Overview of the Zambia Devolution Support Programme (ZDSP)

The Zambia Devolution Support Programme (ZDSP) is a USD 210 million hybrid initiative funded through the World Bank to support the Government of Zambia’s decentralization agenda. Implemented by the Ministry of Local Government and Rural Development, the programme aims to strengthen the financial, institutional, and governance capacities of local authorities across the country. It provides both Annual Basic Capital Grants of USD 200,000 and Performance-Based Capital Grants of USD 500,000 to eligible councils.

Programme Purpose

ZDSP is designed to enhance the ability of councils to manage devolved functions effectively by improving financial systems, strengthening institutional performance, and promoting accountability. It also seeks to address challenges that have slowed decentralization, such as low institutional capacity, weak policy coordination, limited transparency, and inadequate service delivery.

Grant Eligibility Requirements

To access the capital grants, councils must meet the following minimum conditions:

Timely Submission of Financial Statements: Submission of annual financial statements for the previous year by March 31 for audit.

Acceptable Audit Opinion: The council must not have received an adverse or disclaimer audit opinion.

Required Staffing: Councils must have essential personnel, including a Council Secretary, Finance Officer, Procurement Officer, and Planning Officer or Engineer.

Procurement Compliance: The Procurement Committee must have reviewed contract awards before approval in the preceding financial year.

Key Components of ZDSP

Capital Grants: Support for local infrastructure investments such as markets, feeder roads, and public facilities.

Public Financial Management: Strengthening financial management systems to improve transparency and accountability.

Capacity Building: Technical assistance to improve planning, procurement, and service delivery functions.

Fiscal Framework Development: Enhancing the financial architecture that supports effective devolution.

Support for Devolved Functions: Assistance in transferring functions such as public health, veterinary services, and community sports to local authorities, with additional functions expected by 2025.

Programme Goals and Expected Impact

Strengthened Decentralization: Empower councils to manage local governance in alignment with national decentralization policy.

Improved Service Delivery: Enhanced local capacity and financing are expected to improve essential services for citizens.

Better Governance and Participation: Increased resource flows and strengthened systems aim to improve transparency, accountability, and community participation in local development.

Nationwide Implementation: The programme is being rolled out across all local authorities, with completion expected by 2028.