GCC revenue base diminishes

Gaborone City Council (GCC) is faced with a diminishing revenue base and this compromises its ability to deliver goods and services, Mayor Austin Abraham says.

Addressing a full council meeting this week, Abraham said the cost of providing services has been constantly increasing over the years due to effects of inflation, increasing cost of production, and increased demand for goods and services, as well as the effects of Covid-19.

It is no longer sustainable for Council to provide some of the services freely, or at a highly subsidized fee, hence a need for cost recovery, cost-sharing, and cost-saving for the purposes of resource mobilisation for future maintenance of projects, replacement of obsolete capital assets and acquisition of additional capital stock.

“It is in the interest of the Council to disengage itself from the provision of selected services in which the private sector can effectively participate,” he said, adding that Council is obliged to refocus and undertake only those activities which have the highest impact and invest on those assets with high returns and to formulate some means of broadening revenue base to augment revenue support grant received from the government. Among activities mooted for the private sector, including refuse collection in the first city, which was recently disrupted by truck breakdowns.

The Council spends P6 million annually on the maintenance of refuse trucks, according to the City Council Chief Environment Health Officer, Tshenolo Mopako, a cost that could be avoided if services were outsourced to the private sector.

Mopako reiterated that it has always been the intention of the government to ultimately outsource some services to the private sector, and going forward they will completely give this work to the private sector. The Council currently spends P12 million annually on outsourcing refuse collection services.

This week, the Mayor said that interim measures are currently put in place to stabilise waste disposal from households by engaging temporary private waste collection contractors. “Completion of tenders for outsourcing is being finalised,” Abraham said.

Currently, Council raises most of its income from the Rates collection, which contributes a major proportion to the annual budget. Total collection on Rates as of May 31, 2022, stood at P13 million, against a budget of P90.5 million.

Abraham said Council has in the past made assessments on the general management of Rates and reckoned that intensification on Rates collection will have a major positive impact on the financial position of the Council.

The Mayor informed Council that the valuation of properties was last conducted in 2008 and properties that were acquired or developed thereafter are not in the valuation roll. Procurement for valuation of property has started and will be concluded by March 2024.

In light of the challenging economic conditions, and the government’s move to restrict the importation of certain vegetable commodities for a period of two years, Abraham said Council would restructure the use of open spaces to accommodate urban agriculture and the use of technologies like hydroponic, aquaponic and vertical production to make Gaborone City a sustainable food hub.

“I would like to implore small-scale farmers around the City to tap into different value chains of agricultural production, particularly food processing,” Abraham said.

The Mayor told Council that Gaborone District is in the process of developing Local Economic Development (LED) Strategy to address unemployment. The Strategy will be a product of collaborative efforts among all sectors in directing, motivating, and stimulating economic development.

According to Abraham, the LED strategy will guide investment decisions. It will also pronounce deliberate strategies for mapping and exploitation of resources.

“Consultations have started with relevant key stakeholders on the economic analysis of the district after which communities will be consulted for identification of potential projects. The strategy is expected to be concluded later in the year in September.