Amplifying the Impact of Devolution Cash Transfers in Zimbabwe

Terrence Tazvivinga ()
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Terrence Tazvivinga: Infrastructure Development Bank of Zimbabwe

Africagrowth Agenda, 2020, vol. 17, issue 4, 22-23

Abstract: Zimbabwe adopted a new constitution in 2013 which introduced devolution in governance. In support of the devolution agenda, the central government makes annual cash transfers to the lower tiers of government to implement developmental projects in their respective areas. The funds have allowed local authorities to implement various projects such as construction of clinics and schools. There is however, need to fine-tune the management of the devolution funds to increase their impact. Recipient local authorities need to have investment ready projects so that the received funds can be quickly deployed to counter the effects of the hyperinflation environment in the country. Other ways to boost the effectiveness of devolution funds include prioritising projects with incremental benefits, blending devolution funds with private sector finance to take advantage of each district’s comparative advantage as well as promoting projects with catalytic potential. It is also important for central government to encourage local authorities to work with financial and technical advisory institutions to ensure proper management of the funds. By and large the devolution funds are a game changer with potential to propel development in hitherto marginalised areas.

Date: 2020
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