ZIMBABWE RECONSTRUCTION FUND (ZIMREF) ANNUAL REPORT 2021 ACKNOWLEDGEMENTS This report was prepared by the ZIMREF Secretariat team led by Tonderai Fadzai Mukonoweshuro and Cheryl Khuphe. In addition, contributions were made by the following Bank staff and consultants: Crispen Mawadza, Easther Chigumira, Kobi Daniels, Leslie Mills, Tapfuma Jongwe, Dhiraj Sharma, Marko Kwaramba, Jay-Hyung Kim, Tuan Minh Le; Jiwanka Wickramasinghe, Rosa Dube, Blandine Marie Wu Chebili, Gibson Guvheya, Emma Wadie Hobson, Ruth Wutete, Enos Esikuru, Blessing Karazandima, Rutendo Nyoni, Irene Bescos Tariro Tserayi, Fradreck Danda, Priscilla Mutikani and Chenjerayi Sisismayi. With special thanks for management guidance from Marjorie Mpundu. Document design was created by Cybil Maradza. DISCLAIMER This work is a product of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. RIGHTS AND PERMISSIONS The material in this work is subject to copyright. Because The World Bank encourages the dissemination of its knowledge, this work may be reproduced, in whole or in part, for non-commercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: +1 (202) 522-2422; email: pubrights@ worldbank.org. PHOTO INFORMATION © Arne Hoel/WorldBank © Capture World Images/WorldBank ii CONTENTS Acknowledgements ............................................................................................................................................................................................................................................... ii Abbreviations ....................................................................................................................................................................................................................................................................... iv 1. EXECUTIVE SUMMARY ...................................................................................................................................................................................................................... 1 2. ZIMREF RESTRUCTURING ........................................................................................................................................................................................................... 7 3. ABOUT ZIMREF ........................................................................................................................................................................................................................................... 9 4. ZIMREF PROGRESS UPDATE ..................................................................................................................................................................................................... 14 I. BUSINESS ENVIRONMENT, FINANCIAL SECTOR, AND INVESTMENT POLICY TECHNICAL ASSISTANCE ....................................................................................................................................................................................... 14 II. CAPITAL BUDGETS ........................................................................................................................................................................................................ 17 III. PUBLIC FINANCIAL MANAGEMENT ENHANCEMENT PROJECT ................................................................... 24 IV. PUBLIC PROCUREMENT AND MODERNIZATION ENHANCEMENT PROJECT ........................ 27 V. RESULTS-BASED BUDGETING ........................................................................................................................................................................ 28 VI. POVERTY MONITORING & EVALUATION TECHNICAL ASSISTANCE ........................................................ 31 VII. ZIMBABWE NATIONAL WATER PROJECT ..................................................................................................................................... 35 VIII. CLIMATE CHANGE ......................................................................................................................................................................................................... 36 OTHER ZIMREF-SUPPORTED ACTIVITIES .............................................................................................................................................................. 38 PILOTING SOCIAL PROTECTION AND WASH INTERVENTIONS TO KEEP ADOLESCENT GIRLS IN SCHOOL IN ZIMBABWE ......................................................................................................................................................................................................... 41 5. CROSS-CUTTING THEMES ........................................................................................................................................................................................................... 43 APPENDICES APPENDIX A: OVERVIEW OF ZIMREF FINANCIALS AS AT DECEMBER 31, 2021 .............................................. 45 APPENDIX B: ZIMREF-FUND-LEVEL LOGICAL FRAMEWORK ................................................................................................... 46 iii ABBREVIATIONS BCI Business Confidence Index NHA National Health Accounts BE Bank-executed OAG Office of the Auditor General BEFSIP Business Environment, Financial Sector PECG Public Enterprises and Investment Policy Corporate Governance GoZ Government of Zimbabwe PEFA Public Expenditure ICT Information communication Financial Accountability and technology PFM Public financial management IFMIS Integrated Financial Management PFMS Public Financial Management System Information System PICES Poverty, Income, Consumption and ISN Interim Strategy Note Expenditure Survey M & E Monitoring and evaluation PIM Public investment management MDAs Ministries, departments, and agencies POC Policy Oversight Committee MLAWCRR Minister of Lands, Agriculture, PPP Public-private partnerships Water, Climate and Rural Resettlement RBB Results-based budgeting MoFED Ministry of Finance and RBZ Reserve Bank of Zimbabwe Economic Development RE Rrecipient-executed MoHCC Ministry of Health and Child Care SOE State-owned enterprise MoPSE Ministry of Primary and SEPs State enterprises and parastatals Secondary Education TA Technical assistance MoTID Ministry of Transport and TTL Task team leader Infrastructural Development ZIMASSET Zimbabwe Agenda for Sustainable MPSLSW Ministry of Public Service, Labour Socio-Economic Transformation and Social Welfare ZIMRA Zimbabwe Revenue Authority MSME Ministry of Small and Medium ZIMREF Zimbabwe Reconstruction Fund Enterprises and ZIMSTAT Zimbabwe Statistical Agency Cooperative Development iv EXECUTIVE SUMMARY This report provides a detailed narration of the Zimbabwe Reconstruction Fund’s (ZIMREF) operations in 2021. ZIMREF is a country- specific multi-donor trust fund supported by seven development partners: the European Union, the UK’s Foreign Commonwealth and Development Office (FCDO), the Swedish International Development Cooperation Agency, the Swiss Agency for Development and Cooperation, the Norwegian Aid Agency, the State and Peacebuilding Fund (SPF), and the Canadian Government. Since its inception, ZIMREF has received over US$52 million from its development partners. 1 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 Over the past year, ZIMREF contributed to the country’s reforms primarily through analytical work. Support for key reforms led to recognition of ZIMREF through a World Bank Trust Fund award for delivering strong technical support thereby creating strong buy-in and improved capacity and systems in several critical areas. These are further discussed in the Results section of the report. Additionally, while there is not yet full reengagement with the international community, the program has provided a bridge vehicle SINCE ITS through which stakeholders, the Government, and development INCEPTION, ZIMREF partners maintained dialogue through various technical working HAS RECEIVED OVER groups and other information sharing platforms. Since 2014, ZIMREF has worked on strengthening Zimbabwe’s US$51 systems for reconstruction and development through an initial eight MILLION main activities¹ under four windows.² With an evolving context, sub activities³ have been added over the years. For instance, with additional funding in 2021, ZIMREF began implementing a Social Protection (SP) and Water Sanitation and Hygiene (WASH) pilot to support adolescent girls in Zimbabwe to help keep them in school after COVID-19 related school closures (under the Resilience window). The pilot will complement the Government’s Basic Education Assistance Module programme and test the results achieved by providing a comprehensive package of cash transfers, livelihoods support, menstrual hygiene management, WASH and hygiene support and school level sensitization. From an initially programmed end date of 2019, ZIMREF’s End Disbursement Date has been extended twice during implementation to allow for completion of activities. Currently the Trust Fund has an End Disbursement Date of December 2022. ¹ Activities: Business Environment Financial Sector Investment Policy, Capital Budgets, Public Procurement and Modernization Project, Public Financial Management Enhancement Project, Results Based Budgeting, Poverty Monitoring and Evaluation Technical Assistance (TA), Climate Change and Zimbabwe National Water Project. ² Windows: Private Sector Development; Systems and Capacity Development; ³ Resilience and Livelihoods Development and Analytical and Policy Support Sub-activities: Land, Agriculture, InfraSAP, Zimbabwe Risk and Resilience Project. 2 1. EXECUTIVE SUMMARY Operational Context The country faced climatic shocks in 2019 and 2020, COVID 19 pandemic and macroeconomic challenges that led the economy to experience two successive years of recession. The economy contracted both in 2019 and 2020. In 2021, though the economy experienced three significant COVID waves in January, June and December, it recovered mainly driven by higher agricultural production, improved capacity utilization in industry, and stabilization of prices and exchange rates. However, successive restrictions to contain the pandemic had significant impacts on Development livelihoods, particularly in the informal sector. Immediately after was set back as the onset of the pandemic, less than 30 percent of school-going the country faced children in rural areas engaged in education and learning compared climatic shocks in with 70 percent of urban children. With the easing of lockdown 2019 and 2020, and reopening of schools, most children resumed attending school COVID-19 though the pandemic continued to keep some children out of school, pandemic and with teacher absenteeism being the primary reason (ZIMSTAT, Rapid macroeconomic Poverty Income Consumer Expenditure phone surveys July 2020 challenges that led and December 2020-March 2021). the economy to experience Monetary and exchange rate polices brought down inflation to two- two successive digit levels for the first time in two years. Annual average inflation years of recession slowed significantly from 557.2 percent 2020 to 98.5 percent in 2021, following the introduction of rule-based reserve money management, a foreign exchange auction, and relaxation of dedollarization. However, year-on-year inflation increased in the last quarter of 2021 as the exchange rate depreciated both on the official and parallel market. The extreme poverty rate has increased steadily between 2011 and 2020, only declining in 2021 following exceptionally good harvest and disinflation policies. After peaking at 43 percent, in 2020, international poverty rate fell to 41 percent in 2021. The decline in poverty is primarily driven by rural areas thanks to the bumper harvest of 2021. Although poverty remains an overwhelmingly rural phenomenon, in ANNUAL AVERAGE recent years it has increased relatively faster in urban areas, leading INFLATION SLOWED FROM to an urbanization of poverty. The persistent drought, Cyclone Idai, triple-digit inflation, and the COVID-19 pandemic have contributed 557.2% to the recent increase in poverty. IN 2020 TO 98.5% The health system is challenged by human resource issues including doctor strikes, staff attrition particularly nurses, and inadequate IN 2021 quantities and slow access to personal protective equipment. Reduced frequency and timing of antenatal care visits may cause further deterioration in maternal and infant mortality. Households’ 3 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 loss of access to basic social services and deepening of negative coping strategies risks undermining Zimbabwe’s high human capital and the pace and inclusivity of economic growth. Addressing the economic impacts of COVID-19 was a key challenge for the Government in the absence of significant external support. To counter these risks posed by COVID-19, ZIMREF’s work continued virtually through remote supervision. Improved economic environment eased social conditions although poverty levels remained high. With a sizable proportion of households experiencing reduced or no income since the onset of the pandemic, the coverage of social assistance programs remains low. The number of people living below the international poverty line is expected to be 6.1 million in 2021 and to marginally decline in 2022, supported by expected economic growth and lower inflation. Zimbabwe received the equivalent of US$961 from the International Monetary Fund (IMF) Special Drawing Rights (SDR) allocation, with an immediate impact of boosting gross international reserves which were critically low. The Government indicated its plans to use part of its SDR allocation [almost $1 billion (about $3 per person in the US) equivalent] to address some of the social challenges, support productive sectors, upgrade infrastructure, and build official contingency reserves. The Government further reaffirmed its keenness to clear its arrears to International Financial Institutions (IFIs) and be on a path to debt sustainability. In this regard, the Government finalized an Arrears Clearance, Debt Relief and Restructuring Strategy that articulates The Government the Government’s position and options for addressing the country’s further reaffirmed debt distress and arrears situation. its keenness to clear its arrears to International Financial Institutions (IFIs) and be on a path to debt sustainability. 4 1. EXECUTIVE SUMMARY 2021 ZIMREF RESULTS For Recipient-executed projects, including the Public Financial Management Enhancement Project (PFMEP) which closed in 2021, there was the strengthening of systems, procedures, and capacity building. Rebuilding the country’s Public Financial Management institutions, systems, and procedures was not only integral to the achievement of the PFMEP’s objective but was also important in building institutional resilience. In terms of technical support, of note were the following results in 2021: Support to poverty monitoring has strengthened Zimbabwe’s welfare monitoring system and enhanced statistical capacity. Regular data on vital socioeconomic indicators such as employment, food insecurity, poverty, school enrollment, etc. has helped keep a pulse on households since the onset of the pandemic. Government adopted a telephone survey on the impact of COVID-19 on households. Public Investment Management (PIM) Technical Assistance (TA) has supported the development of a modern public investment management framework. In addition, the Government applied existing guidelines and Project Appraisal Manuals (PAMs) in the 2021 budget process. Emergency PIM guidelines for simplified PIM procedures and decision making in a crisis of COVID-19 were approved by the Ministry of Finance and Economic Development (MoFED) in February 2021. As part of influencing policy, the Climate Change PIM guidelines were approved by the Ministry of Finance and Economic Development in February 2021. As a result, the national budget for the fiscal year 2022 allocated a total of ZWL $52.4 billion climate change adaptation and mitigation measures across a variety of sectors. This is the first time a national budget provision has been made to address the global subject of climate change. 5 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 The Green Climate Finance approved the Infrastructural Development Bank 1 of Zimbabwe’s (IDBZ)’s accreditation for direct access to climate finance. $50 million. This paved the way for the development of scaled-up projects of up to This is a landmark achievement for the TA and Zimbabwe. 2 With support to the PFM program, there was timely completion and submission of the previous fiscal year (FY)’s audit reports to the Parliament with the 2019 Office of the Auditor General Report tabled in June 2021. While strong results were achieved in some areas, there were also challenges. On PFM, the objective of improving control, transparency and accountability, and oversight in the use of public resources—were clear, realistic and at the right level of ambition. However, the related activities were not. Given the country context, the proposed implementation timeline, and the budget, the activities proved too many. Looking forward The Government will continue to require assistance to safeguard and The Government consolidate the structural reform priorities. For instance, Zimbabwe’s will continue to governance indicators lag to that of its peers, in terms of measures of require assistance corruption and regulatory quality. While establishing the Information to safeguard and Technology platforms were merely the beginning of the journey consolidate the toward successful PFM reforms, there is a need to maintain, sustain structural reform and build on the existing systems. Efforts should also be made to priorities develop Public Financial Management System (PFMS) management and coordination structures in the MoFED in consultation with the PFMS unit. In addition, public service delivery challenges, particularly considering the COVID-19 pandemic, are critical to ensure gains in human capital are preserved. 