By Fanuel Chinowaita
MUTARE, 16 September 2025 – The City of Mutare has applied for a USD2.8 million loan from the Ministry of Local Government, with plans to channel the funds towards critical infrastructure projects across water, sewer, roads, and community facilities.
According to the 2025 Half-Year Performance Report presented by Town Clerk K.B. Chafesuka yesterday at Mutare Hall, the loan application, approved by council last year, is now awaiting final approval from the Ministry of Finance.
If granted, the money will be allocated as follows:
- USD1,064,416 – Reduction of Non-Revenue Water
- USD247,792 – Sewer rehabilitation
- USD277,326 – Road rehabilitation
- USD225,000 – Road construction plant
- USD95,465 – New market construction
- USD150,000 – Chikanga Sports Complex rehabilitation
- USD140,000 – Refuse compactor
- USD100,000 – Road equipment
- USD500,000 – Fuel service station construction
Council argues the loan is necessary to address longstanding service delivery gaps, particularly in water and sanitation, road maintenance, and recreational facilities.
“The loan will help us rehabilitate sewer lines, improve water efficiency, and support road works that have been chronically underfunded,” Chafesuka said in the report.
The construction of a fuel service station is also expected to generate revenue and reduce operational costs for the city.
However, the proposal comes at a time when Mutare is still servicing a USD2.25 million loan used for projects such as Sakubva Stadium turf, road rehabilitation, and procurement of fire equipment. As of June 2025, USD244,585.94 remained outstanding on that loan.
Critics have raised questions about whether the City can sustainably manage additional borrowing given its growing receivables, which reached ZWG587.8 million by June, largely due to non-payment by government departments and parastatals.
Economist observers note that while the projects are critical, reliance on loans could further strain the City’s finances if revenue collection does not improve.
The loan application now rests with the Ministry of Finance, whose approval will determine whether the projects move forward this year.
If approved, the injection of funds could accelerate service delivery improvements and help modernize Mutare’s infrastructure. If denied or delayed, however, residents may have to endure further setbacks in water, road, and sewer services.
Council insists the projects are “necessary investments” that will pay off in the long term, but analysts warn that without stronger revenue collection and debt recovery, the City risks overextending itself financially.