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The Ministry of Local Government has directed all councils across Zambia to urgently transition from manual to digital revenue collection systems in a bid to enhance transparency, curb financial leakages, and ensure timely payment of workers and contractors.
Permanent Secretary for Technical Services, Nicholas Phiri, expressed concern over the continued failure by some councils to meet wage obligations despite having viable revenue streams.
Speaking in Lusaka on Wednesday, Phiri revealed that most councils were collecting less than 50 percent of their potential revenue due to outdated manual systems prone to abuse.
He called for an immediate end to cash handling and “handshake” transactions, urging councils to embrace accountability and innovation.
“Some councils have historically relied on seasonal grain levies and harvest periods to boost income. However, due to recent droughts, this source has significantly declined,” Phiri said.
While acknowledging the short-term financial strain, Phiri stressed that the long-term solution lies in modernising council operations and tightening internal controls.
“Relying on seasonal income is not sustainable. What will make a difference is closing loopholes and embracing digitisation. This is no longer optional—it’s a necessity,” he said.
Phiri cited councils in districts such as Katete, Mpongwe, and Nyimba as examples of local authorities struggling to meet wage obligations—not due to a lack of revenue potential, but because they still rely on inefficient and corruption-prone manual systems.
He further emphasized that the success of decentralisation depends on the efficient and transparent functioning of local authorities and challenged Principal Officers to take the lead in implementing reforms.
“With improved systems, councils will be better positioned to meet obligations to both staff and contracted service providers,” he said.
Meanwhile, a group of workers hired by a private contractor under Lusaka City Council visited the Ministry to protest delayed payments.
In response, Phiri assured them the issue would be addressed urgently.
“It does not sit well that people providing essential services are not being paid. This is unacceptable. I have directed that they be paid,” he said.
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