On 11 April 2025, the Government of Zimbabwe enacted the Private Voluntary Organisations Amendment Act, 2025 (the Amendment Act), introducing significant changes to the Private Voluntary Organisations Act [Chapter 17:05] (the Act) as well as other related statutes. introduces major changes to how PVOs operate in Zimbabwe. It expands government oversight, tightens registration and reporting requirements, and enhances penalties for non-compliance. The Act aims to align Zimbabwe’s regulatory framework with international standards on anti-money laundering and counter-terrorism financing, while also curbing political involvement by PVOs.
It gives more power to the Registrar of PVOs, restructures the PVO Board, and imposes strict obligations on existing and new organisations. Trusts operating like PVOs are now brought under the same regulatory net. The Act also amends the Money Laundering and Proceeds of Crime Act to include provisions against the financing of weapons of mass destruction.
Main Changes Introduced:
a. Expanded definitions to include trusts, legal persons, and “beneficial owners.”
b. Increased powers of the Registrar to register, cancel, and regulate PVOs.
c. Revised structure of the PVO Board; Minister gets more control over appointments.
d. Mandatory registration of all operating PVOs and existing charities.
e. Regulation of trusts suspected to be acting as PVOs.
f. Requirement to report any material change in operations, ownership, or structure.
g. Prohibition of political involvement by PVOs (with criminal penalties).
h. Introduction of civil penalties for non-compliance (e.g. daily fines).
i. Minister empowered to suspend leadership in cases of illegality or misconduct.|
j. Amendments to money laundering laws to include proliferation financing offences.
The New Changes Introduced are Discussed in Detail Below:
1.0 Amendment of section 2 of the Act
The amendment act amends section 2 of the Act by adding new definition of terms and expanding the definitions already provided for:
- “Beneficial owner”: Refers to a person who, by virtue of owning shares, stakes, or assets in a private voluntary organisation—either directly or indirectly through a nominee—possesses the ability to exercise a significant or dominant influence over the organisation’s affairs.
- “Controller”: Denotes a person, distinct from a beneficial owner, who—regardless of the formal governance structure—wields a significant or dominant influence over the organisation, whether through the magnitude of their contributions or by other means.
- “Financial Intelligence Unit” or “Unit”: Means the Financial Intelligence Unit as established under section 6A of the Money Laundering and Proceeds of Crime Act [Chapter 9:24].
- “Funds or other assets”: Encompasses all forms of assets, including economic resources, tangible and intangible property, legal documents (physical or electronic) evidencing title or interest, and any income or value derived from such assets, as well as items potentially usable to obtain funds, goods, or services.
- “Office”: Refers to the Office of the Registrar of Private Voluntary Organisations, constituted under section 3.
- “State-sponsored aid entity”: Means an entity which—
(a) functions as an arm, agency, or representative of a State party to a bilateral or other agreement with the Government of Zimbabwe, authorising its operation within Zimbabwe; or
(b) though not itself an organ of the State, is appointed as a State agent or representative under such agreement for operations within Zimbabwe, with such appointment evidenced in the agreement or by written notice to the Government of Zimbabwe. - Definition of “private voluntary organisation” (as amended):
A. Now explicitly includes a legal person or legal arrangement.
B. Replaces the previous definition of trusts to include “any trust established directly by any enactment.”
C. Redefines registered trusts to encompass those registered with the High Court or under section 70A of the Deeds Registries Act [Chapter 20:05], and includes any State-sponsored aid entity. - Clarification of “beneficial owner” and “controller”:
(a) person is deemed to exert a significant or dominant voice if they:
(i) Make decisions on governance or function that are binding;
(ii) Have power to overrule or veto governing body decisions; or
(iii) Directly or indirectly control 25% or more of votes in the governing body.
(b) The term “person” includes a State or any of its arms, organs, agencies, or representatives.
2.0 Private Voluntary Organisations Board
The amendment expands the size and functions of the board as follows:
2.1 Composition of the Board
- The number of private voluntary organisation representatives in the board is increased from five members to eight members. Of the eight members, four must reside in the Northern region (i.e Harare Metropolitan Province, Manicaland, Mashonaland Central Province, Mashonaland East Province and Mashonaland West Province) and the other four in the southern region (Bulawayo Metropolitan Province, Masvingo Province, Matabeleland North Province, Matabeleland South Province and Midlands Province.)
- There is no longer a requirement for there to be a representative from the Ministry of Small and Medium Enterprises and Cooperative Development.
- The Registrar will be an ex officio member, with no voting rights
2.2 Nomination of the Members
- The Minister calls upon the association, organisation, institution or Ministry concerned to nominate such number of nominees as he may specify.
