Evaluating the Impact of Capital Budgeting Techniques on Sustainability of Investment Projects in Local Authorities in Zambia: A Case Study of Shang'ombo Town Council

Mununga Shamba and John Machayi
Additional contact information
Mununga Shamba: Graduate School of Business, University of Zambia
John Machayi: Graduate School of Business, University of Zambia

African Journal of Commercial Studies, 2026, vol. 7, issue 2

Abstract: This research assessed the effect of capital budgeting techniques on the sustainability of investment projects in local authorities in Zambia, with a focus on Shang’ombo Town Council. The study adopted a qualitative research approach using a case study design. Data were collected through in-depth interviews with forty-three (43) officials who possess expertise in budgeting and investment administration. The data were analyzed using thematic analysis. Findings revealed inconsistency in the application of investment appraisal techniques and, in some cases, complete absence of their application. Other challenges identified include limited institutional capacity, inadequate technical expertise in applying investment appraisal techniques, and failure to incorporate environmental and social considerations into project evaluation processes. Local authorities in Zambia play a critical role in regional development through capital investments such as infrastructure and community projects, and they often undertake commercial ventures to strengthen their financial sustainability. The study recommends that local authorities ensure consistent application of capital budgeting techniques to reduce investment failure and enhance the sustainability and viability of investment projects. It further recommends capacity building for staff involved in investment administration and budgeting, as well as the integration of environmental, social, and economic considerations into investment appraisal processes. Future research is encouraged to expand the scope by examining multiple councils and larger sample sizes to strengthen the body of knowledge on investment appraisal practices in local authorities.

Keywords: Investment Appraisal Techniques; Capital Investment Projects; Sustainability; Viability; Budgeting (search for similar items in EconPapers)
JEL-codes: G31 H54 O22 (search for similar items in EconPapers)
Date: 2026
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ijcsacademia.com/index.php/journal/article/view/450

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cwk:ajocsk:2026-25

DOI: 10.59413/ajocs/v7.i2.6

Access Statistics for this article

More articles in African Journal of Commercial Studies from African Journal of Commercial Studies
Bibliographic data for series maintained by Dr. Charles G. Kamau ().