Residents of Gweru, along with government departments and businesses, owe the City of Gweru over ZWG 1.15 billion in unpaid bills. Alarmingly, more than 68 percent of this outstanding debt has remained unpaid for over 120 days.

Michael Verenga, Acting Director of Finance presented these figures at the council’s annual business plan meeting on Friday. He revealed that its total municipal receivables increased from ZWG 1.11 billion in August to ZWG 1.153 billion by September 30, 2023.

The debt rose by about ZWG 39.7 million in one month, underscoring the financial pressure on the local authority as it struggles to convert billed revenue into cash.

According to the debtors’ portfolio analysis, (ZETDC) and ZESA represent the largest portion of this debt, with outstanding bills totaling ZWG334.8 million, or 28.77 percent of the total. Government departments follow as the second-largest debtors, with outstanding bills totaling ZWG 222.1 million.

Commercial accounts owe ZWG 129.4 million, while domestic low-density properties owe approximately ZWG 116.8 million. Rates accounts have accumulated ZWG 101.2 million in debt, and industrial customers owe ZWG 95.6 million. Additionally, sundry accounts total ZWG 70.1 million.

A major concern for the council is the aging of the debt: ZWG 793.5 million, or 68.8 percent of total receivables, has remained outstanding for over 120 days. Only ZWG 164.6 million, or 14.28 percent, falls within the current billing period.

The growing debt portfolio emerges as the council seeks to enhance its revenue collection efficiency, currently at 74 percent.

The council has identified reducing its ZWG 1.153 billion debtors’ portfolio as an immediate strategic priority, emphasizing that improved collections would provide more resources for infrastructure development and service delivery.

Furthermore, the local authority aims to achieve a Budget Performance Index above 80 percent by year-end, up from 69.7 percent in September.
The debt collection drive is expected to play a critical role in improving the city’s financial stability and ensuring adequate funding for essential services.

Meanwhile, the City of Gweru owes over ZWG436 million to various creditors, with outstanding electricity bills accounting for more than three-quarters of the local authority’s total liabilities.
The city’s annual business plan meeting on Friday revealed that total outstanding payables reached ZWG436.7 million as of September 30, 2026.

The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) and ZESA represent the largest portion of this debt, with outstanding bills totaling ZWG334.8 million, accounting for 76.67 percent of the total liabilities.

This electricity debt poses a significant operational challenge for the council, especially given the high power needs of water pumping and other municipal services.
To address the electricity debt, the council is pursuing a negotiated offset plan.

Another major creditor is the Local Authorities Pension Fund (LAPF), to which the council owes ZWG47.3 million in outstanding pension obligations, representing 10.84 percent of the total liabilities. The council expects to resolve the debt to the pension fund through a debt swap and land settlement arrangement.

Additional liabilities include ZWG15.5 million owed in legal fees to Danziger and Partners, ZWG14 million in payroll statutory obligations, and ZWG13.9 million owed to other trade creditors. The council also owes the Zimbabwe National Water Authority (ZINWA) ZWG11 million in raw water charges.

These outstanding liabilities underscore the financial pressures facing the local authority as it strives to balance operational costs, infrastructure development, and the provision of essential services.

The city has said it is conducting rigorous debt reconciliation and pursuing structured payment arrangements and other settlement strategies to manage its obligations.