- The Minister can also appoint a member who has not been nominated
- If no nominations are submitted by the association, organization, institution or Ministry concerned within a specified time, the Minister will appoint any person to be a member regardless of the whether the Minister thinks that person is fit to be a member or not.
2.3 Functions of the Board
- The exercise of the Board’s functions is now intertwined with the functions of the Registrar
- The board may approve or disprove the provisional registration of an organization effected by the Registrar
- It may also approve or disapprove the provisional cancellation of a registration certificate issued by the Registrar
- The board considers recommendations by the Registrar in respect of representations by any association, organisation or institution claiming entitlement to be registered as a private voluntary organisation.
2.4 Office of the Registrar of Private Voluntary Organisations
- The office’s scope and functions are widened.
- The Registrar is now to be assisted by one or more Assistant Registrars, Inspectors and any other officers necessary for the administration of the functions all of which shall be public officers and form part of the Public Services
- The Registrar now has the powers to
- consider applications for registrations and proposed cancellations or amend of registration certificates;
- hear representations by any association, organisation or institution claiming entitlement to be registered as a private voluntary organisation;
- advise the Minister and registered private voluntary organisations in respect of any matter arising out of the administration or operation of the Act or any other matter referred to it by the Minister or the Registrar
- to promote and encourage the co-ordination of the activities of registered private voluntary organisations having similar or related objects
- to submit to the Minister an annual report concerning the administration and operation of this act
- The register of Private Voluntary Organisations kept by the Registrar shall be open to inspection by members of the public upon payment of a prescribed fee.
- The Registrar is also mandated to create a website where such a register shall be accessed by the public
- The Registrar is given powers to assign his functions to the other officers and to delegate his duties in terms of the Act.
- The inspectors of the office of the registrar shall be given documents identifying them as such and shall produce same when requested by an interested party.
3.0 Amendment of section 6 – Registration
- Organisations are required to register within ninety days from the commencement of the amendment act or within 30 days from the date they commence operations, whichever date is later.
- The penalty for contravention of section 6 is increased as follows
- A person who collects contributions from the public in contravention of the Act is now liable to pay fine not exceeding level twelve or to imprisonment for a period not exceeding one year or to both such fine and such imprisonment
- A person who manages or controls a PVO which is on contravention of the Act shall be liable to a fine not exceeding level twelve or to imprisonment for a period not exceeding two years or to both such fine and such imprisonment.
4.0 Registration of trusts
- Sanctionable trust – this is a trust which the Registrar suspects or believes is in contravention of the act.
- The registrar will issue written notice to the trustees of such a trust setting forth the basis upon which he believes it is in contravention and calling upon them to commence registration as a private voluntary organisation within thirty days.
- In the period pending approval of the application for registration, the trust may continue to operate lawfully.
- Any trustee who fails to comply with a notice, along with any joint trustees, commits an offence punishable by a fine not exceeding level ten, imprisonment for up to six months, or both;
- The trust itself is also deemed guilty of an offence even where no trustee is prosecuted.
- Alteration of the common law on prosecution of trusts – Section 5 (9) of the amendment Act alters the common law through the provision that the trust can be prosecuted in its name alongside the trustees.
- The trustees who receive a written notice from the Registrar have the right to make representations within 14 days to have the notice withdrawn on the basis that it was made in error.
- The Registrar, may accept or dismiss such in which event the 30 days period begin to run again.
5.0 Amendment of section 9 (Registration as Private Voluntary Organisations)
- There is now the requirement to pay a prescribed fee when making an application for registration
- The application is now required to be lodged together with a sworn affidavit by the Secretary of the organisation or a member of the governing body of the organisation disclosing any name of any beneficial owner of the organisation or anyone who exerts a significant voice in the affairs of the organisation.
- The Registrar is no longer required to submit any objection he receives against registration to the board and is empowered to consider such objection independently.
- Further the granting of the application now vests solely in the hands of the Registrar and the provisions requiring him to submit the application to the Board have been repealed.
6.0 New section 13A – Re-registration or amendment of registration required in certain circumstances
- There is now a requirement for the secretary of the organisation to apply for amendment of the particulars submitted to the Registrar upon application for registration where there has been a material change in relation to same
- Material change occurs where:
- The constitution of the organisation is altered regarding the disposal of the organisation’s assets upon the winding up or dissolution of the organisation;
- Any change in the beneficial ownership or control of a private voluntary organisation is regulated, even if it does not involve transferring the organisation’s registration certificate to another person or entity.
- Any addition, reduction, or change to the objectives of a private voluntary organisation that may significantly affect the scope or nature of its operations in Zimbabwe is subject to regulation.
