To enhance the financing, institutional performance, and accountability of Town Councils in Zambia, ensuring that decentralization policies translate into real and measurable benefits for citizens.

The ZDSP delivers comprehensive support to eligible Town Councils through the following components:

• Capital Grants:
  Direct financial support for local infrastructure and development initiatives. This includes an Annual Basic Capital Grant and a larger Performance-Based Capital Grant designed to incentivize improved institutional performance.

• Institutional Strengthening:
  Capacity-building support aimed at improving Councils’ core functional areas such as Public Financial Management, Procurement, Performance Management, and Local Revenue Collection.

The programme is anchored on several key focus areas designed to strengthen the effectiveness, accountability, and development capacity of Town Councils. These focus areas outline the strategic priorities necessary to improve service delivery and drive sustainable local development.

• Establishing and managing dedicated Capital Grants tailored for Town Councils.

• Enhancing Public Financial Management systems to promote greater transparency and accountability in local governance.

• Reforming the fiscal framework for devolution to ensure a predictable and sustainable flow of resources to local authorities.

• Strengthening the long-term capacity of Town Council staff and institutional systems.

To access ZDSP grants, Town Councils must meet essential good governance criteria, such as timely submission of audited financial statements, having key personnel in place and demonstrating sound procurement practices.
Partnership
The ZDSP is implemented in close collaboration with key government institutions, including the Ministry of Local Government and Rural Development, the Ministry of Finance, the Decentralization Secretariat, the Zambia Public Procurement Authority, the Office of the Auditor General and the Chalimbana Local Government Training Institute.