By Correspondent
Harare Council this week released its 2026 budget which will be pegged at US$690.8 million.
This is a 19% jump from the US$548.2 million budget for 2025 underpinned by controversial increment of water charges.
Finance Committee Chairperson Cllr Costa Mande revealed that they are targeting property tax to provide the bulk of the funding.
Property tax will provide a huge US$211.77 million.
Meanwhile water services will provide US$123.51 million.
Funds from water services could be a huge positive for the authority especially if the prepaid meter project is successful.
The program is facing stiff resistance from residents, civic society and even from Councillors within.
During the presentation Cllr Denford Ngadziore reiterated the need for transparency over the project.
Objections To New Charges
Meanwhile Combined Harare Residents Association (CHRA) has already registered its displeasure.
“The Combined Harare Residents Association (CHRA) objects the astronomic increase of water tariffs and several unrealistic proposals contained in the City of Harare’s 2026 Budget Statement.
Harare had proposed tariff hikes for high density areas of USD 2.00 from USD 1.24 for a kilolitre.
This translates to 61% increase, and low density suburbs from USD1.70 to USD 4.00 per kilolitre.
Its an increase of 188% which CHRA says is unjustified in the absence of visible improvements in water supply.
“In South Africa, Johannesburg, the same amount of water cost USD 1.24.
Meanwhile, wastewater services will provide US$40.27 million.
However, Harare is still owed over ZWG8 billion while it owes creditors ZWG2.114 billion.
Despite these challenges Council has since slashed some of its cash cows such as business licenses.
Shop licence fees whose non-payment resulted in the closure of many shops during a recent operation, have been reduced by nearly 50%.
Many traders complained that the previous US$400 per year requirement was prohibitive.
Mande said the new license structure of around US$200 will allow many others to pay.
“While this will result in reduced revenues amounting to US$500,000, we believe the relief will stimulate small business growth,” said Mande.
Notable in this 2026 budget is how Council has set aside US$21.4 million for governance and administration.
This will cover the full implementation of the new Enterprise Resource Planning (ERP) system whose absence has led to massive losses.
The theme of the 2026 budget is “A commitment to inclusive growth, good services and careful money management.
