An Assessment of Revenue Collection Constraints in Zimbabwean Local Authorities: A Case Study of Bindura Municipality (2009-2013)

Abstract

This research assessed the revenue collection constraints of Zimbabwean local authorities, taking Bindura Municipality in Mashonaland Central Province, Zimbabwe as a case study over the period 2009 -2013. The main objectives where to : identify the main sources of revenue of the local authorities, identify the drivers of revenue,  identify rates payers perception of local authorities management of funds and to make recommendations on how local authorities can improve revenue inflows. The findings of the study were that: poor quality of service delivery, poor perception of governance systems, inadequate capitalization greatly affected the collection of revenue. The qualitative research collected primary data from selected municipality staff, ratepayers of Bindura and also used secondary published data. Both non-probability (purposive) and probability based(stratified random sampling) techniques were used to come up with the sample frame of 165 respondents. The major recommendations of the study where that in order to improve on revenue collection, local authorities should: improve on quality of delivery of services; carry out awareness campaigns on the importance of paying rates to the rate payers; embark on income generating activities; be up to date in audited financial report so as to attract donors; levy interest penalties on arrear balances as a deterrence measure and enhance public accountability.