6 ZIMREF RESTRUCTURING Restructuring ZIMREF to a more flexible and agile financing instrument began in 2020. This was in line with the recommendations from the 2019 ZIMREF independent evaluation, and the World Bank trust fund reform program aimed at consolidating the Bank’s trust fund portfolio at country and global levels. During a Policy Oversight Committee (POC) meeting in 2020, development partners and the government agreed on restructuring ZIMREF into an Umbrella Trust Fund to allow for engagement during a fluid transition, while adapting to changing circumstances and supporting the peaceful consolidation of economic reforms over the medium term. 7 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 Flexibility will allow the trust fund to respond groundwork for longer-term recovery in Zimbabwe to the evolving needs of the government in and potential reengagement. Postpandemic recovery achieving its ambitious reform agenda, support the provides opportunities to press forward with social, government’s response to the negative impacts economic, and institutional reforms as identified in of COVID-19, and provide continued support the government’s National Development Strategy for the reengagement agenda—areas in which 2021-25 (NDS-1). The priorities in the NDS-1 are development partners have indicated they would well-aligned with the Sustainable Development Goals appreciate the World Bank and other international (SDGs) and were developed in broad consultation financial institutions’ support. with civil society, the private sector, and development agencies. The recently approved Arrears Clearance As the economy looks to rebound after two years and Debt Resolution Strategy and resumption of token of recession, the restructured Zimbabwe Socio- payments to key creditors represent important steps Economic Transformation (ZISET) would help lay the to renewed reengagement. ZISET will focus its activities within three pillars: STABILITY AND ECONOMIC GROWTH EFFECTIVE AND TRANSPARENT PUBLIC SECTOR BUILDING RESILIENCE ZISET will consolidate high priority Bank- and lessons learned from the implementation of the first Recipient-executed tasks within six strategically phase, the trust fund, ZISET, would include a deeper aligned programs, two in each pillar. Each program effort on inclusion and implementation. This will would prioritize activities using the twin selectivity help to move forward on those areas most likely to filters of i) momentum and will to implement reforms, yield results and actual structural changes based on and ii) knowledge gaps. Taking into account the country and sector realities. 8 ABOUT ZIMREF Over the last six years, ZIMREF’s development partners have provided over US$52 million, against a planned envelope of US$60.2 million (figure 3.1). 9 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 Figure 3.1. ZIMREF Activities ZIMREF supports both Recipient-Executed (RE) and Bank-Executed (BE) activities described in the box below: OUTPUT 1 The Business Environment, Financial Sector and Investment Policy (BEFSIP) Technical Assistance (TA) Program supports implementation of Doing Business and investment policy reforms, and development of credit and capital markets infrastructure. OUTPUT 2 The Capital Budgets TA Program develops modern systems for public investment planning, management, and resource mobilization; improves state-owned enterprise governance; and supports development of a pipeline of feasible projects in the transport and energy sectors. OUTPUT 3A The Public Financial Management (PFM) Enhancement Project provides for modernisation of key elements of the public financial management system including coverage and reporting, internal and external audits, and Parliamentary and civil society oversight. OUTPUT 3B The Public Procurement Modernization Reform Project supported the modernization of the public procurement regulatory framework and practices and develops and pilots e-Government procurement. OUTPUT 4A The Results-Based Budgeting TA Program supports the introduction of program budgeting as well as key reforms to strengthen the management of financing and public expenditures in key social sectors. OUTPUT 4B The Poverty Monitoring and Evaluation TA Program aims to improve the monitoring of poverty and shared prosperity outcomes and their integration into national strategy and planning documents. OUTPUT 5A The National Water Project’s aim is to improve water supply in the small-town sector and strengthen the Zimbabwe National Water Authority and the regulatory framework in the water sector. OUTPUT 5B The Climate Change TA Program aims to help develop Zimbabwe’s climate policies, its pipeline of climate adaptation investments, and its mainstreaming of climate changes in investment planning. 10 3. ABOUT ZIMREF ZIMREF is implemented through four windows meant development work but are not explicitly related to to contribute to its objective. Three of the windows, thematic windows. The ZIMREF windows are aligned namely private sector development, systems and to government of Zimbabwe (GoZ)’s priorities, the capacity development, and resilience and livelihoods World Bank Interim Strategy Note (ISN) III, donor support, fund both investments and analytical work. funding priorities, and country development needs. The fourth window is supporting policy analytical While the ISN expired in 2015, the 2019 ZIMREF work. In addition, funds are provided for studies evaluation found its provisions still relevant. The that are key to the government’s reconstruction and windows are outlined in figure 3.2. Figure 3.2 Priority Areas PRIVATE SECTOR DEVELOPMENT 1. Improve the business environment 2. Support employment generation 3. Reforms that would unlock the private sector potential PRIORITIES IN LINE WITH THE ISN SYSTEMS & CAPACITY DEVELOPMENT i. fostering private sector lead growth 1. Strengthen public sector management systems though improvements in business 2. Institutional reforms environment, infrastructure and 3. Promote demand side accountability support for agrarian reform; Resilience & Livelihoods Development ii. improving public sector management 1. Contribute to social and economic investments for systems; and reconstruction and development 2. Safety nets and improved livelihoods iii. an enabling environment for resilience and human capacity Analytical & Policy Support (APS) Analytical work essential for future reconstruction and development of Zimbabwe The fund is governed by a policy oversight committee technical guidance to the POC; ensuring technical (POC) comprising representatives from the GoZ quality-at-entry of projects; overseeing project and ZIMREF’s development partners. The POC is implementation; providing support for cross- co-chaired by the GoZ (permanent co-chair) and a sectoral and stakeholder coordination; reviewing development partner (the co-chair rotates among and analyzing, monitoring and evaluation (M&E) the development partners). plans and findings; and contributing to risk monitoring and project reporting. The POC is supported by three technical review groups: the Economic and Public At the 13th Investment Climate Technical Review Financial Management Technical Review Group Group meeting held on March 16, 2021, the WB (EPFMTRG), Investment Climate Technical team indicated that while ZIMREF-funded activities Review Group (ICTRG), and Infrastructure were limited, the preparation of an umbrella Technical Review Group (ITRG). These groups investment climate program is being finalized. comprise representatives from the government, Approval of the plan is expected, after which development partners, and the World Bank. engagement will commence. The team also indicated The TRGs’ mandate is set out in the operational their plans to pitch a proposal to continue BEFSIP, guidelines, and these duties include providing which is key to financial recovery. 11 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 The proposal would highlight strategies for the government to quicken private sector response, recovery and growth to and from the downside of COVID-19 pandemic, and disruption to supply and demand sides of business operations. The main highlights in the proposal would include strategies such as supporting the growth of a guarantee fund, expansion of existing guarantee scheme to support the private sector, and support to value chains and new markets for the private sector to take on opportunities presented by the pandemic. Also, an innovation component would look at sectors that can use digital platforms to grow the businesses. It was noted that while follow-up activities were receiving funding from other sources, the catalytic effect of ZIMREF was acknowledged as the original ones were funded by the TF. The 14th ICTRG meeting was held on September 29, 2021, and among the issues raised (under Investment Climate) was the need to address some of the building blocks for investment generation while awaiting reengagement. During the 9th Infrastructure Technical Review Group meeting held on March 23, 2021, the WB team outlined work on the dams’ prioritization, a study that supports the development of a multicriteria tool that could lead the way to a program of interventions on dams and storage intended to improve water supply and food security. Two economic advisers have also been hired to support the Ministry of Finance and Economic Development on Public Investment Management and cross-cutting with climate change. The team is also working with MoFED to review and evaluate project proposals from the various sectors. At the 10th ITRG meeting held on October 13, 2021, a presentation was made on the revision of the nationally determined contributions (NDC), An innovation which were supported by ZIMREF. Recommendations were made for the team to develop an implementation component of BEFSIP framework that looks at each strategy and explores would look at sectors that can use digital ways of putting a financing framework for it to enable stakeholders to locate their roles and opportunities within the revised NDC. platforms to grow the businesses. 12 3. ABOUT ZIMREF The 13th Economic Public Financial Management the social protection team was implementing in Technical Review Group meeting was held on March conjunction with Care International and GoZ. The 30, 2021. The TRG members were informed of aim of the project is to provide social protection and the establishment of a central internal audit unit WASH interventions, which will be layered over the (CIAU), with senior management vacancies filled government BEAM program. It was noted that even on an acting capacity and recruitment at entry- though current health activities no longer benefitted level ongoing. Additionally, most ZIMREF activities from ZIMREF funding, far-reaching effects were are now implemented by the new CIAU. Notable evident as follow-up activities emanated from initial was German Development Cooperation (GIZ)’s projects. Assistance was also provided to ZIMSTAT partnering with the unit, which is a welcome with mapping of census blocks in preparation for development as more partner support is required. the national census planned for April 2020. The Discussions on the SAP maintenance contract Procurement Regulatory Authority of Zimbabwe between the Bank and MoFED have commenced, (PRAZ) underscored their interest in assistance with and negotiations with SAP are planned to reduce the the e-government procurement process. annual maintenance fees paid by MoFED. The team is assisting with gathering data for negotiation, and The 13th POC meeting was held on May 13, 2021, an expert to assist with the process will be hired. The and during the meeting, the annual workplan was team is also working closely with MoFED to ensure approved. Members were appraised of the status that the licensing model used will be rationalized of the ZIMREF restructuring process. Previously, across the whole of government to ensure that costs there had been an agreement to defer the time are not prohibitive. frame to align with NDS I and partners’ strategies. The presentation aimed to get members’ agreement During the 14th Economic and Public Financial on the approach for establishing a Zimbabwe Socio- Management Technical Review Group meeting, Economic Transformation (ZISET) umbrella TF and members were updated of the pilot project, which agree on the scope of restructuring and timelines. 13 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 ZIMREF PROGRESS UPDATE OUTPUT 1 BUSINESS ENVIRONMENT, FINANCIAL SECTOR, AND INVESTMENT POLICY TECHNICAL ASSISTANCE The Business Environment, Financial Sector, and Investment Policy (BEFSIP) aims to support the implementation of, among other things, business reforms, building credit and capital markets infrastructure, and reforming investment policies. 14 4. ZIMREF PROGRESS UPDATE BEFSIP has a focus on improving the business climate for microenterprises, small and medium enterprises (SMEs), and agricultural smallholder farmers by: Reducing the time, cost, and Introducing more effective and Strengthening the regulatory framework bureaucratic burden of predictable investment and commercial and financial infrastructure for expanded doing business in Zimbabwe policies that ensure security of private access to financial services and markets property rights for small and medium enterprises and smallholder producers BEFSIP’s components entail the Investment excluded groups like women, youth, rural, and Climate, Financial Sector, Enabling the Business of agricultural groups and how the upcoming National Agriculture, and Market institutions. The Investment Financial Strategy II should tackle remaining gaps. Climate component closed in December 2021, although an M&E component is being supported In parallel and to complement the FinScope survey, to gauge the impact and reach of BEFSIP’s financial Alliance for Financial Inclusion (AFI) supports the sector-related TA. Reserve Bank to compile a FinScope consumer survey whose indicators track levels of financial inclusion at Financial sector technical assistance household and individual levels. The support from AFI was made possible as a complementary activity to This M&E component comprises the Zimbabwe crowd in ZIMREF’s support. The FinScope consumer 2022 Finscope Micro-Small and Medium Enterprise survey provides additional data on access to finance Survey (FinScope MSME) which is a US$350,000 since the last survey in 2014. TA knowledge product that will track the milestones reached through BEFSIP’s support for financial The survey is expected to be completed by April 30, inclusion. The survey results will become a baseline for 2022, with results being used for the NFIS II by June the Ministry of Finance and Economic Development 30, 2022. The ongoing demand for the Bank’s TA and the Reserve Bank of Zimbabwe’s driven second program reflects the relevance of the instruments National Financial Inclusion Strategy (NFIS II). This offered to the government. The progression from survey analyzes financial service providers’ breadth NFIS I to NFIS II demonstrates the sustainability of and depth of reach to financially excluded groups the program. Beyond this current phase of strategy since 2016 when NFIS I was launched. Key indicators formulation, ZIMREF funding for a financial sector TA include access to finance for micro, small, and medium would be implementation support for the execution enterprises (MSMEs) and specific previous financially of NFIS II. 15 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 Agriculture proactively monitor, advise, and respond to the weather impacts on agricultural production systems Noting that Zimbabwe is a climate hotspot, this TA in the country. is targeted at implementing actions identified in the climate-smart investment plan (developed through In its first year of implementation, the Zimbabwe the TA) working with government officials from the Agriculture Observatory focused on capacity Ministry of Agriculture, Meteorological Services building. Initially, 12 local Zimbabweans, including Department (Met Dept), Agriculture Extension government officials from the Met Department, Services (AGRITEX), academia, and farmers. AGRITEX, academia, and farmers, were trained as trainer of trainers (ToT). A community of practice Building adaptation and resilience for smallholder (CoP), which brings together participants of the ToT farmers is an urgent necessity, as climate variability and key actors in the agricultural value chains, was and change is linked to increased prevalence of established. Further uptake with funds from the Bank droughts, pests and diseases, and significant decline budget and, more recently, Progreen Trust Fund has in yields. A key action is support to the Zimbabwe enabled the growth of the community of practice Agriculture Observatory, established in 2018 to (users of the platform) to over 50 participants from the facilitate access and capacity enhancement to manage initial 12. More young and female farmers, including and analyze near-real-time and high-resolution extension workers, have joined the CoP and received agricultural weather information. In addition, it training. Capturing the young farmers is critical in allows the World Bank Group (WBG), government, transforming the agriculture sector, as they are the and stakeholders in the agriculture value chain to future of Zimbabwe’s agriculture and food systems. For two consecutive cropping seasons, the TA first monitored the farming activities of one of the farmers, Chriswell Vava, who had gone through the Agriculture Observatory’s ToT and was part of the CoP. The purpose of monitoring was to observe how Chris was using his knowledge from the training, how he was helping his farming activities, and the overall effect of this information in his farming. In the first year, which was a drought year and characterized by high rates of fall armyworm infestation, Chris attributed his harvest of 30 tonnes of maize on five hectares to his ability to apply the agro-weather information. In Chris’s words, “This is clear testimony of ZimAgObs’ knowledge and information, which helped to be precise with dates of planting and fertilizer applications. Most of the farmer whom I shared information had excellent yields owing to the vital ingredient of information at the right time.” In the following year, with above normal rainfall, Chris went on to harvest 50 tonnes of maize on his five hectares. He indicated that those in the community that he shared this information with also had very high yields above the national average. 