THE Bulawayo City Council has proposed enlisting some retail and food outlets as revenue collection agents by September to strengthen debt recovery and improve cash inflows amid rising consumer arrears.
The strategy, contained in a recent council report, is part of a broader set of measures aimed at improving collection efficiency and addressing the growing backlog of unpaid municipal bills.
According to the report, the local authority intends to integrate its billing system with selected retail and food outlets, enabling residents to settle municipal bills through the businesses.
“That council engages retail and food outlets as agencies to collect revenue on behalf of the Council. That council engages other service delivery stakeholders for business synergies in debt recovery,” reads part of the resolutions.
The move comes as the municipality grapples with escalating consumer debt and widespread payment delinquency among ratepayers.
Council data shows that debt owed to the local authority rose sharply during 2025, reflecting both economic pressures on residents and challenges in revenue collection.
“Council debtors increased from ZWG 1,2 billion in January 2025 to ZWG 2,2 billion by December 2025, representing an increase of ZWG 1 billion (83 percent).”
Despite the significant rise in debt, the municipality noted that the pace of accumulation has begun to slow down.
“While the debt stock continues to rise, the rate of increase has moderated — from approximately 10 percent in February 2025 to two percent by December 2025 — indicating a slowing growth trend.”
Authorities attribute the moderation partly to ongoing debt recovery measures implemented by various council departments.
Collection efficiency, a key indicator measuring the proportion of billed revenue that is successfully collected, also improved during the year.
“Collection efficiency improved steadily from 55 percent in January 2025 to 73 percent by November 2025.”
Council said the overall improvement in revenue collection reflects intensified enforcement and engagement strategies.
“The improvement in collection efficiency from 55 percent at the beginning of the year to 73 percent at the end of the year is attributed to debt recovery measures instituted by Council departments.”
However, the city continues to face significant outstanding debt obligations, particularly in foreign currency-denominated accounts.
“As at December 2025, total outstanding USD-denominated consumer debt amounted to US$133,8 million. Of the 183 404 billed accounts, 147 440 accounts (approximately 80 percent) are in arrears exceeding 30 days, indicating a high level of payment delinquency and underscoring the urgency for enhanced debt recovery interventions.”
The figures show the scale of the challenge facing the municipality as it seeks to maintain service delivery while revenue inflows remain constrained.
To address the situation, the council has resolved to intensify engagement with debtors and introduce flexible repayment arrangements.
According to the report, the local authority will increase efforts to negotiate payment plans with residents and businesses to help them gradually clear outstanding balances.
“That council engages debtors on payment plans to clear their debts.”
In addition, the local authority plans to leverage digital technologies to improve communication with ratepayers and strengthen enforcement mechanisms.
“That council rolls out technological smart solutions to communicate and pursue debt before the end of the second quarter this year,” the city council said.
Municipal officials believe the proposal could significantly improve accessibility for residents wishing to settle their bills, and also widen the council’s collection network.
The initiative mirrors similar models used by utility companies and financial institutions, which partner with supermarkets and payment agents to facilitate convenient bill payments.
The strategy is expected to enhance revenue inflows, reduce arrears and support the city’s capacity to sustain essential services such as water supply, sanitation and waste management.
Improved revenue collection remains central to restoring fiscal stability and maintaining service delivery to residents and businesses.-herald
