Harare City Council struggle to collect revenue

Diana Nherera

The City of Harare says it has only managed to collect half of the ZiG8,286 billion it billed between January and September this year as residents complain of poor service delivery.

In his 2026 budget presentation recently, Finance and Development Committee chairperson, Councillor Costa Mande, said the council had collected ZiG4,286 billion during the period under review.

He said the collection efficiency trend has been 48,4 percent in the first quarter, 47,5 percent in the second quarter and 54 percent in the third quarter.

“Although this represented an improvement compared to earlier quarters, liquidity remained tight with limited fiscal space,” he said.

“Improvements in the third quarter signal early success from ongoing reforms embarked on by the city, such as compliance checks, stringent debtor follow-ups, an increase in electronic payment platforms and integration of the systems.”

Cllr Mande said the main challenge is that residents are reluctant to pay because they feel the services are not satisfactory.

“This creates a cycle where payment is not as per budget and less payment means there is inadequate funding to improve services,” he said.

“The city must change this cycle by introducing clear service-for-payment initiatives and strengthening revenue collection enforcement to rebuild public trust.”

Cllr Mande said liquidity problems are still making it hard for the city to manage its working capital.

“For 2026, the budget includes monthly cash flow forecasting and clear cash allocation systems that prioritise essential services to keep them running smoothly.

“A fully integrated ERP system will help track income in real time, allowing better decisions on how to use our resources,” he said.

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