Gweru debt pile threatens infrastructure investment

Date:

MARTIN MAWAYA

GWERU City’s ambitious infrastructure investment programme is increasingly being threatened by a ballooning debtors’ book that has surpassed ZiG1.02 billion, raising concerns over the local authority’s ability to sustain road rehabilitation, water upgrades and public health services.

City of Gweru Mayor, Cllr Martin Chivhoko.

The city’s first-quarter budget performance report shows that council billed ZiG403.6 million for rates and services but collected only ZiG288.4 million, leaving about ZiG115 million unpaid.

This translated to a collection efficiency of 71%.

The growing arrears come at a time when council invested US$1.36 million in capital projects, including road rehabilitation equipment, water infrastructure and traffic management systems, underscoring the tension between maintaining essential services and deteriorating cash flows.

Of the ZiG1.02 billion owed to council, domestic high-density suburbs accounted for ZiG310.3 million, while government departments owed ZiG188.6 million, making them one of the city’s biggest debtors.

Commercial properties owed ZiG113.9 million, followed by domestic low-density suburbs at ZiG103 million, rates accounts at ZiG91.2 million and domestic medium-density suburbs at ZiG28.2 million.

Other significant debtors included heavy industries ZiG47.7 million, light industries ZiG43.6 million and flea markets ZiG17.3 million.

The figures indicate council is facing pressure from both household affordability challenges and delayed payments by public institutions.

Acting Finance Director Michael Verenga said council remained committed to prudent financial management despite the difficult operating environment.

“The first quarter of 2026 was characterised by continued economic uncertainty, constrained liquidity and increasing demand for municipal services. Despite these conditions, the City of Gweru continued to demonstrate prudent financial management by prioritising expenditure on essential services while maintaining investment in strategic infrastructure,” Verenga said.

He said council had remained focused on maintaining uninterrupted service delivery while preserving long-term financial sustainability.

“Although actual revenue collections fell below budget projections, available resources were strategically directed towards water supply, roads, health services, public safety, digital transformation and capital development, reflecting financial discipline and a commitment to ensuring that limited resources generate maximum public value,” added Verenga.

Despite weaker collections, council pressed ahead with capital projects that included two graders, an excavator, a water bowser, traffic control signals and a US$636,618.82 road overlay project on Sixth Street.

Economists say municipalities that continue investing during periods of constrained revenue can prevent infrastructure from deteriorating further, but sustained under-collection of rates eventually weakens their capacity to finance future projects without external support.

Beyond infrastructure, council’s health services remained under pressure, recording 81,896 outpatient consultations, 4,606 antenatal visits and 793 deliveries during the quarter, while also procuring an obstetric ultrasound scanner, a haematology analyser, an incubator, an autoclave, a microscope, a laboratory refrigerator and other equipment to strengthen healthcare delivery.

Development activity also remained resilient, with 323 building plans approved, 460 development inspections conducted and five subdivision permits creating 20 residential stands, indicating continued private sector investment despite the challenging economic environment.

The report indicates that Gweru is sustaining investment-led service delivery, but unless outstanding debts are reduced, the city’s ability to finance future infrastructure upgrades from internally generated revenue will come under increasing pressure, making capital support from central government critical.

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