16 4. ZIMREF PROGRESS UPDATE Timely immediate and short-term agro-weather In support of the roadmap development, the basic forecasts and site-specific recommendations on crop four building blocks—legal and regulatory framework, cultivars, soil preparation, sowing time, fertilization, administrative processes, communications, and harvest time, and other information will enable financing—were explored with the JRMC and farmers to manage agricultural risks better and recommendations provided. In addition, several reduce uncertainties that often constrain decision- presentations addressed the land compensation issue, making. Such advisories provide for “anticipatory including contributions from the World Bank treasury action” and improve smallholder farmers’ resilience team on financing options and on administrative to shocks. Thus, the TA has a memorandum of processing experience and preliminary communications understanding (MOU) that was first signed between plan. For this specific TA activity, the objective has been the Zimbabwe Farmers Union (the largest farmers achieved, as knowledge and recommendations have organization in Zimbabwe representing over a million been generated on the compensation roadmap with the farming households) and the World Bank in which JRMC, who actively participated in all sessions. 20,000 smallholder farmers (46.8 percent female) were onboarded and provided with digital climate OUTPUT 2 advisory information (DCAS), based on a request CAPITAL BUDGETS from the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development (MLAFWRD). The Capital Budgets Technical Assistance (TA) Program seeks to develop modern public investment Land TA was an addition to Enabling the Business planning, management, and resource mobilization of Agriculture component BEFSIP. The objective systems, improve state-owned enterprise of the TA was to generate knowledge and provide governance, and support the development of a recommendations to the government of Zimbabwe pipeline of feasible projects in transport and energy. focused on the compensation roadmap process. The TA is part of a longer-term dialogue with the A. Transport government on land issues, and that dialogue continues. The TA worked with the Joint Resource The development objective of this activity is to Mobilization Committee (JRMC) that is made up of assist public transport sector institutions to lay the various stakeholders, including government. foundation for improved efficiency and effectiveness in their public investments. The intermediate outcome The signing of a compensation agreement in August is prioritizing reforms and investments within the 2020 has presented the opportunity to support the sector ministry and selected parastatals. The Ministry government with advice and TA on how best to mobilize of Transport and Infrastructure Development and organize the compensation processes and develop (MoTID), National Railways of Zimbabwe (NRZ), their compensation roadmap. The roadmap lays out Civil Aviation Authority of Zimbabwe (CAAZ), and the processes, timelines, and responsibilities that are Zimbabwe National Road Agency (ZINARA) are required to implement the compensation agreement, examples of beneficiary institutions. for example, resource mobilization, financing options, administrative processes, and so on. The TA entails working with the sector ministry, its parastatals, and other stakeholders to prioritize Support under this component included two case areas of interventions into two parts: improvement studies from Colombia and Serbia, and a presentation of operational efficiency of the institutions and on land value capture and asset management and how preparation of investments in the respective modes it could contribute to the compensation discussion. of the sector. The following activities were completed: 17 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 1) support toward civil aviation reforms; 2) review Early impacts of work undertaken: of the roads subsector; 3) review of the road tolling policy; and 4) expanded rail market study. 1. Support toward civil aviation reforms: Through the contribution of this support, the Building on support previously provided by ZIMREF, government has achieved its primary objective support was provided to assist in building capacity of unbundling CAAZ by creating two entities to among stakeholders in preparation for future oversee regulation and operations, respectively. private-party participation in Zimbabwe’s rail CAAZ oversees regulation exclusively, while the sector. Complementary funding from the Mobility new Airports Company of Zimbabwe oversees and Logistics (MOLO) Trust Fund supported this operations. Additionally, the independence of the activity. Beneficiaries included Ministry of Transport accident investigation function from CAAZ was and Infrastructural Development, Ministry of Finance incorporated into the Civil Aviation Amendment and Economic Development, NRZ, ZIDA and State Act. MoTID has appointed a consultant to oversee Enterprise Restructuring Agency. In addition, draft the creation of the accident investigation unit. public-private partnerships (PPPs) guidelines on This support continues to inform the government private sector engagement in rail were shared with on sectoral reform recommendations and the government for finalization. potential future sustainability risks to newly created civil aviation agencies. Two new activities were added in 2021: 2. Review of the roads subsector: The TA reviewed the roads subsector institutions and assessed their key structural, financial, and operational challenges and recommended policy measures to improve their performance. As part of this support, the government is undertaking 1. Urban transport engagement, comprising early initiatives to ensure a clear separation of road engagement to address general urban mobility funding and road management functions. At requirements focusing on key dimensions of present, ZINARA has been weaned off any road urban transport, including political and social management function and has been mandated interests, financial and economic dimensions, through a government directive to fully focus affordability, environment, and road safety. on road funding. This has contributed to the government’s efforts to realign ZINARA’s functions to focus solely on its core funding mandate. The sustainability of this positive development will be assured once the directive is enhanced through an amendment to the Roads Act. Draft legislation to this effect and covering the 2. Transport spatial data analysis to inform the main study recommendations has been prepared government’s strategy and engagement with as part of this assignment. Other recommendations donor partners to improve the country’s internal linked to improving efficiency in road network and external transport connectivity to maximize management are being pursued within the 2021- inclusive growth by improving local access to basic 2025 National Development Strategy. services and socioeconomic activities. It will provide a framework and empirical evidence for prioritizing 3. Review of the road tolling policy: Activity and sequencing transport sector interventions. developed a sustainable road tolling policy 18 4. ZIMREF PROGRESS UPDATE to guide future road tolling and related road on some selected rail corridors is linked to this investments, including public-private partnership engagement to assess the potential for modal shift arrangements. Proposed recommendations of freight from road to rail. The marketing study will lead to an environment characterized by contributes to the development of strategic plans more rational funding of roads and improved for the sector. utilization of road sector revenues managed by ZINARA. Policy recommendations following the Next steps review were grouped as: 1) recommendations on spending; 2) recommendations on cost sharing; Next steps include continuing to provide technical 3) recommendations on cost responsibility; 4) assistance to government as part of implementing recommendations on road user charging (RUC); reform recommendations developed and adopted and 5) recommendations on PPPs. under ZIMREF. Recommendations will assist in improving transport efficiency and enhancing the • ZINARA has requested assistance to review sector’s contribution to Zimbabwe’s economy. some of the sole-sourced contracts presently on its books. Assistance will be based on the future B. Public Investment Management availability of funds. For the short term, some of the recommendations particularly linked to The PIM component aims to 1) assist MoFED to spending, cost sharing, and PPPs have been develop a public investment management system and incorporated into the 2021 to 2025 National cycle, including guidelines, manuals, and training for Development Strategy. At present, there are line ministry staff; 2) provide technical assistance and discussions between the Ministry of Transport policy advice to improve the regulatory framework for and Infrastructural Development and the joint ventures and public private partnerships in key Ministry of Finance and Economic Development sectors. The TA continues covering various aspects to rebase the fuel levy to U.S. dollars because of of the PIM reforms to bring about the deep-seated the shortfalls being faced in collecting revenue in changes in planning and annual capital budgeting. local currency. Rebasing the fuel levy was one of the recommendations under the study. Upon request from the MoFED, the TA developed sector project appraisal manuals (energy, transport, 4. Supporting private sector participation in water, irrigation), emergency spending guidelines, Zimbabwe’s rail sector: The main activity climate change PIM guidelines (also climate aspects provided training, experience sharing, and of energy, transport, water, irrigation), and capacity knowledge resources to NRZ in preparation for building and training programs. future potential private-party participation in rail. This is especially critical in a fragile, resource- Treasury Circular No. 3 of 2021 evoked the use of the constrained environment like Zimbabwe’s, which PIM guidelines (including climate PIM and emergency is further exacerbated by the rail sector’s limited guidelines) to implement public investments and the technical capacity to effectively engage the private National Development Strategy (NDS1), laying the sector. This capacity-building support to NRZ foundation for efficiently, effectively, and sustainably and other stakeholders exposed professionals to managing public infrastructure resources. The best practice approaches toward private sector circular gave a directive to Ministries, Departments participation in infrastructure rehabilitation and and Agencies (MDAs) to follow the requirements of renewal, rail operation improvements, and rail- the PIM guidelines in the conceptualization, appraisal, related logistics development. The adoption of and development of new projects for submission to a ZIMREF-funded rail marketing study focused the Treasury. 19 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 facilitate effective routine communications, technical The circular also reiterated that in reviewing consultation between the Ministry of Finance and appraising project submissions from MDAs, and Economic Development and the Ministry of Treasury would be assessing the strategic alignment Environment, two economic advisers were hired of projects with national and sectoral development to support the climate PIM operations. To date, 80 plans, including their socioeconomic feasibility, percent of the targets have been achieved. financial affordability, as well as environmental impacts in line with the regulations imposed by Cumulative outcomes and impacts since inception: the PIM guidelines before including any public • Implementation and enforcement of PIM investment projects or programs into the annual guidelines/manuals in sectors (water, energy, investment pipeline. Ongoing and expected and transport). future interventions include supporting NDS1 in prioritizing national projects based on the PIM • The MoFED PIM Guidelines (2017) streamline guidelines and manuals, capacity-building programs, PIM requirements across all investment integration and harmonization of PIM and PPP modalities (budget, SOEs and PPPs). under the ZIDA Act, strengthening climate change PIM, and supporting emergency spending. • The MoFED Treasury Circular No. 3 of 2021 required the use of the PIM guidelines and Efforts to establish a modern and effective public sector manuals to implement public investments investment management system and mainstream and NDS1. into it the government’s climate change agenda (reflected in the revised nationally cetermined • PIM guidelines and manuals were piloted in 11 contributions, the NDCs) have been supported by projects in five sectors (table 4.1 below) and are the PIM TA. All committed deliverables are on track being rolled out during the 2022 budget process. toward attaining, including the development of the new tools and instruments for PIM screening, capacity building, and application of the new appraisal tool in screening projects to be included in the new National Development Strategy (NDS 2021-2025). As part of the effort to raise the MoFED’s capacity to manage the climate-responsive PIM system and UPON REQUEST FROM THE MOFED, THE TA DEVELOPED SECTOR PROJECT APPRAISAL MANUALS FOR: ENERGY, TRANSPORT, WATER & IRRIGATION 20 4. ZIMREF PROGRESS UPDATE Table 4.1. Operationalization of PIM Guidelines/Manuals in Real Sector Projects in 2020–2022 Project Sector Description Timeline Zhove Irrigation Water/Irrigation The project entails the construction of a water March– April 2020 Scheme conveyance system to supply adequate and sustainable water from the Zhove Dam to irrigate a target of 2,500 hectares of agricultural land. In addition, the project will include a pipeline water conveyance infrastructure to the town of Beitbridge. Biri Irrigation Water/Irrigation The undertaking of the Biri Irrigation Scheme August 2020 Scheme Feasibility Study (FS). The PFS and FS will consider alternative options and technologies that can be used to deliver the project. COVID-19 Isolation Health The project focuses on isolation centers that will be April–May 2021 Centers used to quarantine those with COVID-19 or those suspected to have contracted it. Semwa Dam Project Water/Irrigation The project entails the construction of a rockfall dam April – May 2020 with a full supply capacity of 260,000 mL. Water from the dam is expected to irrigate over 12,000 hectares of farmland in the Mount Darwin and Rushinga Districts. Muzhwi-Mushandike Water/Irrigation The project is intended to save the Mushandike April–May 2020 Canal Project irrigation scheme from collapse by building a canal that will draw water from the idle Muzhwi Dam to the Mushandike Dam. Mbudzi Interchange Transport The project is intended to construct a traffic September–November interchange estimated to cost Z$88 million at the 2021 major intersection along Harare Masvingo Highway. The designs and financing proposal were reviewed by Treasury during 2021. Bindura Halls Education The project, which has stalled since 2015, was April–November 2021 of Residence reappraised in line with PIM guidelines, including the review of cost and implementation modalities. The project is now ongoing, and one block is complete while the other is expected to be completed in one year. 21 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 Project Sector Description Timeline Rehabilitation Social The rehabilitation and upgrading project, which is April–August 2021 and upgrading of expected to cost Z$1 million, was reappraised in line National Sports with PIM, which resulted in change of implementation Stadium and procurement plans with work expected to start in 2022 at a cost of $10 million. Second Education Education Treasury developed a concept note consistent with PIM March–July 2021 Project guidelines for the construction of 200 schools, which was approved by the Minister, with implementation scheduled in 2022. Harare Ring Road Transport The project intends to review the designs and financing July–October 2021 model given that it involves the private sector. Kanyemba Road Transport The project intends to review designs and financing July–October 2021 model of the construction of 150 km given that it involves the private sector. Note: PIM = public investment management; FS, feasibility study; PFS, prefeasibility study; COVID-19 = coronavirus disease 2019. In 2021, the TA achieved the following outputs/ and management system by monitoring/ deliverables: reviewing the deliverables by the EU work: data management system ready, but still awaiting a • Modern public investment management response from EU team; framework adopted: The existing guidelines and project appraisal manuals (PAMs) were • Climate informed PAMs in energy, transport, used in the 2021 budget process. Emergency water, and irrigation were developed and PIM guideline for simplified PIM procedure approved. and decision-making in a crisis of COVID-19 (approved by MoFED in February 2021); • Climate Change Public Expenditure and Institutional Review (CCPEIR) conducted: will • Climate change PIM guideline for mainstreaming be completed by June 2022. climate change into PIM (approved by MoFED in February 2021); • Support for adopting the modern PIM framework: ZIMREF supported the drafting of • Reprioritization of current investment pipeline: a policy note for the PIM-PPP harmonization and Provided advice and consultations to the integration under the new Zimbabwe Investment development of NDS1 (will be completed by Development Authority (act in June 2021, May 2022); development of PIM database completed in July 2021). 