An Analysis of Project Risk Factors for Donor Funded Projects and Programs in the Health Sector in Zimbabwe

Like many developing nations, the health sector in Zimbabwe is not adequately funded and has for many years complemented its tight budget with external funding and development assistance (MOHCC, 2016: 11). External funding comes from various partners in the form of donor funds or international development assistance. According to the Ministry of Health and Child Care, for the year 2012, more than 40% of health sector funding was through development assistance (MOHCC, 2016: 11). That corresponds to a dollar value of approximately US$428 million. Since then, the country has continued to face challenges, which implies that current figures for external funding could be at similar levels or higher. In the 2017 budget, development partners were projected to contribute a collective figure of US$229.8 million, complementing US$318.4 million that was partly allocated from the budget and partly raised through user fees (US$281.9 million budget allocation, US$36.5 million user fees) (MOFED, 2016: 86). This would put the proportion of development aid at approximately 42% of the projected expenditure in 2017 (the 2017 budget did not account for the contribution of other levies such as AIDS Levy that usually contribute towards the budget). For 2018, the national budget projected total health expenditure to amount to US$729.4 million, made up of US$489.8 million from budget appropriations and levy funds and US$239.6 million from development partners (MOFED, 2017: 142). These figures show that development aid was projected to constitute approximately 33% of health expenditure in 2018. The national budget accounts for monetary and quantifiable support. Development assistance also comes in non-monetary forms such as equipment, drugs, technical assistance and other sponsored projects whose real value is sometimes not captured by budgets or is just difficult to quantify. When looking at development aid, these forms of support also have to be taken into consideration. This could mean that the real figures for development support may be higher than reflected in budgets. The figures above underscore the importance of development aid hence the need to ensure that it is effectively utilised. 9 Development aid is project oriented business (Ika et al., 2010: 63). Donor funds are commonly channelled into specific purpose programs and projects aimed at achieving specific results in the health sector. This is the common practise with most international development assistance provided to developing countries, it is availed and managed through projects (Diallo and Thuillier, 2005: 237)