Gweru council recovers ZWG468m in debt crackdown

The City of Gweru has recovered ZWG468.3 million from residents and businesses as it intensifies efforts to collect more than ZWG1.3 billion owed to the local authority, with persistent defaulters facing external debt collection, service disconnections and possible business closures.

The local authority has adopted a phased approach to debt recovery after a recent assessment showed that outstanding arrears continue to pose a significant challenge despite substantial repayments by some ratepayers.

Council spokesperson Vimbai Chingwaramusee said 13,278 residential accounts with arrears exceeding ZWG10,000 had been profiled, owing a combined ZWG316.8 million.

In the commercial sector, 633 business accounts with outstanding balances above ZWG50,000 had accumulated debts totalling ZWG151.5 million.

Combined, the two categories account for the ZWG468.3 million recovered so far, representing approximately 36 percent of the council's ZWG1.3 billion debtor book.

"Residential recoveries are ZWG316,774,108.16, while commercial recoveries are ZWG151,488,277.75, bringing the aggregate recovery to ZWG468,262,385.91," Chingwaramusee said.

She said the debt recovery exercise was structured to separate arrears collection from current billing while assessing the effectiveness of statutory 14-day demand notices issued to debtors.

To date, about 200 accounts, mainly commercial debtors, have been served with notices. Council is also allowing financially constrained ratepayers to enter into payment arrangements to settle their outstanding balances.

However, authorities say enforcement measures against chronic defaulters are now being stepped up.

"Strategies are cessation of services and shop closure, which are also under way," Chingwaramusee said.

Under the next phase of the programme, commercial accounts owing more than ZWG50,000 and residential accounts with arrears exceeding ZWG10,000 will be handed over to external debt collection agents.

Council has also intensified public awareness campaigns through its official communication channels and social media platforms to encourage residents and businesses to settle outstanding accounts before enforcement action is taken.

The debt recovery drive comes as local authorities across Zimbabwe struggle with mounting unpaid rates, which have affected their ability to deliver essential services, maintain infrastructure and meet rising operational costs.

The City of Gweru has also re-engaged the Ministry of Finance and Economic Development over outstanding government-related debts, seeking intervention to address what it describes as systemic arrears and improve the municipality's financial sustainability.

Having already recovered ZWG468.3 million, council has set an immediate target of collecting at least ZWG500 million as part of its broader strategy to strengthen revenue collection and improve service delivery.

The local authority said external debt collection, payment plans, enforcement measures and public awareness campaigns would be implemented simultaneously as it works to progressively reduce its debt burden rather than relying on a once-off enforcement exercise.