Calls mount for local Authorities to drive Zimbabw...

Calls mount for local Authorities to drive Zimbabwe's GDP growth

Philemon Jambaya

Zim Now Editor

Zimbabwe's local authorities are facing mounting pressure to step up their economic contribution, as concerns grow over their limited impact on the nation's Gross Domestic Product . Reserve Bank of Zimbabwe Monetary Policy Committee member Persistence Gwanyanya has called for a significant shift in their performance, highlighting the urgent need for improved service delivery and financial accountability.

For years, the Auditor-General's Office has consistently flagged widespread financial mismanagement within local authorities, citing issues such as poor revenue collection, inadequate debt management, compromised governance, ineffective procurement, and asset mismanagement. A December 2024 Public Accounts Committee report further revealed a critical lack of permanent accounting officers and finance directors, exacerbating the problem of rampant financial irregularities.

Speaking at the third edition of the Institute of Chartered Accountants of Zimbabwe (Icaz) Local Authorities Convention in Nyanga, Gwanyanya emphasized the necessity for local authorities to play a more substantial economic role. "I cannot think of any other institution or person who is required to change more than the local authorities, more than any other sectors in the economy. I take this opportunity to emphasise the need to change. We are in a period of change," he declared. "We have already seen changes being implemented from where I sit, the monetary side of the economy, and we expect everyone to support the change that is coming from the monetary authorities because that change is a permanent change."

Gwanyanya challenged the audience to consider whether local authorities were meeting service delivery expectations. "Now, the local authorities, we all know what they are supposed to be doing in the economy. What I pose to you today, for those who are gathered here, is whether the local authorities are delivering the services to our expectation?" he queried. "But, I want to say that the answer may be is no. There is still a gap to fill, and we need to assist each other in filling this gap."

Apart from corruption, a significant impediment to local authority performance is the substantial debt owed by residents and the government. For instance, in May 2024, Harare City Council reported outstanding debts exceeding ZiG940 million.

"As we pursue Vision 2030, the strategy for the government is to have the contribution to recovery and growth needed happen through a devolved economy," Gwanyanya explained. "So, we are pursuing devolution which amplifies the role of local authorities in the economy. Local authorities are expected to increasingly participate in economic growth, development and the welfare while the central government retreats to the role of oversight." He further stressed the importance of rate payers seeing value for their money and local authorities contributing to the GDP.

Icaz president Brice Musendo echoed these sentiments, urging local authorities to foster sustainable communities through effective governance, strategic financial alignment, and compliance with audit and sustainability frameworks. "Last year, Icaz did run a second edition of the Local Authorities Convention under the theme Accountability, Service Delivery, Excellence and Innovation within Local Authorities," he said. "This event significantly contributed to the government’s initiatives to address the diverse needs of communities that serve, enhance accountability and improve service quality."

Musendo highlighted the importance of innovation and adaptation. "Focusing on accountability and encouraging innovation, local authorities can adapt to emerging challenges and leverage new technology, ultimately enhancing overall quality of life of their communities," he concluded.