Online Reporter
Nqobile Bhebhe, Zimpapers Senior Writer
THE City of Bulawayo collected nearly US$2 million from residents in November last year, but financial pressures persisted as outstanding creditors rose from ZWG638 841 215 to ZWG722 245 886 during the same period.
During the month, the local authority issued more than 16 000 debt demand notices across its wards in a renewed drive to recover outstanding rates and service charges, with council targeting collections of over US$14,1 million.
According to council’s financial statements for the period ended November 30, 2025, the increase in creditors was largely driven by obligations to commercial entities and service providers, with the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) remaining the dominant creditor.
The power utility continues to top the creditor list, reflecting Bulawayo’s heavy electricity consumption and the council’s limited capacity to clear arrears within normal payment cycles.
“Outstanding creditors increased from ZWG638 841 215 to ZWG722 245 886 in November 2025. ZETDC remains the biggest creditor at ZWG515 092 551 (71 percent) followed by trade creditors at ZWG44 855 478 (six percent). Council is up to date with its statutory obligations and salary payments,” reads part of the report.
Trade creditors remain the second largest category at ZWG44 855 478, accounting for six percent of total outstanding obligations. These creditors include suppliers of goods and services critical to the city’s day to day operations.
Salary related obligations also featured prominently during the reporting period. Salaries and allowances closed the month at ZWG70 080 312 (10 percent), while salary creditors amounted to ZWG20 001 804 (three percent), underscoring continued pressure from the council’s wage bill.
Other notable creditors included utilities at ZWG10 378 290 (one percent), taxes at ZWG28 820 764 (four percent) and internal loans of ZWG5 450 222 (one percent).
Amounts owed to Zesa and the Infrastructure Development Bank of Zimbabwe (IDBZ) stood at ZWG13 031 953 (two percent), while refuse-related creditors closed at ZWG14 023 591 (two percent).
In United States dollar terms, the city’s total outstanding creditors were equivalent to US$26 986 943 at the end of November 2025, underscoring the scale of the financial burden when compared with monthly revenue inflows.
Despite the US$1,93 million collected from residents during November, council officials concede that revenues remain insufficient to significantly reduce historical arrears, particularly to large commercial creditors such as ZETDC.
The debt collection report indicates that council billed US$10,3 million on 183 372 accounts in November 2025.
During the same period, it issued more than 16 000 debt demand notices across its wards in a renewed effort to recover outstanding rates and service charges, with the local authority targeting collections exceeding US$14,1 million.
The notices — issued as final demands, 24-hour notices, disconnection warnings and telephone reminders — were distributed across both high- and low-density suburbs.
“The opening debt as at 31 October 2025 was US$133 million. Collection efforts are targeted to collect the current month billing plus a portion of the arrears using available resources. US$1 930 057 was collected in the month of November 2025.”
However, the local authority said it continues to face challenges in its debt recovery efforts.
Among the constraints cited was the absence of a heavy duty printer in the debt unit to produce demand notices and related correspondence.
Council also cited “limited vehicles to effect service restriction and serve customers with notices and final demands. The Revenue Section has only four vehicles and these are inadequate to meet the work demands of the office and the growth of the City. The resource handicap is hindering the full implementation of the credit control and debt collection policy provisions.”
The local authority has previously said it is engaging its largest creditors to agree on structured payment plans, while intensifying revenue collection efforts to prevent further accumulation of debt and safeguard service delivery.
Council is expected to continue prioritising payments to critical service providers to ensure uninterrupted service delivery, even as it grapples with rising operating costs and constrained income.
