Council, residents clash over high rates
CHIPINGE Town Council is headed for a showdown with the residents and local entrepreneurs who are pushing for major slash of operating licence fees that have been hiked by over 400 percent.
The aggrieved stakeholders are accusing the local authority of hiking tariffs by an unjustified margin. The small-to-medium-entrepreneurs (SMEs) argued that the local authority ignored their input during the 2020 budget consultations.
They said their situation had been worsened by the growing number of informal traders selling competing products in front of their shops.
They said most of them were resultantly struggling to honour their dues owing to the harsh operating environment.
They said while hyperinflation continued to negatively impact their businesses and local authority was making their situation worse by coming up with unrealistic licence fees and rentals.
A survey by The Manica Post in the central business district (CBD) revealed that most SMEs were spoiling for a fight with the local authority over high tariffs.
Mrs Mariam Chirimambowa, who operates a grocery shop in the CBD, urged council to slash the tariffs pegged beyond their reach.
“We have a situation where vendors sell competing products in front of our shops, so the operating environment is not even,” she said.
“Council should revise these fees. The licence fees were hiked by over 400 percent and, honestly, we don’t do business attaining such profit margins to be able to pay these rates,” she said.
The Chipinge Business Community chairperson Mr James Gabaza said the shop licensce fees were hiked without proper engagement of all parties involved.
“We held a meeting with the council over shop licences but we were shocked to discover that fees were hiked without consulting us.
“Generally, business is down, so it is difficult for business operators to keep up with the councils demands,” he said.
Chipinge Town Council chairperson Cllr Zivanai Nyakuchena tried to justify the newly imposed fees by saying reviews were pegged using the prevailing interbank rate.
“We are open to payment plans with all our clients. The rates increment is meant to keep up with effective service delivery demands and is also subject to the interbank exchange rate,” said Cllr Nyakuchena.