ZIMBABWEAN companies are sitting on roughly ZiG4 billion in unpaid municipal bills to Harare City Council, confirming mounting liquidity constraints in industry as firms struggle to meet basic operating costs, NewsDay Business can reveal.
The ZiG4 billion converts to US$158,52 million, showcasing the extent to which firms are grappling with liquidity constraints and struggling to meet even basic municipal obligations amid a challenging operating environment.
In January, the World Bank renewed calls for the Zimbabwean government to urgently cut bureaucratic red tape and streamline regulations to spur private-sector growth and job creation.
This came as the bank found that the number of statutory instruments (SI) more than doubled between 2016 and 2020, climbing from 137 to over 300, with many of these laws introducing or revising sector-specific fees, exemptions and licensing requirements.
By March, Zimbabwe implemented SI 41 of 2026, cutting business licensing fees and capping most at US$500 annually to improve the ease of doing business.
The reforms abolish numerous local authority charges — such as bakery, butchery and takeaway licences within retail shops — and capped parking at US$0,50/hr.
Speaking to NewsDay Business on the sidelines of the Confederation of Zimbabwe Industries (CZI) and City of Harare business breakfast dialogue on Wednesday, Harare mayor Jacob Mafume said businesses now account for 40% of its ZiG10 billion municipal bill.
“We have a total debtors’ book of over ZiG10 billion,” he said.
“Of that, industry owes ZiG4 billion, with residents and government making up the balance of close to ZiG6 billion.”
Mafume warned that failure to clear the arrears would derail the city’s plans to deliver sustainable services and rehabilitate infrastructure under its 2026 budget.
He said timely payments would enable the municipality to improve water supply, road networks and public lighting, which are critical for both residents and businesses.
“We need this debt situation to be resolved through partnerships rather than conflict,” Mafume said.
“We urge industry to adopt self-regulatory mechanisms that encourage members to settle their bills.
“Being in good standing should include taking pride in paying for services rendered.
“We inherited legacy issues, but we are working to address them.”
He said the city would prioritise engagement and persuasion before resorting to legal enforcement measures.
In the Zimbabwe Tax Perception Survey 2025, conducted by Zimbabwe Taxpayers Platform, it was revealed that formal businesses shoulder the heaviest tax burden.
“We are making efforts to recover what is owed by both residents and businesses. Our approach is to start with dialogue rather than punitive action, as this could negatively affect livelihoods and business operations,” Mafume said.
“That is why we are engaging CZI, so it can promote peer review mechanisms within its membership to encourage payment.
“Failure to pay translates to poorer roads, unreliable water supplies, inadequate lighting, and reduced service delivery.”
With the city continuing to face mounting financial pressures, revenue collection and its arrears clearance remain a key determinant in its ability to meet growing urban demands.
CZI officials present at the breakfast meeting did not respond to NewsDay Business’s requests for comment as they had to rush to “another meeting”.-newsda
