The Stop Work Order necessitates a paradigm shift in Zimbabwe’s approach to health and HIV programming.
To achieve sustainability, the government must prioritize allocation of local resources and collaborate with grassroots community organizations.
Mobilizing Local Resources
1. National Budget Allocation: Zimbabwe can allocate a greater percentage of its national budget to health and HIV programs, similar to South Africa’s allocation of 51.1% of total non-interest spending to provinces and municipalities in the 2024 MTEF period.
2. Private Sector Engagement: Encourage private companies to invest in health and HIV programs through corporate social responsibility initiatives.
3. Community-Based Fundraising: Empower grassroots community organizations to mobilize local resources through fundraising events, membership fees, and income-generating activities.
Local Fundraising Models in Zimbabwe
Zimbabwe has implemented various models for local fundraising to support health and HIV programs, including:
1. AIDS Levy: Zimbabwe introduced an AIDS levy in 2000, which is a 3% tax on all employees’ salaries.
2. National AIDS Trust Fund: Zimbabwe established the National AIDS Trust Fund to mobilize resources from various sources.
3. Community-Based Fundraising Initiatives: Various community-based organizations and support groups in Zimbabwe have implemented fundraising initiatives.
4. Sin Tax: Zimbabwe introduced a sin tax in 2020, which includes a tax on tobacco and alcohol products, generating revenue for health programs.
Tax System and Local NGO Funding in South Africa
South Africa’s tax system allows local NGOs to access funding from corporates through various mechanisms:
1. Section 18A of the Income Tax Act: Companies can claim tax deductions for donations made to registered NGOs.
2. Corporate Social Responsibility (CSR) Initiatives: Companies invest in CSR initiatives and claim tax deductions.
3. Public-Private Partnerships: The government establishes partnerships with corporates, leveraging tax incentives.
Comparison with South Africa
South Africa has implemented various local fundraising models, including:
1. National AIDS Trust Fund: Established to mobilize resources.
2. Sugar-Sweetened Beverages Tax: Introduced to generate revenue for health programs.
3. Corporate Social Responsibility Initiatives: Many private sector companies have implemented CSR initiatives.
Key Differences and Similarities
– Similarity: Both countries have established national AIDS trust funds.
– Difference: South Africa has introduced a sugar tax, whereas Zimbabwe has implemented a sin tax.
Recommendations
1. Knowledge Sharing: Share knowledge and experiences on local fundraising models.
2. Private Sector Engagement: Strengthen private sector engagement and CSR initiatives.
3. Innovative Fundraising Models: Explore innovative fundraising models.
4. Empower Grassroots Community Organizations: Empower community organizations to mobilize local resources.
By Farai P. Mahaso, Director BHASO
