporting the use of public resources as well as the review of recurrent and capital budgets. Section 47 of the act makes it mandatory for every local authority to submit their proposed budget and annual plan to the minister of local government, for approval. Incurred expenditure must be in line with the approved budget. Local governments may only budget for a deficit and accumulate surpluses with the approval of National Treasury.

The Local Government Circular nº 3 of 2012 requires that local authorities comply with the 70:30 spending ratio for service delivery and employment costs. This means that the portion of the budget reserved to cover employment costs may not be more than 30% of the budget, while the remaining portion of the budget should be reserved to fund direct service delivery activities. The adoption of this circular was motivated by the need to curtail spending on remuneration, as it was dominating local spending at the expense of direct service delivery activities.

Section 309 of the Constitution provides that the auditor general of Zimbabwe shall audit all government institutions, including provincial and local governments. The auditor general’s report for the 2019 financial year presented to parliament on 31 March 2021 reveals that local governments are characterised by significant governance and service delivery problems that warrant urgent attention. It also shows that, as of 16 January 2021, 38 of the 92 local authorities were yet to submit a number of their previous financial statements for auditing. For some, the last statement submitted dated as far back as the 2015 financial year. This indicates that financial management remains a big challenge for local governments.

DEBT: Section 299 of the Constitution requires the parliament to monitor public debt, finances and the use of borrowing powers by all governments, including local authorities. Public debt, lending and guarantees are regulated by the Public Debt Management Act of 2015. The Urban Councils Act and the Rural District Councils Act allow local authorities to undertake short-term borrowing to finance recurrent expenditure through a bank overdraft or short-term loan. The legislation also allows local authorities to undertake long-term borrowing to finance capital projects. Local authorities can borrow from the national government, different funds (e.g., a pension fund) or from another local authority. Local authorities may also issue stock, bonds, debentures or bills. A local authority must comply with certain conditions to borrow money: (i) borrow funds in the domestic market; (ii) not borrow beyond the limit prescribed by the Ministry of Finance unless given permission by the relevant ministers (iii) borrowing must be done following a resolution of the local council to that effect; and (iv) any act of borrowing is subject to prior approval of ministers responsible for finance and local governments.

The 2020 Annual Budget Review of the Ministry of Finance indicates that, as of December 2020, the national public debt stood at ZWD 705.6 billion (USD 32.1 billion PPP), which was 65.9% of the GDP. The bulk of the debt (97.6%) was external debt. As for local governments, a 2017 World Bank report estimated that the total debt in 2015 was at USD 555 million, which represented 105% of total revenues raised by local authorities. The worsening economic situation since 2013 could have led the debt to increase until today. Accessing loans is not easy for local authorities and the NDS1 attributes the inability of local authorities to access loans partially to “debt overhang”.

TERRITORIAL MANAGEMENT OF THE CRISIS: Like in many countries in the region, Zimbabwe’s response to the pandemic was centrally driven with subnational governments undertaking a mere implementing role. The national government instituted legal, institutional and operational measures to manage the pandemic and ameliorate its effects. President Emmerson Mnangagwa declared a state of disaster on 17 March 2020 to enable the mobilisation of resources needed to manage the pandemic. The declaration was given legal effect by Statutory Instrument (SI) 76 of 2020 issued in terms of section 27(2) of the Civil Protection Act of 2001. A COVID-19 response plan was adopted and a Cabinet Inter-Ministerial Taskforce on COVID-19 outbreak established, led by one of the deputy vice-presidents of the country. The Taskforce was divided into eight sub-committees, each one led by a national minister. Similar sub-committees and response teams were established at provincial and district levels, with responsibilities that included monitoring and reporting on COVID-19 in their respective jurisdictions.

On 23 March 2020, few days after the first COVID-19 case was reported in Zimbabwe, the president announced more extensive measures to contain the virus. These included an initial 21-day nationwide lockdown, curfew, restrictions on intracity and intercity movement, closure of schools and limitations on public gatherings. The measures were given legal effect by the Public Health (COVID-19 Prevention, Containment and Treatment) (National Lockdown) Order (SI 83 of 2020), which empowered the minister of health to direct any local authority to set aside land or premises to be used as quarantine or isolation facilities. The lockdown and its enforcement have generally been uniform across the country, with the exception of the period from May to June of 2021, when the City of Kwekwe and towns of Kariba and Karoyi were placed on stricter lockdown that the rest of the country.

