Zimbabwe Strengthens Health Financing Through New Levies and Strategic Reforms

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HARARE, Zimbabwe, – Zimbabwe has reaffirmed its commitment to bolstering the healthcare sector through innovative financing mechanisms, including a health levy, a sugar tax, and the planned establishment of National Health Insurance.

According to the APO Group, these strategies were unveiled during a three-day national dialogue on health financing, which brought together government officials, healthcare providers, civil society, and international experts to discuss sustainable funding solutions.

Deputy Minister of Finance, Economic Development and Investment Promotion, Kudakwashe Mnangagwa, revealed that $10 million has been raised through the Health Levy and an additional $18 million through a sugar tax. These funds are earmarked to strengthen healthcare services and improve access for all Zimbabweans.

“We will hold regular meetings between the Treasury and the Ministry of Health and Child Care (MoHCC) to address major challenges, such as budget utilisation, cash support, and disbursements while establishing a minimum monthly health sector requirement to guide our cash flows,” Mnangagwa announced during the dialogue.

Healthcare Challenges and Abuja Declaration Target

Zimbabwe’s healthcare system continues to grapple with limited resources and rising costs, falling short of the Abuja Declaration’s target of allocating 15% of the national budget to health. Stakeholders highlighted the need to increase public revenue for healthcare, stabilise funding flows, and strengthen accountability.

To bridge funding gaps, participants proposed levies on unhealthy products such as tobacco and alcohol, a model adopted successfully by countries like Vietnam and South Africa. Other revenue streams discussed included diaspora remittances, climate financing, and investment in preventive health programmes.

Key Recommendations from the Dialogue

Recommendations from the dialogue emphasised prioritising preventive healthcare, expanding immunisation programmes, and addressing high-burden diseases. Collaborative efforts between the public and private sectors, efficient cost-recovery mechanisms, and capacity building for health workers were identified as essential steps to improve service delivery.

Additional strategies included:

  • Consolidating management structures for cost-effective healthcare delivery.
  • Strengthening community involvement and civil society collaboration.
  • Promoting regional and national knowledge-sharing initiatives.
  • Leveraging indigenous knowledge systems to enhance healthcare strategies.

WHO Pledges Support for Universal Health Coverage

Dr Desta Tiruneh, the World Health Organization (WHO) Representative to Zimbabwe, commended the government’s efforts in health financing reforms. He urged collaboration between the MoHCC, the Ministry of Finance, and Parliament to implement the recommendations and ensure equitable access to healthcare.

“The WHO is committed to supporting Zimbabwe’s journey towards achieving Universal Health Coverage (UHC) and implementing the outcomes of this critical dialogue,” Dr Tiruneh affirmed.

The dialogue’s outcomes signal a renewed focus on addressing Zimbabwe’s healthcare challenges and achieving sustainable financing to improve access and equity in healthcare services.