Zim govt approves Road Accident Fund Bill

New Ziana > News > Zim govt approves Road Accident Fund Bill

Harare, (New Ziana) – In a major step towards enhancing emergency healthcare in the country, Cabinet on Tuesday approved the Principles of the Road Accident Fund Bill, laying the groundwork for a more responsive and humane post-accident management system.

Announcing the development during a post-Cabinet media briefing, Minister of Information, Publicity and Broadcasting Services, Dr Jenfan Muswere, said the Bill is designed to drastically reduce deaths and injuries from road traffic accidents by 2030, through better access to emergency services and improved road safety measures.

“The Road Accident Fund Bill seeks to ensure access to safe, affordable, and sustainable transport systems while improving road safety for all Zimbabweans. It will revolutionise how we respond to road accidents by ensuring that accident survivors receive immediate and appropriate medical attention,” he said.

Zimbabwe’s insurance framework currently offers limited support in the aftermath of road accidents as many emergency service providers are hesitant to intervene because payment for medical services is not guaranteed, while existing liability cover is often inadequate to cater for medical and funeral expenses.

“The current post-accident management framework is falling short. We are addressing a critical gap where lives are being lost simply because there is no assurance of payment for emergency services or adequate coverage for victims,” Dr Muswere said.

The proposed Road Accident Fund will provide immediate financial recourse for medical and funeral expenses, significantly improving the capacity of health systems and emergency services to respond swiftly and effectively.

It will also prioritise long-term rehabilitation and recovery support for road traffic victims, recognising that the impact of accidents extends beyond the crash site. It aims to enhance the ability of the health sector to deliver not just emergency treatment but also sustained care.

The Road Accident Fund will be financed through Motor Vehicle Insurance premiums and other resources appropriated by the Treasury, ensuring sustainability without placing undue pressure on taxpayers.

Meanwhile, Dr Muswere said the government plans to ramp up efforts to strengthen its pharmaceutical sector, with a target to produce 60 percent of essential medicines locally by the end of this year, as it moves to cut the import bill and boost industrial recovery.

He said the pharmaceutical industry has been designated a priority sector due to its strong potential for import substitution and sustainable growth.

“The strategic objective of the Pharmaceutical Value Chain is to increase the proportion of locally produced essential medicines from 30 percent to 60 percent by end of 2025, and reduce the national medicines import bill from approximately US$220 million in 2020 to around US$100 million by the end of 2025,” he said.

Dr Muswere said the sector has already made significant strides as local production of essential medicines has more than doubled, rising from 15 percent in 2020 to 36 percent, while capacity utilisation has climbed from 12 percent to 51 percent by 2024.

He said at the same time, the number of pharmaceutical producers has increased by 56 percent, from 9 to 14 companies, showing growing investor confidence in the industry, adding though pharmaceutical exports are still lower than imports, they are trending upward.

“Between 2020 and 2024, exports rose from US$4.5 million to US$5.2 million, marking a 15.6 percent increase. Furthermore, two indigenous pharmaceutical retailers have transitioned into manufacturing, thanks to targeted import management strategies,” he said.

Dr Muswere also highlighted a major regulatory breakthrough, saying the Medicines Control Authority of Zimbabwe has achieved Maturity Level 3 under the World Health Organisation benchmarking tool, signifying a stable and well-functioning regulatory system.

He said to consolidate these gains, Government will continue to fund the National Pharmaceutical Company (NATPHARM), ensure consistent uptake of locally produced medicines by public and private health institutions, as well as introduce a Pharmaceutical
Revolving Fund to provide affordable financing for local manufacturers.

“Cabinet also approved the reinstatement of VAT zero-rating on pharmaceutical products, which will further support local production,” he said.

Additional measures include setting up local drug testing laboratories to reduce reliance on imported testing services and implementing a Sugar Content Tax, with the revenue earmarked for supporting the manufacture of essential drugs, Dr Muswere explained.

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