22 4. ZIMREF PROGRESS UPDATE In June 2021, a stakeholder training program was Next steps delivered. The program included capacity-building training on PIM guidelines, climate-proofing PIM, The TA is in dialogue with the senior management emergency spending guide, PPP-PIM harmonization, at the MoFED, Department of Infrastructure, and as well as fiscal risk and contingent liabilities for Fiscal Devolution on furthering the PIM reforms infrastructure sectors. The program also served as the and the Bank’s continued support. MoFED has platform to support MoFED to raise awareness and requested the following priorities for the next commitments by all major government stakeholders phase of the World Bank TA, assisting the continued to support the climate change agenda as part of the reforms of the PIM system and operationally nationally determined contribution and National mainstreaming the country’s commitments in the Development Strategy 1. Participants included climate change agenda. Henceforth, the priorities government officials and experts from line ministries are consolidated into two components, with and agencies, including Ministry of Transport and respective background and justification followed Infrastructure Development, Ministry of Energy and by the TA activities. Power Development, Ministry of Health and Child Care (MoHCC), Ministry of environment, Climate, Component 1: Support Climate Change Tourism and Hospitality Industry, PPP Unit, and Mainstreaming in PIM and Mobilize Climate IDBZ. A new capacity-building training program to Private Financing for the NDC 2021 further support the NDS1 and climate change PIM is under preparation and will be delivered in March/ April 2022. Component 2: Strengthen Linkage and Improve Coordination Between Public Investment Program Mainstream Climate Change in Public Sector and PPP Unit Investment Project Design, Preparation, Appraisal, Selection, and Budgeting C. State-Owned Enterprises • The Treasury circular of 2021 acknowledges the This TA seeks to improve governance and need to mainstream climate change adaption and performance of parastatals through an assessment mitigation in the PIM planning and budgeting of corporate governance practices and strategic processes and framework. reviews and options for selected parastatals. This TA works with the Office of the President and Cabinet • The national budget for the fiscal year 2022 and MoFED. allocated a total of Z$52.4 billion to climate change adaptation and mitigation measures With limited funding and reduced activities, the TA across a variety of sectors. This is the first time achieved the following in 2021: a national budget provision has been made to address the subject of global climate change. • Capacity-building for effective state enterprises and parastatals (SEPs) supervision: Spending Guidance for Dealing with Public SEPs, OPC Corporate Governance Unit, State Spending During Emergency Situations such as Enterprises Restructuring Agency (SERA), and the COVID-19 Pandemic line ministries were trained. Training ranged from SEP corporate governance monitoring, including • The Treasury circular of 2021 put into effect the using the Public Entities Corporate Governance emergency PIM guideline to guide the capital Act (PECG) compliance monitoring tool, strategic budgeting for emergency projects. review of the SEP portfolio, interpretation of 23 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 financial information, data management, and and local levels. aggregate reporting. At closing, the project had almost fully achieved the • Directors database for SEPs: To support the objective to improve control in the use of public recruitment of qualified directors to SEP boards, resources, as defined by the revised intermediate OPC is now maintaining a database of directors. outcomes. In terms of the expansion of the PFMS functionality, technical and financial assistance was • Stakeholder engagement plan: A strategy and provided to expand existing PFMS/SAP modules plan for stakeholder engagement on key SEP to support business planning and consolidation reforms and the PECG Act were prepared. (BPC), business intelligence (BI), and the web portal. • Guidance material for PECG Act The BPC module supports the consolidation of all implementation: The Bank supported the budget data based on the 10-digit uniform CoA preparation of the implementation regulations adopted in 2020. In 2021, training for the MDAs of the Act that clarifies the concrete duties and to use the module to prepare the 2022 budget was obligations of SEPs, a model code of conduct and initiated but not completed because of COVID-19 ethics followed by the provision of a series of restrictions. Therefore, the module has not been guidelines for SEPs to implement provisions of used to prepare the 2022 budget. The BI tool has PECG Act. enhanced financial reporting. OUTPUT 3A The module is operational and the MoHCC, MoFED, PUBLIC FINANCIAL MANAGEMENT Ministry of Youth, and Ministry of Industry and ENHANCEMENT PROJECT Commerce are already using the reports on donor- funded projects. The PFMS web portal facilitates The recipient-executed $10 million PFM project the uploading and disclosure of the MDAs’ budget closed in May 2021. It sought to improve control, plans as well as the financial statements of the local transparency and accountability, and oversight in authorities and state-owned enterprises. Eight pilot using public resources and contribute to enhancing MDAs were trained on use of the web portal to fiscal discipline, strategic allocation of resources, and consolidate national accounts, and the MoFED issued service delivery efficiency through strengthened an initial guiding circular to those MDAs on this systems, procedures, and targeted capacity building. process. However, the MDAs are not yet disclosing information on the web portal. The PFMS IT audit The project approach was embedded in capacity was conducted and the final report was submitted to building and sustainability. For example, building the MoFED for review in February 2021. In addition, the capacities and tools for internal audit at MoFED migration to unified 10-digit coding in the PFMS for and line ministries and establishing effective audit recording and reporting all budget transactions was committees would increase the effectiveness of successfully completed. internal audit to support improved compliance with rules and regulations. Deepening and expanding The development of the system interfaces was the audit skills and practices of the Office of the largely completed. The PFMS-ZIMRA interface Auditor General (OAG) would support improved was developed and is now transmitting key cash external audit oversight and reporting of the national management data electronically from the ZIMRA government, public entities, and local authorities. system to MoFED PFMS, albeit with a manual Enhanced capacity and technical support for key trigger (the interface was designed for automated parliamentary committees would strengthen the data exchange, and the MoFED and ZIMRA teams Parliament’s oversight of the budget at the central are expected to activate this in 2022). The interface 24 4. ZIMREF PROGRESS UPDATE between the RBZ Eagle Switch (linked to the T24 the PFMS. Thirteen of the statutory funds and 32 of System) and the PFMS was also implemented. the retention funds had gone live by the end of the project. The rollout of the PFMS to donor projects The PFMS-RBZ interface was developed in May 2021 was initiated but has not yet been completed. The but has not yet been operationalized. The Treasury Implementation Completion Report (ICR) team was tested the interface, but it was not possible to initiate informed that the DevProMIS (an aid management the rollout before the closure of the project. Currently, platform) will be linked to the PFMS in due course. all MDAs continue to process their payments through Delays in operationalizing the platform were a direct 40+ separate interfaces with the RBZ in parallel to result of the effects of the COVID-19 pandemic and this new PFMS-RBZ interface, as before. The MDAs ensuing lockdown and restrictions. are expected to close their separate connections with the RBZ and use the new PFMS-RBZ interface The PFMS was successfully rolled out to districts for all electronic payments and reconciliations in via kiosks. In total, 63 kiosks (against a target of 2022. The interface, once operational, will eliminate 30) were established. They give MDAs and district face-to-face interventions and approvals of RBZ councils access to the expanded PFMS, web pPortal, payment requests. This will also reduce exposure and and other applications. The kiosks, which are automate bank reconciliations, which were previously equipped with computers, printers, uninterruptible delayed by months because of manual processes. power sources (UPSs), desks, chairs, air conditioning The development and implementation of the RBZ units, and solar panel and battery installations, are interface is one of the capstone outputs of this connected to the government network (fiber optic) project that is expected to contribute to improving to ensure system access for daily operations. More control in the use of public resources and facilitate than 50 percent of the kiosks are already in use for the transition to treasury single account operations. PFMS, that is, they are functional and operating The RBZ is the government’s main payment channel, PFMS services for districts. and the interface has helped to improve security in online payments and reduce government losses due to fraud. The PFMS-DMFAS interface was also initiated under the project, but it was not possible to complete its development by the end of May 2021 because of delays in the contract deliverables. The MoFED eventually completed the DMFAS-PFMS interface using budget funds in September 2021, and it is expected to become operational in 2022. The IFMIS-Payroll interface was not implemented because of a shift in priorities. Coverage of PFMS was extended to statutory funds and donor grants. The project supported the integration of 22 grants into the PFMS (out of a PFMS-RBZ, once total of 74 grants) and 45 statutory and retention operational, will eliminate face-to- funds (out of a total of 94 funds). This compares with the target of 10 for each. The MoFED issued a directive for retention funds to be incorporated into the appropriation accounts for each MDA on face interventions the PFMS. Statutory funds operate separately on and approvals of RBZ payment requests 25 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 In terms of enhancing transparency and accountability government’s audited financial statements against by strengthening external audit, the following was a target of seven sitting months. Nonetheless, achieved: Checklists for private sector audit firms Parliament’s role in PFM in Zimbabwe has grown were developed; public sector audit firms received stronger, as has its relationship and collaboration training; risk management processes were developed; with other key PFM institutions, especially the computer-assisted audit tools (CAAT) were procured OAG. Capacitating Parliament with the expertise to for data extraction/analysis; study tours to South effectively analyze audit reports has raised the bar Africa, Rwanda, Ghana, and Tanzania were facilitated in terms of scrutinizing the use of public resources. to exchange knowledge and experiences in financial Bringing citizens into the fold by ensuring their reporting, internal controls, and internal audit participation and engagement in the budget process functions; and advanced SAP training for system has greatly improved oversight in the use of public audits was conducted. To date, eight IT auditors (two resources. Parliament’s oversight role was enhanced females and six males) and 29 financial auditors (five through the increased efficiency of the OAG, which females and 24 males) have been trained through submitted the previous FY’s audit reports to the the facility. A job evaluation and career development Parliament within the mandated period of six plan for the OAG was established. Some of the job months, which is half the time that it took when the evaluation recommendations (for example, salary baseline (12 months) was established. However, the adjustments) were implemented in 2021. However, final target was not met because of the impact of the recommendations on career path have not been COVID-19. A key aspect of audit analysis is to identify fully implemented. where improvements can be made. In the context of the PFMEP, this was measured by the extent to Again, final targets, which measured the percentage which PAC recommendations were implemented by of completed annual internal audit work plans for the the MoFED. The target for each year was 90 percent, six largest spending ministries, were not met. In fact, and this was met in 2017, 2018, 2019, and 2020. In in 2020, the percentage fell to 25 percent, which is 2021, the target was surpassed, as 100 percent of significantly lower than the baseline (70 percent) and a the recommendations were implemented. It must be far cry from the expected target (80 percent). However, highlighted here that PAC has played a critical role the decline was caused by COVID-19 lockdowns and in demanding action from relevant authorities. Four restrictions, which affected working arrangements and treasury minutes were received from the MoFED by caused delays. Still, because the requisite systems and May 2021, meeting the set target. procedures had been put in place and corresponding capacity had been built, in 2019, the percentage of From a cost benefit analysis, the project helped put in completed workplans was 79 percent, almost reaching place improved PFM functions that could be deployed the 80 percent target, while in 2018, the year the by the GoZ to contribute to enhanced fiscal discipline, project was restructured and the target formulated, the strategic allocation of resources, and service it was 70 percent. In the end, despite missing the final delivery efficiency. In the short term, the benefits targets, the project made good progress toward its of the project’s results are increased operational objective to improve transparency and accountability efficiency and an expected contribution to improved in the use of public resources. effectiveness in public expenditure, but these impacts are difficult to quantify. Despite slippages in quantitative indicators, other evidence suggests that the project almost achieved The investment made in strengthening the PAC’s its objective to improve oversight in the use of capacity and expertise to scrutinize the use of public resources. At the end of the project, it was public funds has increased accountability in a way taking Parliament 10 sitting months to analyze the that identifies the mismanagement and misuse 26 4. ZIMREF PROGRESS UPDATE of public funds and demands corrective action. with section 141 of the Constitution, these If this is sustained, the savings made over time public platforms contributed to “public access will be significant and resources will be allocated to and involvement in Parliament.” The result efficiently and effectively, resulting in positive of this public involvement was that Parliament development outcomes. passed a bill that addressed contemporary issues affecting Zimbabweans, including women, and Gender which increased budget allocations to the Gender Commission from US$1.84 million in 2018 to Although the project did not have a specific gender US$1.89 million in 2019. The bill encourages the tag, it maintained a strong focus on gender issues. recruitment of more female staff and promotes the In its quest to build capacity, the PFMEP was very involvement of women in internal audit investigative specific about addressing gender inequality, and and monitoring mandates, among other activities. through its approach to training and capacity building raised awareness of the gaps between females and OUTPUT 3B males and sought to address them. The project PUBLIC PROCUREMENT improved women’s employment opportunities and AND MODERNIZATION roles in various audit departments. This is particularly ENHANCEMENT PROJECT important given that, in general, the composition of staff in key audit institutions was predominantly male, The recipient-executed component closed in 2018. It with women primarily taking on administrative roles. aimed to support greater transparency, accountability, Through the training and capacity activities under and effectiveness of public procurement. ZIMREF components 1 and 2, women were encouraged to support continued through TA in 2021, enabling come on board and take on more senior positions. technical assistance to the Procurement Regulatory Greater efforts were also made to call for and ensure Authority of Zimbabwe for capacity-building value for gender equality in decision-making as part of project money, transparency, and good governance through oversight. Equal access to training opportunities and e-learning courses. The TA also enhanced efficiency active participation of women in training programs in public spending by developing a framework and conferences was also prioritized. agreement (approved in June 2021) for commonly used goods and developed massive open online Women’s participation in the budget preparation courses—e-learning procurement was operational process was significant, as measured by a specific from August 2021. project indicator, and budget allocations increased to the Gender Commission. Under component 4 of the project, (Strengthening the Demand Side of Transparency and Accountability), Intermediate Results Indicator measured women’s participation, that is: Citizens participating in the prebudget and postbudget consultations conducted by Parliament/ committees (disaggregated by gender). By supporting IN 2018 680 CITIZENS budget consultations, the project created a platform for citizens to provide input on the allocation and use of public resources. In 2018, 680 (46 percent (46% FEMALE) female) citizens participated in the development PARTICIPATED IN THE of the national budget, while 1,285 (48 percent DEVELOPMENT OF THE female) citizens participated in 2019. Consistent NATIONAL BUDGET 27 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 Additional funding of US$50,000 was allocated OUTPUT 4A to update