Hwange council crippled by US$6 Million debt, forges private partnerships

Rutendo Nyeve

THE Hwange Local Board (HLB) has reported hindered progress on critical capital projects as it grapples with a US$6 million debt owed by ratepayers, with residents and the Zimbabwe Power Company (ZPC) cited as the biggest creditors.

This massive debt burden has severely constrained the council’s revenue collection, crippling its operational capacity.

Responding to questions from The Chronicle, HLB Town Secretary Mr Ndumiso Mdlalose revealed the extent of the financial crisis.
“Despite robust investment activity, Council’s revenue collection remains constrained hovering just above 30 percent due to delay in payment of rates high rates, with residents and ZPC being the biggest creditors. As of 30 September, Council is being owed over USD 6 million,” said Mr Mdlalose.

He detailed the direct impact of the cash crunch.
“The delayed payments have hindered progress on critical capital projects, such as sewer reticulation installation at Empumalanga Phase 4, and the completion of Councils boardroom,” he said.

The financial strain has also affected staff and service provider payments.

In response, the council is increasingly turning to the private sector to bridge the service delivery gap.

A recent partnership with South Mining delivered a state-of-the-art library, hailed as one of the best in the country.

The board is also actively seeking partners for other key projects, including the rehabilitation of the long-defunct Empumalanga Waste Water Treatment Plant, the completion of the Empumalanga Flea Market, and the refurbishment of Nengasha Stadium.

Despite the severe financial headwinds, the council is pushing forward with long-term planning.

A new Master Plan has been implemented to guide sustainable growth, and the recently gazetted General Valuation Roll aims to ensure a more transparent and equitable property taxation system.

However, the success of these initiatives hinges on the council’s ability to collect the revenue it is owed.

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