Bulawayo City Council (BCC) has approved plans to advance US$930 000 from its Estates Account to finance the purchase of heavy-duty equipment, as the city battles worsening service delivery challenges, ageing machinery and mounting outsourcing costs.
According to the latest council minutes, the funds will be used to procure one CAT 950GC wheel loader and one CAT D7 dozer.
The amount will be repaid over 36 months at an interest rate of 5,1% per annum from the date of drawdown.
The latest advance comes while council is still servicing previous internal loans taken to support service delivery operations.
Council records show that in December 2022, the local authority borrowed US$760 000 from the Estates Account to finance the procurement of plant and road maintenance equipment.
In March 2025, US$615 000 was borrowed for the purchase of refuse compactors and motorbikes.
While repayment has been ongoing, council admitted that the investments have not fully resolved operational challenges facing the city.
“Council is still unable to cope with service delivery demands as most of the equipment require rehabilitation, refurbishment and replacement,” the report stated.
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The minutes painted to a troubling picture of a municipality increasingly dependent on hired machinery to keep basic operations running.
“This is evidenced by framework agreements and contracts signed by the procurement management unit,” the report read.
Officials warned that the continued hiring of equipment is placing a strain on council finances.
“It has been a cause for concern for the city, as its financial health is already crippled,” the report said.
Council also cited challenges in borrowing on the open market, saying most lenders were unwilling to offer long repayment periods while interest rates averaged 12% per annum.
“The operating environment is currently characterised by short-term borrowing and council is unable to borrow from the open market to acquire capital assets,” the report noted.
In recommending the latest advance, council argued that purchasing new machinery will help to improve efficiency and reduce the costs associated with maintaining old equipment and outsourcing services.
“The acquired plant and equipment will improve service delivery significantly as new equipment enhances efficiency,” the report indicated.
