Acting mayor says reliance on government subvention is no longer sustainable as budget pressures expose liquidity risks
SESUPO RANTSIMAKO
Delays and inconsistencies in the release of funds for the 2025/2026 financial year have negatively affected service delivery and disrupted the timely implementation of key programmes at the Francistown City Council (FCC), Acting Mayor Uyapo Nyeku has said.
Addressing a full council session this week, Nyeku said the funding challenges confronting the council have exposed the limitations of its heavy reliance on government subvention, negatively affecting service delivery and disrupting the implementation of key programmes as well as earmarked projects. He noted that the traditional funding model is increasingly inadequate to sustain a fast-growing and ambitious city like Francistown.
“The financial pressures we are experiencing compel us to rethink how we fund our operations and how we position our city for long-term sustainability,” Nyeku said.
He stressed that revenue maximization should not be viewed as a purely financial matter, but as a central pillar of economic transformation and institutional resilience.
BUDGET PRESSURES AND LIQUIDITY CONCERNS
Nyeku revealed that FCC’s approved budget for the current financial year stands at P292, 855,174.00. However, to date, the council has received P189, 108,731.75, while expenditure has reached P225, 637,498.95 amounting to 119 percent of the funds disbursed.
He further noted that own-source revenue collection stands at P18, 796,422.32 against a projected P20, 424,241.66, reflecting an eight percent shortfall. According to Nyeku, these figures present a clear warning about the council’s liquidity position and underscore the urgency for financial reforms.
CALL FOR REVENUE DIVERSIFICATION
Looking ahead to the new financial year, the acting mayor said economic resilience demands that the council moves beyond dependency and embraces innovation. He called for deliberate efforts to diversify the revenue base, strengthen internal revenue systems, and pursue sustainable commercial opportunities.