Online Reporter
Robin Muchetu, Health and Gender Editor
PROPOSALS to harness the National Aids Trust Fund (Aids Levy) from the informal sector have been presented by the National Aids Council (NAC) in an effort to bolster funding for the HIV response in Zimbabwe.
The proposal follows a significant funding gap exacerbated by the suspension of foreign aid by the US government that threatens Zimbabwe’s ongoing HIV response efforts and underscores the pressing need for increased domestic financing.
The Aids Levy, which is three percent of every worker’s taxable income collected monthly, is expected to generate a total of US$75 million by 2025.
The Global Fund, an international partner, has been funding the response with US$500 million annually.
NAC’s Director of Finance and Administration Mr Albert Manenji indicated that efforts are now being directed towards involving the informal sector in contributing to the Aids Levy.
He noted that 75 percent of funding is presently derived from external sources, highlighting an urgent need to bridge this gap by tapping into the informal economy.
“We have conducted studies within the informal sector, and there is a willingness to contribute to the Aids Levy. However, the challenge lies in the collection process. Some suggest that local authorities could handle the collection, but this has met with some reservations,” Mr Manenji explained.
The informal sector represents a significant portion of Zimbabwe’s economy, making it a key area for potential funding.
“It is well-known that our economy increasingly operates within the informal sector, which presents both challenges and opportunities,” he added.
Mr Nketha Dlamini, Co-ordinator of the Bulawayo Chamber of Small to Medium Enterprises, emphasised the importance of broader consultations regarding the informal sector’s contributions.
“While the cause is noble, we must carefully consider the burden on the informal sector. Many are just starting out and struggling with existing levies and taxes. Adding another tax could jeopardise their growth and sustainability,” he said.
Mr Dlamini warned against creating an unsustainable environment where businesses are overtaxed and pushed underground.
“It is crucial that NAC engage stakeholders across various levels to foster open dialogue and strategise collaboratively before implementing any changes,” he urged.
Mr Itai Rusike, Executive Director of the Community Working Group on Health (CWGH), acknowledged the potential of the informal sector to contribute but stressed the need for careful planning.
“While the idea of collecting the Aids Levy from the informal sector is commendable, it is essential to recognise the diverse capacities of different players within this sector. Any scheme must cater to these varying capacities to avoid overburdening struggling entrepreneurs,” he cautioned.
Mr Rusike noted that while some countries have successfully collected funds from the informal sector, they often faced challenges that must be acknowledged.
“Engaging informal sector representatives through their associations is vital to create a scheme that truly addresses their unique challenges,” he suggested.
Mr Manenji however, pointed out the potential for generating additional domestic funding by targeting capital projects.
“For example, when widening roads, we propose allocating a percentage of the project budget to address social impacts, including awareness and prevention initiatives related to HIV,” he stated.
He emphasised the importance of preventive measures alongside ongoing projects, arguing that it is more cost-effective to prevent HIV than to treat it.
“Educational campaigns that coincide with major infrastructure developments can help combat HIV while reaping the economic benefits of these projects,” he added.
Mr Manenji noted that Zimbabwe should rely less on external support in the fight against HIV/Aids and focus on domestic solutions.
“To increase local funding, integrating the Ministry of Health into these efforts is essential,” he explained.
NAC recognises the need to learn from current challenges in securing international donor support for HIV, TB and malaria initiatives.
“Creative ideas drive funding. We must generate innovative proposals to attract financial support, as evidenced by our success in meeting the 95-95-95 targets,” he noted.
Londile Moyo