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By Lovemore Chazingwa
A statutory window opened by Finance Minister Professor Mthuli Ncube mid-year allowing councils to charge for services in foreign currency has brought perceived relief to them ostensibly, forcing ratepayers to scratch their heads for the elusive greenback.
Under the prevailing socio-economic dynamics, Chegutu Municipality has employed a vehicle to ease the burden on ratepayers by introducing a discount promotion to entice payment in United States dollars among the paying public.
The promotion, effected just when it was announced some two weeks ago, is due to initially run until early September.
“Chegutu Municipality hereby notifies its residents, ratepayers, and stakeholders that it is discounting fifty percent for payments made in US dollars with immediate effect up to the period ending September 9, 2022. This discount is for billables (monthly charges) and does not affect the estate account as stipulated in section 300 [4] [a] of the Urban Councils Act [Chap. 29:15],” the notice, stamped by acting finance director Evaristo Maregere, reads in the introduction.
The notice alludes to the fact that the council can benefit from circumventing punitive black market rates when they receive bills and pay directly in foreign currency.
“The discount promotion has been effected in order to facilitate the council to procure goods and services charged in foreign currency such as water treatment chemicals and fuel. These commodities are much cheaper when acquired through forex as opposed to RTGS where rates are pegged at parallel market levels in defiance of Government stipulated inter-bank rates pronounced from time to time by the Reserve Bank of Zimbabwe,” the notice continues.
Through this public statement, the Town Fathers expressed a cautionary approach to the way the local authority is treating this promotion.
As a result of aligning its resource mobilization strategies, the town council is patently banking on improved revenue collections to correspondingly, up-scale service delivery.
A review of the incentive, depending on the stimulated bills payment wave, may be instituted to determine the best way forward.
“Residents are, therefore, implored to take advantage of this promotion in support of continued service delivery by Municipality of Chegutu in the midst of difficult macroeconomic circumstances that require constant review of resource mobilization strategies.”
Quizzed on tangible fruits of the soft landing, municipality public relations and communications manager Brian Nkiwane strongly hinted at a possible extension of the discount cruise.
“I’m saying we haven’t seen results yet, maybe next week we will be able to evaluate and see what the progress is,” was Nkiwane’s curt response.
