Last week, on September 24, the Ministry of Finance issued a memo ordering government ministries and agencies to slam the brakes on spending. A few days later, the government rolled out 102 luxury cars for the Zimbabwe Defence Forces, the first lot of what will be an order of 700 cars for the men and women in shiny brass.
Treasury Secretary George Guvamatanga’s memo orders tight rules on public service contracts, a freeze on recruitment, and an end to hotel workshops. Is this a new era of fiscal discipline?
Well, no. A few days later, the government is giving the aura of that drunk uncle we all know at family parties: the one who controls the braai stand, beer in hand, barking at everyone to be patient, while he stacks three plates high with the juiciest steaks and those fine Colcom Country Style sausages.
Here are some of the key spending cuts announced.
Big projects on ice
From now on, any contract above US$2 million needs Treasury’s blessing. Only “high impact projects that catalyse economic growth and reduce risks to life” will be funded, and even those will be drip-fed. For contractors who took the patriotic risk to do business with government, this isn’t news: Treasury owes about US$100 million for work on the Beitbridge–Masvingo highway alone. Millions more are owed in other projects. The impact is real; contractor Bitumen World has sent workers home, and Masimba Holdings has stepped back from public projects to nurse its burnt fingers. In reality, government has already cut back on projects that “catalyse economic growth”, from roads to dams.
Bye-bye, hotel breakfasts
Government officials love “workshops”. Few things fill them with more joy than a jaunt at Victoria Falls, which comes with generous per diems. Those days, says Treasury, are over. Meetings must now use public training centres such as ZIPAM. Yet, there is a loophole for an uncle to get his plate filled with a full English breakfast; “statutory or strategic planning workshops” – whatever those are – are still allowed.
Foreign trips clipped
Overseas travel is a favourite source of fat allowances for officials. From now on, these can only happen with outside funding. Special per-diem rates are gone. But, we know which department in the Blue Book of government spending gets the most travel money. Who will send them that memo?
Cars: the untouchable perk
Treasury has ordered a 25% cut in fuel and says drivers can no longer take pool cars home. Hiring vehicles is banned, and no new cars will be bought. But there’s a loophole; no new cars, except those “already approved and committed”. That’s a loophole big enough for a shiny new Toyota Land Cruiser LC300 to drive right through.
We have seen this before. After promises of spending cuts, in 2024, by mid-year, the Council of Chiefs had blown through 118% of its annual budget – in simple words, they had spent all their money for the year by June, and took some more. Reason? It was due to “unbudgeted procurement” of 237 vehicles. Finance Minister Mthuli Ncube told Parliament that he had to raid unallocated reserves to pay for them.
Hiring freeze and more
Another cut; no more government jobs. Recruitment stops everywhere except health, education, and security. Government services are already bare, croppled by poor funding and skills flight. New property, furniture, and equipment purchases are also deferred to next year.
Overall, Guvamatanga’s memo tells the story of his Government. His letter tries to portray a government committed to basic fiscal discipline, yet the luxury convoy to the barracks tells the real story. The government talks reform, yet its spending gear remains firmly jammed in the old lane – a lane buzzing with 10-speed automatic transmissions and heated seats. The uncle will still have his braai. The rest of you can sort yourselves out.
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