Online Reporter
Diana Nherera
THE City of Harare says it owes its creditors ZiG 2,114 billion as of September 30, 2025, up from ZiG 1,4 bn in January 2025, with electricity accounting for more than half of the debt, about 54,83 percent.
Finance and Development committee chairperson Councillor Costa Mande, in his 2026 budget presentation, recently said the high electricity costs, mainly from power-intensive water and sewer systems, use up a large part of the limited funds meant for running and maintaining services.
“The 2026 budget plan focuses on cutting energy costs by using solar power across the city,” he said.
Cllr Mande said the city will enforce a policy for employees to use up their leave days so that it reduces the costs related to them which currently stand at ZiG 1,540 bn.
He said the city still owes US$93,5million from the development and rehabilitation of municipal water and sewage treatment works for the City of Harare project of 2010, funded through the China-Exim Bank, which adds extra pressure on the council’s finances as it must be repaid in foreign currency, making it harder for the city to manage its daily operations.
“We are in the process of finalising the payment modalities using the Special Water Levy, which was provided for in the 2025 budget,” said Cllr Mande.
My confusion and frustration with the City Council are growing. I am personally billed $41 USD every month for house rates, yet we have received zero services in return: six years without running water and three years without garbage collection. Now we learn the council is reportedly indebted to creditors for over $1.5 billion.
This raises a critical question: If residents are paying $41 monthly but receiving no service, and the council is still incurring over $1.5 billion in debt, where exactly is the money we pay being allocated? The current system is clearly failing, and we need a complete overhaul to address this financial and service delivery crisis.