Can Procurement Reform & Sugar Tax Revive Zimbabwe’s Health?

Zimbabwe’s healthcare system, once an African success story, now faces immense challenges.

Years of austerity, resource shortages and a mass exodus of healthcare workers have left the sector under pressure.

However, a shift in focus toward expedited procurement processes aims to address critical gaps in service delivery, particularly in cancer care and other essential medical services.

The government has set its sights on improving cancer treatment services as a priority area. The Procurement Regulatory Authority of Zimbabwe (PRAZ), which oversees public procurement processes, has approved a rapid bidding mechanism to accelerate the acquisition of new cancer treatment equipment.

This process, lasting just five days, reflects the urgency of meeting the growing demand for effective cancer care across the country.

Funding cancer treatment through sugar tax revenue

The acquisition of cancer treatment equipment is being funded through an innovative sugar tax introduced in January 2024.

This levy, initially set at US$0.002 per gram of sugar and later reduced to US$0.001, has generated significant revenue. By September 2024, it had raised US$24m, with US$18m collected in the first quarter alone.

These funds are being channelled directly into healthcare improvements, with a specific focus on enhancing cancer diagnosis and treatment services.

While the tax has faced criticism from the beverage industry over its potential impact on production costs and pricing, the government maintains that the initiative is a necessary step toward reducing sugar-related diseases and improving public health outcomes.

The sugar tax’s revenue not only exemplifies the government’s resource mobilisation strategy but also highlights the role of innovative taxation in addressing critical healthcare challenges.

Health and Child Care Minister Dr Douglas Mombeshora outlines the need for additional facilities, noting the significant strain on Zimbabwe’s two operational cancer treatment centres at Parirenyatwa Group of Hospitals in Harare and Mpilo Hospital in Bulawayo.

While these machines were recently repaired, the demand for services far exceeds their current capacity. The new equipment will strengthen these facilities and establish additional cancer treatment centres in underserved regions, including Chinhoyi, Gweru, Masvingo and Mutare.

Dr Mombeshora emphasises: “We are at an advanced stage. PRAZ has approved our request to conduct a short bid process, lasting five days, to accelerate the procurement period.”

This fast-tracked approach to procurement reflects the government’s commitment to decentralising cancer care, ensuring patients can access timely treatment closer to home.

Broader healthcare procurement projects

The government’s procurement efforts extend beyond cancer care. Zimbabwe is also prioritising the expansion and improvement of healthcare infrastructure across various sectors.

Key projects include:

• National tuberculosis reference laboratory: Construction at Mpilo Hospital is 85% complete.
• Water tank installation: The project at Chitungwiza Central Hospital has reached 55% completion.
• X-ray machine deployment: New machines have been installed at Chikurubi Maximum Prison Hospital and Inkomo Barracks Hospital.
• Oxygen plant rooms: Facilities at Lupane Hospital and Chinhoyi Provincial Hospital are expected to be operational soon.
• Maternity shelter upgrades: Renovations are ongoing at 10 waiting mothers’ shelters and hospital theatres, including those at Mt Darwin, St Albert’s and Manama.

These initiatives aim to address longstanding gaps in the country’s healthcare system, reflecting a broader strategy to achieve universal health coverage.

Transparency and accountability in procurement

The role of PRAZ in streamlining procurement processes is pivotal.

Established in 2018, PRAZ ensures transparency, fairness and competition in awarding government contracts. Its standards and regulatory oversight help prevent corruption and inefficiencies, ensuring public funds are used effectively.

The expedited process for cancer equipment exemplifies how PRAZ can facilitate swift action without compromising accountability.

A transformative approach to healthcare

Zimbabwe’s focus on procurement reform and infrastructure development signals a turning point for its healthcare system.

By decentralising critical services like cancer care and upgrading facilities nationwide, the government is taking significant steps toward improving accessibility and quality of care.

“This is a transformative step in improving healthcare delivery and ensuring that cancer patients receive timely and quality treatment closer to home,” adds Dr Mombeshora.

Through this funding and streamlined procurement strategies, Zimbabwe is working to rebuild its healthcare system and lay the groundwork for a healthier future.

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