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Nqobile Bhebhe, [email protected]
THE Bulawayo City Council is proposing to introduce a social infrastructure levy on stand sales to address the shortage of social amenities in new suburbs.
The introduction of a social infrastructure levy on stand sales and subdivisions will create a dedicated account to finance the construction of community and recreational facilities, such as schools, clinics, libraries, parks, and emergency services.
The council’s Department of Housing and Community Services has the mandate to provide public interest community facilities, which should be available in residential areas for easy access.
However, suburbs like Emganwini and Cowdray Park do not have such facilities, despite the pressing need highlighted in a recent council report.
To bridge the capital funding gap and facilitate progress in providing these essential amenities, the proposed levy aims to collect funds to finance all council-approved social infrastructure projects.
These funds will be ring-fenced in a dedicated account to ensure that they are used as per the council’s budget appropriately.
“Construction will ensure that all newly built residential areas are serviced by and have their own social facilities.
“For example, council policy requires a primary school for every 500 households, which is not the prevailing case, especially in new and fairly new suburbs,” the report noted.
The council emphasised that comprehensive housing provision goes beyond dwellings, requiring adequate support services to foster a complete and thriving community.
Benefits of such infrastructure include proximity to essential services, employment opportunities, and improved neighbourhood perceptions.
The council faces a backlog of 25 primary schools across the city and urgently needs to construct two clinics in Cowdray Park and Emganwini. Additionally, composite community centres offering youth clubs, vocational training, and women’s clubs are lacking in these areas.
Historically, such infrastructure was funded by beer levies, donations, and council capital funding. However, these funding sources have become inconsistent, necessitating the introduction of the social infrastructure levy policy.
To tackle the infrastructure deficit, the council has proposed a levy on stand sales and subdivisions. The levy rates will vary by property type and location:
High-density residential areas: 5 percent of the purchase price.
Medium-density areas: 7 percent of the purchase price.
Low-density and industrial areas: 8 percent of the purchase price.
Commercial stands: 10 percent of the purchase price.
Subdivisions: A flat rate of US$500 per transaction.
The council has stipulated that no sale will be finalised without payment of the levy.
Moreover, contracts with private developers will include a requirement for them to fully construct at least one social facility, such as a sports ground complete with a football pitch, running track, borehole, and an office with storage space.
The need for innovative financing mechanisms for social infrastructure was highlighted in a 2021 audit report by the council’s Audit Section. The report suggested adopting the Development Impact Fee (DIF) model used in some international cities.
“The DIF is assessed when a developer applies for a development permit within the area under development. It is calculated by dividing the total estimated cost of a recreational project among the projected population at full community build-out, including both residential and non-residential properties,” read the audit report.
This model ensures that development projects contribute directly to the funding of necessary community facilities. The council sees the proposed social infrastructure levy as a local adaptation of this approach.
By implementing the levy, the council aims to ensure that all residential areas are equipped with essential social facilities, fostering sustainable urban development.
The proposed policy also seeks to enhance service delivery and align with the city’s vision of improving the quality of life for its residents.
The council stressed that timely implementation of the proposed policy will bridge the existing infrastructure gap, ensuring that future housing developments are accompanied by the necessary community amenities.
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