Govt freezes non-critical hiring
The government has frozen the recruitment of non-critical public service positions as the government moves to contain spending amid weak economic growth and pressure on government revenue.
Prime Minister Tjitunga Elijah Ngurare told the National Assembly that the recruitment freeze was part of efforts to manage public finances more efficiently under difficult economic conditions.
“As Government, we have decided to implement a freeze on the recruitment of new positions as part of efforts to limit expenditure in light of the current economic conditions,” Ngurare said.
He said the measure had been driven by “ongoing budgetary constraints, mainly resulting from low projected economic growth and reduced revenue collections”.
“By suspending the hiring of non-critical positions, we aim to manage public finances more efficiently and ensure the reallocation of resources to priority areas where they are most needed,” he said.
Only crucial roles
Recruitment will continue for critical positions in the health and education sectors.
Ngurare said ministries and government offices would also be able to fill positions that had already received approval before the freeze, as well as vacancies arising from resignations, promotions, retirements and other staff movements.
The move comes against a fiscal backdrop in which personnel expenditure remains one of the government's largest spending commitments.
IMF projections show personnel expenditure at 13.4% of GDP before declining to 12.7% and then settling at about 12.6% over the medium term.
The Fund has welcomed the government's commitment to fiscal consolidation, saying the 2026/27 budget is a positive step towards debt sustainability.
But it has warned that further consolidation will be needed to create room for growth-enhancing investment, strengthen social protection and improve the country's resilience to economic shocks.
IMF appeals
The IMF has specifically called for comprehensive civil service reform, including functional job reviews and the rationalisation of public-sector employment.
“Durable wage bill reduction will require comprehensive civil service reform,” the Fund said, adding that such reforms could reduce the crowding-out of private-sector activity while improving the efficiency and quality of public services.
Ngurare, however, used his response to make a broader point about employment, arguing that the government cannot be expected to carry the responsibility for job creation alone.
“In addition, jobs are not to be created by Government alone, but collectively - by the State-Owned Enterprises and the Private Sector as well,” he said.
“We should therefore not look to Government in isolation.”
The Prime Minister then turned the question towards businesses, including those represented in Parliament.
“Some of us in this August House are business owners ourselves, and so I pose this question: What is your contribution towards job creation?” he said.
“Let us not leave everything to Government, job creation is a shared responsibility that requires the active participation of all sectors.”
His comments come as the IMF projects real gross domestic product (GDP) growth of just 1.7% before a gradual recovery towards 3% over the medium term.
Government expenditure is projected to remain above 35% of GDP, while revenue and grants are expected to settle at around 30.5% to 30.8% of GDP.
