IMPLEMENTATION OF ECONOMIC EMPOWERMENT THROUGH COMMUNITY SHARE OWNERSHIP TRUSTS AND RESERVED SECTORS
Cabinet considered and approved proposals on the Operationalisation of
the Community Share Ownership Trusts and Reserved Sectors policy.
Community Share Ownership Trusts were established to ensure that local
communities benefit from the extraction and exploitation of natural
resources within their areas. In accordance with the legislative framework
promulgated in 2013, sixty-one (61) Community Share Ownership Trusts
were established, with 58 subsequently being registered.
To revitalise the Community Share Ownership Trusts programme,
Government will undertake a comprehensive review of the implementation
framework and provide corporate rescue support to struggling Trusts. A
robust economic empowerment policy and regulations will be developed to
ensure effective and transparent management of Community Share
Ownership Trusts. Additionally, efforts will be made to publicise the
existence of Community Share Ownership Trusts and ensure
comprehensive audits of fund utilisation.
2.0 UPDATE ON THE IMPLEMENTATION OF THE ZIMBABWE
INDUSTRIAL RECONSTRUCTION AND GROWTH PLAN (2024
2025): THE PHARMACEUTICAL VALUE CHAIN
Cabinet received and noted the Update on the Implementation of the
Zimbabwe Industrial Reconstruction and Growth Plan (2024-2025) as it
pertains to the Pharmaceutical Value Chain.
The Pharmaceutical sector has been identified as a key priority area within
the Zimbabwe Industrial Reconstruction and Growth Plan (2024-2025),
given its significant growth and import substitution potential. The strategic
objective of the value chain is to increase the proportion of locally
produced essential medicines from 30% to 60% by 2025 and reduce the
national medicines import bill from approximately US$220 million in 2020
to around US$100 million by end of 2025.
As of 2023, the pharmaceutical market size was estimated at US$400
million. Since 2020, the local pharmaceutical value chain has experienced
tremendous growth, with the percentage of locally produced essential
medicines increasing from 15% to 36%. Additionally, capacity utilisation
has risen significantly from 12% in 2020 to 51% in 2024. The sector has
also seen an influx of new entrants, resulting in a 56% increase in the total
number of producers, from 9 to 14.
Although pharmaceutical exports remain lower than imports, there was a
notable 15.6% rebound between 2020 and 2024, with exports growing
from US$4.5 million to US$5.2 million. Furthermore, the import
management strategy has enabled two indigenous pharmaceutical retailers
to transition into manufacturing. Notably, the Medicines Control Authority
of Zimbabwe has achieved Maturity Level 3 of the World Health
Organisation’s benchmarking tool, indicating a stable and well-functioning
regulatory system.
To guarantee continued growth of the Pharmaceutical Value Chain, the
Government of Zimbabwe will continue to provide adequate funding to
NATPHARM and commit to ensuring sustained uptake of locally produced
drugs by public agencies as well as by the private sector. A Pharmaceutical
Revolving Fund will be established to provide affordable financing for the
industry. Furthermore, the VAT zero-rating on pharmaceutical products will
be reinstated, and the reliance on drug imports will be reduced by
establishing local drug testing capabilities. The Sugar Content Tax will also
be prioritised to enhance financial support for the manufacturing of
essential drugs.
3.0 PRINCIPLES OF THE ROAD ACCIDENT FUND BILL
Cabinet received and approved the Principles of the Road Accident Fund
Bill.
The main objective of the Road Accident Fund Bill which will emerge from
the Principles is to reduce deaths and injuries from road traffic accidents by
2030 through access to safe, affordable, and sustainable transport systems
as well as improving road safety for all.
The Road Accident Fund Bill seeks to address the current post-accident
management framework, with the existing insurance packages lacking
provision for immediate evacuation of accident survivors to medical
facilities. Emergency services providers are reluctant to provide medical
services in instances when payment for service is not guaranteed. The
current liability cover is inadequate to cover medical and funeral expenses.
The Road Accident Fund will place greater focus on enhanced
responsiveness to post-crash emergencies in order to improve the ability of
health and related systems to offer appropriate emergency treatment and
longer-term rehabilitation for accident victims. The Fund will provide
immediate recourse to medical and funeral expenses, and enhance the
capacity of emergency services providers and medical institutions to
effectively respond to road accidents to save lives. The Road Accident
Fund will be funded from Motor Vehicle Insurance premiums and any other
such funds appropriated by Treasury.
4.0 LEGISLATIVE PROGRAMME
Under the Legislative Programme, Cabinet considered and approved the
following: the Occupational Safety and Health Bill, 2025; and the
Ratification of the Treaty between the Republic of Zimbabwe and the
People’s Republic of China on Mutual Legal Assistance in Criminal Matters.
More specifically,
4.1 The Occupational Safety and Health Bill, 2025
The main objective of the Occupational Safety and Health (OSH) Bill is to
consolidate and broaden the scope of OSH legislation and align with
International Labour Organisation Conventions, namely: Convention 155 on
Occupational Safety and Health; Convention 161 on Occupational Health
Services; Asbestos Convention 162; Chemicals Convention 170; Convention
174 on the Prevention of Major Industrial Accidents; Convention 176 on
Safety and Health in Mines as well as Convention 187 on Promotional
Framework for Occupational Safety and Health.
Prior to consolidation, Occupational Safety and Health legislation was
fragmented, limited in scope and did not cover all key industrial sectors.
The new legislation will result in the promotion of occupational safety and
health through the elimination of occupational accidents, injuries, diseases
and fatalities at the workplace. On promulgation, the new legislation will
repeal the Pneumonoconiosis and Factories and Works Acts.
4.2 Ratification of the Treaty Between the Republic of Zimbabwe
and the People’s Republic of China on Mutual Legal Assistance in Criminal Matters
Zimbabwe signed the Treaty on Mutual Legal Assistance in Criminal Matters
with China in September 2024. The Treaty provides the basis for
undertaking mutual assistance with investigations, prosecutions and judicial
proceedings related to criminal matters. The mutual assistance will be,
inter alia, in the form of service of documents, disposal of proceeds of
crime, exchange of information on the law and the transfer of persons in
custody for the purpose of giving or assisting with evidence collation.
Ratification of the Treaty is important as it will enhance mutual judicial
processes and promote effective cooperation between the two countries.
Ratification of the Treaty will also help strengthen the country’s diplomatic
relations with other countries, demonstrate commitment to international
cooperation and promote adherence to global best practices.
