BCC tariffs: A setback to city’s re-industrialisation

Bulawayo, the second-largest city in Zimbabwe, has been grappling with high tariffs imposed by the Bulawayo City Council (BCC). These tariffs, which have seen significant increases, are now posing a threat to the city’s re-industrialisation efforts.

The BCC has been charging its tariffs in United States dollars, with the rates for domestic properties increasing by 150 percent and non-domestic property rates going up by 177 percent.

Water charges for domestic consumption have also increased by 150 percent, while water for non-domestic use has gone up by 180 percent.
Re-industrialisation is the economic, social and political process of organising national resources for the purpose of re-establishing industries. This process is crucial for re-invigorating national economies and has been a key focus for many countries, including Zimbabwe.

The Government has been implementing various strategies and initiatives to restore Bulawayo’s status as the country’s industrial hub.
One of the significant steps taken by the Government is the investment in water and electricity infrastructure. The construction of the Gwayi-Shangani Dam, which is almost 80 percent complete, is a notable example.

This dam is expected to provide water to the city for the next 80 years, thereby increasing investment opportunities for Bulawayo.
The Government has also been encouraging local investment. An example is the commissioning of the US$30 million state-of-the-art Baker’s Inn plant bread production plant in Bulawayo. This investment indicates the ongoing rebound of the manufacturing sector as the government scales up the industrialisation and modernisation agenda in the country.

The Second Republic has put in place policies to smoothen the process of investments.
This includes the establishment of a One-Stop Investment Centre and the designation of Special Economic Zones throughout the country where various incentives are provided for investors.

However, the high tariffs imposed by the BCC could potentially reverse the gains made from re-industrialisation.
Some industries in Bulawayo are already struggling, reducing operating hours or even relocating to other cities due to these high rates and service charges. The industries have accused the BCC of using an incorrect formula indexing the tariffs to the United States dollar, resulting in exorbitant tariffs.

While the BCC’s move to increase tariffs may be aimed at generating revenue for the city, it is essential to consider the broader economic implications.
The high tariffs could deter investment and stifle the growth of industries, thereby reversing the gains made from re-industrialisation.

It is crucial for the BCC and the industries to engage in constructive dialogue to find a balance between revenue generation for the city and the economic growth of industries.

This will ensure that Bulawayo continues to thrive as a hub of industrial activity in Zimbabwe.-chroncile