Treasury ring-fences ZWG9,9bn for social safety nets

TREASURY has ring-fenced ZWG9.9 billion for social safety nets in the current budget, with targeted cash transfers and food support programmes set to benefit the most vulnerable households across the country.

Ring-fencing social safety nets means that funds allocated for social protection programmes are legally protected and cannot be diverted to other Government expenditure.

This ensures that resources meant for the poor and vulnerable remain dedicated to their intended purpose, even when fiscal pressures arise.

Deputy Minister of Finance, Economic Development and Investment Promotion, David Mnangagwa, revealed this in a recent interview where he stated that the Government had taken deliberate steps to protect the most vulnerable members of society.

“Government has taken deliberate steps to protect the most vulnerable members of our society by ring-fencing a total of ZWG9.9 billion for social safety nets in the current budget,” he said.

“This ensures that these critical resources are secured and cannot be redirected to other purposes. Specifically, from this allocation, ZWG1 billion has been ring-fenced for targeted cash transfers to support the most vulnerable households, while ZWG1.1 billion has been ring-fenced for food support programmes to ensure food security for those in need.”

The ring-fencing of these funds comes at a critical time, as Zimbabwe braces for an El Niño-induced drought that has been predicted to significantly reduce agricultural output and threaten food security for millions of households.

The drought is expected to hit vulnerable communities hardest, making social safety nets an essential lifeline.

As such, Deputy Minister Mnangagwa further highlighted the Government’s efforts to ensure transparency and prevent leakage in the distribution of social protection funds.

“On how we are going to ensure transparency and prevent leakage, to address the critical issue of transparent monitoring and to prevent leakage or politicisation, the Government, in partnership with the World Bank, is investing in a robust institutional mechanism.

“We have budgeted for resources to facilitate the establishment of the Zimbabwe Social Registry. This is a comprehensive digital platform designed to transform the management of all social safety nets,” he said.

The registry will enable the electronic tracking of every stage of social protection, from the initial targeting criteria and beneficiary selection right through to implementation, monitoring and final reporting.

“By digitising these processes, the system will significantly enhance transparency, ensure accountability, and promote the efficient use of public resources, thereby minimising the risk of funds being misdirected or politicised,” said Deputy Minister Mnangagwa.

On pensions, he acknowledged the need to ensure their value is maintained.

“The pensions are currently pegged in US dollars. This mechanism allows them to be self-adjusting, moving in line with macro-economic changes to preserve the purchasing power of pensioners.

“Furthermore, beyond this automatic adjustment, the Government reviews the overall value of pensions within the broader context of the civil service, the remuneration framework, as and when the fiscal resources improve,” he said.

The establishment of the Zimbabwe Social Registry is expected to be a game-changer in the management of social protection programmes, ensuring that resources reach those who need them most while eliminating inefficiencies and political interference.

As the country prepares for the potentially devastating effects of the El Niño-induced drought, the ring-fencing of these funds and the investment in a robust social registry demonstrate the Government’s commitment to protecting its most vulnerable citizens.