Healthcare Funders Urge Parliament to Reject Medical Aid Ownership Ban

Healthcare funders oppose proposed medical aid ownership ban

HARARE – Zimbabwe's healthcare funders have urged Parliament to reject proposed regulations that would prohibit medical aid societies from owning, managing or operating healthcare facilities, warning that the move could undermine investment, disrupt healthcare delivery and trigger constitutional challenges.

In a letter dated 19 June 2026 addressed to Justice, Legal and Parliamentary Affairs Committee chairperson Eddison Zvobgo Jr, the Association of Healthcare Funders of Zimbabwe (AHFOZ) said the proposed amendments would have far-reaching legal, economic and public health consequences. The association argues that the regulations would force medical aid societies to divest from hospitals and other healthcare investments through subsidiary legislation rather than an Act of Parliament.

AHFOZ chief executive Shylet Sanyanga urged legislators to subject the proposals to closer parliamentary scrutiny.

"On behalf of our members and the medical aid industry at large, we respectfully seek the intervention and scrutiny of your committee in relation to the proposed amendment," Sanyanga wrote.

"The proposed amendment seeks to prohibit medical aid societies from owning, managing or operating healthcare services or facilities. It further seeks to compel the affected societies to submit divestiture plans in respect of existing healthcare investments."

The healthcare industry body said it had already presented submissions to Parliament's Portfolio Committee on Health outlining how the proposed regulations could negatively affect healthcare access, affordability and benefits for medical aid members. Its latest submission focuses on the legality of the proposed reforms. According to AHFOZ, while the Minister of Health and Child Care has powers to make regulations under the Medical Services Act, those powers do not extend to imposing a blanket prohibition on vertical integration or compelling institutions to dispose of lawfully acquired assets.

The association argues that such a fundamental restructuring of Zimbabwe's healthcare sector should only be undertaken through primary legislation debated and approved by Parliament. AHFOZ further contends that compulsory divestiture could infringe constitutional protections relating to property rights and expose the Government to legal challenges.

The association warned that forcing medical aid societies to sell hospitals and healthcare facilities would weaken integrated healthcare delivery systems that enable funders to coordinate patient care more efficiently. It said the proposed regulations could discourage future private investment in Zimbabwe's health sector, create uncertainty for healthcare workers and patients, and increase the cost of medical services. AHFOZ also dismissed the argument that the regulations are necessary to promote competition.

It argued that competition-related issues fall under the jurisdiction of the Competition and Tariff Commission in terms of the Competition Act, adding that concerns over vertical integration should be assessed on a case-by-case basis rather than through a blanket prohibition. The association warned that the proposed reforms could force the sale of strategic healthcare assets, disrupt provider networks and increase reliance on third-party healthcare providers with limited capacity.

AHFOZ has urged Parliament to reject the proposed regulations in their current form and instead pursue comprehensive legislative reforms through a full parliamentary process. The association said any major changes to Zimbabwe's healthcare regulatory framework should be supported by broad stakeholder consultations and evidence-based assessments of their likely impact on competition, investment, healthcare access and affordability. Health sector analysts say the outcome of Parliament's deliberations could have significant implications for the future structure of Zimbabwe's private healthcare system and investor confidence in the sector.

Medical aid ownership ban Zimbabwe