Zimbabwe

Overview

Before the COVID-19 pandemic, Zimbabwe was facing a severe drought and macroeconomic policy missteps with significant adverse implications for economic stability, growth and the humanitarian situation. The COVID-19 pandemic continues to significantly affect the economy, especially tourism, non-food manufacturing, mining, financial services and transport. Staff projects a small growth recovery in 2021 despite the lockdown from the second COVID-19 wave. Growth would be driven mainly by strong agricultural output and higher gold deliveries. As of June 2, 2021, there were 39,031 confirmed COVID-19 cases, with a 94 percent recovery rate.

The authorities launched a COVID-19 Vaccination Program targeting 60 percent of the population, about 8 million people, on 18 February 2021. As of June 2, 2021, the country had administered 682 242 1st doses and 357 972 2nd doses.

In addition to the on-going Vaccination Program, the country continues to implement the COVID-19 National Preparedness and Response Plan that was launched on March 19, 2020 with President Mnangagwa declaring the pandemic a State of National Disaster. The authorities also launched on April 2, 2020, a US$2.2 billion domestic and international humanitarian appeal covering the period April 2020 to April 2021. As of September 2020, humanitarian support disbursements stood at US$448.4 million. Key donors include the European Union, the United Kingdom, Japan, Sweden, The Global Fund, the African Development Bank, and the World Bank.

The WFP and Zimbabwe Vulnerability Assessment Committee (ZimVAC) recently reported important increases in the number of Zimbabweans needing humanitarian assistance in 2021, reflecting not only the COVID-19 pandemic by also the macro-economic challenges. Approximately 2.4 million people are currently struggling to meet their basic food needs with daily wage earners living affected the most. About 42 percent of urban households will not be able to meet their cereal requirements this year compared to approximately 30 percent in 2019.

Additional containment measures and impact on population. The second COVID wave has abated and lockdown has been mostly lifted. The borders with South Africa have been re-opened. Schools and colleges have opened. Gatherings are allowed at 50 people maximum and funerals at 30 people maximum attendance. Supermarkets and other outlets supplying essential goods and services to customers are allowed to open till late and a curfew is effective between 10 pm and 5am.

COVID-19 Restrictions

Movement Restrictions

Is a curfew in place? Yes
Are there restrictions on intercity or interstate travel? No
Currently a curfew is in effect from 10:30 p.m. to 5:00 a.m.  International air travel is subject to testing requirements as outlined below.
More information about Government of Zimbabwe COVID-related policies is available here.

Transportation Options

Are commercial flights operating? Yes
Is public transportation operating? Yes

Fines for Non-Compliance

Individuals found violating curfew may be subject to fines and/or arrest.
The law states that travelers who present fake COVID-19 certificates will be arrested and prosecuted.
A June 14, 2021 update to the government’s measures to contain the spread of COVID-19 states that there will be stricter enforcement of regulations described on this page.

Economic Measures

Key Policy Responses as of June 3, 2021

FISCAL

The authorities have set aside USD100 million for the vaccination program to be complemented by donations. The country has received 800 000 vaccinations donations from China. Discussions are ongoing to procure vaccines from India, Russia, EU, America, COVAX and African Union. The vaccination program also is also targeting the mass vaccination of the Victoria Falls resort city to boost tourism.

In 2020, the authorities’ ZWL$18 billion stimulus Package for COVID-19 aimed at: (i) providing liquidity support to agriculture, mining, tourism, SMEs, and arts; (ii) expanding social safety nets and food grants; (iii) setting up a health sector support fund; and (iv) scaling up investments in social and economic infrastructure in Cyclone Idai affected communities.They also supported the food security related program which included wheat farming and maize procurement, and the Pfumvudza Program which support vulnerable households with farming inputs.To cushion the vulnerable members of society, the government provided COVID-19 cash transfers.

The freeze on government hiring was lifted for the health sector, targeting over 4,713 additional medical personnel (about 20 percent increase). Additionally the authorities introduced a risk allowance to the health sector from April 2020 (ZWL$468 million/year), and a civil service wide Covid-19 Risk allowance for the period June− December 2020 ( ZWL$20.3 billion). Companies were allowed to extend the payment of corporate taxes (waiving interest and penalties); and duties and taxes on various goods and services related to COVID-19 were suspended, including on testing, protection, sterilization, and other medical consumables and procurement regulations have been relaxed to facilitate speedy procurement of essential goods and services. In support of the tourism sector, the authorities exempted VAT on Domestic Tourists Accommodation and exempted VAT on visitor services.

