President Emmerson Mnangagwa's decision to sign the Private Voluntary Organisations (PVO) Bill into law has elicited a sharp rebuke from the European Union (EU), effectively shutting the door on future good governance funding.
This latest development comes as Zimbabwe appears determined to chart its own course, regardless of international concerns about human rights and transparency.
The timing of Mnangagwa's signature - just hours before the commissioning of Mbare's revamped informal traders market - did not go unnoticed, drawing criticism for what some view as disregard for the concerns of civil society.
Jobst von Kirchmann, the EU Ambassador to Zimbabwe, delivered a blunt assessment, stating that Mnangagwa's "insincerity" had forced the bloc to withdraw its support for the good governance framework.
The situation, according to the EU, has reached a tipping point.
"The PVO Act is disappointing and ill-considered, sidelining the views of diplomats and civil society organisations," von Kirchmann stated.
"Zimbabwe has over USD 21 billion in debt and arrears with bilateral and multilateral creditors. Several years ago, the Government of Zimbabwe initiated a commendable arrears clearance and debt resolution process to address this situation.
"It is disappointing to see that Zimbabwe has not upheld its own commitments under this process, particularly regarding the expansion of civic space.
"The enactment of the PVO Amendment Bill, without concluding consultations to address the concerns of civil society organisations, has further reinforced negative trends in governance.
"As a consequence, the European Union has decided to discontinue its planned targeted 2025 funding in support of the government's good governance initiatives under the structured dialogue framework," he said.
He added: "The EU remains engaged and ready to reconsider its position should the government demonstrate a genuine commitment to meeting the governance targets outlined in the process."
The new law grants authorities sweeping powers to monitor and control the operations of private voluntary organisations, casting a long shadow over Zimbabwe's civic space and raising serious questions about the future of independent advocacy.
Mnangagwa signed the controversial PVO Amendment Bill into law, ushering in sweeping changes to Zimbabwe's regulatory framework for civic groups and non-governmental organisations.
The law, gazetted last Friday as Act No. 1 of 2025, amends five major pieces of legislation, including the PVO Act [Chapter 17:05], the Money Laundering and Proceeds of Crime Act, and the Criminal Law (Codification and Reform) Act. It is now officially enforceable.
According to the gazetted text, the new Act gives authorities extensive powers to monitor and control the operations of PVOs, including the ability to scrutinise their ownership structures, funding sources, and affiliations.
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It introduces strict definitions of "beneficial owner" and "controller," potentially holding individuals criminally liable -- including with imprisonment terms of up to 35 years -- for offences related to illicit financing or misrepresentation.
The law also empowers the government to deregister organisations, seize assets, or dissolve entities found to be in breach of the new provisions, a move described by critics as a chilling effect on freedom of association.
The Act establishes a PVOs Board, comprised of representatives from civil society and multiple ministries, to oversee regulation of the sector.
This board, while ostensibly designed to provide oversight, is viewed by some quarters as a tool for entrench government control.
Against intense criticism, even from the United Nations, government officials have defended the amendments as necessary to prevent the financing of terrorism and money laundering.
Human rights groups, however, argue that the legislation opens the door to the systematic suppression of dissent, potentially stifling organisations that challenge State policies or expose official corruption.