the following documents related to RESULTS-BASED BUDGETING the electronic government procurement (e- GP) initiatives: This TA works with all government ministries, departments, and agencies to support the 1. e-GP readiness assessment report drafted in 2015, formulation of robust expenditure policy decisions. taking into consideration the importance and risks The TA has been implemented through three associated with levels of technological capacity, components of program-based budgeting (PBB), infrastructure, organization, and expertise within education, and health. the public and private sectors in the country. Component 1: Program-Based Budgeting 2. Analysis of existing regulations related to the use of an e-GP solution and recommendations. In 2021, a report on the review of PBB implementation was developed in collaboration with 3. e-GP strategy and business process the Ministry of Finance and Economic Development. reengineering report that was approved by the The presentation of the report to all stakeholders government in 2018 together with the cost (government ministries, development partners, estimates and implementation of the roadmap. private sector) was, unfortunately, postponed due to the COVID-19 pandemic, as the majority of 4. Bidding document, including the functional and government workers were working from home and technical specifications of the e-GP solution to without reliable Internet services. be implemented in Zimbabwe. The other work stream undertaken during this period Based on the revised documents that are planned was the development of a PBB performance reporting to be finalized by the end FY22, i.e., June 2022, the template. The work involved piloting performance Bank will work with the government of Zimbabwe reporting using primary and secondary Education; and other partners on the implementation of the and Public Service, Labor and Social Welfare electronic procurement system roll out. ministries. It is envisaged that performance reporting will foster a performance management culture within the public service through periodic performance reporting, including on budgetary units’ websites and in Parliament. The tasks also involved updating the policy and technical guidelines on the results- based budgeting / PBB manual in collaboration with the Ministry of Finance and Economic Development and the Office of the President and Cabinet. THE PBB JOURNEY IN ZIMBABWE WAS ADOPTED Cumulative impact IN 2014 ON A PHASED The PBB journey in Zimbabwe has been gaining IMPLEMENTATION BASIS, AND traction since its inception. It was adopted in 2014 on IN 2016, 3 PILOT MINISTRIES a phased implementation basis, and in 2016 three pilot HAD THEIR ESTIMATES OF ministries had their estimates of expenditure tabled EXPENDITURE TABLED IN THE in the program format. By 2020, all 35 ministries and PROGRAM FORMAT. agencies presented their estimates of expenditure in program format (figure 4.1). The year 2021 is, 28 4. ZIMREF PROGRESS UPDATE therefore, the second year in which all spending years. As a result, spending priorities and program estimates were submitted to Parliament in PBB format. outputs and outcomes align with the government’s This achievement was due, in part, to continuous priorities outlined in the NDS1, Zimbabwe’s medium- training that was offered through this TA over the term national development plan. Figure 4.1. PBB Implementation Timeline Establishment of a PBB Traning of a Development of Central Implementation cohort of IRBM PBB Manual / Team (CIT) Trainers (20 members) Review of RBB Guideline performane (Draft) Periodical capacity Regular sensitisation indicators and Development of building of PBB & training of targets across Review of PBB PBB Terminology & Trainers incl. CIT MDA officials 12 Votes all MDAs Implementation Concepts appropriated 3 Votes appropriated by programme by programme 2014 2015 2016 2017 2018 2019 2020 2021 Phased development of Sensitisation & PBB 9 Votes Issuance of programme structure Training of Parliament & appropriated by accountability All Votes (35) External Audit programme guidelines by Piloting of appropriated by Performance MOFED programme Development of PBB guideline; Reporting to Developing programme Study Tour to Modification Parliament structures; assessing Chile & Uruguay of the Chart of performance indicators; Accounts Evaluating performance measures Source: World Bank compilation. Note: PBB = program-based budgeting; MDA = Ministries, Departments and Agencies; RBB = results-based budgeting; MoFED = Ministry of Finance and Economic Development. In 2020, various tasks were completed that Challenges in TA implementation involved component four activities: 1) reviewing performance indicators and targets for all the 35 While there was notable progress in implementing votes (ministries and independent commissions); the TA, the COVID-19 pandemic affected scheduled 2) provided support for the alignment of NDS to training sessions and workshops. The targeted groups the national budget through PBB focusing on two to be trained are stationed in various parts of Zimbabwe, tracks: a) matching budget programs to the NDS including areas where there is difficulty getting Internet priorities and matched budget programs to sectors connectivity. Hence, online training was challenging. The and subsectors and b) matching budget programs other challenge was due to job attrition across various to NDS priorities (themes); 3) prepared a report on ministries; a substantial number of PBB-trained staff Performance Reporting to Parliament and Citizens: either resigned, were assigned to other duties, or got Lessons for Zimbabwe to provide guidelines on how promoted. This necessitated continuous training of other countries report on performance to Parliament. additional new staff members on PBB. The training Further, a blog was published documenting the PBB component was negatively affected in 2021, with implementation journey. training completed in March 2022. 29 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 Way forward used by the government and partners to implement strategic interventions to improve the effectiveness Overall, the ZIMREF funding to PBB is ending in and efficiencies in the health sector response. June 2022. Notable progress achieved to date needs to be sustained and deepened by addressing Furthermore, the evidence base has also provided institutional, human resource, and technical inputs in recent national strategic planning processes, constraints to PBB implementation. It also entails for example, inclusion of recommendations from ensuring implementation reports are produced the health and gender policy brief and the progress and made publicly available. Key areas that need in implementation of health financing reforms in future consideration include strengthening the the development of the health sector investment dedicated reform unit in MoFED, allowing it to focus case. Also, notable is the institutionalization of the on deepening and fortifying the implementation expenditure tracking mechanisms, for example, of PBB. This unit should continue to work closely incorporating the health module into the poverty, with the Public Sector Reforms and Modernization income, consumption, and expenditure surveys. Department of the OPC, focusing on the alignment Overall, efforts to strengthen evidence-based of PBB performance specifications to national decision-making in the sector also build on the priorities in the NDS1. Further consideration knowledge products produced under ZIMREF should involve enhancing parliamentary oversight support. There are opportunities to build on the by developing appropriate parliamentary capacity lessons and technical aspects of this previous work for budget analysis and oversight; developing in the continued support to the health financing work capacity in the audit office to audit the integrity of stream, including resource mapping and expenditure performance information as well as service delivery tracking exercises in the country. performance; refining and enhancing the program costing methodology to strengthen the credibility Component 3: Education of program budgets; strengthening information Sector Technical Assistance management by building a sectoral monitoring and evaluation capacity and gradually linking all MDAs Most activities have been completed. The Teaching under a single information system; and making Profession Council Bill was handed over for regular reporting mandatory to ensure that decision- enactment, but due to the COVID-19 pandemic, the makers and policymakers have timely information on process has been delayed. The education component financial and program performance. aims to support the government’s efforts to improve education outcomes and spending efficiency. The Component 2: Health Sector Technical Assistance intended outcomes are to increase knowledge, strengthen capacity, and update practices in specific ZIMREF-funded activities (knowledge products) policy areas aimed to address gaps in education were completed in 2019. This component sought to outcomes. improve evidence-based planning and integration of empirical measurement for the health sector. Progress made during the reporting period The technical outputs from this TA were i) National Health Financing Strategy and National Health The key outstanding deliverable under the reporting Financing Policy; ii) support to conduct the National period was an implementation framework for the Health Accounts for 2015–16; iii) feasibility analysis Information and Communication Technology (ICT) of conducting community-based health insurance; iv) in Education Policy. In discussion with the Ministry fiscal space analysis; and v) development of health of Primary and Secondary Education (MoPSE), the and gender policy brief. The outputs have been deliverable was changed to “A guide to support 30 4. ZIMREF PROGRESS UPDATE completion of the Zimbabwe ICT in Education Policy guide gives an overview of the data and information Implementation Plan.” This change was because the to be gathered, consultations with stakeholders to Ministry is currently reviewing the ICT in Education be held, budgetary considerations to be made, equity Policy to align it to new developments such as the and equality issues to be taken note of, and important NDS1, the new education sector strategy, and the choices and decisions to be made before the ICT in higher education’s education 5.0 strategy. As such, Education Policy is implemented. The guide has since an implementation plan of the policy that is under been finalised and handed over to the MoPSE, and review would not have been of any value. the Education TA has been completed and an activity completion summary prepared for internal World It is against this background that it was agreed to Bank processes. have a guide on developing an implementation framework, a guide whose purpose would be to OUTPUT 4B provide guidance to the MoPSE as they roll out a POVERTY MONITORING & EVALUATION multiple-year operational plan to implement the TECHNICAL ASSISTANCE national Information and Communication Technology Policy for Primary and Secondary Education in The primary objective of this analytical and advisory Zimbabwe. The document provides an initial outline work is to promote the use of data and generate of the steps, activities, and tasks that will be required evidence for policymaking and monitoring of the to implement the MoPSE National ICT Policy and an development process in Zimbabwe working mostly accompanying draft budget template for calculating with the Zimbabe Statistical Agency. school-based costs of implementation. Overall, the The Poverty, Monitoring and Evaluation TA is a (hybrid) program that aims to strengthen the collection and use of high-quality data on poverty and other social outcomes to design better policies and programs in Zimbabwe. All five outputs were completed, leading to the intermediate outcome of improved poverty monitoring and evaluation. Currently the TA is working on the following: • Rapid PICES Monitoring Telephone Survey • Call for poverty research proposals to promote use of new PICES data; seven research papers were completed under the first call, and four more papers are under development under the second call. The next step is to engage government on findings. • Strengthening capacity for monitoring and evaluation of NDS; jointly with United Nations THE EDUCATION COMPONENT (UN) and African Development Bank (AfDB), AIMS TO SUPPORT THE technical and financial assistance was provided to GOVERNMENT’S EFFORTS strengthen the NDS M&E framework. TO IMPROVE EDUCATION OUTCOMES AND SPENDING EFFICIENCY. 31 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 • Support to develop new National Strategy for • A subsample of 1,800 households from Mini the Development of Statistics; this will spell out PICES 2019. the steps for the modernization of the statistical system. Technical and financial assistance is • The briefs produced jointly by ZIMSTAT, World being provided to ZIMSTAT to validate the draft Bank, and UNICEF. ZIMSTAT assumed the lead in findings of the National Strategy for Development the production of the briefs starting with round 4. of Statistics (NSDS) II assessment and NSDS III strategic framework. • The key performance indicators (KPIs) for NDS1 M&E framework were revised. The draft awaits • Support to the mapping component of the final review by the principal secretaries and Population and Housing Census 2021; high- approval by the cabinet. resolution satellite imagery is provided for areas where population size has changed rapidly. A • Two phases of training on Stata, an advanced data results dashboard with key indicators and their analysis program, were completed by ZIMSTAT staff. disaggregation from Rapid PICES has also been prepared and is available from the ZIMSTAT Lessons from the findings that would provide website. Two rounds of COVID-19 follow-up parameters of a shock-responsive SP system include Enterprise Survey were completed among the following: registered and unregistered businesses in Zimbabwe to measure the impact of COVID-19 • Early warning system and emergency response: on businesses and their response. This is important to determine the level of need, targeting criteria, coverage, and expansion methods. Progress made and results achieved during the reporting period are as follows: • Targeting: Targeting mechanisms and forming a single registry for beneficiaries, for example, • The Mini PICES microdata have been released would be important. through the ZIMSTAT website after data anonymization was completed. • Delivery systems: Strengthening of delivery systems such as payment systems or grievance • High-frequency household phone survey redress mechanism. conducted by ZIMSTAT with technical and financial support from the World Bank and UNICEF. • Monitoring and Evaluation: Common M&E mechanisms and indicators to be tracked across • Seven rounds of Rapid PICES data collection have programs and agencies. been completed since July 2020. The eighth round is under preparation. • Harmonization: Greater harmonization between government and humanitarian partners toward a • Summary briefs based on rounds 1–4 data have more coherent shock-responsive system. been prepared and disseminated. Briefs based on round 5 and 6 are under development. The restrictions to travel and gatherings because the COVID-19 pandemic compelled a rethinking • The Rapid PICES microdata will be released through of the approach to capacity building of National the ZIMSTAT website after data anonymization is Statistics Offices (NSOs). Responding to the completed (ongoing). altered circumstances, the Zimbabwe poverty team 32 4. ZIMREF PROGRESS UPDATE adopted a distance learning approach to building implement rapid monitoring surveys and perform the capacity of ZIMSTAT. Training sessions on Stata data analysis has been enhanced through training were conducted on Thursday and Friday of every of ZIMSTAT staff in advanced statistical software week, with the instruction accompanied by individual and ZIMSTAT leading the development of summary assignments, group work, and take-home exercises. briefs. The TA has also augmented the stock of About 20 ZIMSTAT staff from across the organization knowledge on the causes and consequences of completed the first phase of the training. Building on poverty in Zimbabwe through the development of the success, the second phase has been kicked off, poverty-related policy papers by national academics with the World Bank and ZIMSTAT conducting joint and policymakers. analysis of core poverty indicators for the upcoming Zimbabwe Poverty Assessment. Next steps The Brown Bag Lunch (BBL) was attended by The following activities are planned for the rest of the counterparts from ZIMSTAT, counterparts from FY (until June 2022): other statistics agencies, and Bank colleagues from the Country Management Unit (CMU) and Global • Four poverty-related policy papers under Practice (GP). There was a robust discussion on the development opportunities for and challenges to the distance- learning approach for capacity building. • Rounds 8 and 9 of high-frequency household survey (Rapid PICES) Outcome • BBLs to disseminate the main findings of Rapid-PICES The outputs from the TA have strengthened Zimbabwe’s welfare monitoring system and • Third round of COVID-19 follow-up Enterprise Survey enhanced its statistical capacity. Regular data on vital socioeconomic indicators, such as employment, • Dissemination event to share the main findings on food insecurity, poverty, school enrollment, and so firm outcomes and response on, have helped keep a pulse on the situation of households since the onset of the pandemic. In the • Provide ongoing capacity-building and process, the capacity of ZIMSTAT to design and implementation support for NDS1 M&E REGULAR DATA ON VITAL SOCIOECONOMIC INDICATORS, SUCH AS: EMPLOYMENT, FOOD, SECURITY, POVERTY, SCHOOL ENROLLMENT AND SO ON, HAVE HELPED KEEP A PULSE ON THE SITUATION OF HOUSEHOLDS SINCE THE ONSET OF THE PANDEMIC. 