MARTIN MAWAYA
GWERU-City of Gweru is courting private investors to drive a range of commercial projects as the local authority moves to broaden its revenue base amid tightening finances.
Among the key initiatives lined up this year are a specialised cargo aerodrome targeting horticulture exports and a clothing manufacturing unit aimed at cutting council procurement costs.
Ground-breaking for the aerodrome project is expected in the second quarter of the year.
The facility is designed to handle horticultural produce destined for export markets and is expected to strengthen value chains for farmers in the Midlands province.
Council is also planning to establish a clothing manufacturing unit to reduce the cost of procuring protective clothing for its workers.
About 70% of council employees require personal protective equipment annually, creating a significant procurement bill.
“According to the cost-benefit analysis, it’s cheaper as council to have our own textile industry,” Economic and Business Development Manager Rodney Musiiwa told an ordinary full council meeting recently.
The local authority requires about US$50 000 to procure machinery and equipment needed to kick-start the projects.
Beyond the two initiatives, council is also pursuing alternative financing models for other commercial ventures including a quarry mining project, solar power generation and a waste-to-energy facility.
According to minutes of the Business Development Committee, earlier attempts to develop some of the projects through public-private partnerships stalled due to prolonged negotiations, procurement complications and funding challenges.
Council is now proposing a lease of concession rights model for the quarry mining venture, which would allow a private investor to finance and operate the project while the local authority retains ownership of the land and mineral rights.
Under the arrangement, the investor would carry the capital and operational risks while council earns income through concession fees, royalties or revenue sharing agreements.
In another development, the local authority is seeking approval to lease more than 213 hectares of non-arable land in Rutland and Cambridgeshire Estates for solar farms under long-term agreements with independent power producers.
The investors would finance and operate the projects while council earns lease income and potential revenue from electricity sales as part of efforts to diversify municipal revenue streams.
Meanwhile, council has moved to terminate a lease agreement with Go-Beer Breweries for the Zaire Beerhall in Mkoba after the company failed to operationalise the facility within the agreed timeframe.
Officials said the continued closure of the beerhall has resulted in lost lease revenue, deterioration of the municipal asset and missed employment opportunities for the local community.
Council plans to recover outstanding rental payments while the facility will be re-advertised to attract new investors capable of reviving the business.
