Harare, Zimbabwe – The industrial sector has emerged as the leading debtor on Harare City Council’s (HCC) books, intensifying calls for stricter measures against profit-making entities that fail to settle their obligations.
In the 2025 budget presentation, Costa Mande, Chairperson of HCC’s Finance and Development Committee, revealed that industry owes a significant portion of the council’s total debt, which now stands at US$343 million.
“Debtors stood at US$343 million as of 30 September 2024, up from US$318 million on 31 August 2024, reflecting a 9.95% increase within a month. The debt breakdown is as follows: commerce and industry account for 66.13%, domestic households 26.63%, government entities 3.09%, and dormitory towns 3.91%,” Mande disclosed.
To address the ballooning debt, HCC plans to expedite the implementation of an Enterprise Resource Planning (ERP) system and conduct extensive data clean-ups. These measures aim to minimise billing errors and disputes while fast-tracking debt recovery through demand letters and summons.
However, the rising debt coincides with Harare’s worsening infrastructure challenges. The city’s ageing water and sewer systems require urgent rehabilitation, but funding constraints have stymied progress. Previously supported by World Bank-funded initiatives like Urban I and Urban II, the city lost this critical financial backing for major infrastructure projects after the World Bank withdrew its funding.
“The projects, which are capital-intensive, cannot be financed solely through council resources,” Mande said.
Residents and stakeholders have expressed frustration over HCC’s inability to collect overdue payments effectively, particularly from industry.
“The council appears more focused on chasing residents for overdue rates while profit-making companies are let off the hook,” one resident told this publication.
Others have criticised the council for its failure to manage debt sustainably, arguing that industries benefiting from Harare’s resources should bear more responsibility.
The mounting debt highlights the broader financial and governance challenges plaguing Zimbabwe’s urban councils. Harare’s inability to secure adequate funding for infrastructure rehabilitation and service delivery has compounded the city’s struggles with water shortages, poor waste management, and deteriorating roads.
Moving forward, the HCC’s capacity to enforce debt repayment among all sectors, especially high-revenue industries, will be a critical factor in improving service delivery and rebuilding trust with residents.
Efforts to hold industries accountable could provide a much-needed financial boost, but success will depend on efficient systems and transparent management. For now, Harare continues to grapple with the delicate balance of meeting operational needs while ensuring fairness in its debt collection practices.