33 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 IMPACT CORNER Strengthening policies, institutions, and beyond its traditionally defined role as the investments for rebuilding better producer of data, ZIMSTAT also took the lead in producing summary reports and developing a Against a background of weakened institutional data dissemination dashboard that are updated capacity, especially in core government after every survey round. This makes the data functions to deliver services to citizens the accessible to potential users, thus enhancing its Poverty Monitoring and Evaluation TA has been value. ZIMSTAT also partners with ministries providing technical assistance to the Zimbabwe and agencies to selectively include modules Statistical Agency (ZIMSTAT) on strengthening the agencies need for policy decisions, which data systems to monitor progress and boost enhances the relevance of the data. public accountability. With the TA there has been a deliberate effort to generate, analyze, “The Technical Assistance provided by the World and disseminate data that can be consistently Bank through ZIMREF-funded activities has used for decision-making by policy makers and strengthened our household welfare monitoring planners and monitor progress toward national system through Rapid PICES Telephone goals on targets such as poverty reduction. Monitoring Surveys. We have been able to produce high frequency, quality and timely The TA kicked off with a medium-term data on poverty, food security, unemployment, household survey strategy to help with and other indicators particularly during sequencing household surveys to prevent COVID-19 pandemic. We are now thinking of overlap, spread ZIMSTAT workload and ensure how to institutionalize the gains made from the data gaps are filled as they were limited by Technical Assistance rendered in the past several access to micro-data. years. Going beyond data production, World Bank has also helped build our capacity on data By strengthening the data supply side of analysis and dissemination,” said the Director evidence-based poverty policy making in the TA General of ZIMSTAT Mr Taguma Mahonde. was able in 2020 to introduce a high-frequency telephone survey of households to measure Apart from the surveys, the TA augmented the the socio-economic impact of COVID-19 in stock of knowledge and promoted evidence- Zimbabwe. The survey was in response to the based policymaking by supporting the urgent need for timely information to help production of policy-relevant research papers monitor and mitigate the socio-economic impact by research teams comprised of academics of the pandemic. This information was essential and policy makers. The team partnered with to inform the policy formulation, implementation, ZEPARU, a leading local think tank, on this and evaluation process. activity. Seven papers on a variety of topics were produced under the first round, and four papers Seven rounds of data have been collected so are almost completed under the second round far, with two more rounds remaining. Going of policy papers. 34 4. ZIMREF PROGRESS UPDATE OUTPUT 5A Data collection efforts for the 30 sample dams have ZIMBABWE NATIONAL WATER PROJECT been completed, along with the testing and fine- tuning of the tool. During this process, there has been The Zimbabwe National Water Project (ZNWP) is a strong emphasis on streamlining data collection closed. Since closure, the sector is benefitting from efforts that required consultation workshops on data a TA that arose from a government request based sources, identification of data collectors/validators for on previous work done on dam safety in 2013 and all catchments and provincial irrigation departments, dialogue during the preparation of the draft master training on the use of a digitalize platform to collect plans under the National Water Program. georeferenced data, identification of alternative sources through partnerships with ZINVAC, Multipurpose Water Storage System Assessment Bindura University, and UNESCO / Princeton Flood for Sustainable Productive Water Use and Drought Monitors. These efforts have been instrumental to experience firsthand not only the data Zimbabwe has historically relied on water storage challenges that ZINWA currently faces, which is critical dams to ensure water, food, and energy security. The for sound water resources management,5 but also have country has the second highest storage capacity in revealed a window of opportunity to further support southern Africa, with about 4,485 public dams. These the client in building up its infrastructure database, so dams were constructed in the last century (from the data can be used for both the triaging of dams and for 1920s) and represent a significant (and aging) national other water resources management purposes. asset base and “infrastructure stock.” Dam management prioritization was based on a needs Within this context, the TA has supported the assessment submitted on an annual basis. These will government on the development of a multicriteria be specific requirements based on individual dams decision model (MCDM) Excel-based tool to following inspections or based on reports submitted support them on identifying and triaging dams for by the water bailiffs. However, because of limited rehabilitation. The MCDM tool helps to prioritize funding from central government or from ZINWA’s the dams based on transparent, open, and explicit cost recovery from water sales or provision of services, criteria where stakeholder values are elicited and the central office will disburse lump sum allocations explicitly incorporated into the decision process for dam safety and maintenance to the catchments through a strong stakeholder engagement process. for the large and small dams’ portfolios, respectively. These include technical criteria that focus on dam It will be up to the catchment management office to hazard risks, technical conditions, and potential for then allocate the available resources in the best way development; criteria on potential productive uses, possible for both categories. Additional budget was including in agricultural systems (crop, livestock, allocated in the event of an emergency. fisheries); institutional criteria that focus on dam management factors; and social and environmental This tool helps bring all dams into perspective in the criteria that focus also on climate vulnerabilities of prioritization process by looking at all of them through dams. The Advice and Analytics (ASA) has provided the same lens. The tool also assists authorities to get technical support on development and utilization of a comprehensive view as they collect the same data the tool, which is triaging / will triage rehabilitations to for the entire portfolio of infrastructure assets that enhance the climate and disaster resilience and food they have, rather than relying on different reports security of communities across the country. submitted by the bailiffs solely. 5 This has been identified as one of the most critical challenges for ZINWA in the 2013 Dam Safety Review conducted by the World Bank in collaboration with Arup. 35 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 OUTPUT 5B ongoing, and future support for climate action CLIMATE CHANGE by ZIMREF. Zimbabwe is a climate change hotspot requiring Key outcomes urgent and sustained efforts to mitigate the negative impacts, especially on the poor. Zimbabwe is one Support from ZIMREF has been key in helping of the climate change hotspots in southern Africa, Zimbabwe to 1) develop and strengthen national where risks of large adverse effects of climate capacities to directly access and mobilize international change coincide with large numbers of poor people and local climate finance for climate action; 2) who are least able to cope. engage in a dynamic and robust process of revising the NDC to enhance realism of the underlying Over the recent period, Zimbabwe has faced an growth/structural assumptions, balance mitigation increased frequency of extreme-weather events and adaptation, expand the sectoral scope, ensure such as droughts, devastating storms, and cyclones high quality, ambition, and ownership; 3) actively leading to large multidimensional losses. At the same participate in the UN Climate Summit in Glasgow, time, poverty levels continue to rise with the number Scotland; and 4) catalyze action and resources to of extreme poor people having more than doubled support Zimbabwe in addressing climate risks. between 2011 and 2020. Climate shocks exacerbate poverty and vulnerability and, indeed, Zimbabwe is one Accreditation of Infrastructure Development Bank of the six countries where the poor are overexposed to of Zimbabwe to directly access resources from the climate shocks. This exposure to climate change risks Green Climate Fund. In June 2021, the Infrastructure has been compounded by other economic shocks, such Development Bank of Zimbabwe (IDBZ) received its COVID-19 and the ongoing Ukraine crisis. accreditation to the Green Climate Fund (GCF) for small-sized projects (up to US$70 million each). This This exposure to climate change and economic shocks milestone was the culmination of direct ZIMREF is well-reflected in Zimbabwe’s overarching planning Climate Change technical assistance to support the frameworks, namely Vision 2030, the NDS 2021– accreditation process. 25, the Low Emissions Development Strategy, and related sectoral policies. Zimbabwe is an active party IDBZ’s accreditation for direct access to the GCF is to the United Nations Framework Convention on veritable evidence of the contribution to strengthened Climate Change (UNFCCC) and its related protocols. national capacity to access international climate finance. The accreditation of IDBZ to the GCF Zimbabwe’s planning and development management followed the Environmental Management Agency’s apparatus has come to articulate a shared purpose accreditation to the Adaptation Fund in 2019. for accelerating climate action and nature-based Previously, Zimbabwe could only access international approaches as both imperative for resilience and long- climate finance through international accredited term sustainable growth and development. Working entities. Given Zimbabwe’s limited access to bilateral with other partners, the World Bank, through and multilateral finance, this is a major result that ZIMREF, is well-placed to continue supporting allows Zimbabwe to access critical resources that are Zimbabwe in accelerating climate action to mitigate required to implement the climate actions specified in climate shocks, alleviate poverty, and promote the country’s NDC. resilient economic growth and development. The year under review also registered significant The high exposure and vulnerability to climate progress toward the operationalization of the shocks provides the rationale for previous, Climate Finance Facility (CFF), which is also hosted 36 4. ZIMREF PROGRESS UPDATE at IDBZ. The facility seeks to mobilize local (including levels with significant cobenefits in terms of jobs, from private sector) resources to support climate gender, and key environmental services. action. Following the development of the business case, the year under review saw the development of Compliance with the revised NDC is fully conditional implementation arrangements for the CFF, notably on affordable international financial support, the operations manual and attendant annexures. Work investment, technology development and transfer, is ongoing to complete the prospectus, launch, and and capacity development. The Revised NDC Report convene a donor roundtable to pave the way to the was not only of high quality but was produced under operationalization of the CFF as a dynamic part of the a strong participatory and Government-led process. emergent climate finance ecosystem in Zimbabwe. The revised NDC report was adopted by the cabinet and informed Zimbabwe’s participation to the UN Revising Zimbabwe’s nationally determined Climate Summit in Glasgow, Scotland. ZIMREF contributions. Another key outcome was the also supported key delegates from Zimbabwe to production of a revised NDC report with enhanced actively participate at COP26, including staging key ambition, expanded sectoral scope, and extended side events. The president led Zimbabwe’s robust coverage beyond climate change mitigation to include participation at the COP26 Climate Summit in adaptation to economy-wide climate change risks October–November 2021. and vulnerabilities. ZIMREF supported the 2021 revision of the NDC, presented at the UN Climate Catalyzing resources, processes, and action. ZIMREF Change Conference in 2021. Key changes include support has continued to build the evidence base, 1) a target of a 40 percent per capita emissions track record, and a platform for catalyzing additional reduction across all sectors (previous target was resources for scaling up support for climate action 33 percent) of the economy below the projected and nature-based approaches in Zimbabwe. business as usual scenario by 2030; 2) the emissions Accordingly, the year under review saw the launch of baseline and expanded list of mitigation measures a spatial landscape mapping and ecosystem services now cover all Inter-Governmental Panel on Climate evaluation study to provide the evidence base for Change (IPCC) sectors; 3) andthe NDC prioritizes developing an integrated landscape management adaptation measures in agriculture, water resources, activities in prioritized biodiversity and production early warning systems, and disaster risk management landscapes in northeastern Zimbabwe. The (DRM) infrastructure development. ProGreen study is funded by the ProGreen Multi- Donor Trust Fund that is managed by the World Bank. Zimbabwe’s NDC prioritizes actions in forestry The ProGreen study is on course for completion (increase area of forest land, increase area of forest by June 2022, paving way for the development of plantation, and reducing area of forest burned) for an investment project for scaled-up integrated enhanced climate mitigation and adaptation. The high landscape management in the Mazoe Catchment for quality of the revised NDC is supported by the key enhanced environmental and development benefits. outcome of COP26 of the United Nations Framework Convention on Climate Change held in Glasgow, United Kingdom, in 2021, which is the renewed focus on nature-based solutions and forestry as KEY CHANGES INCLUDE key and cost-effective approaches to address A TARGET OF A climate change mitigation and adaptation. Hence, supporting Zimbabwe in promoting sustainable forest management schemes would contribute to 40% PER CAPITA effective climate action at local, national, and global EMISSIONS REDUCTION ACROSS ALL SECTORS 37 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 The same catalytic (and cofinancing) function was will dovetail with development and resource also at play during the revision of the NDC report, mobilization for an integrated natural resources which was funded in significant measure by the NDC management project in the same landscape; Support Facility alongside other partners. • Supporting the development of a revised NDC Recently (March 2022), the IMF team met with implementation framework ahead of the planned ZIMREF Climate Change team and were impressed COP27 UN Climate Summit scheduled for with the substantial work on technical analysis and October–November 2022 in Egypt; mainstreaming climate change in priority sectors and development policy frameworks. IMF is exploring • Development of sustainable financing options ways to accelerate climate action in developing paper for the forestry sector; countries, and the substantial work done under ZIMREF is already providing a platform for meaningful • Supporting enhanced community-based natural discussions. Finally, based on the key works and resources management in Zimbabwe; and record established under ZIMREF, government has indicated a willingness to work with the World Bank • Supporting the development of a Climate Change to develop a Climate Change Development Report Development Report for Zimbabwe (CCDR) for Zimbabwe. The CCDR is an in-depth analytical instrument for mainstreaming climate Other ZIMREF-Supported Activities change in priority sectors and their interrelationships for economic growth and resilience. The CCDR is a key Zimbabwe Recovery and Resilience Project diagnostic tool for informing World Bank engagement under the World Bank Climate Change Action Plan. Pursuant to the government’s request to extend the The preparation of such a CCDR for Zimbabwe would closing date of the project, given implementation not have been in play without the catalytic platform delays and the time required to deliver on key already established under ZIMREF. activities, the proposed year-long extension was approved by the Policy Oversight Committee and Next Steps aligned with the umbrella ZIMREF time extension. The Bank established June 30, 2022, as the latter The ZIMREF Climate Change support is focused on closing date from the prior established closing date consolidating the strong technical and institutional of June 30, 2021. The project is more than one and a platform established in part with the continued half years into implementation and is making steady support of ZIMREF to strengthen the implementation progress toward achieving its development objective, of scaled-up climate-resilient and nature-smart despite the challenges of COVID-19. The project to development strategies in Zimbabwe. The following date has met several of its key results targets at this activities and engagements are lined up for the stage that include the following: outlook period, namely: Strengthening hydro-meteorological and early • Developing a prospectus, formal launch, and warning services in Zimbabwe. The project delivered convening a donor roundtable for the Climate on its assignment objectives to assess the institutional Finance Facility; requirements and early actions to be taken to improve the provision of hydro-meteorological and • Undertaking and finalization of spatial land-use early warning services in Zimbabwe. The project planning and ecosystem services evaluation finalized and produced two reports on assessment in the Mazoe Catchment in northeastern of the current service delivery and user needs and Zimbabwe. Finalization of this diagnostic