Government Disburses ZiG14bn to Local Authorities Under Devolution Programme

Government is set to disburse more than ZiG14 billion (about US$518 million) to local authorities this year under the devolution and decentralisation programme, pushing national spending on devolution to 4,83 percent of total Government revenue.

This increased allocation brings Zimbabwe closer to meeting the constitutional requirement of at least five percent of nationally collected revenue being transferred annually to lower tiers of Government.

According to Treasury’s 2026 Infrastructure Investment Programme, the latest allocation represents one of the largest annual commitments to devolution since the programme’s launch in 2018 and is expected to fast-track the implementation of community-based infrastructure projects across the country.

Treasury projections indicate that devolution funding will continue to grow significantly over the medium term. Allocations are forecast to rise to ZiG25 billion (US$926 million) in 2027 and ZiG36 billion (US$1,33 billion) in 2028, nearly tripling within three years.

Devolution is provided for under Sections 264 and 301 of the Constitution, which seek to decentralise decision-making, development planning and financial resources from central Government to provincial and local authorities. The framework aims to promote balanced development, reduce regional inequalities and empower communities to drive their own socio-economic progress.

Under this arrangement, local authorities receive funding to support infrastructure development, service delivery and local economic initiatives in sectors such as education, health, water and sanitation, roads and public amenities.

Treasury noted that during the first phase of the National Development Strategy (NDS1), several high-impact projects were successfully completed using devolution funds, while others remain at various stages of implementation.

However, the ministry acknowledged that progress has occasionally been slowed by delays in the release of funds, largely due to limited fiscal space and competing national priorities.

Despite these challenges, Government is now working on establishing a predictable cash-flow framework for Intergovernmental Fiscal Transfers (IGFTs) to ensure timely and consistent disbursement of funds to local authorities, thereby improving project completion rates.

Going forward, priority will be placed on finalising ongoing projects before approving new ones. Treasury also plans to strengthen the technical, financial and institutional capacity of local authorities to enhance effective service delivery.

Under the 2026–2028 medium-term framework, major urban centres and provinces are set to receive substantial funding increases. Harare, for example, is projected to receive ZiG669 million in 2026, rising to ZiG1,6 billion by 2028, while Bulawayo’s allocation is expected to grow from ZiG153 million in 2026 to ZiG386 million in 2028.

Provincial allocations are also set to rise sharply, with Manicaland, Mashonaland Central and Mashonaland East each receiving more than ZiG1,4 billion in 2026, with further increases projected through 2028. Similar upward trends are forecast for Mashonaland West, Midlands, Masvingo, Matabeleland North and Matabeleland South.

Presenting the 2026 National Budget, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said Government would continue empowering local authorities through the Local Economic Development (LED) Programme to reduce dependence on central Government funding.

“Intergovernmental Fiscal Transfers will remain focused on supporting development, with particular emphasis on improving the quality and accessibility of public services,” Prof Ncube said.

He added that the finalisation of the Devolution Act and alignment of regulatory and institutional frameworks with the Constitution would enable full implementation of the devolution agenda.

Priority projects for 2026 include the completion of composite office blocks in Mutoko, Siakobvu and Wedza, refurbishment of public buildings and the rollout of urban renewal programmes.

Since the introduction of devolution in 2018, Government has channelled billions of dollars to local authorities, leading to the construction of schools, clinics, roads, water infrastructure and community facilities, particularly in previously marginalised areas.

The sharp increase in funding from 2026 signals a renewed push to entrench devolution as a key pillar of Zimbabwe’s development strategy under NDS2, with the goal of achieving inclusive and sustainable growth nationwide.