KEY POINTS

• Treasury approval is now required for government contracts above US$2 million.

• Zimbabwe expects to complete its debt restructuring process by March.

• Ncube says cash budgeting remains necessary because of the country’s outstanding arrears.

Zimbabwe’s government has introduced tighter controls on public procurement, requiring ministries to obtain approval from the Treasury before awarding contracts worth more than US$2 million.

Finance Minister Mthuli Ncube announced the measure as part of efforts to prevent government ministries from committing to excessive contracts, strengthen budgetary discipline and ensure that public funds deliver value.

Ncube disclosed the new requirement on the sidelines of the 2027 National Pre-Budget Seminar in Bulawayo on October 30, 2026.

New rules target excessive government spending

Under the new arrangement, any government ministry seeking to award a contract exceeding US$2 million must first secure Treasury approval.

Ncube said the measure was introduced to ensure that ministries operate within reasonable budgetary limits and that government spending is properly assessed before financial commitments are made.

He explained that the government had established clear rules requiring central oversight of large contracts, adding that ministries were already beginning to comply with the directive.

The finance minister described the early compliance as encouraging, noting that the policy was intended to strengthen accountability in the use of taxpayers’ money.

He warned that ministries must demonstrate financial discipline and value for money if the government is to maintain credibility when seeking additional funding from Parliament.

According to Ncube, failure to manage public resources responsibly could undermine the government’s ability to justify requests for further financial support.

Debt restructuring expected to be completed by March

Ncube also provided an update on Zimbabwe’s debt restructuring efforts, although he declined to disclose specific figures on the progress made.

He said a substantial portion of the country’s debt had already been restructured, with March set as the deadline for completing the process.

The government has been pursuing debt restructuring as part of broader efforts to address its outstanding financial obligations and improve access to external financing.

However, Ncube did not provide further details about the remaining debt or the specific arrangements reached with creditors.

Government defends cash-budgeting system

The minister also defended Zimbabwe’s cash-budgeting approach, under which the government limits expenditure to the revenue it collects.

He said the country could not depend heavily on external borrowing to finance public expenditure because of its outstanding arrears, making internally generated revenue central to funding government activities.

Ncube cited road construction as an example of projects being financed through the system, saying the government had been building roads largely with its own available resources.

He pointed to the Gweru-Kwekwe road project and works being undertaken by Terra Force as examples of developments supported through the funding arrangements.

The minister added that the government had only secured more substantial support from the banking sector in recent months.

The new contract approval requirement comes as Zimbabwe seeks to balance infrastructure development and other public spending commitments with limited financial resources.