work institutional mandates and capacities, which were 38 shared with all stakeholders. Consultations were held THE COMPOSITE DROUGHT with stakeholders on developing a methodology for a INDICATOR TOOL DEPICTS prototype early warning system to seek feedback on GEOGRAPHIC the current status of existing early warning systems. EXTENT, The team of consultants prepared and presented SEVERITY & short- and medium-term actions to be taken to DURATION strengthen meteorological, hydrological, and electro- OF DROUGHT IN THE optical infrared weather system (EWS) services to ZIMBABWEAN CONTEXT facilitate effective decision-making and early action by government, responders, and communities. To build upon this work further, the WB is now providing technical and financial support to the Meteorological Service Department (MSD) in the implementation of a few immediate activities to improve service delivery capabilities of the department. This will include provision of equipment for computerization and modernization of the meteorological training school, wide area network (WAN) installation that enables connectivity of all the 47 meteorological stations across the country so as to allow real-time data transmission. In addition, through the Bank- executed component, the WB recruited a consultant to advise and support MSD on maximizing the use of their recently purchased radar network and providing process of the Composite Drought Indicator (CDI) relevant training to forecasters and engineers. tool, developed by the U.S. National Drought Mitigation Center (NDMC), concluding that the CDI Updating landslide and flood risk mapping. The accurately depicts geographic extent, severity, and University of Zimbabwe was engaged by the duration of drought in the Zimbabwean context. The government to carry out landslide and flood risk consultant submitted the final report on conducting mapping studies. The consultant submitted the final a comprehensive and systematic scientific analysis report that provided the outputs of flood hazard of the drought risk inclusive of existing mitigation and landslide risk assessment, which included flood measures/capacities to reduce the physical, social, risk and landslide susceptibility maps to be used for economic, and environmental impacts of droughts physical and land use planning. The maps will assist in in Zimbabwe using a CDI and a principal component identifying areas that are at high risk of flooding and analysis (PCA). In addition, the second part of this are susceptible to landslides. In cases where areas study related to drought vulnerability assessment to characterised by high flood or landslide risk are already model the spatial variation of drought vulnerability settled, the maps will be used to guide resettlement. In at the district level. Building on that work, the World addition, flood risk mapping and landslide susceptibility Bank is supporting GoZ on the development of the mapping the different infrastructure at risk in these institutionalization plan for the CDI tool that has been areas will be mapped. These outputs are key to guide developed to be adopted and fully operationalized by decisions in future infrastructure investment. government agencies, ministry/department, or state research institutions. The CDI tool can further be Drought risk mapping and Composite Drought Index used in bridging the gap between drought monitoring/ validation. The consultant completed the validation early warning, prediction, and preparedness through 39 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 proactive drought risk management planning both at technical specifications for the data center are being national and district levels. To facilitate this process, finalized for procurement as well as the considerations the Bank arranged knowledge exchange with Eswatini for the upgrading of the current server room as per to share their experiences and advancements in the the agreed technical architecture. institutional and governance aspects of the CDI. Ideally, the CDI monitor can be linked to some The project also procured ICT equipment that is ongoing agriculture programs such as Pfumvudza earmarked for use within the project in the nine on conversation agriculture to see how it can also Cyclone Idai-affected districts. The equipment has complement some of the tools used. been received by the Ministry of Public Service, Labour and Social Welfare (MoPSLSW). The project The Ministry of Local Government and Public Works team engaged consultants to support the MoPSLSW received ICT equipment procured under the project to develop a harmonized operations manual for to capacitate the Departments of Civil Protection MoPSLSW social protection programs. (DCP) at the national and subnational levels. Training on post-disaster needs assessment. National integrated emergency management Post-disaster needs assessment (PDNA) training of plan. The project has advanced on development of a trainers was carried out at national and subnational national emergency management plan and guidance levels. The consultant submitted the final report and note for the formulation of provincial emergency prepared standard operating procedures and training management plans. An internal working drafting of trainers manual. national plan has been developed and is currently under review by the government before it is finalized DRM communications strategy. The project and disseminated for consultations. This plan will contracted two consultants (communications establish a consistent, all-hazard framework and and DRM expert) to support the developing and structure for emergency preparedness and response operationalizing of priority communication channels (EP&R) in the country that can guide the production and tools for enhanced disaster preparedness of plans at provincial and district levels and the and response for Zimbabwe. This should see production of supporting sectoral contingency the development of an effective and efficient plans and standard operating procedures (SOPs) by multihazard low-cost, easy-to-comprehend, user- relevant agencies. friendly, and sustainable communication strategy. Through the DCP recipient-executed resources, Zimbabwe Resilience and Recovery Framework. The external consultants (reporting to the DCP) will Zimbabwe Resilience and Recovery Framework (ZRRF) be appointed to assist provincial and district has been developed, and the ongoing work on the DRM governments in developing their plans using the national emergency management plan will complement guidance note and template developed during ZRRF institutional framework recommendations. phase 1. This support will be provided in two pilot provinces, one primarily representing urban risks Development of DRM MIS and data tracking tool. and challenges, and one that is representative of The project has recruited an IT/data analyst consultant challenges and risks found in rural provinces. to support initial inputs into a database tracking tool and provide ICT technical supports to the Department of Social protection management information Civil Protection. The consultant shall help the DCP staff system. A firm has been contracted to develop the to ensure that data collection systems and analysis are management information system (MIS) following the responsive to the needs of DCP and partners, including detailed needs assessment report. In conjunction, other government ministries and departments. 40 4. ZIMREF PROGRESS UPDATE Next steps to ensure the project is delivered on time and is expected to submit a request for a no-cost contract Geographic information systems, remote sensing, extension by February 28, 2022. Nondisclosure and KoBoToolbox training. To strengthen its capacity agreements between the Ministry, Ecocash, and and systems for coordination and disaster risk NetOne have been drafted to pave way for work management and mitigation, the project will provide toward integration of these two platforms with the geographic information systems (GIS), remote sensing SP MIS. A working group of ministry program officers (RS), and KoBoToolbox training for DCP national staff who will review the prototype/mockup designs of the and key national level stakeholders from the National SP MIS has been constituted to accelerate the system Civil Protection Committee (NCPC). design phase. Operationalization of the national emergency Piloting Social Protection and WASH management plan. DCP should quickly conclude Interventions to Keep Adolescent Girls the review of the internal first draft national plan in School in Zimbabwe and then expeditiously complete the first draft guidance note for provincial and district Plans. ZIMREF is implementing a social protection and Government should also expedite plans being WASH pilot to support adolescent girls in Zimbabwe considered to bring consultants to populate the and help keep them in school after COVID-19- plans in pilot areas. The consultants will work related school closures. The pilot will complement on the provincial and district plans following the the government’s BEAM program and test the template provided for them. The next stage will be results achieved by providing a comprehensive convening a stakeholder workshop to present the package of cash transfers, livelihoods support, draft national plan and finalize the draft for internal menstrual hygiene management, WASH and approvals/adoption. hygiene support, and school-level sensitization. This will be a recipient-executed activity to the Development of the integrated social protection MIS. government, with third-party implementation by Synergy submitted a revised accelerated workplan CARE International Zimbabwe. Overview: Social Protection and WASH This is a one-year pilot BEAM is a government The pilot aims to The project will be piloted project. The pilot will program that provides demonstrate the results in Buhera district through build on the government education subsidies to that can be achieved in CARE International selected of Zimbabwe’s BEAM vulnerable and orphaned terms of keeping adolescent through a competitive program by introducing children nationwide. girls in school by layering selection process. layered complementary complementary social social protection and water protection and WASH interventions to support activities over BEAM. adolescent girl beneficiaries. 41 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 Project components 2. School-level interventions 1. Household-level interventions. This will include: This component will work closely with public secondary schools where children receiving BEAM • A multipurpose monthly cash transfer ($35) per support attend through promotion of positive gender household to help meet basic food and nonfood norms, sexual and reproductive health messaging, needs of beneficiary adolescent girls. good hygiene and menstrual hygiene management, including raising awareness among adolescent girls • An income-generating activity (IGA) grant and their guardians. ($250) to fund beneficiary household’s business plans. These will be complemented with targeted 3. Process evaluation, knowledge dissemination, capacity building and training focused on and policy dialogue business skills, financial literacy, and so on. • A process evaluation will be carried out to assess • Adolescent girls will also receive 12 menstrual the effectiveness of the pilot. hygiene kits to last them one year, which will include sanitary pads, soap, and underwear. • There will be a dissemination of the learnings from the pilot and policy dialogue toward • Households will receive support to improve adoption of lessons learned in future policies water-related hygiene behavior that will help and programs. promote hygiene and will also provide chlorine tablets for water treatment. The project became effective in December 2021. 42 CROSS-CUTTING THEMES 43 ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 Communication Information policy. http://www.worldbank.org/ en/access-to-information; and Communication objectives (communication and visibility plan): 3. To raise the visibility and profile of contributing development partners and their efforts in 1. To inform, raise awareness, and stimulate assisting Zimbabwe. demand-side accountability of supported reforms and institutional developments by As virtual meetings have become the norm, a keeping the public, civil society, the private series of webinars has been scheduled to launch sector, and parliament fully abreast of supported publications, stimulate debate on findings, and activities and benefits expected. proffer recommendations on certain issues. The webinars included representatives from the 2. To ensure public access to ZIMREF information, government, development partners, civil society, project materials, and other relevant documents academia, and the media. in line with the World Bank’s Access to Table 5.1. Ensuring Public Access to Documents and Relevant Information Tools Frequency Quantity Annual report Annually 1 Press releases/advisories As and when the need arises 2 - PICES Findings/ZIMREF Annual Report Exhibitions 1 Zimbabwe International Trade Fair, Bulawayo Webinars 2 Dissemination of PICES telephone survey findings Multistakeholder consultations IEC materials (fliers, folders, banner, As and when the need arises Program-Based Budgeting Blog website update, feature stories, blogs) ZIMREF Newsletter: Investing in Climate Smart Agriculture to Boost Productivity and Resilience Note: ZITF = Zimbabwe International Trade Fair; UN = United Nations; IEC = information, education, and communication. Plans for 2022 Greater and broader dissemination of results as we work to prepare a list of good practices, outcomes, projects, activities, and documents that can be more widely disseminated. 44 APPENDIX A: OVERVIEW OF ZIMREF FINANCIALS AS AT DECEMBER 31, 2021 APPENDIX A: OVERVIEW OF ZIMREF FINANCIALS AS AT DECEMBER 31, 2021 Pledges, contributions, and investment income Since establishing the Trust Fund in 2014, the total cash contributions from development partners amounted to US$52 million, with an investment income of US$1.16 million. Under ZIMREF 1, a total of US$38.1 million (with an investment income of US$ 947) was received from seven donors - Denmark (US$0.9 million), EU (US$11.3 million), Norway (US$4.1 million), Sweden (US$5 million), Switzerland (US$3.5 million), the State and Peacebuilding Fund (US$5 million) and the UK (US$8.2 million). By the end of 2021, total disbursements under ZIMREF 1 were US$38.9 million for all Recipient Executed and Bank Executed projects. By December 31, 2021, US$13,5 million had been received from four donors (with an investment income of USD 213 000). These contributions included UK-FCDO ($8.65 million), Norway (US$113 000), Canada (US$1.2 million), and the State and Peacebuilding Fund (US$4 million). Progress against disbursement projections improved in 2021 compared to 2020, with cumulative disbursements totalling USD 9,1million. The disbursement increase was due to the easing of covid restrictions that had almost stalled programming activities. 45 46 APPENDIX B: ZIMREF-FUND-LEVEL LOGICAL FRAMEWORK Intervention logic Indicators Baselines Targets Sources and Assumptions Achievement against 2020 2021 (including (including means of planned target update update reference year) reference year) verification ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 IO-1: IMPROVED BUSINESS CLIMATE, ESPECIALLY FOR SMES AND SMALLHOLDERS 2016 2017 2018 2019 Zimbabwe’s economy HLO-2: Overall 2015: 47% 016: 48% Annual Doing Updating financial and Overall DTF is 48.47% 50.44% Distance to Data not Data not is now dominated by distance to the Business investment rules and 47.08 percent Frontier Score available. The available. The MSMEs, but public frontier on the 2017: 52% surveys procedures will be below target. The overall Source: from 50.44 to 2021 report is World Bank sector systems still Doing Business sufficient to halt/reverse Distance to the Doing Business 54.5 from the due for release suspended need to adapt to index (extent 2018: 58% some of the decline DTF improved Frontier covers Report 2019 Doing Business in February the release of serving this segment. of a country’s in private investment, in three areas: elements that Report 2020. 2021. 2021 Doing achievement 2019: 60% even if macroeconomic dealing with go beyond the The Ease of Business of best country policies worsen. construction scope of the Doing Business With the Report performance) permits went BEFSIP TA. score moved up business becauseseveral Vested interests are up by (9.73 1.92 percentage reforms irregularities effectively co-opted into percentage In addition, the points from recognized that have the process and allow points), resolving Doing Business 48% last year. by Doing been reported regulatory changes. insolvency (1.02 2018 Report Business 2020, regarding Regulatory changes percentage does not cover Zimbabwe changes to are effectively points), and reforms made improved its the data in communicated to all registering in the second ranking by 15 the Doing stakeholders and applied property (0.82 half of 2017. places from 155 Business 2018 by service providers. percentage It is important to 140/190 and Doing points). to note that and made it Business 48.47% is still into the top 2020 reports, progress from 20 reformers published in the 2015 score globally. October 2017 of 47%, and and 2019. The Zimbabwe’s changes in ranking has the data were moved up inconsistent marginally from with the Doing 161 in last Business year’s report methodology. Intervention logic Indicators Baselines Targets Sources and Assumptions Achievement against 2020 2021 (including (including means of planned target update update reference year) reference year) verification IO-1: IMPROVED BUSINESS CLIMATE, ESPECIALLY FOR SMES AND SMALLHOLDERS 2016 2017 2018 2019 to 159 in this The year’s report. publication of the 2021 Doing Business report will only be released after completion of the current assessment on data irregularities, which is underwa. HLO-3: Index of 2015: –37.2 2016: –30 CZI Business BCI not yet out, to be BCI not yet out, Achieved. 