Site icon Inside Business

Will US dollar rates improve Harare service delivery?

Advertisement

Peter Tanyanyiwa

Harare residents have expressed mixed feelings over Harare Municipality’s accepting payments in United States dollars.

Many feel that the development is noble and meant to improve service delivery if the funds are used accordingly.

Others have however since lost faith in the City Fathers, and say they would like for the Municipality to put its house in order first before they can settle their rates.

Commenting on the development, Mt Pleasant resident David Panganai said this is a noble idea as long as the funds are not going to be abused.

“The economy has since self-dollarised, its easier and cheaper to purchase anything in US dollars than Zimbabwe dollars.

“If the flow of forex is consistent Council will be able to purchase fuel and all sundry for road mantainance and other requirements. They will be able to procure spares for vehicles and plant which is quite a challenge this time around,” he said.

The Mt Pleasant resident and opinion leader went on to demand accountability and transparency from the City Fathers.

“There should be transparency, residence should know how much has been recieved and justification for any expenditure.

“The percentage for administrative costs should be neglegible. Computation of the foreign currency rates should not be punitive, like we are seeing in the shops, if you bring United States dollars they will use the bank rate but if you want to purchase in Zimbabwe dollars you get it through the black market rate.

“If rates are affordable residence will be encouraged to pay moreso if they start to see development taking place.

“Finaly let me say that we can pay in usd fair and fine but we need to see the computation and transparency in disbursement,” added Mr Panganai.

Another’s resident who requested anonymity said this development will not change anything at all, as the main issue is that the local authority is not doing its job.

“The fact that Council has now been empowered to collect rates and charges in United States dollars will not change anything. It’s not a secret that the local authority has not been doing their job.

“What we need is for the City authorities to start doing their job, and as residents we promise to settle our rates,” said the resident who chose to remain anonymous.

The accepting of payments in the United States dollars is expected to improve service delivery especially the provision of clean water.

Statutory Instrument 185 of 2020 now empowers council, like all businessses, to charge rates and other fees in foreign currency.

In a statement earlier this week Council advises ratepayers that they had been given the green light to collect rates and charges in US dollars.

Council further assured residents that the payments in US dollars will be deposited in a Nostro account.

“Harare City Council advises ratepayers that council is now empowered to collect rates and charges in United States dollars as directed by statutory Instrument 85 of 2020.

“This means all our customers now have an option to pay either in local currency or United States dollars. The issued receipts will show the prevailing interbank rate conversion.

“We assure the paying public that the United States dollars would be deposited into a CABS Nostro Account. Council is being charged in United States for some services it procures from suppliers,” read the statement.

Council believes this will improve revenue inflows and service delivery as it imports certain key materials needed for public works.

Council has been struggling to collect refuse and to provide clean water to residents as it is facing challenges securing forex for the purchase of water treatment chemicals and fuel.

Exit mobile version