- Any change to the territorial scope of a private voluntary organisation’s operations within Zimbabwe is subject to regulation
- Any change in the beneficial ownership or control of a private voluntary organisation resulting from the transfer of its registration certificate to another private voluntary organisation or to a person who is not a private voluntary organisation is subject to regulation.
- The Registrar may reject the application or accept same subject to specified conditions
- If there is a material change in the beneficial ownership or control of a private voluntary organisation due to the transfer of its registration certificate to another organisation or person, the organisation’s secretary must apply to the Registrar for approval before the transfer is completed.
- This must be done using the prescribed amendment form, within one month of the provisional transfer date
- Failure to comply with this provision constitutes an offence.
7.0 Amendment of section 14 (Appeals)
- Section 14 is repealed and substituted with a new section 14.
- Appeals from a decision of the board still lie with the Minister
- On appeal, the Minister may either uphold the Board’s decision or refer it back to the Registrar for reconsideration, with or without directions, based on grounds such as irrelevant or omitted considerations, material errors of fact or law, bias or misconduct, or gross procedural irregularities.
- The section also now provides that a person aggrieved with the decision of the Minister may within 14 days appeal to the Administrative Court giving notice to the Minister.
8.0 Introduction of new Part IVA – Conduct of Private Voluntary Organisations
The act is amended by the introduction of a new Part IVA which provides for the conduct of private voluntary organisations
8.1 Principles for Operation
- PVOs must ensure donations are legal and transparent, use funds for stated purposes, avoid discrimination (with exceptions for affirmative action), and stay politically neutral.
- Donations from anonymous sources require due diligence to ensure legality and good faith.
8.2 Increased Government Control
- The Minister can suspend PVO executive committees and appoint trustees if there’s suspicion of illegality, maladministration, or if deemed in the public interest.
- Trustees can recover misappropriated funds through the High Court.
8.3 Anti-Money Laundering and Counter-Terrorism Measures:
- PVOs and similar institutions are now subject to regular risk assessments under FATF criteria.
- The Minister may designate organisations as “high risk” and impose additional registration and compliance obligations, including detailed beneficial ownership disclosures.
8.4 International Cooperation
- Agreements may be made with foreign governments to share information about PVOs, especially those suspected of terrorism financing or criminal activities.
8.5 Policy Directions and Civil Penalties
- The Minister can issue policy directions to the Registrar of PVOs, subject to procedural safeguards.
- Civil penalties may be imposed for non-compliance, and the Minister can amend the penalty schedule via Parliament.
8.6 Political Involvement Prohibited
- PVOs are barred from supporting or opposing political parties or candidates. Violations attract heavy fines and potential imprisonment for office-bearers.
9.0 Amendment to Section 23 of the Private Voluntary Organisations Act (Cap. 17:05):
- The amendment introduces criminal liability for Private Voluntary Organisations (PVOs) that engage in partisan political activity, including:
- Supporting or opposing any political party or election candidate.
- Contributing funds to political parties or candidates in breach of the Political Parties (Finance) Act.
- Discriminating against beneficiaries based on political affiliation or making assistance conditional on it.
- If a PVO is convicted and fails to pay the fine (up to level 12) within 14 days, its national-level office-bearers become jointly liable.
- If an individual fails to pay their share, they may be imprisoned for up to 30 days.
- Support given by a PVO to disadvantaged individuals to help them become election candidates is allowed, as long as it is strictly non-partisan.
10.0 Insertion of new Schedule on Civil Penalties
- Introduces the civil penalty order system as an administrative enforcement tool
- Power to Issue Civil Penalty Orders – The Registrar may issue civil penalty orders for non-compliance with provisions of the Act or regulations.
- Civil penalties are in addition to any criminal or other penalties that may apply.
- Specified Civil Defaults & Corresponding Penalties – Applies to registered Private Voluntary Organisations (PVOs) for:
- Failure to report material changes (Section 13A): USD 100/day (up to 90 days) if application not made in time.
- Receiving donations from illegitimate or immoral sources: Must take remedial action; USD 100/day for non-compliance.
- Failure to use formal financial channels: Fixed fine: USD 1,000, plus 5% daily cumulative penalty of any unpaid fine.
- Also, a daily penalty of USD 100/day if no bank account is opened as directed.
- PVOs get 48 hours to respond to an order and “show cause” why it shouldn’t be enforced. If no cause is shown, the penalty becomes operative.
- If an error is shown, the order is withdrawn.
- Civil penalty orders must be issued within 12 months of the default.
- Multiple defaults within 6 months can be included in a single order.
- Registrar may extend compliance period for up to 30 days if good cause is shown. Orders may be served via hand delivery, courier, or email. If unpaid, officers of a corporate PVO can be held jointly liable. Penalties become a debt recoverable by the Registrar in civil court and go to the Consolidated Revenue Fund.
