daniel chigunwe
Rumbidzayi Zinyuke
Senior Health Reporter
Zimbabwe is turning to locally generated revenue to sustain the health sector following the withdrawal of US funding for key health programmes, including HIV interventions under the President’s Emergency Plan for AIDS Relief (PEPFAR).
Finance and Economic Development Minister Professor Mthuli Ncube said Government is intensifying the use of levies on alcohol, cigarettes, fast food, and sugary beverages, commonly known as sin taxes, to bolster health sector funding.
“We have quite a portfolio of various taxes that will be applied towards the budget needs of the health sector.
“Of course, the actions taken by certain donors to withdraw funding put pressure on us, but with the resources raised from these sin taxes, we believe we can address some of the challenges,” he said.
The funding gap follows an executive order signed by US President Donald Trump, which saw Washington withdraw from the World Health Organisation (WHO) and halted foreign assistance for 90 days as part of a realignment of that country’s foreign aid policy.
More than 20 million people globally, accounting for two-thirds of all people living with HIV accessing HIV treatment, are directly supported under PEPFAR.
In Zimbabwe, PEPFAR is the leading funder of HIV programming and the organisation had committed US$210 million to Zimbabwe in 2024 and US$200 million from October 2024 to September 2025.
Prof Ncube said the local taxes, including the AIDS Levy, would help sustain HIV programmes.
“For HIV specifically, we also have the AIDS levy, which remains in place. I have been saying for the last three years that we need these sin taxes to support our health sector, and times like these prove why it is necessary.
“Of course, our hope is that after the 90 days’ review on PEPFAR, for example, subsidy programmes will resume. We are just hopeful but we have to be ready. We have to put our own resources and other resources to support the health sector needs,” he added.
The Finance Minister also reassured that budget disbursements, including funds from sin taxes, were ongoing to sustain critical healthcare services, such as cancer treatment.
“This is a continuous budget implementation process. Where there is a need, we provide funding. I am pleased that we have a dedicated revenue stream from sin taxes that we can apply specifically to the health sector.”
The move to increase reliance on local revenue marks a significant shift in Zimbabwe’s health financing strategy. However, concerns remain about whether sin taxes and the AIDS Levy alone can adequately fill the gap left created by the halting of international funding, given Zimbabwe’s economic challenges and high disease burden.
Online Reporter