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Zimbabwe Cabinet 15TH Post-Cabinet Press Briefing JUNE 3, 2025
Today, June 3, 2025, His Excellency the President, Dr ED Mnangagwa chaired the 15th Cabinet Meeting and the following issues, among others, were considered and approved:
1.0 Implementation Of Economic Empowerment Through Community Share Ownership Trusts And Reserved Sectors
Cabinet considered and approved proposals on the Operationalisation of the Community Share Ownership Trusts and Reserved Sectors policy.
Community Share Ownership Trusts were established to ensure that local communities benefit from the extraction and exploitation of natural resources within their areas. In accordance with the legislative framework promulgated in 2013, sixty-one (61) Community Share Ownership Trusts were established, with 58 subsequently being registered.
To revitalise the Community Share Ownership Trusts programme, Government will undertake a comprehensive review of the implementation framework and provide corporate rescue support to struggling Trusts. A robust economic empowerment policy and regulations will be developed to ensure effective and transparent management of Community Share Ownership Trusts. Additionally, efforts will be made to publicise the existence of Community Share Ownership Trusts and ensure comprehensive audits of fund utilisation.
2.0 Update On The Implementation Of The Zimbabwe Industrial Reconstruction And Growth Plan (2024-2025): The Pharmaceutical Value Chain
Cabinet received and noted the Update on the Implementation of the Zimbabwe Industrial Reconstruction and Growth Plan (2024-2025) as it pertains to the Pharmaceutical Value Chain.
The Pharmaceutical sector has been identified as a key priority area within the Zimbabwe Industrial Reconstruction and Growth Plan (2024-2025), given its significant growth and import substitution potential. The strategic objective of the value chain is to increase the proportion of locally produced essential medicines from 30 percent to 60 percent by 2025 and reduce the national medicines import bill from approximately US$220 million in 2020 to around US$100 million by end of 2025.
As of 2023, the pharmaceutical market size was estimated at US$400 million. Since 2020, the local pharmaceutical value chain has experienced tremendous growth, with the percentage of locally produced essential medicines increasing from 15 percent to 36 percent. Additionally, capacity utilisation has risen significantly from 12 percent in 2020 to 51 percent in 2024. The sector has also seen an influx of new entrants, resulting in a 56 percent increase in the total number of producers, from 9 to 14.
Although pharmaceutical exports remain lower than imports, there was a notable 15.6 percent rebound between 2020 and 2024, with exports growing from US$4.5 million to US$5.2 million. Furthermore, the import management strategy has enabled two indigenous pharmaceutical retailers to transition into manufacturing. Notably, the Medicines Control Authority of Zimbabwe has achieved Maturity Level 3 of the World Health Organisation’s benchmarking tool, indicating a stable and well-functioning regulatory system.
To guarantee continued growth of the Pharmaceutical Value Chain, the Government of Zimbabwe will continue to provide adequate funding to NatPharm and commit to ensuring sustained uptake of locally produced drugs by public agencies as well as by the private sector. A Pharmaceutical Revolving Fund will be established to provide affordable financing for the industry. Furthermore, the VAT zero-rating on pharmaceutical products will be reinstated, and the reliance on drug imports will be reduced by establishing local drug testing capabilities. The Sugar Content Tax will also be prioritised to enhance financial support for the manufacturing of essential drugs.
3.0 Principles Of The Road Accident Fund Bill
Cabinet received and approved the Principles of the Road Accident Fund Bill.
The main objective of the Road Accident Fund Bill which will emerge from the Principles is to reduce deaths and injuries from road traffic accidents by 2030 through access to safe, affordable, and sustainable transport systems as well as improving road safety for all.
The Road Accident Fund Bill seeks to address the current post-accident management framework, with the existing insurance packages lacking provision for immediate evacuation of accident survivors to medical facilities. Emergency services providers are reluctant to provide medical services in instances when payment for service is not guaranteed. The current liability cover is inadequate to cover medical and funeral expenses.
The Road Accident Fund will place greater focus on enhanced responsiveness to post-crash emergencies in order to improve the ability of health and related systems to offer appropriate emergency treatment and longer-term rehabilitation for accident victims. The Fund will provide immediate recourse to medical and funeral expenses, and enhance the capacity of emergency services providers and medical institutions to effectively respond to road accidents to save lives. The Road Accident Fund will be funded from Motor Vehicle Insurance premiums and any other such funds appropriated by Treasury.
4.0 Legislative Programme
Under the Legislative Programme, Cabinet considered and approved the following: the Occupational Safety and Health Bill, 2025; and the Ratification of the Treaty between the Republic of Zimbabwe and the People’s Republic of China on Mutual Legal Assistance in Criminal Matters.
More specifically,
4.1 The Occupational Safety and Health Bill, 2025
The main objective of the Occupational Safety and Health (OSH) Bill is to consolidate and broaden the scope of OSH legislation and align with International Labour Organisation Conventions, namely: Convention 155 on Occupational Safety and Health; Convention 161 on Occupational Health Services; Asbestos Convention 162; Chemicals Convention 170; Convention 174 on the Prevention of Major Industrial Accidents; Convention 176 on Safety and Health in Mines as well as Convention 187 on Promotional Framework for Occupational Safety and Health.
Prior to consolidation, Occupational Safety and Health legislation was fragmented, limited in scope and did not cover all key industrial sectors.
The new legislation will result in the promotion of occupational safety and health through the elimination of occupational accidents, injuries, diseases and fatalities at the workplace. On promulgation, the new legislation will repeal the Pneumonoconiosis and Factories and Works Acts.
4.2 Ratification of the Treaty Between the Republic of Zimbabwe and the People’s Republic of China on Mutual Legal Assistance in Criminal Matters
Zimbabwe signed the Treaty on Mutual Legal Assistance in Criminal Matters with China in September 2024. The Treaty provides the basis for undertaking mutual assistance with investigations, prosecutions and judicial proceedings related to criminal matters. The mutual assistance will be, inter alia, in the form of service of documents, disposal of proceeds of crime, exchange of information on the law and the transfer of persons in custody for the purpose of giving or assisting with evidence collation.
Ratification of the Treaty is important as it will enhance mutual judicial processes and promote effective cooperation between the two countries.
Ratification of the Treaty will also help strengthen the country’s diplomatic relations with other countries, demonstrate commitment to international cooperation and promote adherence to global best practices.
I Thank You!
Online Reporter