THE Bulawayo City Council (BCC) is seeking approval to borrow more than US$13 million to finance critical infrastructure rehabilitation projects, warning that years of under-investment, ageing assets and mounting service delivery pressures have left the local authority struggling to maintain essential services.
According to minutes of a council meeting held on May 22, 2026, the local authority intends to apply for borrowing powers for an amount of US$13,16 million to fund upgrades to water and sewage systems, roads, ICT infrastructure, public buildings, equipment, and renewable energy projects.
The proposed loan highlights the scale of Bulawayo's infrastructure challenges, characterised by deteriorating roads, ageing water and sewer networks, obsolete technology systems and inadequate equipment increasingly affecting service delivery. Council officials argue that without external financing, the city will struggle to address a growing infrastructure backlog and meet rising demand for services.
Presenting the proposal, financial director Tennyson Mpunzi said borrowing was inevitable.
“External capital financing has become necessary to bridge the infrastructure financing gap, restore operational efficiency, improve service delivery standards and support sustainable urban development,” the report stated.
ICT modernisation accounts for the largest share of the proposed loan, with more than US$3 million earmarked for upgrading digital systems.
BCC said the investment would improve revenue administration, billing efficiency, revenue collection, customer service, data management, and cybersecurity. The report noted that much of the city’s ICT infrastructure is obsolete and increasingly unreliable.
Water infrastructure projects will receive US$2,48 million as council battles ageing pipelines and high levels of non-revenue water.
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The report states that the city continues to experience significant water losses due to deteriorating infrastructure, resulting in frequent pipe bursts, leakages and reduced revenue collection.
Sanitation infrastructure has been allocated US$2,05 million, with officials warning that several sewage treatment facilities are operating below capacity, creating environmental and public health concerns. Collapsed sewer lines and recurring spillages have also become major challenges.
Road rehabilitation projects are expected to receive just over US$2 million.
Council said many roads had deteriorated significantly and were littered by potholes and surface failures, negatively affecting mobility, public safety and economic activity.
A further US$340 000 is earmarked for the rehabilitation of council-owned buildings, including Revenue Hall and the Tower Block.
“Several council-owned buildings have deteriorated significantly due to prolonged under-investment,” the report read.
Council also plans to invest US$2,65 million in vehicles and equipment to reduce reliance on hired machinery.
According to Mpunzi, shortages of road construction equipment, tipper trucks, water bowsers and earthmoving machinery have increased operational costs and hindered service delivery.
The local authority will allocate US$600 000 towards solar energy projects, including solar-powered street lighting and traffic management systems.
Council officials said the investment would improve energy efficiency, lower electricity costs and enhance public safety.
The proposed facility is expected to attract an interest rate of around 16% per annum, with total borrowing costs estimated at US$5,13 million over four years. Monthly repayment is projected at approximately US$373 025.
Council acknowledged that the loan carries risks, including debt-servicing pressure, exchange-rate volatility, revenue collection challenges and broader macro-economic uncertainty.
To mitigate these risks, officials said the city would strengthen revenue collection systems, tighten expenditure controls and improve asset management practices. Repayment capacity will be supported through improved billing systems, reduced non-revenue water losses, low equipment hiring costs, and enhanced operational efficiencies.
The report also notes that, in line with Reserve Bank of Zimbabwe regulations, all foreign currency loans must be repaid in the currency in which they are contracted, making stable US-dollar revenue streams critical to successful repayment.
Council resolved to recommend approval of the application to the Local Government and Public Works ministry, arguing that external financing remains essential to restoring infrastructure and improving service delivery standards in the city.
