Online Reporter
Judith Phiri, Zimpapers Writer
INDUSTRY players continue to express concerns over high rates charged by local authorities and have appealed to Government to intervene to ensure a conducive operating environment is created.
This comes at a time when the Government has introduced ease of doing business initiatives with a commitment to review the levies, licences, fees and permits across 12 key sectors.
The initiatives seek to simplify processes for businesses, ultimately fostering a more conducive environment for economic growth.
Speaking during a question and answer session in an online webinar, Confederation of Zimbabwe Industries (CZI) Matabeleland Chapter president, Mr Stephen Ncube, called for Government intervention saying local authorities’ rates were choking businesses.
“On the issue of Zimbabwe National Water Authority (Zinwa), we have seen a development that is quite welcome in terms of a zero charge on the water to farmers. My contribution is that if this can be extended to the local authorities,” he said.
“We have been at loggerheads with local authorities in terms of their cost build-up of water charges. One of the issues that we saw, which is problematic in terms of their costing, is obviously the cost of raw water.”
The online webinar, which was hosted by the Public Policy and Research Institute of Zimbabwe (PPRIZ) focused on the Government’s move to reduce licences, permits and fees.
In an interview, Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland Chapter past vice-president and businessman, Mr Louis Herbst, echoed Mr Ncube’s sentiments, saying high rentals were also a challenge.
“The burden of high rentals and rates imposed by local authorities and landlords is a pressing concern for many businesses, potentially stifling growth and sustainability. While we acknowledge the authorities rely on these revenues to fund essential services and infrastructure, it’s crucial to strike a balance that supports both the business community and the broader community’s needs,” he said.
“A more nuanced approach could help foster a thriving local economy where businesses can flourish and still contribute to the region’s growth and well-being.”
Mr Herbst said a disjointed approach could inevitably harm the local economy, defeating the purpose and efforts of rehabilitating industry.
Bulawayo Chamber of SMEs vice-chairperson, Ms Sithabile Bhebhe, said most rentals charged by established property developers are beyond the reach of many, particularly the micro, small and medium-scale enterprises (MSMEs).
“Most premises in the central business district are too expensive and a lot of shops have been closed as people move out due to high rentals. MSMEs are forced to operate outside where they are exposed to the vagaries of harsh weather,” she said.
A snap survey conducted by Zimpapers revealed that rentals for shop space in the CBD now cost between $200 and US$1 000 depending on the size of the space and location.
Bulawayo City Council (BCC) proposed a standstill budget of US$224,7 million for the 2026 financial year, assuring residents there will be no increase in rates and rentals.
Presenting the proposal, the local authority said the decision was aimed at cushioning households and businesses from additional financial strain, while ensuring service delivery priorities are addressed. Of the total budget, US$157,5 million is allocated to recurrent expenditure and US$67,2 million to capital projects.
Water and sanitation will continue to dominate spending, receiving nearly a third of the budget at US$70,3 million. The city has long struggled with water shortages due to dwindling water levels, ageing infrastructure and growing demand, forcing authorities to introduce strict rationing. For 2026, US$47,5 million has been set aside for recurrent water and sanitation costs, while US$22,8 million is dedicated to capital projects.
BCC stressed that the budget seeks to balance economic realities with service delivery imperatives, ensuring water supply, health, education, housing, roads, sanitation and public safety remain at the forefront of its development agenda for 2026.
