Vusumuzi Dube
Vusumuzi Dube , Online News Editor
THE Bulawayo City Council (BCC) is set to reintroduce the infamous weekend vending popularly known as Khothama, as the local authority works on getting more foreign currency into its coffers.
The local authority is under pressure from its workers who are demanding part of their salaries in hard currency while all suppliers have also been insisting on being paid in foreign currency, a situation that is reportedly hindering service delivery in the city.
As part of measures of enhancing foreign currency generation in the city, the local authority has since come up with a cocktail of measures, among them the reintroduction of the “khothama boutique”, with those interested being mandated to paying for the stalls in foreign currency.
Weekend vending had been banned in the city — through a council resolution — at the height of the Covid-19 pandemic as the local authority worked on measures to curb the spread of the pandemic.
According to a council confidential report, the local authority witnessed a drop of foreign currency receipts from US$776 000 in January to US$407 000 in April.
BCC is currently pegging its bills in foreign currency, with consumers having the option to pay using local currency as per the prevailing rate on the date of billing.
“The demand for foreign currency payouts is escalating each day with suppliers, contractors, councillors and staff putting pressure on council for payments in foreign currency.
Foreign currency receipts are however low to adequately cover the requirements.
Debtors have been increasing by an average of 11 percent per month between December 2022 and April 2023.
The targeted collection efficiency is 80 percent of billing per month.
The highest collection efficiency was 60 percent while the average is 54 percent,” reads the report.
In a bid to improve foreign currency revenue collection the local authority has identified the reintroduction of weekend vending at the Large City Hall and the Revenue Hall, billing advertising fees in foreign currency as well as charging water reconnection fees in forex, among other interventions.
“Short term strategies include advertising fees to be payable in USD, mining claims — rentals and royalties — to be paid in foreign currency, companies trading strictly — like petroleum traders — in forex to pay for charges in USD.
Also, the enforcement of vending by-laws and resuscitation of weekend vending.
Town planning department is working on engaging the vendors’ committee regarding payment of the vending fee of US$11,50 per stall per month in foreign currency.
The local authority will also work on the creation of weekend bays in sites to be identified by Town planning department which will raise substantial United States dollars each weekend at a charge of US$10 per day per bay.”
The local authority is also working on offering incentives to consumers that are willing to pay in forex. Further, BCC will also be auctioning scrap and fuel sales to its staff, strictly in foreign currency.
“Brainstorming and mind mapping revealed that there are several ways to begging realizing positive growth in revenue collection in the city.
A variety of topics were discussed and explored, and the team decided to focus on a few high impact strategies that will result in significant revenue collect growth with minimal resource implications.
“However, it goes without saying that, in order for these strategies to bear fruit for the city, the staff and other key stakeholders who will be affected by the processes that will be undertaken to achieve the set goals and targets must be fully or rather 100 percent committed,” reads the report.
Online Reporter