By Dylan Munashe Dzenga
The Harare City Council Finance and Development Committee Chairman, Councillor Costa Mande presented to council the 2023 budget speech on the 9th of November 2022.
The budget theme is: “Back to Basics: Towards Sustainable Service Delivery,” anchored on enhancing good governance and infrastructure development in the city of Harare.
“This seeks to inspire confidence in our residents and promote both local and foreign investment. These are positive deliberate measures being undertaken by Council contribute to the attainment of the national vision at a local level,” said Councillor Mande
The 2023 budget, whilst it takes cognisance of issues raised by stakeholders, it is also an outward looking financial plan. The budget seeks to facilitate economic growth and development which will act as a catalyst to national economic transformation.
The budget took into consideration the contributions provided by different stakeholders which include the provision of water and sanitation, infrastructure development, social services delivery, public safety and security, protection of the environment and fairness in tariffs charged by City of Harare.
In the speech, the Chairman went on to highlight the National Economic Outlook stating that the annual inflation rate was 60.6% in January 2022, reaching 285% in August 2022 which has been largely due to the depreciation of the local currency.
The exchange rate between the local currency (ZWL) and the United States Dollar (USD) started the year at 1:110 to a high of 1:621 (interbank rate) as at 30 September 2022.
The issues indicated that the local government need to work on urgently included the aged infrastructure, coupled with increasing population makes it imperative that we invest in water, wastewater and road infrastructure for the City.
“The City has attained a record low revenue collection efficiency of 45%. Comprehensive strategies, which are all encompassing, must be put in place underpinned by tight cost cutting measures to address the cash-flow challenges being experienced.” He added
The growing informalisation was also taken into consideration with the Chairman saying that it had resulted in a growing underground economy.
“Informality has a huge bearing on the operations of the City. Council, with the aid of development partners, is making efforts to register these economic activities so that they contribute to the fiscus.” Said Councillor Mande
The sector has over the years, been characterized by political groupings battling for illegal control and dominance over space and infrastructure.
Harare city witnessed violent incidents in Mbare, which proved the need for political will across the divide for coordinated regulation and enforcement of the informal sector. This is critical as the nation prepares for the 2023 harmonised elections.
On the issues to do with revenue, the Committee said that inflows during the first nine months to September 2022 amounted to ZW$31.89 billion against a potential of ZW$ 70.216 billion, resulting in a negative variance of ZW$ 38.33 billion.
Included in this amount are inflows from ZINARA ZWL $ 392.46 million and devolution funds amounting to ZWL165.05 million.
Revenue inflows are projected to reach ZW$ 55.01 billion by year end.
The 2023 budget seeks to support water infrastructure and rehabilitation through construction of a chlorine dioxide plant at Morton Jaffrey Water Works.
The project is expected to reduce the number of chemicals used in the purification of water.
As revealed in the budget, the rehabilitation of intake works at Lake Chivero and Darwendale will improve quality of raw water abstracted. Refurbishment at Morton Jaffrey Prince Edward and Warren Control will improve water production and pumping to 500 Mega Litres/Day from the current average of 350 Mega Litres/Day once complete.
The budget also supports infrastructure development through road construction and rehabilitation, which is a key enabler for economic growth and development.
The City, through the Government of Zimbabwe and Rwanda has embarked on a street lighting project which will enhance public safety and security. Over 1200 streetlights are expected to be installed.
“Our goals and targets are purely products and by-products of the financial performance of the City. It is quite imperative to note that service delivery is a function of the financial performance of Council.” The Chairman closed off the speech