The Zimbabwe government has implemented a series of austerity measures aimed at curbing overspending and promoting fiscal discipline across all ministries, departments, and agencies (MDAs). These new rules, effective immediately, cover a wide range of operational areas, including procurement, travel, recruitment, and capital projects.

 

Procurement and Contracts

 

To tighten control over government spending, new contract regulations have been put in place:

  • Any contract of US$2 million and above requires prior written approval from the Treasury.
  • Contracts below US$2 million must be strictly within the current year’s budget allocation.
  • Any contracts signed in violation of these rules will be considered void and will not be honored.
  • The government will make no payments for unbudgeted expenditures.

 

Workshops and Training

 

  • MDAs must now use government training institutions, such as the ZIPAM and PSC Academies, for all local workshops.
  • Workshops should be held as close to the participants as possible to minimize transport and subsistence costs.
  • All local workshops and conferences are suspended for the remainder of 2025, with the exception of those that are statutory or strategically essential.

 

Travel and Allowances

 

  • All government-funded foreign trips and workshops have been suspended. The only exception is for trips funded by external agencies, not by the government, state-owned enterprises (SOEs), or local authorities.
  • Special per diem rates have been abolished. Standard Treasury/PSC rates will now apply to all local and foreign travel.

 

Vehicle Use

 

  • The hiring of vehicles is banned for all MDAs that are dependent on the Consolidated Revenue Fund.
  • Logbooks for all pool vehicles must be audited every two weeks.
  • Government drivers are prohibited from taking vehicles home after hours, on weekends, or on public holidays.

 

Recruitment

 

  • A general freeze on new recruitment is now in effect.
  • Recruitment is only permitted in critical sectors such as health, education, and security, and is limited to posts that have already been budgeted for.

 

Salaries and Operational Costs

 

  • To enhance transparency and reduce leakages, all institutions funded by the Consolidated Revenue Fund must immediately migrate to the SSB payroll system for centralized salary payments.
  • Fuel allocations across all ministries have been cut by 25%. A detailed annexure outlining the revised allocations is available.

 

Capital Expenditure

 

Funding for capital projects will now be limited to three specific categories:

  • High-impact projects that are designed to drive economic growth or reduce risks to life.
  • Projects that require protective works (e.g., against heavy rains).
  • Ongoing projects with existing payment commitments.

The procurement of new vehicles, furniture, and equipment has been deferred until 2026, unless it was already approved prior to these new measures.

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