Kwekwe City Council adopts dual pricing

Kwekwe (New Ziana)-The Kwekwe City Council has adopted the dual pricing system in a bid to improve the performance of its budget which is being affected by hyperinflation.

Council director of finance Rejoice Maweni said the move was in line with Statutory Instrument 185 of 2020, which allows entities to accept payments either in foreign or local currency.

Maweni said the move would enhance funding for development projects as the local authority was struggling to implement the approved 2020 budget.

She said council would rebase tariff structures in United States dollars, with payment being done in that currency or equivalent.

“We are moving to introduce the Program Based Budgeting systems (PBB), to say when we have a certain program we budget towards that,” she said.

Maweni said between January and June this year, council had a variance of $61 million as revenue earned amounted to $$174.6 million against the budgeted $235.8 million.

She said the variance was due to cash flow challenges as a result of low revenue inflows.

The loss of monetary value did not only lead to resistance by ratepayers to pay for services, Maweni said, but also to council struggling to pay for some unbudgeted requirements like Personal Protective Equipment as the town joined efforts to fight against Covid-19.

“Council is not generating foreign currency which the market is demanding. As a result, accessing fuel has been a serious challenge. Most products are now quoted in US dollars or the equivalent local currency.

“Prices have significantly increased from January to date. We are, therefore, moving to introduce the US dollar in some sections where it is necessary,” she said.

Maweni appealed to businesses charging their products and services in US dollars to also pay their bills in foreign currency.

“Going forwards council tariffs will be rebased to 2017 and be charged in US dollars payable at the prevailing exchange rate on the date of payment.”

New Ziana