Water rationing triggers Gweru budget deficit Water rationing - Image taken from Getty Images

Patrick Chitumba, Midlands Bureau Chief
GWERU City Council, which missed its revenue collection target by over ZW$1billion last year due to mainly water rationing, has resorted to Public Private Partnerships (PPPs) to complement residents and businesses revenue contribution.

In 2021, council operated on a ZW$2,9 billion budget and the out-turn reflects that council managed to rake in ZW$1,85 billion, giving a negative variance of just over ZW$1 billion.

Addressing GCC councillors, management, stakeholders and the media while giving the city’s 2021 report, acting mayor Councillor Cleopas Shiri said council is now looking at PPPs as a way of increasing revenue collection instead of relying on ratepayers.

“The missed target was due to increased water rationing that resulted in depressed water sales, Covid-19 induced closures of informal trader’s markets, and non-implementation of the proposed new valuation roll, which was sent back to the Ministry of Local Government and Public Works for corrections,” he said.

Clr Shiri said total billing amounted to ZW$1,8 billion while total revenue collected amounted to ZW$1,1 billion.

“Total receivable amount to ZW$1,2 billion. Our total creditors outstanding amount to ZW$282 million. Our recovery rate on current billing stood at 63,39percent and in 2022, Council will make endeavours to better the ratio and by that council shall introduce stringent debt recovery measures,” he said.

Clr Shiri said council entered into a partnership with Harare Easy Park in a bid to reduce revenue leakages and this gave birth to the automation of the parking system.

“Since the coming in of Harare Easy Park to our city, forming Gweru City Parking, council managed to reinforce all the revenues coming from parking and managed to procure a Truck Backhoe Loader, which will help in the rehabilitation of council roads. Council also entered into a partnership with Bentach for the rehabilitation of Kudzanayi Bus Terminus following the ninth cabinet resolution which advised local authorities to take advantage of the national lockdown to decongest and renovate market places.

Under the same initiative, Council managed to create Mtapa Market, partnering with the Ministry of Local Government and Public Works and UNDP for the construction of SMEs shops and markets.”

He said council missed its revenue collection target clearly and council can’t continue relying on rate payers, hence the need to look at PPPs to complement residents and businesses revenue contribution.

“We are pushing the Gweru is open for business mantra and we call upon private players to visit us for opportunities, which are many,” he added.

Clr Shiri said council managed to enter into partnership three land developers for the servicing of Mkoba 21 and Randolph mixed density projects namely CASAS, Sheasham and Wackdrive.

“So far Sheasham managed to obtain the required environmental impact assessment certificates for both Mkoba 21 and Randolph mixed density projects, the other two land developers have applied for their Environmental Impact Assessment certificates,” he said.

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