The sustainability of the strategies used in mobilising revenue by local authorities in Zimbabwe.

Abstract

This research assesses the sustainability of revenue mobilisation strategies in place at Harare City Council. Despite authority conferred upon local government authorities by the Zimbabwean national constitution of 2013 (amendment number (20)) and various legislations including the Urban Councils Act (29: 15) to collect revenue from within their jurisdictions, Harare City Council struggles to raise sufficient revenue for the execution of its objects and responsibilities. The study sought to assess the extent to which revenue mobilisation strategies by the local government authority are sustainable. The study also sought to examine the impact of revenue performance of local authorities to service delivery and national development at a larger level. Furthermore, the study examined the challenges faced by local government authorities in Zimbabwe in their endeavours to mobilise revenue. Purposive, convenience and snowball sampling techniques were employed in recruiting participants for this study. In-depth interviews and documentary search were the methods used in this research to gather data. Reviewed literature revealed that revenue mobilisation is a challenge for most of the local government authorities globally. The study established that some of Harare City Council’s revenue mobilisation strategies in place are sustainable whilst others are not. The sustainability of some revenue strategies is limited by contextual variables including economic and political conditions prevailing in Zimbabwe. Corruption and mismanagement of funds choke efforts to collect revenue as raised funds are not used for the intended purposes and some potential revenue is diverted to personal accounts of certain individuals. Lack of capacity has also resulted in the local authority contracting out some of its major sources of income. Contracted private companies have not been remitting expected revenues and those revenue strategies would constitute a spongy spot for revenue seepage. The study concludes that most of revenue mobilisation strategies by Harare City Council are sound but cannot continue to be used in the prevailing environment without them being altered to respond to issues at hand. In addition, the study concludes that the economic, political and administrative challenges affect revenue mobilisation. The study recommends that the local government authority tackle head on all highlighted challenges. It also recommends Harare City Council to be pragmatic and innovative as well as improving adherence to principles of public finance.