EMERGENCY MEASURES TO COPE WITH THE CRISIS AT THE DIFFERENT LEVELS OF GOVERNMENT: Local authorities adopted measures informed by the national COVID-19 response plan. Most local authorities upgraded their health facilities and identified places of isolation, while cities such as Harare and Bulawayo embarked on the sanitisation of public places. The City of Harare ramped up its water supply to households from 173 mega litres to 240 mega litres per day from April 2020 (UN-Habitat 2020) and installed hand washing facilities in public spaces. Local authorities across the country embarked on COVID-19 campaigns aimed at sensitising the public about the pandemic. Given the poor state of their finances, many local authorities did not put in place “positive” social and economic measures to compensate the adverse effects of the pandemic on local companies and households. However, they coordinated or facilitated the delivery of food parcels sourced from donors to families in need.

The main social and economic measures were those taken by the national government. On 1 May 2020, the president announced a ZWD 18 billion Economic Recovery and Stimulus Package (or USD 817.8 million PPP) to cushion the social and economic effects of the pandemic. About 13.3% of this package, corresponding to ZWD 2.4 billion (or USD 109 million PPP), were earmarked for the provision of food to at least one million vulnerable individuals for a period of eight months. COVID-19 cash transfers were made to some of the households in need. Another portion was to be directed at 200 000 micro-enterprise owners whose businesses had been adversely affected by the pandemic and the following lockdown. The support provided by the national government was insufficient to cater for all those who needed assistance. The UNDP Zimbabwe Policy Brief of 2020 estimated that by end of 2020, 59% of the total population was living with food insecurity and in need of immediate food assistance.

IMPACTS OF THE CRISIS ON SUBNATIONAL GOVERNMENT FINANCE: The pandemic and the lockdown hit local authorities that were already struggling to mobilise sufficient resources to meet their expenditure needs. The enforcement of the nationwide strict lockdown in the earlier days of the pandemic meant that local authorities could not open their revenue collection offices to the public. The closure of public places such as markets and the restrictions on movement impeded the usual fee collection based on the frequent use of public spaces by individuals and enterprises. As citizens lost their jobs, household incomes dwindled and some enterprises permanently closed their doors, they could no longer afford to pay user charges and other fees to local authorities. Local authorities relaxed the enforcement of the user-pay-principle for their services in line with national intervention measures, including through the deferment of rent and mortgage payments, as a way of cushioning the effects of the pandemic. The national government provided a COVID-19 grant to local authorities to support their COVID-19 response, particularly the provision of health services and potable water. On the other hand, some medical staff employed by local authorities were deployed to support the national response to COVID-19 on various fronts.

A common trend across is that local government spending in the health sector increased during the pandemic, mainly driven by the purchase of health protective equipment. Local authorities were forced to reallocate money from other expenditure programmes to fund this sector, to the detriment of some budgeted development projects.

ECONOMIC AND SOCIAL STIMULUS PLANS: The Economic Recovery and Stimulus Package of the national government, aimed at reinvigorating the economy and providing social relief, amounted to 9% of the GDP. These resources consisted in a reprioritisation of the 2020 national budget. The allocations to various sectors of the economy were as follows: ZWD 6.08 billion for agriculture; ZWD 3.02 billion for industries; ZWD 1 billion for mining; ZWD 500 million for SMEs; ZWD 500 million for tourism; and ZWD 20 million for the arts. The health sector was allocated ZWD 1 billion and ZWD 1.5 billion were set aside for broader relief measures.

The national government also implemented other relief measures such as the relaxation of import duties on selected raw materials purchased in 2020. Corporate tax credits for COVID-19 donations of up to 50% of the expenditure were introduced. According to National Treasury, the objective was to “enable companies to have funds which can be invested back to the businesses to boost the working capital in order to sustain businesses”. The National Treasury also announced the reduction of productive sector lending interest to not more than 20% and the need to restructure loans to enable businesses to recover. The relevant regulatory guidelines and benchmarks were reviewed to support this restructuring. Lastly, statutory reserve requirements on banks were reduced, so as to increase their capacity to lend. At least ZWD 2 billion (USD 90.9 million PPP) liquidity release was expected to be generated from this arrangement.