Bulawayo residents owe the city council $1.9 billion, accounting for 71 percent of the local authority’s $2.7 billion debtors’ book, finance manager Ndumiso Nkiwane has revealed. Nkiwane disclosed the figures during a discussion on the city’s 2026 mid-term budget review on This Morning on Asakhe, highlighting the financial pressures facing the council.
According to Nkiwane, the total debtors’ book stood at $2.7 billion as at June 30. Domestic consumers owed $1.9 billion, while industry and commerce owed $586 million and government departments about $200 million. He said the bulk of the debt was owed by domestic consumers in townships and suburbs.
Debt Breakdown
Government departments account for seven percent of the debt, industry and commerce 22 percent, and domestic consumers 71 percent.
Nkiwane warned that the outstanding debt was severely constraining council’s cash flow and its ability to maintain and improve service delivery. He explained that the money owed should be in council’s accounts to deliver services, and without it, providing services at the desired level becomes difficult.
He said collecting the $2.7 billion would give the city more capacity to acquire equipment and other resources needed for service delivery.
Impact on Capital Projects
Cash-flow constraints are also affecting capital projects, including road construction and water infrastructure works. Nkiwane said the city is engaged in many road construction works and is replacing pumping equipment, but without the money, meeting deadlines for new pumps and road construction becomes constrained.
He added that council’s debtors’ position was closely linked to its creditors, as the local authority also owes money to suppliers. Because of the cash shortage, council has to negotiate delayed payments with suppliers, asking them to wait while it tries to collect what it is owed.
Revenue Below Target
The mid-term budget review showed that council’s revenue performance was below projections. Council had targeted billing $2 billion by the end of June, half of its $4 billion annual budget, but had billed $1.8 billion. Nkiwane said council could end the year with revenue of between $3.8 billion and $3.9 billion, below its $4 billion target.
He attributed part of the shortfall to water rationing, which reduces water consumption and, in turn, sewer charges. He explained that water billing is variable and depends on consumption, which is now dependent on supply because of rationing. Less water also affects sewer charges.
Council had collected $1.3 billion by June 30 from various revenue streams, including rates, rentals, clinic fees, water, sewer and refuse collection.
Infrastructure Works and Service Delivery
Nkiwane pointed to ongoing infrastructure projects, including road rehabilitation along Lobengula Street and Herbert Chitepo Street, as examples of council work. He said efforts are being made to ensure most roads in the city centre are passable.
He said some council work, particularly on water infrastructure, was less visible to residents, while new equipment had improved the local authority’s capacity. Council is also working to improve response times to service delivery complaints, particularly sewer spillages and water-related faults.
Nkiwane urged residents to settle their council bills, saying improved collections would give the local authority more capacity to provide services. He said residents should consider how they can clear their bills so that services can be provided at a better level.
