Revenue collection in Zimbabwe local authorities, challenges and opportunities: a case of Bindura Municipality

Abstract

The research assessed the revenue collection challenges and opportunities in Zimbabwean local authorities and the possible solutions using Bindura Municipality as a case study. The study analysed the different sources of revenue and analyzed their contribution to the budget and their collection rate. A case study research design was used in this assessment. A sample of one hundred ratepayers was chosen. The sample is made up of five strata and these are; Bindura Municipality employees and councillors, high density ratepayers, medium density ratepayers, low density ratepayers and commercial and industrial ratepayers. Both secondary and primary data were used in the collection of data. Data was collected from interviews, questionnaires and Bindura Municipality reports and it was analyzed to come up with conclusions. The study established that Bindura Municipality is facing operational challenges and they are mainly attributed to its failure to effectively collect revenue. The local authority is also not fully utilising revenue sources at its disposal. A conclusion was reached that, in order to have viable local authorities, local authorities should do the following: improve efficiency in service delivery, practice accurate billing, improve revenue collection mechanisms and they should curb corruption and embezzlement of funds by officials. Local authorities also need to have good relations and reputation with all stakeholders. They should uphold good corporate governance as this will encourage ratepayers to pay their bills. Local authorities are recommended to come up with debt collection policies and politicians should support local government’s initiatives in revenue collection. The study also recommended the central government to assist local authorities with grants for upgrading their old infrastructure. In addition, programmes that assist in the raising and collection of revenue must have the full backing of central government through legislation. Local Economic Development initiatives were also recommended as a way of opening new opportunities for local authorities revenue.