Government boosts devolution funding in 2026-2028

Debra Matabvu, Harare Bureau

BULAWAYO is set to receive ZiG153 million (US$5,7 million) this year under the Government’s devolution and decentralisation programme, while Matabeleland North and South provinces will jointly receive a combined ZiG2,4 billion (US$88,8 million), Treasury has revealed.

Nationally, the Government will disburse more than ZiG14 billion (US$518 million) to local authorities in 2026, marking one of the largest single year commitments to devolution since the programme was launched in 2018.

The allocation raises national spending on devolution to 4,83 percent of total Government revenue, edging Zimbabwe closer to the constitutional requirement that at least five percent of nationally collected revenue be transferred annually to lower tiers of Government.

Details of the funding are outlined in Treasury’s 2026 Infrastructure Investment Programme, which projects a sharp escalation in devolution allocations over the medium term, rising to ZiG25 billion (US$926 million) in 2027 and ZiG36 billion (US$1,33 billion) in 2028.

Devolution is anchored in Sections 264 and 301 of the Constitution and seeks to transfer decision making authority, development planning responsibilities and financial resources from central Government to provincial and local authorities.

The objective is to promote equitable development, reduce regional disparities and empower communities to drive their own socio economic transformation.

Treasury said devolution funds in 2026 will be directed towards high impact projects across key social and economic sectors, including education, healthcare, water and sanitation, road infrastructure and other essential public amenities.

“The provision of essential infrastructure services through devolution will reduce developmental disparities that exist within communities through inclusive regional development in line with the current mantra of ‘leaving no one and no place behind,” reads the Infrastructure Investment Programme.

The report notes that during the first phase of the National Development Strategy (NDS1), several high impact infrastructure projects were completed nationwide using devolution funds, while numerous others remain under implementation.

However, Treasury acknowledged that progress has at times been slowed by delays in the release of funds, largely due to fiscal constraints and competing national priorities.

“Notwithstanding the progress achieved under the implementation of devolution projects, on account of limited fiscal space and competing Government priorities, there have been delays in the disbursement of devolution funding,” Treasury said.

To address the challenge, Government is developing a predictable cash flow framework for Intergovernmental Fiscal Transfers (IGFTs) to ensure consistent and timely disbursements to local authorities, thereby improving project implementation and completion rates.

Going forward, Treasury said priority will be placed on completing ongoing projects before approving new ones, while simultaneously strengthening the technical, financial and institutional capacity of local authorities.

Under the 2026–2028 medium term framework, Bulawayo’s allocation is projected to rise from ZiG153 million in 2026 to ZiG276 million in 2027 and ZiG386 million in 2028.

“Of importance to note is that priority should be placed on ongoing projects whilst new projects will be taken on board once the ongoing projects are completed. In consideration of the capacity gaps that exist within local authorities, focus will be on identification of capacity gaps within sub national tiers of Government and communities with a view to strengthen the human, financial, technical and institutional capacities necessary for effective service delivery at the local level,” the plan says.

Under the 2026–2028 medium term framework, Harare is projected to receive ZiG669 million (US$24,8 million) in 2026, ZiG1,2 billion (US$44,4 million) in 2027 and ZiG1,6 billion (US$59,3 million) in 2028. Bulawayo is expected to receive ZiG153 million (US$5,7 million) in 2026, ZiG276 million (US$10,2 million) in 2027 and ZiG386 million (US$14,3 million) in 2028.

Manicaland Province has been allocated ZiG1,4 billion (US$51,9 million) in 2026, ZiG2,6 billion (US$96,3 million) in 2027 and ZiG3,6 billion (US$133,3 million) in 2028. Mashonaland Central Province is also set to receive ZiG1,4 billion (US$51,9 million) in 2026, ZiG2,6 billion (US$96,3 million) in 2027 and ZiG3,6 billion (US$133,3 million) in 2028.

Mashonaland East Province will receive ZiG1,4 billion (US$51,9 million) in 2026, ZiG2,5 billion (US$92,6 million) in 2027 and ZiG3,5 billion (US$129,6 million) in 2028. Mashonaland West Province is projected to receive ZiG1,8 billion (US$66,7 million) in 2026, ZiG3,2 billion (US$118,5 million) in 2027 and ZiG4,5 billion (US$166,7 million) in 2028.

Matabeleland North Province has been allocated ZiG1,2 billion (US$44,4 million) in 2026 and ZiG2,2 billion (US$81,5 million) in 2027. Matabeleland South Province is set to receive ZiG1,2 billion (US$44,4 million) in 2026, ZiG2,2 billion (US$81,5 million) in 2027 and ZiG3,1 billion (US$114,8 million) in 2028.
Midlands Province will receive ZiG1,7 billion (US$63 million) in 2026, ZiG3,1 billion (US$114,8 million) in 2027 and ZiG4,3 billion (US$159,3 million) in 2028. Masvingo Province is projected to receive ZiG1,2 billion (US$44,4 million) in 2026, ZiG2,2 billion (US$81,5 million) in 2027 and ZiG3,2 billion (US$118,5 million) in 2028.

Presenting the 2026 National Budget, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said Government would continue strengthening local authorities through the Local Economic Development (LED) Programme to reduce over reliance on the fiscus.

“Intergovernmental Fiscal Transfers will continue to be directed towards supporting development, with a strong focus on improving the quality and accessibility of public services,” Prof Ncube said.

He added that finalising the Devolution Act and aligning regulatory and institutional frameworks with the Constitution would facilitate full operationalisation of the devolution agenda.

“In 2026, priority will be on ongoing projects, including the completion of composite office blocks in Mutoko, Siakobvu and Wedza, as well as refurbishment of public buildings and urban renewal programmes,” Prof Ncube said.

Since 2018, Government has channelled billions of dollars into local authorities, resulting in the construction of schools, clinics, roads, water systems and community facilities, particularly in previously marginalised districts.

The sharp scaling up of funding from 2026 marks a decisive push to entrench devolution as a central pillar of Zimbabwe’s development strategy under the National Development Strategy 2 (NDS2).