By Andrew Muvishi
Marondera Municipality has set aside $534.5 million ZiG capital budget for 2026, earmarking funds for critical infrastructure projects.
These include water treatment plant expansion, road construction, a solar power plant and stadium upgrades.
However, the first quarter financial performance raises questions about whether it can deliver on its promises.
This is while grappling with poor revenue collection, rising debtors and unpaid obligations to key institutions.
According to first quarter budget review presented by Finance Director John Kachingwe nearly 60 percent of its total 2026 expenditure budget has been allocated to capital projects.
The flagship 16.5 mega-litre water treatment plant expansion alone will consume $216 million.
This represents more than 40 percent of the entire capital budget.
Other major projects include the upgrading of Rudhaka Stadium which needs ZW$38 million ZiG.
Elmswood road construction will require $29.9 million ZiG, a 5MW solar power plant $16.2 million ZiG and wastewater treatment upgrades $13.5 million ZiG.
Slippery Ground
Yet, despite the ambitious plans, first-quarter figures reveal that council collected only ZW$57 million.
This was against a quarterly revenue target of ZW$169.5 million, achieving just 54 percent budget performance.
The situation becomes more concerning when compared to council’s growing debt burden.
According to the municipality’s debtors report, residents, businesses and institutions owe council a staggering $84.9 billion ZiG.
A significant portion of the arrears date back more than 120 days.
While council is struggling to collect money owed to it, the budget review also reveals that the municipality itself owes substantial amounts to statutory and service creditors.
This has exposed it to possible legal and financial risks.
Among the statutory creditors, council owes approximately $5.6 million ZiG in PAYE obligations to ZIMRA.
Outstanding liabilities to NSSA stand at $7.6 million ZiG.
Pension fund arrears amount to $9.5 million ZiG, with additional outstanding obligations to ZIMDEF and the Standards Development Levy.
Resident Views
The chairperson for all residents associations in Marondera Eliah Machape said persistent non-payment of statutory obligations can expose local authorities to penalties, interest charges and possible garnishee orders.
“Under Zimbabwean law, institutions such as the Zimbabwe Revenue Authority (ZIMRA) have powers to pursue outstanding tax obligations through enforcement measures that may include garnishing bank accounts, a move that could severely disrupt council operations and service delivery,” he said.
The municipality also owes service providers including ZESA.
The power entity is owed more than ZW$20.8 million, and ZINWA is owed approximately $882,000 ZiG.
Ironically, while council’s capital budget is valued at ZW$534.5 million, actual first-quarter capital expenditure remains far below target.
Missed Targets
The budget review shows that no money had been spent on planned water infrastructure projects.
Health facilities or education facilities also failed to get enough funding during the first quarter.
Roads recorded the highest implementation rate at 57 percent.
Meanwhile, ectricity infrastructure achieved only 10 percent of planned expenditure.
The figures suggest that although the municipality has ambitious development plans on paper, cash flow constraints may hinder implementation.
Council intends to finance 83 percent of its capital budget from own funds, making successful revenue collection critical to the execution of projects.
———————————————————————————————————
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!
————————————————————————————————————
