ZDSP – Lundazi Town Council

ZAMBIA DEVOLUTION SUPPORT PROGRAM

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The Zambia Devolution Support Program (ZDSP) The Zambia Devolution Support Program (ZDSP) is a US$210 million initiative financed by the International Development Association (IDA) to strengthen Zambia’s decentralisation framework and empower Local Authorities (LAs) to deliver improved public services. Approved by the World Bank Board on 28 June 2022 and becoming effective on 24 November 2022, the Program represents a major step in advancing the Government of Zambia’s long-term decentralisation and governance reform agenda. Program Objectives and Focus The ZDSP is designed to deepen fiscal decentralisation, promote the transfer of responsibilities from central government ministries to Local Authorities, and enhance institutional performance at the subnational level. It aims to build the financial and operational capacity of LAs, ensuring that they are better equipped to plan, budget, and deliver essential services that respond to local needs.

The Program also emphasizes transparency, accountability, and citizen participation in local governance, thereby fostering trust and efficiency in public administration. At its core, the ZDSP seeks to: Strengthen the financial management systems of Local Authorities. Improve service delivery through performance-based financing. Enhance local revenue generation and fiscal autonomy. Build institutional capacity through training, systems development, and technical assistance. Promote accountability and citizen engagement in local decision-making processes. Program Restructuring in 2024 In 2024, the ZDSP underwent a strategic restructuring to align with the Government of Zambia’s response to the national drought emergency and to incorporate lessons learned from the first year of implementation in 2023.

The restructuring aimed to make the Program more responsive, results-oriented, and impactful in addressing both developmental and emergency challenges at the local level. Key adjustments included: Redesigning the Disbursement-Linked Indicators (DLIs): The DLIs were refined to sharpen the focus on measurable outcomes and ensure that disbursements are directly tied to tangible improvements in service delivery, financial management, and local governance. Enhancing Performance-Based Incentives: The Program increased financial rewards for Local Authorities that demonstrate strong performance, particularly in improving own-source revenue (OSR) collection, financial accountability, and service delivery efficiency. Expanding Program Coverage: The ZDSP’s reach was extended to include all 116 Local Authorities across Zambia, ensuring equitable access to resources and capacity-building support nationwide.

IMPACT ON LUNDAZI DISTRICT

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Lundazi District has emerged as one of the notable beneficiaries of the Zambia Devolution Support Program (ZDSP), a government initiative aimed at strengthening local governance and service delivery through fiscal decentralisation. Under this program, Lundazi received a grant of US$2.6 million, which has been strategically channelled into the construction of a modern community hall at Tigone Motel.
This investment is more than just an infrastructure project I.t represents a catalyst for local economic transformation. The new community hall is expected to serve as a hub for conferences, workshops, and public gatherings, attracting both local and external participants. This will stimulate tourism, hospitality, and small business growth, creating new income opportunities for residents. The facility also provides a much-needed space for civic engagement, enabling community members to participate more actively in governance, planning, and development discussions.
Beyond its immediate economic and social benefits, the project demonstrates how fiscal decentralisation can translate into visible, community-driven improvements. By allowing local authorities to identify and implement projects that directly respond to local needs, the ZDSP is helping to build trust between citizens and government institutions. The success of the Lundazi project serves as a model for other districts, showing how targeted investments can yield sustainable development outcomes when guided by local priorities and accountability mechanisms.

BROADER SIGNIFICANCE

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The Zambia Devolution Support Program represents a transformative shift in governance and local development. By empowering Local Authorities with financial autonomy, technical support, and performance-based incentives, the program is fostering a culture of efficiency, transparency, and innovation in public service delivery.
For districts like Lundazi, this approach ensures that development is inclusive and context-specific, addressing unique local challenges while contributing to national goals. The program’s integration with national disaster response and resilience frameworks further enhances its relevance, enabling local governments to respond swiftly to emergencies while maintaining focus on long-term development.
Ultimately, the ZDSP is not only improving infrastructure but also strengthening institutional capacity and deepening democratic participation at the grassroots level. Its impact in Lundazi illustrates how decentralisation, when effectively implemented, can drive equitable growth, empower communities, and build a more resilient and self-reliant local governance system.