A heavy burden on Harare’s ratepayers

THE recent announcement by the City of Harare to borrow US$23.7 million amidst a backdrop of financial mismanagement is a cause for both concern and skepticism among residents and ratepayers.

As the acting town clerk, Engineer Mabhena Moyo, laid out the ambitious plans for capital projects — including essential services such as sewer improvements, water distribution upgrades, and waste management — one cannot help but wonder: will this injection of funds truly resolve the systemic issues plaguing our municipality, or will it merely deepen the cycle of debt and mistrust?

The ongoing Commission of Inquiry, led by Justice Maphios Cheda, has unmasked a series of scandals that have tarnished the integrity of the municipality.  From the misappropriation of housing and commercial stands to the failure of council-run enterprises like Rufaro Marketing and City Parking to remit revenue, the evidence of financial impropriety is overwhelming.

Against this troubling backdrop, the decision to seek additional loans raises alarm bells. How can residents trust that these funds will be utilised effectively, given the documented history of misuse and mismanagement? The breakdown of the proposed projects, while seemingly necessary, highlights a concerning reliance on borrowed funds to address long-standing infrastructural deficiencies. The city’s ability to implement these projects efficiently remains questionable. If previous borrowings—like the ZWL$2.9 billion secured last year—have not yielded significant improvements, what assurance do we have that this new loan will be any different?

Moreover, the impact of this borrowing will inevitably fall on the shoulders of the very ratepayers who have already been subjected to rising costs for inadequate services. The prospect of increased taxes or service fees to cover this debt is a heavy burden that many residents may not be able to bear.

The city must prioritise transparency and accountability in its financial dealings, ensuring that every dollar is accounted for and that the benefits of new investments are felt by all.

Engaging the community in this decision-making process is crucial. The call for objections to the proposed loan by September 6, 2024, is a step in the right direction, but it must be coupled with genuine dialogue and responsiveness to residents’ concerns.

We urge city leaders to not only heed these objections but to actively involve stakeholders in formulating a sustainable financial strategy that prioritises the needs of Harare’s citizens.

While the need for infrastructural improvement is undeniable, Harare must tread carefully. Borrowing funds should not become a perpetual crutch; instead, it should be part of a broader vision rooted in fiscal responsibility, transparency, and, most importantly, a commitment to restoring trust between the council and the community it serves.