Bulawayo Struggles with Unstable Local Currency: Residents Demand Quality Services
Bulawayo City Council is urging residents to pay bills in US Dollar and clear a $3 billion unpaid bill to ensure quality service delivery amidst unstable local currency.
Presenting at the 2024 budget press conference, Bulawayo City Council (BCC) Finance Director, Dumisani Nkomo revealed that BCC is facing a tough battle to maintain quality service delivery as demanded by residents and shed light on the challenges they face.
“Residents are rightfully demanding quality service delivery, but the instability of the local currency makes it difficult for us to ensure affordable rates,” stated the Finance Director.
USD Rate Payments
As a price taker in the market, the City of Bulawayo is obligated by law to accept payment in all currencies, including the Real Time Gross Settlement (RTGS). However, the Council encourages residents to pay in USD to help stabilise exchange rates.
The unstable local currency poses a significant hurdle for the Council, as it struggles to cover essential input costs. Suppliers of goods and services, aware of the currency’s volatility, are increasingly rejecting the local currency payment or inflating prices to compensate for the inconvenience. This rejection not only adds financial pressure to the Council but also affects the city’s ability to provide efficient services to residents.
“Our aim is to encourage residents and stakeholders to pay in USD so that exchange rates can stabilise. This will enable us to provide the quality services our residents deserve,” emphasised the Finance Director.
Brain Drain
However, this approach has led to another challenge – an exodus of skilled staff members seeking better-paying jobs.
“As staff members witness the unstable local currency, they are naturally inclined to seek better-paying positions. We are aware that some of our skilled employees prefer to be paid in foreign currency,” Councillor Nkomo lamented.
This has resulted in a significant loss of skilled workers, impacting the efficiency and effectiveness of the Council’s operations.
The City of Bulawayo, known for its commitment to stakeholder involvement, is grappling with the task of strengthening collaborations to tackle the ongoing crisis. With increasing indebtedness to the city, stakeholders are being urged to continuously pay their municipal bills to avoid further financial strain on the Council.
RELATED CONTENT: Bulawayo City Council Urges Residents to Take Precautions Against Cholera Outbreak
Service Delivery
“We appeal to stakeholders to take responsibility and settle their municipal bills promptly. By doing so, we can prevent an increasing indebtedness to the City of Bulawayo, paving the way for more sustainable service delivery and development,” urged the Finance Director.
The Council’s financial department is actively seeking solutions to stabilize the local currency and ensure reliable service provision. It is working closely with both local and national authorities to address this pressing issue and improve the lives of Bulawayo’s residents.
The Council is encouraging residents to pay in USD to alleviate the currency’s volatility. Meanwhile, the loss of skilled staff members seeking better-paying jobs adds additional strain to the Council. Stakeholders are being urged to pay their municipal bills promptly to avoid exacerbating the city’s financial troubles.
#News in Bulawayo #News in Zimbabwe Artist Arts BCC Bulawayo Bulawayo City Council Bulawayo Drugs Bulawayo economy Bulawayo industry Bulawayo news Bulawayo Police Bulawayo Water Bulawayo Water Crisis Bulawayo Women entrepreneurship Business Women Community Culture Currency Drug Abuse Drugs Economy Farmer Farmers Farming Informal Sector Informal Traders MSMEs Music News in Bulawayo News in Zimbabwe Police Police in Bulawayo Vendor Vendors water Water Crisis Water Shortage water supply issue Women entrepreneurship ZESA Zimbabwean economy Zimbabwe news Zimbabwe water crisis ZITF ZRP
Our stories told by us!
Join us for all News in Bulawayo and Bulawayo News in Zimbabwe.
