Zimbabwe will strengthen domestic resource mobilisation to fund the health sector following the United States’ withdrawal from the World Health Organisation (WHO), Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, has said.
The US has been a major global funder of various health programmes.
The country’s withdrawal from WHO signals a likely reduction in support for countries like Zimbabwe, which rely on PEPFAR funding for the HIV and AIDS programme.
Prof Ncube shared these insights during an online meeting with the media, providing updates on the ongoing World Economic Forum (WEF) annual meeting in Davos, Switzerland.
“One issue which we noted is the US pulling out of WHO, which we felt perhaps will signal reduced support for countries such as Zimbabwe as you know Zimbabwe relies on PEPFAR funding directly from the US government for supporting our HIV and AIDS programmes,” he said.
To address the potential funding gap, Prof Ncube highlighted the importance of increasing domestic health sector funding.
He suggested directing earmarked taxes, such as the sugar content tax and a proposed tax on fast foods, towards health initiatives.
“So far, the sugar content tax introduced last year has raised about US$31 million. These funds will be ring-fenced for procuring cancer machines and essential drugs,” he added.
Prof Ncube stressed the urgency of preparing for reduced healthcare support, particularly for critical programmes like PEPFAR, though no official communication on its status has been received.
“We just felt that perhaps this thing is posing a danger to PEPFAR, but we have not received any official communication yet, that PEPFAR is in danger but if it is then we have a challenge. Our response should be that of domestic resource mobilisation,” he said.
The WEF annual meeting, themed, “Collaboration for the Intelligent Age,” runs from January 20 to 24 in Davos Klosters, Switzerland.
It brings together global leaders to address challenges such as geopolitical shocks, economic growth, and an inclusive energy transition.
Leading Zimbabwe’s delegation, Prof Ncube, who also chairs the Committee of African Finance Ministers, has been advocating for reforms to the global financial architecture to better serve developing nations, particularly in Africa.
Prof Ncube highlighted the importance of accessing climate funding to mitigate the effects of climate shocks like El Nino.
He urged Zimbabwe to view climate challenges as investment opportunities, stressing the need to invest in electric vehicles, cleaner railway infrastructure, and other green technologies.
Prof Ncube called for the creation of enabling regulatory frameworks and infrastructure to support investment in digital technologies, ensuring the sector thrives.
