Broke Zimbabwe will freeze most state hiring in 2026 to curb wage bill

Zimbabwe’s government will freeze recruitment in most of its departments next year to contain the state wage bill, the nation’s finance ministry said.

The halt to hiring will exclude only the health, security and education departments, George Guvamatanga, the secretary for finance and economic development, said in a circular seen by Bloomberg News and confirmed by the ministry. The Zimbabwean government has proposed a freeze on headcount before, including in last year’s budget, though the policy hasn’t been implemented.

“Treasury has noted with concern the size of the civil service in non-critical sectors, despite the recruitment freeze policy stance,” Guvamatanga said. “For 2026, the recruitment freeze will apply to all sectors with the exception of health, education and the security sector to a limited extent.”

Zimbabwe’s government employs 330,000 people, whose wages account for about 56% of the southern African nation’s 276.4 billion ZiG ($10.4 billion) budget. The International Monetary Fund in June cited public-sector pay as one of the key fiscal pressures the country faces.

The finance ministry plans to start the consultation process for the 2026 budget later this month. Guidelines will be issued by Sept. 20 that will include spending ceilings for government ministries, departments and agencies, according to the circular.

NewZimbabwe

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