HARARE — The European Union 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 law, gazetted Friday as Act No. 1 of 2025, introduces sweeping changes to Zimbabwe’s regulatory framework for civic groups and non-governmental organizations.
It 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.
Under the new law, authorities are granted broad powers to monitor and control the operations of private voluntary organizations. It allows the government to scrutinize ownership structures, funding sources and affiliations, and introduces stricter definitions of “beneficial owner” and “controller.”
Individuals found guilty of offenses related to illicit financing or misrepresentation could face lengthy prison sentences.
The legislation also empowers the government to deregister organizations, seize assets or dissolve entities that breach the new provisions. A newly established PVO Board — comprising representatives from civil society and various ministries — will oversee enforcement.
Human rights groups and international observers, including the United Nations, have condemned the law, warning that it could be used to suppress dissent and target organizations that challenge government policy or expose corruption. Government officials say the changes are necessary to combat terrorism financing and money laundering.
In a post Saturday 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.
