Bulawayo City Council (BCC) has resolved to seek approval from the Ministry of Local Government and Public Works to borrow US$13.16 million to fund critical infrastructure projects, citing an urgent need to rehabilitate ageing systems and improve service delivery.
According to a report presented by the Finance Director on 22 May 2026, the local authority is grappling with major infrastructure challenges affecting roads, water supply, sanitation systems, information and communication technology (ICT), public buildings, and operational equipment.
The report notes that although Zimbabwe’s macroeconomic environment has remained relatively stable, local authorities continue to face serious infrastructure financing constraints.
“Local authorities had continued to face significant infrastructure financing challenges stemming from ageing infrastructure, limited internally generated resources, and growing service delivery demands,” the council minutes state.
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Council officials said the approved 2026 capital budget is insufficient to meet the city’s growing infrastructure needs.
“Consequently, Council could not finance the required capital interventions solely from internally generated resources without adversely affecting ongoing service delivery operations,” the report states.
As a result, the local authority argues that external financing has become necessary “to bridge the infrastructure financing gap, restore operational efficiency, improve service delivery standards, and support sustainable urban development.”
The proposed borrowing programme allocates the largest share of funding to ICT infrastructure at US$3.03 million, followed by equipment and vehicles (US$2.65 million), water infrastructure (US$2.48 million), sanitation infrastructure (US$2.05 million), roads infrastructure (US$2 million), solar projects (US$600 000), and building rehabilitation (US$340 000).
Council said achieving its vision of becoming a smart, efficient, and sustainable city requires significant investment in modern technology.
“Most of the existing ICT infrastructure, including servers, desktop computers, networking equipment, and related systems, had become obsolete and increasingly unreliable, thereby affecting operational efficiency, financial management, data security, and service delivery,” the minutes state.
The proposed ICT investment is expected to improve billing efficiency and revenue collection, strengthen financial controls, enhance cybersecurity, improve customer service, and support digital transformation initiatives.
The report also highlights substantial water losses caused by ageing infrastructure and leaking distribution networks.
“Council had continued to experience significant water losses arising from ageing and deteriorating water infrastructure. The high level of non-revenue water, frequent pipe bursts, leaks, and ageing distribution networks continued to undermine efficient water supply and revenue collection,” the minutes state.
Planned interventions include replacing ageing pipelines, installing new water meters, improving billing accuracy, enhancing revenue collection efficiency, and strengthening water demand management systems.
Council further warned that the city’s sanitation infrastructure is under severe strain due to ageing sewer networks, collapsed outfall sewers, and a growing number of sewer blockages and spillages.
“The city’s sanitation infrastructure was operating under severe strain due to ageing sewer networks, collapsed outfall sewers, and an increasing incidence of sewer blockages and spillages. In addition, sewer treatment facilities were operating below optimal capacity, creating environmental and public health concerns,” the minutes state.
The proposed programme will focus on rehabilitating collapsed sewer lines and outfalls, improving sewer conveyance systems, reducing spillages and environmental pollution, and upgrading treatment facilities.
Road infrastructure has also been identified as a priority area.
“Several roads had been severely damaged and rendered impassable due to widespread potholes and surface failures, thereby adversely affecting public safety, economic activity, and transport efficiency,” the report states.
BCC said priority rehabilitation and construction projects, including Batch Street and associated road networks, have been earmarked for implementation under the borrowing programme.
The funding would also be used to improve road accessibility and mobility, reduce vehicle operating costs, enhance public safety, improve traffic flow, and support commercial activity across the city.
Council said its ageing fleet has increasingly affected operational efficiency, resulting in excessive reliance on hired equipment.
“The shortage of functional road construction machinery, tipper trucks, water bowsers, and earthmoving equipment had led to excessive reliance on hired equipment at significant operational cost,” the report states.
The proposed procurement programme includes the acquisition of road construction equipment, earthmoving machinery, water bowsers, tipper trucks, and other critical operational vehicles.
The borrowing proposal also sets aside US$600,000 for solar projects, including solar-powered street lighting and the solarisation of traffic control infrastructure. Council said the initiative would reduce electricity costs, improve energy efficiency, and support environmental sustainability goals.
The report notes that current market conditions place interest rates on US-dollar-denominated loans at approximately 16% per annum, with repayment periods ranging from 36 to 48 months.
Council estimates that borrowing US$13.16 million would attract about US$4.74 million in interest over four years, plus US$394 870 in establishment fees, bringing the total cost of borrowing to approximately US$5.14 million.
Monthly repayments are projected at around US$373 025 over the four-year period.
According to council, part of the debt will be serviced through improved revenue collection, reduced water losses, lower equipment hiring costs, and operational efficiencies generated by the proposed investments.
BCC said the borrowing programme is intended to rehabilitate critical infrastructure, improve operational efficiency, strengthen service delivery, and enhance the city’s long-term financial and operational sustainability.
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