Inflation, which remains high, has been trending down and was at 161.91 percent y-on-y in May 2021 (relative to 837 percent in August 2020).

MONETARY AND MACRO-FINANCIAL

In March 2020, the authorities returned to the multicurrency system allowing both Zimbabwean dollar and US dollar to be legal tender.

In 2020, the RBZ introduced a ZWL$5 billion medium-term bank accommodation lending facility at 10 percent per annum and increased the private sector lending facility from ZW$1 billion to ZW$2.5 billion. Beneficiaries have included the mining, tourism, manufacturing, construction sectors. Funds were also set aside for supporting empowerment programs for SMEs, artists and sports, through the Empowerment Bank, Zimbabwe Women Microfinance Bank, People’s Own Savings Bank and Small and Medium Enterprises Development Company.

In its February 2021 Monetary Policy Statement, the central bank adjusted some of the policies that it was implementing to cushion firms from the COVID-19 effects. The statutory reserve ratio on demand and/or call was pegged back to 5 percent after having been lowered from 5 to 4.5 percent in March 2020, and further lowered from 4.5 percent to 2.5 percent in June 2020. The RBZ policy rate was increased to 40 percent after being lowered from 35 percent to 15 percent per annum in March 2020 and 35 percent in July 1, 2020. This they said was to stem speculative borrowing.

EXCHANGE RATE AND BALANCE OF PAYMENTS

In March 2020, the RBZ moved from a fixed to a managed float exchange rate regime. The RBZ also revised the FX allocation priority list to improve allocation efficiency in light of the prioritize COVID-19 pandemic. Faced with acute foreign currency shortages, in June 2020, the RBZ introduced a foreign currency auction system and reinstated the 30-day limit of liquidating surplus foreign exchange receipts from exports which was further revised to a 60-day limit for FX liquidation.

Civic Freedom Tracker

SI NO. 83 OF 2020 ON PUBLIC HEALTH (COVID-19 PREVENTION, CONTAINMENT AND TREATMENT) (NATIONAL LOCKDOWN) ORDER

The order imposes a national lockdown for 21 days and prohibits all public gatherings of more than 2 people, with very limited exceptions, on account of the coronavirus pandemic. Anyone who violates the lockdown can be punished with a Level 12 fine and one year's imprisonment. A person found further than 5km from his home may be arrested without a warrant and put in detention, isolation, or quarantine. Any person who publishes or communicates “false news” about any official involved with enforcing the national lockdown, or about any private individual with the effect of harming the state’s enforcement of the lockdown, shall be liable to a penalty of up to a Level 14 fine or 20 years in prison or both. (See primary source or citation here)

Type: order
Date Introduced: 30 Mar 2020
Issue(s): Assembly, Disinformation, Press Freedom, Expression, Access to Information, Movement

SI NO. 76 OF 2020 DECLARATION OF STATE OF DISASTER (COVID-19) NOTICE

The presidential directive declares a "state of disaster" per Section 27(2) of the Civil Protection Act, on account of the coronavirus pandemic. (See primary source or citation here)

Type: order
Date Introduced: 17 Mar 2020

SI NO. 77 OF 2020 PUBLIC HEALTH (COVID-19 PREVENTION, CONTAINMENT AND TREATMENT) REGULATIONS

Promulgated under the Public Health Act, the regulations among other things prohibit all gatherings of over 100 people for any purpose. Enforcement officers can arrest and detain those who refuse to comply. Enforcement officers can also order anyone reasonably suspected of infection to submit to a medical exam, which may include but not be limited to the taking of a bodily sample. The regulations provide for criminal sanctions in case of violation, up to one year's imprisonment and Level 12 fine. The regulations are in place until May 20 and can be extended for one month at a time. (See primary source or citation here)

Type: regulation
Date Introduced: 23 Mar 2020
Issue(s): Assembly, Privacy

REGULATION NO. 1 OF 2020 ON PUBLIC HEALTH (COVID-19 PREVENTION, CONTAINMENT AND TREATMENT) (AMENDMENT)

Under the amended regulations, the prohibition on gatherings is extended to any gathering of two or more people. The amendments also alter the regulations issued in relation to COVID to include as "enforcement officers" (previously police and municipal police) members of the military. (See primary source or citation here)