- Non-compliance after 90 days is a criminal offence: up to 1-year imprisonment or level 6 fine.
10.1 Hearings & Dispute Resolution
- If 48-hour “show cause” response raises disputes of fact or exceptional circumstances, the PVO may request a hearing. A meeting can be held to allow oral and written submissions. Registrar may cancel, reissue, or revise the penalty order based on the hearing outcome.
10.2 Evidentiary Provisions
- A civil penalty register will be maintained. Entries or authenticated copies from the register are prima facie evidence in court.
11.0 Registration of pre-existing charitable entities
- Pre-existing charitable entities must apply for registration as Private Voluntary Organisations (PVOs) within three months of the commencement of the Private Voluntary Organisations Amendment Act, 2025. The application requires the entity’s name, address, operating history, aims, service areas, and funding sources, along with a constitution or foundational document.
- If necessary, the organisation must provide an affidavit disclosing any beneficial ownership or control. Once the application is complete, the Registrar reviews it and submits it to the Board, which will decide whether to approve or reject the application. If approved, the organisation can operate provisionally, except for public fundraising, until final approval. Rejections are communicated with reasons. Approved organisations will have their registration and objectives published in the Gazette
12.0 Amendment of the Money Laundering and Proceeds of Crime Act [Chapter 09:24]
Amendment of Section 2 (Interpretation):
- Definition of “competent authorities”: Added the Office of the Registrar of Private Voluntary Organisations as a competent authority.
- New definitions:
- “Financing or partaking in the proliferation or use of weapons of mass destruction” (Section 9A).
- Proliferation financing: Activity falling within the scope of the offence of financing or partaking in the proliferation of weapons of mass destruction.
- Amendment of “serious offence” – Added financing or partaking in the proliferation or use of weapons of mass destruction.
13.0 Amendment of Section 6E (Unit to have access to information):
- Updated references to the Freedom of Information Act [Chapter 10:33] and Cyber and Data Protection Act [Chapter 12:07] in place of the previous Access to Information and Protection of Privacy Act [Chapter 10:27].
14.0 New Section 9A Inserted (Financing or Partaking in the Proliferation or Use of Weapons of Mass Destruction):
- Anyone providing or collecting funds for the manufacture, development, or distribution of nuclear, biological, or chemical weapons for use in terrorist acts, among other related activities, commits a serious offence.
- Fines up to 25 million USD and a minimum of 35 years in prison.
- Directors, officers, and other individuals in charge of legal entities that commit this offence are also liable.
- Revocation of business licenses, winding up of entities, or asset forfeiture may be ordered.
15.0 Amendment of Section 12A (National Money Laundering and Terrorist Financing Risk Assessment):
- Expanded to include proliferation financing alongside money laundering and terrorist financing.
- Added risk assessment provisions for virtual asset activities.
16.0 Amendment of Section 12D (National Taskforce on Anti-Money Laundering and Combating Terrorist Financing):
- The taskforce’s mandate now includes combating proliferation financing.
- New provisions to establish a charter defining the taskforce’s mandate and objectives.
17.0 Amendment of Section 15 (Customer Identification Requirements):
- Added proliferation financing alongside terrorist financing as a reason for customer identification.
18.0 Amendment of Section 16 (Timing of Customer Identification and Verification):
- Proliferation financing added to the existing provisions related to financing of terrorism.
- Modifications to risk management procedures to address money laundering, terrorist financing, and proliferation financing.
19.0 Amendment of Section 103 (Regulations):
- Added provisions for implementing United Nations Security Council Resolutions related to proliferation financing.
20.0 Minor Amendments:
- Various minor adjustments to sections of the Money Laundering and Proceeds of Crime Act [Chapter 9:24] as specified in the schedule.
The enactment of the Private Voluntary Organisations Amendment Act, 2025 marks a significant shift in the regulatory landscape governing non-governmental organisations in Zimbabwe. It is essential for all stakeholders—including organisations incorporated prior to the Amendment Act, both local and international entities, as well as those previously operating as unregistered ‘trusts’—to carefully assess and align their operations with the new legal requirements.
Failure to comply with the updated provisions may result in regulatory sanctions, including suspension or deregistration. It may also result in criminal prosecution through its various criminal sanctions. As such, a proactive approach to understanding and implementing the changes introduced by the Amendment Act is crucial to ensure continued lawful operation and effective engagement within Zimbabwe’s evolving legal and policy framework.
For assistance with legal and policy framework issues for private voluntary organisations, kindly get hold of Muvingi Mugadza's corporate practice group on info@mmmlawfirm.co.zw
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