Vusumuzi Dube, [email protected]
BULAWAYO businesses in high-density suburbs are facing a steep increase in operating costs after the implementation of the city’s 2024 general valuation roll triggered rates increases of more than 200 percent, forcing the Bulawayo City Council to consider reducing commercial property tariffs in a move that would affect more than 1 000 accounts.
The proposed intervention, follows an average 100 percent increase in commercial property values in high-density suburbs after the new valuation roll came into effect in January this year.
According to the latest council report, the local authority acknowledged that the new valuations had resulted in a significant increase in commercial rates, raising concerns over the affordability of the charges and the sustainability of businesses.
“Following the implementation of the new valuation roll, commercial tariffs in the high density suburbs increased significantly due to increased property values. The property values increased by an average of 100 percent resulting in the rates charges increasing by over 200 percent.
“Business stakeholders in the high-density suburbs had reportedly expressed concerns of affordability, business sustainability and the overall cost of doing business.
In view of the concerns from businesses, it was necessary that a review of the tariff be done to ensure reasonability in the charges and economic sustainability for the businesses,” reads the report.
Council is now recommending reductions of 58 percent for commercial properties with land values of up to US$40 000 and 49 percent for those valued above US$40 000.
The proposed changes would affect 1 083 accounts and result in an estimated reduction of US$90 094 in council’s monthly billed income.
According to the report, the review is intended to ensure that rates remain reasonable and that businesses can sustain their operations.
“The recommended new rating factor results in a 58 percent reduction in business with land values up to 40 000 and 49 percent reduction in businesses with land values above 40 000.
“The number of accounts affected were 1 083. Council would incur a monthly billed income loss of US$90 094.28.
“It was envisaged that due to the review of the tariff, the charges would be affordable to the business community resulting in regular monthly payment of rates,” reads the report.
Meanwhile, the local authority has reported that as at September 2026 council billed US$11 million from 186 152 accounts, with the opening debt as at 31 August, 2026 being US$149.1million.
“Collection efforts were targeted in collecting current month billing plus a portion of the arrears using available resources. USD$1,1 million was collected in the month of September 2026 through various efforts.
“The challenges faced in debt recovery were limited vehicles to effect service restriction and serve customers with notices and final demands, the credit control section currently has only four vehicles and these were inadequate to meet demand from the office and as the city continually grows and the resource handicap was hindering full implementation of the credit control and debt collection policy provisions,” reads the report.
