The Harare City Council is facing scrutiny due to the lack of a complete business and shop database, raising fears about possible mismanagement and corruption within the local authority.
Without proper oversight, council executives have reportedly assigned themselves areas of management, potentially for personal financial gain.
Further complicating the situation is the city’s failure to implement an Enterprise Resource Planning (ERP) system for the past six years, severely hindering its ability to track revenue and manage finances effectively. As a result, Harare has been unable to collect taxes from its 130 beer halls for over 13 years, with allegations that three establishments were sold corruptly due to the absence of a reliable database.
The issue of counterfeit shop licenses has also become a major concern, leading to lost revenue for the city. Both legitimate officials and impostors have exploited weaknesses in the licensing department, extracting money and goods from shop owners lacking proper licenses.
Harare Mayor Jacob Mafume confirmed that the city does not have a functioning database, acknowledging that a contract to monitor businesses was suspended midway. However, he did not provide further details.
A letter from Ten Ten Tech, a company previously hired by the city to manage business premises, revealed that the firm had collected over US$20 million in four years through a system that ran from 2017 to 2021. The system offered daily reports on revenue, keeping Harare officials informed about funds collected. However, Ten Ten Tech’s contract was terminated amidst controversy, and the company is still seeking payment for its services.
Councillor Denford Ngadziore, chairperson of the Small and Medium Enterprises Committee, stated that the city has reduced the monthly fee for small business licenses to US$50 from US$600. This change aims to accommodate numerous subdivided shops in the city, but Ngadziore was unable to provide an exact number of operating businesses, many of which are accused of avoiding taxes while drawing customers from larger businesses.
The Ministry of Women Affairs, Community, and Small and Medium Enterprises Development recognizes businesses operating within a 10 by 10-meter space as eligible under the SMEs policy, which, if fully implemented, could generate significant revenue for the city. However, progress has been slow.
Rueben Akili, director of the Combined Harare Residents Association, suggested that the failure to maintain a functional ERP system may be intentional, enabling exploitation and corruption. Precious Shumba, director of the Harare Residents Trust, criticized the council’s management, stating that individual managers are looting funds unchecked. He pointed to the Harare Commission of Inquiry, which revealed that the city’s disarray benefits corrupt cartels and undermines accountability.
Reports of officials subletting council-owned properties in foreign currency while paying minimal fees and failing to remit revenue from Harare Quarry have raised suspicions of collusion. A recent Commission of Inquiry into Harare’s finances revealed that some senior council officials earn as much as US$30,000 a month.
The city continues to operate with an opaque financial system, and the last audit was conducted in 2020, heightening concerns about governance and accountability within the local authority.
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