Debt chokes Council

KUDAKWASHE CHIBVURI

Harare City Council is crippled by a ZiG 8bn debt that chokes its operations and throttles service delivery, forcing officials to warn of severe measures, including evictions and business closures.

Mayor Jacob Mafume warned that the financial burden has become critical

“The decline in service delivery across the city is becoming untenable, driven largely by residents’ reluctance to settle their debts,” said Mafume.

He further elaborated, “Council is grappling with a downward spiral in all its service programs due to funding constraints. Some debts have lingered for over a decade. A key metric affecting all service delivery indicators is revenue collection; we aim for a minimum collection rate of 80% by 2026, with aspirations to reach 100% thereafter.”

According to Mafume, over ZwG 8.4bn is owed to the council by residents, businesses, and governmental agencies, with a staggering 80% attributed to residents alone, while other stakeholders account for the remaining 20%.

In a bid to alleviate this financial strain, the metropolis has launched a timely debt repayment initiative that offers a generous 20% discount to residents who settle their outstanding balances between January 19 and February 13. Additionally, loyal residents will earn points as part of this incentive program.

Council said this “whole of government” approach, acknowledges the economic challenges faced by residents and local businesses that owe money to the city.

“We recognize these difficulties and are committed to fostering a collaborative environment for debt resolution,” Mafume stated.

Councillor Mafume encouraged residents to take advantage of the discount initiative.

“Residents who pay their debts in foreign currency will be eligible for additional benefits. I urge all ratepayers, including those in the diaspora, to settle their accounts in foreign currency to maximize these discounts.”