By Loyd Matare
Harare City Council has raised alarm over ballooning debts from residents and businesses which now exceed the City’s entire annual budget, crippling service delivery and threatening key infrastructure projects.
This comes as Harare continues to battle worsening service delivery marked by erratic water supplies, uncollected refuse, and pothole-ridden roads, as the City struggles to fund basic operations.
Presenting the 2026 budget on Friday, cllr Costa Mande warned that ratepayer defaults have severely undermined the municipality’s capacity to repair water systems, maintain roads and sustain waste management.
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He said the City is owed ZIG 8.61 billion, a figure higher than the total receipts of ZIG 4.28 billion for the current year.
“Our finances are under immense pressure,” he said.
“This debt has become unsustainable. It is enough to fully recapitalise our vehicle fleet, rehabilitate trunk roads and secure water treatment chemicals for an entire year.”
He said more than 60 percent of the debt, about ZIG 5.2 billion, comes from domestic consumers, while commercial and industrial sectors owe around ZIG 2.26 billion.
“Residents must understand that every unpaid bill directly affects water supply, refuse collection and road maintenance,” he added.
“These funds rightfully belong to the people and without them, service delivery simply collapses.”
The City is rolling out a segmented arrears reduction strategy to recover part of the debt in 2026.
Domestic ratepayers will be offered conditional amnesties linked to consistent payment of current bills, while businesses will face tighter enforcement.
“We will not hesitate to disconnect, garnish or take legal action where necessary,” Mande said.
“Those who can pay must pay. The culture of non-payment cannot continue.”
The City is also pushing for intergovernmental offsets to settle arrears owed by government departments, which account for nearly three percent of the total debt.
City Treasurer said the debt burden has forced council to postpone major projects, including road rehabilitation and sewer upgrades.
“We are diverting limited funds to urgent recurrent expenses like fuel and water treatment chemicals.
“The reality is that our hands are tied until residents and institutions clear what they owe.”
Despite the gloomy picture, officials say the new budget includes stronger debt recovery measures, tighter fiscal controls and digital billing to improve collection efficiency.
“This is a wake-up call to every ratepayer,” Mande said.
“If we all pay our dues, Harare can stand on its feet again. Our goal is not to punish but to restore services that every resident deserves.”
