Harare – The European Union (EU) has suspended its planned 2025 funding for Zimbabwe’s good governance initiatives following President Emmerson Mnangagwa’s signing of the controversial Private Voluntary Organisations (PVO) Amendment Bill into law.
The move comes as the new legislation introduces sweeping changes to the regulatory framework for civic groups and non-governmental organisations (NGOs) in Zimbabwe, drawing condemnation from human rights groups and international observers.
The law, gazetted on 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 grants authorities extensive powers to monitor and control the operations of private voluntary organisations, including the ability to scrutinise their ownership structures, funding sources, and affiliations. 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 newly established PVO Board, comprised of representatives from civil society and various ministries, will oversee regulation of the sector.
The new Act establishes a Private Voluntary Organisations Board, comprised of representatives from civil society and multiple ministries, to oversee regulation of the sector.
In a post on X, formerly Twitter, EU Ambassador to Zimbabwe Jobst von Kirchmann said the enactment of the law, without concluding consultations with civil society, undermines Zimbabwe’s commitments under an ongoing debt resolution and reform process.
“Zimbabwe has over USD 21 billion in debt and arrears with bilateral and multilateral creditors,” von Kirchmann said. “Several years ago, the Government of Zimbabwe initiated a commendable arrears clearance and debt resolution process. 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 organizations, 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 added.
The EU said it remains open to reconsidering its position if the Zimbabwean government shows genuine commitment to meeting its governance obligations.
The move by the EU follows intense criticism of the PVO Amendment Bill, even from the United Nations, with human rights groups warning that the law could be used to target organisations that challenge state policies or expose official corruption. They argue that the broad powers granted to authorities under the new legislation could stifle dissent and severely restrict the operations of civil society organisations.
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.
Government officials, however, have defended the amendments as necessary to prevent the financing of terrorism and money laundering, arguing that the changes are essential to safeguard national security and ensure transparency in the operations of NGOs.
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