RESERVE Bank of Zimbabwe Monetary Policy Committee member Persistence Gwanyanya says local authorities should up their contribution to the gross domestic product (GDP) as it remains low.
For years, the Auditor-General’s Office has revealed that local authorities continue to abuse hundreds of millions of United States dollars through poor revenue collection, inadequate debt management, compromised governance structures, ineffective procurement procedures and asset mismanagement.
According to a December 2024 Public Accounts Committee report, local authorities lacked permanent accounting officers and finance directors, making it easy for rampant financial mismanagement.
Speaking at the two-day third edition of the Institute of Chartered Accountants of Zimbabwe (Icaz) Local Authorities Convention in Nyanga yesterday, Gwanyanya said local authorities were expected to play a bigger 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 said.
“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.”
The economist noted that local authorities needed to enhance service delivery implementation and be accountable to rate payers.
“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?” Gwanyanya queried.
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“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.”
Part of the challenge why local authorities are not performing, apart from massive corruption, is debt that they are owed by both residents and the government.
For example, in May 2024, it was revealed that Harare City Council is owed more than ZiG940 million by residents, businesses, parastatals and government departments.
“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 said.
“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 noted that the rate payers needed to see the value for money, while also contributing to the GDP.
Icaz president Brice Musendo called on local authorities to foster sustainable communities, enhancing local impact 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.
“It provided a vital platform for local leaders to share successful strategies, innovative solutions, and foster a culture of transparency, trust, in effectively meeting the needs of the citizens.”
Added Musendo: “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.”
