Harare, (New Ziana) – The Harare City Council on Tuesday unveiled a US$548.2 million 2025 budget, with residents to be levied US$1 each for street lighting and emergency services.
The local authority struggled to have its 2024 budget approved by the parent Ministry of Local Government and Public Works for its failure to comply with guidelines meant to enhance service delivery as outlined by President Emmerson Mnangagwa in his policy blueprint, “a call to action – no compromise to service delivery”.
Of the US$548 195 000 budget, US$137 335 000 million will be spent on capital expenditures while recurrent expenditures takes the remaining US$410 860 000 million with the council targeting to raise US$482.3 million revenue from collections, property tax and licensing among other charges.
The bulk of the capital expenditure budget will be taken up by the water, sanitation and hygiene (WASH) and small and medium enterprises infrastructure development. Finance and Development Committee chairperson, Councillor Costa Mande who presented the budget said the 2025 budget prioritizes the creation of the requisite infrastructure for small to medium enterprises.
“The recent fire outbreak which affected more than 4 000 traders was a wake-up call for the council to invest more in infrastructural development so that the traders are able to operate in a stable environment. If the SMES are organised, the city will be able to get return on investment,” he said.
“Therefore, the budget prioritizes the creation of the requisite infrastructure and regulatory environment to enable smooth and orderly operations of this sector. By supporting SMEs, we are directly contributing to the national GDP and fostering a culture of entrepreneurship and innovation.”
He said the budget also focuses on the water, sanitation, and hygiene (WASH) sector with the projected US$195.6 million expenditure funded through cost recovery tariffs after taking into consideration devolution funding, loans and other sources. The WASH program is expected to realise internal revenues of US$169.2 million to support its functions.
The resultant tariffs are cost recovery with basic water consumption level 0-5 cubic meters with no increases and marginal increases of at most 10 percent in subsequent user bands. “By prioritizing WASH in our budget, it will significantly improve the lives of citizens, promote economic growth, and protect the environment.
Your Worship, we intend to implement key projects that will improve service delivery in the WASH sector,” said Clr Mande. He said US$105.3 million has been budgeted for the roads rehabilitation programme with funding drawn from the City Parking remittance of US$3.6 million, bus termini fee, US$2.33 million, parking fees, US$7.4 million, road design and approval fees, US$ 4.9 million and ZINARA fees amount to US$21.3 million.
The deficit will be covered by property tax. The council proposed to introduce emergency services and street lighting levies where households will be charged US$1 for each of the services.
“An emergency services levy is a crucial financial tool which will provide a dedicated source of revenue to fund essential emergency services. In addition, a street lights levy will also provide a dedicated source of revenue to fund the installation of street lighting infrastructure,” said Clr Mande.
The City’s total revenues for January 1 to 30 September 2024, amounted to ZwG 2 billion against a billing of ZwG5 billion.
New Ziana
