Gweru turns to business ventures to boost revenue

FACED with a growing debt burden and mounting pressure to improve service delivery, Gweru City Council (GCC) is shifting away from its traditional reliance on rates and Government grants by investing in commercial ventures to generate sustainable revenue.

The local authority is now focusing on projects in parking management, agriculture, manufacturing and transport infrastructure as part of efforts to stabilise its finances and fund key infrastructure development.

The move comes at a time when residents and businesses owe the council more than ZiG940 million in unpaid rates and rentals.

This has placed significant strain on service delivery and forced the council to intensify revenue collection ahead of the 2026 budget.

To address the funding gap, the council has adopted a strategy of ring-fencing income from its business ventures, ensuring that proceeds are directed towards priority areas such as road rehabilitation, traffic management systems, street lighting and the purchase of maintenance equipment.

At the centre of this approach is Gweru City Parking, which has emerged as one of the council’s most reliable sources of revenue.

GCC economic and business development manager Mr Rodwell Musiiwa said the council was deliberately repositioning itself to become more financially sustainable through commercial investments.

“As a local authority, we are shifting our revenue model, placing commercial investments at the centre of efforts to stabilise finances, upgrade infrastructure and reduce dependence on traditional rates and grants. We are deploying a portfolio approach spanning parking management, agriculture, manufacturing and transport infrastructure to generate ring-fenced income for service delivery,” he said.

Although he did not disclose the exact amount of revenue being generated from the City Parking venture, Mr Musiiwa said the funds were already contributing to improved service delivery.

“The revenue is already being utilised for pothole patching, restoration of traffic lights and the purchase of maintenance machinery,” he said.

Beyond parking management, the council is also reviving industrial operations through a joint venture at Go Beer Brewery, which has resumed production and is currently producing between 15 000 and 30 000 litres daily.

Mr Musiiwa said partnerships with private investors are playing a key role in supporting these initiatives by providing both capital and technical expertise, while reducing risks for the council.

“These partnerships bring technical expertise, investment capital and operational efficiency while reducing financial risks to council,” he said.

The council is also planning to expand its investment portfolio, with projects lined up in agriculture, completion of the Truck Park and Truck Stop, as well as ventures in commercial property, hospitality and manufacturing.

“Our overall strategy is to diversify revenue sources, modernise service delivery and create sustainable economic opportunities that directly benefit residents and the local economy,” said Mr Musiiwa.

Residents’ groups have welcomed the council’s shift towards alternative revenue streams, noting that over-reliance on rates and rentals is no longer viable under current economic conditions.

Gweru Residents Trust chairperson Mr Obvious Gonamombe said the move represents a positive step towards improving service delivery.

“It is common cause that GCC is battling a ballooning debt crisis, with residents and ratepayers owing millions in unpaid rates and rentals due to various reasons. While council has historically relied on aggressive debt collection measures such as disconnecting services and locking business premises, these methods often create friction with residents because of concerns over billing systems,” he said.

Mr Gonamombe said residents support initiatives aimed at easing the financial burden while improving services.

“We support the business ventures GCC is pursuing because they can create sustainable income streams that benefit the city and improve service delivery,” he said.