By Andrew Muvishi
Concerns are growing that Marondera Municipality’s weak debt recovery mechanisms could undermine its efforts to attract private investment for critical infrastructure projects.
With the town facing persistent water shortages, sewer bursts and ageing infrastructure, council is increasingly looking to Public-Private Partnerships (PPPs).
This is being seen as a feasible means of financing major upgrades.
However, experts say investor confidence is closely tied to a local authority’s ability to collect revenue and honour long-term contractual obligations.
In 2024, Marondera Municipality announced that companies including Bitumen World and Doves Holdings had expressed interest in partnering the local authority.
They wanted to expand water and sewer treatment facilities.
The proposed investments were viewed as a potential lifeline for a town struggling with deteriorating infrastructure and growing demand for basic services.
According to the municipality’s 2026 First Quarter Budget Review presented by Finance Director Mr John Kachingwe, council is exploring PPPs to fund key projects.
These include the expansion of the 16.5-megalitre water treatment plant, upgrades to the sewer reticulation network and the rehabilitation of wastewater treatment facilities.
Debt Recovery Challenges
Yet the same report paints a worrying picture of council’s financial position.
Marondera Municipality is owed nearly ZWG85 billion by residents, businesses, institutions and government departments.
Overall revenue collection efficiency during the first quarter stood at 62 percent.
Meanwhile assessment rates recorded a collection efficiency of just 45 percent.
The figures raise important questions about the municipality’s ability to attract investors who would be expected to recover their capital through future service charges and user fees.
Unlike grants or donor funding, PPPs are commercial arrangements.
Private companies invest their own resources with the expectation of earning a return over time.
Poor Revenues
For water and sewer infrastructure projects, that return is largely dependent on a council’s ability to bill consumers and recover revenue efficiently.
This presents a difficult challenge for Marondera.
The municipality requires substantial private-sector investment to modernise ageing infrastructure.
Yet poor debt recovery may discourage investors from committing millions of dollars to projects whose financial viability depends on reliable revenue streams.
Council itself acknowledges that water and sewer bursts remain a major challenge due to ageing infrastructure and limited capital resources.
“We have options of embarking on PPPs as a way of bridging the funding gap,” reads part of the report presented by Mr Kachingwe.
However, financial analysts argue that successful PPPs are built not only on infrastructure needs but also on strong financial fundamentals.
Investors typically assess revenue collection trends, debt levels and the ability of local authorities to enforce payment before committing capital.
Without significant improvements in debt recovery, billing systems and revenue collection efficiency, observers warn that Marondera’s PPP ambitions could remain confined to boardroom discussions and investment conferences rather than translating into tangible improvements in water and sanitation services.
For residents enduring recurring water shortages and failing sewer infrastructure, the municipality’s ability to collect what it is already owed may ultimately determine whether long-awaited infrastructure upgrades become a reality.
——————————————————————————————————–
Love what we do?
We’re dedicated to opening up democracy, one article, video and story at a time. If you find our reporting helpful, you can support the Magamba Network team by buying us a coffee. It’s quick, easy, and makes a real difference!
————————————————————————————————————
