Midlands Correspondent
Redcliff Municipality has approached the Ministry of Local Government and Public Works for assistance in recovering US$21.5 million owed by the defunct state-owned enterprise, Zimbabwe Iron and Steel Company (ZISCO) for water supplies.
The local authority’s debtors’ book stands at US$29 million, while it owes Kwekwe City Council around US$6 million for bulk water supplies, putting pressure on council to step up revenue collection from businesses and other ratepayers.
Speaking to journalists after a full council meeting, the municipality’s Finance Director, Lindiwe Whata, said council had launched an operation targeting businesses with outstanding rates, with some premises being closed until their arrears are settled.
“Most businesses are enjoying doing business in Redcliff but do not service their rates, so we have started an operation within the shops. We are closing shops for their arrears, especially the rates arrears,” Whata said.
She said the revenue collection operation was already yielding positive results, prompting council to extend its efforts to properties belonging to ZISCO Steel, which remains one of the municipality’s major stakeholders.
“We even moved on to ZISCO Steel because they are the major stakeholder. We have so far written to the Ministry of Local Government to intervene in terms of collection from Zisco Steel,” she said.
Whata said the municipality was also planning to approach the Ministry of Finance to help resolve the outstanding ZISCO Steel debt.
“We will also be engaging with the Ministry of Finance on the same issue so that we are assisted,” she said.
Whata said improved revenue collection is critical to strengthening the local authority`s financial position and enabling it to meet its obligations and sustain service delivery.
“I am hopeful that we will be positive this time around because by December 5, we need to be somewhere in terms of payment of salaries and statutory obligations, as per the circular from permsec,” she said.
ZISCO Steel ceased major operations in 2008 following years of financial difficulties, mismanagement, undercapitalisation and deteriorating infrastructure. The company, which was once one of southern Africa’s largest integrated steel producers, also faced unreliable electricity and water supplies, shortages of critical raw materials, transport challenges and a lack of investment to maintain and modernise its ageing equipment. Its shutdown dealt a major blow to Redcliff’s economy, resulting in significant job losses and affecting businesses that depended on the steel giant.
There are however, renewed prospects of resuscitating ZISCO Steel, with the Government placing the company under the Mutapa Investment Fund in March 2026 to explore a new turnaround strategy. But, a full return to steel production remains uncertain, as the existing plant is severely dilapidated and requires substantial investment.
