By Fanuel Chinowaita
MUTARE, 16 September 2025 – The City of Mutare is grappling with mounting debts from government departments, parastatals, and local authorities that dominate the municipality’s Top 10 Debtors List, worsening financial pressures and threatening service delivery.
According to the 2025 Half-Year Performance Report presented by Town Clerk K.B. Chafesuka, receivables ballooned to ZWG587.8 million by June 30, marking a 31.58% increase from the ZWG446.7 million recorded at the start of the year.
At the top of the debtor’s list is the Ministry of Defence, which owes a staggering ZWG40.6 million, followed closely by Mutasa Rural District Council (ZWG24 million). Law enforcement agencies are also in arrears, with the Zimbabwe Republic Police Mutare Camp owing ZWG9.7 million, and the Prison and Correctional Services ZWG4 million.
Other key debtors include the Ministry of Home Affairs (ZWG20.6 million), Manica Boards and Doors (ZWG2.2 million), ZimParks (ZWG4.3 million), Manicaland Agricultural Society (ZWG3.2 million), ZINWA (ZWG2.2 million), and the National Railways of Zimbabwe (ZWG2.5 million).
Collectively, the top 10 debtors account for ZWG98.6 million, nearly a fifth of Mutare’s total receivables.
City officials warned that the rising debt burden is crippling liquidity and limiting Mutare’s capacity to fund key services, including road rehabilitation, water supply, waste management, and school infrastructure projects.
“The continued non-payment of bills by Government Departments and Mutasa RDC has imposed a heavy financial strain on City operations,” the report notes.
In April, Mutare submitted interim payment certificates worth USD710,157.66 to ZINARA, but by June only ZWG2.8 million (USD104,895.30 equivalent) had been disbursed. The shortfall, coupled with ballooning receivables, is forcing the City Council to cut back on planned projects.
To recover the mounting arrears, the council has intensified enforcement strategies, including:
- Final demand letters and court summons
- Negotiated payment plans
- Water rationing for defaulting institutions
- Disconnection of services in extreme cases
However, enforcement against government departments remains politically sensitive, often leaving councils without practical recourse.
The unpaid debts are not just a bookkeeping problem. They are directly linked to service gaps affecting ordinary residents. Roads across Mutare continue to deteriorate, with only 0.59km rehabilitated in the first half of the year against a target of 2.24km.
Despite the introduction of a sports levy, collection efficiency stood at only 22.09%, while the city’s road levy collections covered just 16% of planned works, leaving projects such as Simon Mazorodze Road and Railway Avenue underfunded.
At the same time, schools under the Council have had to rely on the Responsible Authority Levy, with only USD182,334.90 collected by June for infrastructure projects.
The City of Mutare has appealed to government ministries, departments, and local authorities to clear their arrears, warning that failure to do so will continue to undermine service delivery and stall development.
Chafesuka stressed that timely settlement of bills would not only improve cashflows but also strengthen the City’s ability to deliver on its 2025 budget targets.
“Liquidity challenges are undermining Mutare’s ability to meet contractual obligations and sustain operations. The debts must be settled for services to improve,” he said.
With receivables rising, creditors demanding payment, and service delivery standards under pressure, the City faces an uphill battle. Unless government departments and other top debtors step up, Mutare’s efforts to modernize its infrastructure and improve living conditions for residents may remain in jeopardy.