HomeNewsHarare City Council $4m debt chokes ZimPhos

Harare City Council $4m debt chokes ZimPhos

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BY MIRIAM MANGWAYA

HARARE City Council is struggling to service a $4 million debt to Zimbabwe Phosphate Industries (ZimPhos), resulting in the company failing to produce water treatment chemicals.

Reporting to the Cabinet on priority project implementation for the Industry and Commerce ministry, minister Sekai Nzenza said ZimPhos was facing cashflow challenges, because of non-payment by clients, including Harare City Council, which owes the company approximately $4 million.

She said the plant was under refurbishment to ensure the country was self-sufficient in the production of water treatment chemicals.

Nzenza also said refurbishment of the ZimPhos plant would result in an increase in production of aluminium sulphate by 100%, which would create employment opportunities.

“The scope of the current project is the aluminium sulphate plant from the installed capacity of 6 000 to 12 000 metric tonnes (MT) per year. Currently, the average monthly production is 500MT. The project is 90% complete. Equipment to refurbish the plant has been installed, with just a few minor works still outstanding,” Nzenza said.

Harare is facing critical water problems, with some suburbs going for weeks without running water due to shortage of water treatment chemicals.

The council recently shut down the Morton Jaffray Waterworks after it ran out of chemicals.

Harare City Council spokesperson Michael Chideme was not answering calls.

Another project under the sixth 100-day cycle, Nzenza said, was the funding of ZimChem Refineries in Kwekwe, towards maximising the production of sanitisers and personal protective equipment to minimise shortages during the COVID-19 pandemic.

lFollow Miriam on Twitter @FloMangwaya

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