USAID implements $13m project Zambia’s domestic revenue collection

A US$12.89 million revenue for growth project to improve Zambia’s domestic revenue mobilisation and expand fiscal space for investments in public service delivery is currently being implemented by the United States Agency for International Development (USAID).

This project, expected to run from June 14, 2021 to June 13, 2026 is also aimed at poverty reduction.

The revenue for growth project will engage government and non-governmental stakeholders to build capacity in tax policy analysis, improve tax compliance and administration, according to

USAID Chief of Party Edward Koos, said the project would also strengthen the tax culture in a manner that facilitated private sector growth and accountability relationship between taxpayers and Government.

He said this at the national budget analysis media workshop yesterday in Lusaka.

“Activities under the project will support four objectives to help the country strengthen tax culture, increase voluntary compliance and sustainably increase domestic revenue in a manner that promotes balanced private sector led economic growth.

The project, he said, would foster coalitions that could quickly mobilise support for both domestic revenue mobilisation and broader fiscal policy reforms needed to respond to the current fiscal situation and economic shocks that may result from Covid-19.

“The expected results of the project are increased government tax revenues as a percentage of gross domestic product, improve tax payment compliance, strengthen the skills and capacity of the Ministry of Finance and National Planning to produce analyses and options that contribute to informed decisions among others,” Mr Kools said.

Speaking at the same workshop, Financial Analyst Trevor Hambayi stated that Zambia’s external debt had ballooned to about US$30.1 billion.

Mr Hambayi attributed the ballooning of the external debt to non payments of the obligations since 2020 as Government was negotiating for relief from creditors.

He also predicted that the size of the national budget to be presented today in Parliament would increase.

Mr Hambayi predicted that the budget size maybe increased by about K200 billion.