20.9 (year- Data not The composite Awaiting data perception of Confidence released in March 2017. to be released in The BCI and on-year from available. Business from CZI 2021 the investment 2017: –15 Index- October 2017. PMI show an quarter 1 2017 Awaiting data Confidence Manufacturing climate in (Manufacturing improvement to quarter 1 from 2019 Index for the Survey Report. Zimbabwe 2018: –5 Survey) of 45% for the 2018). Manufacturing first quarter ending Survey Report quarter of 2019: +5 December It is key to due for release 2020 stood 2017. note that the in February at –51.5 for confidence fell 2020. quarter-on- from quarter quarter 4 of 2017 to and –49.9 for quarter 1 of year-on-year. 2018, and the This indicates quarter-on- lack of quarter BCI is confidence –14.4 and pessimism of business leaders for both quarter- on-quarter and year-on-year economic situation. APPENDIX B: ZIMREF-FUND-LEVEL LOGICAL FRAMEWORK 47 48 Intervention Indicators Baselines Targets Sources and Assumptions Achievement against 2020 2021 logic (including (including means of planned target update update reference year) reference year) verification IO-2: IMPROVED CAPACITY TO LEVERAGE INFRASTRUCTURE FINANCING 2016 2017 2018 2019 On HLO-5: % of 2015: No PIM 2016: PIM Ministry of Government’s Methodology for MoFED, General GOZ PIM, which GOZ PIM, GOZ PIM, active public system in place, methodology approved. Finance and commitment to PIM approved. consultations, Appraisal Manual are executed which are which are investment projects approved Economic reengagement is and is developed and by GOZ MDAs executed by executed by projects are fully on an ad hoc basis, 2017: Guidelines, Development, sustained and gathers 39 out of targeted dissemination disseminated directly, are all GOZ MDAs GOZ MDAs reflected in the capital spending regulations, and IFMIS pace despite the evolving 40 SEPs have workshops by the MoFED. in PFMS. directly, are all directly, are all PIM and PFM not integrated into database in place and political economy. been completed (March 2017) Initial rounds GOZ PIM in PFMS. GOZ in PFMS. systems. budget or IFMIS being used. for the CG held with line of training for executed PIM executed GOZ PIM systems. Limited availability of benchmarking ministries, and MoFED and through through executed ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 2018: 20% preinvestment financing exercise. rollout initiated. sectors provided. parastatals parastatals through does not effectively and other quasi and other quasi parastatals 2019: 40% discourage the PIM Data from 87% The PIM Two sector- government is government is and other quasi reform effort. of SEPs collected Guidelines specific manuals outside PFMS outside PFMS government is and organized in a approved as the are developed and will only and will only outside PFMS database. treasury circular in coordination appear as a appear as a and will only in September with the Ministry transfer when transfer when appear as a 2017. of Transport money is given money is given transfer when (roads appraisal to parastatal. to parastatal. money is given manual) and PIM for STAT PIM for STAT to parastatal. Ministry of funds and PIM funds and PIM PIM for STAT Energy, ZERA, for grants, which for grants, funds and PIM and ZPC are not in PFMS, which are not for grants, (electricity). will not appear in PFMS will which are not Dissemination in PFMS. not appear in PFMS will of manuals is PIM for statutory in PFMS.PIM not appear in pending. funds and for statutory PFMS. grants, which funds and PIM for Functional are in PFMS grants, which statutory specification will appear in are in PFMS funds and of the projects PFMS. So far will appear grants, which database nothing as yet as in PFMS. So are in PFMS software current grants far nothing as will appear discussed and are operational yet as current in PFMS. So agreed upon expenses. grants are far nothing as with MoFED. operational yet as current Implementation expenses. grants are did not operational commence due expenses. to shortage of funding. GOZ PIM, which are executed Intervention Indicators Baselines Targets Sources and Assumptions Achievement against 2020 2021 logic (including (including means of planned target update update reference year) reference year) verification IO-2: IMPROVED CAPACITY TO LEVERAGE INFRASTRUCTURE FINANCING 2016 2017 2018 2019 by GOZ MDAs, directly are all in PFMS. GOZ PIM executed through parastatals and other quasi government is outside PFMS and will only appear as a transfer when money is given to parastatal. PIM for STAT funds and PIM for grants, which are not in PFMS will not appear in PFMS. PIM for statutory funds and grants, which are in PFMS will appear in PFMS. So far nothing as yet as current grants are operational expenses. APPENDIX B: ZIMREF-FUND-LEVEL LOGICAL FRAMEWORK 49 50 Intervention Indicators Baselines Targets Sources and Assumptions Achievement against 2020 2021 logic (including (including means of planned target update update reference year) reference year) verification IO-2: IMPROVED CAPACITY TO LEVERAGE INFRASTRUCTURE FINANCING 2016 2017 2018 2019 HLO-6: Improved 2015; 2016: SOE database PEFA (2016, Vested interests in CG Public Entities Aggregate oversight of No legislation, completed (80% 2019), Office and around SOEs are benchmarking Corporate Report 2014/15 aggregate fiscal no aggregate data compliance) of the President effectively co-opted into exercise Governance Bill produced by risk in SOEs and Cabinet, the governance reform finalized, enacted on June OPC. 2017: Corporate Office of the process and do not perfomance 8, 2018. governance (CG) Accountant succeed in preventing management benchmarking exercise General, State reforms. guidelines Completion conducted, drafting of Enterprise developed, and of board ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 baseline report 2011– Restructuring baseline report effectiveness 14, and development Agency 2011–14 report and board of performance finalized. remuneration management guidelines guidelines and completion 2018: Enactment of of (updated) the Public Entities baseline report Corporate Governance 2011–15. Bill, completion of board effectiveness and board remuneration guidelines, and completion of (updated) baseline report 2011–15. 2019: Implementation report for PECG Act produced, aggregate portfolio report produced by OPC. IO-3: IMPROVED ALLOCATION, TRANSPARENCY, AND ACCOUNTABILITY IN THE USE OF PUBLIC RESOURCES Stronger HLO-7: Statutory 2017: 0. NB. 2016: n.a. MoFED A consultant The number of There are 45 46 Funds This result has public financial funds accounts New indicator was engaged Funds that are Funds (out of continue on the been achieved. management collecting introduced 2017: 0 to provide TA now live on PFMS 94) that have PFMS system. Government (PFM) and public revenues are during project to conclude is 34. There transacted on Government has is encouraged procurement captured in restructuring. 2018: 5 capturing of are however the PFMS since instructed that to use the systems will PFMS for statutory funds a number of 2019. In 2020, Retention Funds system. enhance the financial 2019: 10 into the PFMS challenges only 35 of these be removed During the efficiency and reporting (share (41 out of the 90 affecting use Funds had done from this PFMS last 12 effectiveness of total flow of 2020: 10 statutory funds of the system transactions environment months, many of government 90 statutory had already been by these Funds, on the system. and be staff were not spending. They funds). Government entered into the which include MoFED Treasury incorporated in office due will also support commitment to system). late or no budget needs to under the to lockdown. fiscal consolidation fiscal consolidation releases through enforce the use appropriation This slowed and create and adjustment is By the end of the system and of PFMS before accounts of down the greater fiscal maintained, even in the 2018, 10 of the lack of user opening new MDAs. This usage of the space for public run-up to the 41 funds had training. bank accounts process is statutory investment and 2018 election. their data loaded to ensure yet to be funds nonwage spending. into PFMS. Three compliance. completed. functionality Increasing have gone live MDAs need to of the PFMS transparency as of February use the PFMS for newly of government 2019. These more. This has incorporated expenditure are Women been affected funds. will strengthen Development by the absence accountability Fund, SSB of staff from and encourage General Fund, offices due to greater donor and National lockdown. alignment to public Prosecuting programs. Such Authority Fund. greater alignment The other 7 are will improve the expected to go sustainability and live by the end of effectiveness of Q1 2019. both government and donor spending on key programs. APPENDIX B: ZIMREF-FUND-LEVEL LOGICAL FRAMEWORK 51 52 IO-3: IMPROVED ALLOCATION, TRANSPARENCY, AND ACCOUNTABILITY IN THE USE OF PUBLIC RESOURCES HLO-8: Timely 2016: 6 2016: 6 MoFED Annual audit Annual audit The auditor The target Completion of The 2019 The status completion and reports submitted reports general submitted continued to be audits for the financial of lockdown submission of 2017: 6 to Parliament submitted in 6 audit reports met as the auditor 2019 financial statements persists in the the previous within stipulated months. FY2017 on June general submitted year have fallen audit has now country and FY’s audit 2018: 6 time frame. 26, 2018. The audit reports behind due to been completed this continues reports to the reports were FY2018 on June the lockdown. and OAG is now to affect Parliament. 2019: 6 eventually tabled 27, 2019. Most of the working on the submission on October 30, auditor general audit report for of financial 2018. This was staff have not submission to statements for after MPs and been going to Parliament. audit. At some senators of the work and could The 2020 point, more 9th Parliament not do much at financial than 50% of had been sworn in home due to lack statements audit government on September 5, of connectivity. is in progress. It staff were ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 2018. It is not certain was delayed by working from when the reports lockdowns. home without will be ready access to the for tabling due necessary to continued systems and lockdown. financial information to allow proper completion of financial statements. HLO-9: Greater 2015: None 2016: None Office of the Resources for Development The Public N/A.All the yearly transparency, No existence President and training are of Procurement targets from 2016 accountability, of the 2017: Cabinet, State sufficient to bring e-procurement and Disposable to 2019 achieved and e-procurement e-Procurement Procurement the majority of strategy and of Public Assets effectiveness strategy and strategy and Board. MDAs to capacity guidelines passed into law on of public guidelines, guidelines on new public finalized. January 1, 2018. procurement no revised developed procurement 1,520 MDAs procurement framework. trained on the new law and no 2018: Satisfactory public Procurement Law MDAs trained Revised draft procurement law on the new procurement is enacted without procurement law submitted substantial framework to Parliament; interference from MDAs trained on vested interests. new procurement Framework 2019: n.a. IO-3: IMPROVED ALLOCATION, TRANSPARENCY, AND ACCOUNTABILITY IN THE USE OF PUBLIC RESOURCES The production HLO-10: The 2015: PICES 2016: New PICES Poverty ZIMSTAT is able to update Statistical law to PICES field Data entry ZIMSTAT survey ZIMSTAT ZIMSTAT and 2016/17 last conducted in underway and policy Monitoring and the policy on release of enable microdata work completed completed and report on PICES survey report survey report availability PICES Survey 2011/12. PICES on microdata access ZIMASSET M&E anonymized microdata in dissemination in 2017. Data SI to facilitate 2017 has on PICES on PICES of up-to-date is conducted survey and was updated. TA monitoring time to lock in resources amended. entry completed release of been released. 2017 has 2017 has gender- (NO = 0; YES = widely disseminated. reports for PICES. and systems microdata Agreement been released been released disaggregated 1/4), analyzed, Anonymized 2017: Field work for release adopted. First reached on and widely and widely data on and report microdata are not completed in 2017. Adequate cofinancing of microdata series of adoption of disseminated. disseminated. poverty and produced (NO = accessible. Data entry complete and resources are mobilized to adopted data analysis good analytical Agreement Agreement welfare are 0; YES = 1/4), systems for release of finance the PICES survey. for PICES practice and re- reached on reached on required disseminated microdata adopted completed, basing of poverty adoption of adoption of to improve (NO = 0; Agreement is reached survey report is estimates. good analytical good analytical poverty focus YES=1/4), 2018: PICES survey data with stakeholders on being printed. practice and practice and of public and poverty analysis completed and PICES methodology. Writing of ZIMSTAT re-basing re-basing spending. microdata are report produced poverty report survey report of poverty of poverty Public made available is in progress. on PICES 2017 estimates. estimates. budgeting (NO = 0; YES = 2019: Anonymized Anonymized as well as the Microdata of Microdata of processes can 1/4). Maximum microdata published microdata poverty report PICES 2017 PICES 2017 be adapted score = 1. published. 2017 have made available made available to focus on been released. on ZIMSTAT on ZIMSTAT longer term Agreement website. website results. With reached on improved adoption of poverty, good analytical welfare and practice and re- spending data, basing of poverty the authorities estimates. will be able Microdata to have a release of PICES more focused 2017 made poverty available. strategy, and increase the Microdata of efficiency PICES 2011/12 of public (public use expenditures file) has been in fighting released to poverty and the public achieving the (downloadable sustainable from website), development putting the SI goals. into practice. APPENDIX B: ZIMREF-FUND-LEVEL LOGICAL FRAMEWORK 53 54 IO-3: IMPROVED ALLOCATION, TRANSPARENCY, AND ACCOUNTABILITY IN THE USE OF PUBLIC RESOURCES HLO-11: Number 2015: 2016: 3 MoFED, program Shorter-term fiscal 2016 national 2017 National Program-based PBB format PBB format PBB format of government No ministries 2017: 9 budgeting pressures do not divert budget presented Budget budgeting rolled out to all rolled out to all rolled out to ministries monitoring effort from medium-term to Parliament for presented to format rolled out the 25 ministries the 35 votes all the 35 adopting 2018: 80% of ministries reports planning. three ministries. Parliament in to a total of 11 (100%). 2020 (100%). 2020 votes (100%) . program-based program-based ministries, which national budget national budget 2020 National budgeting and 2019: 100% of Program budgeting budgeting is 42.8% presented using presented Budget planning ministries is sufficiently linked format for 9 PBB format. using PBB presented to national planning ministries. format. using PBB processes, including format I-PRSP/PRSP. IO-5: IMPROVED RESILIENCE IN ONE KEY BASIC SERVICE AND AN IMPORTANT AREA OF VULNERABILITY ZIMBABWE RECONSTRUCTION FUND (ZIMREF) 2021 Improved HLO-12: People 2015:0 2016: n.a. Quarterly This is an overly This is an overly Connections Connections Direct access to safe provided with 2017: reports ambitious target. ambitious target. done; target to done to date: beneficiaries drinking water access to 2018: ZINWA -PIU Results will Results will be achieved in Guruve-505 from the and sanitation “improved water 2019: 16,922 emerge once the emerge once the 2019. (79%) of the project: services is a sources: under rehabilitation rehabilitation total planned 34.810, key indicator the project of water supply and upgrading 639, Zimunya- aggregated as of local Tranche 1 systems is of water supply 313 (116%) follows : government Urban: 16,922 complete. systems is of the total capacity to complete. The planned 270, Urban: 33,410 deliver public Rural: 11,238 2018 target and Lupane- 509 services. The will be revised (56%) of the Rural: 1,400 small-town/ accordingly total planned settlement to reflect that 908. Total New piped WASH sector the current number of household is relatively committed people provided water underserved funding covers with access to connections compared to three towns. improved water resulting the larger sources under from project towns and the project intervention: cities. 1,265 Improving Total:-36,220 WSS broken down as Piped water governance follows: connections and service Urban: 34,820 that are delivery in the Rural: 1,400 benefitting rom small towns is rehabilitation an important works: 2,696 entry point into growth pole development IO-5: IMPROVED RESILIENCE IN ONE KEY BASIC SERVICE AND AN IMPORTANT AREA OF VULNERABILITY and rural poverty reduction in Zimbabwe. Stronger capacity HLO-13: 2015: 2016: TA program Climate Change TA program was Technical Draft strategy to integrate Strategy for No guidelines approved and TA monitoring approved by POC. workshops for climate Guidelines climate change climate financing in place. workplan agreed reports successfully financing is in currently being considerations adopted and with government. conducted on place, and work operationalzed into the planning, approved agroecological is ongoing. in public design, and guidelines for 2017: Stakeholder rezoning, innvestment implementation integrating workshops and climate impacts planning. of selected climate change technical reports on the forest sectors will into public completed in each sector, climate reduce long-term planning sector and strategy resilience in vulnerabilities in in water, for climate financing energy systems, Zimbabwe. agriculture, prepared. climate finance energy, and (with an forestry in place. 2018: Strategy for emphasis on GCF climate financing accreditation adopted. and pipeline development), 2019: Guidelines and technical approved and in use reports in public investment completed in planning. each sector. APPENDIX B: ZIMREF-FUND-LEVEL LOGICAL FRAMEWORK 55