Improving good financial governance in Zambia

Strengthening Good Financial Governance in Zambia

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  • Client

    Federal Ministry for Economic Cooperation and Development (BMZ)

  • Co-financier

    European Union (EU)

  • Country
  • Political sponsors


  • Runtime

    2019 to 2023

  • Involved

    Zambia: Zambia Revenue Authority (ZRA), Zambia: Zambia Public Procurement Authority (ZPPA), Zambia: Ministry of Health, Zambia: Ministry of Agriculture, Zambia: Ministry of Energy

  • Products and expertise

    Governance and Democracy



Insufficient public revenues and lack of budget credibility have led to government spending significantly outpacing revenues in Zambia. After defaulting on its external debt, Zambia agreed to an Extended Credit Facility programme with the International Monetary Fund (IMF) in September 2022, which foresees comprehensive reforms of the public finance system. The project Good Financial Governance III (GFG III) supports its partner institutions in implementing this ambitious reform agenda.


Financial governance in Zambia has been improved in terms of transparency, accountability, responsiveness to citizens’ needs and efficiency.



The project focuses on two main areas of activity:

(1) improving budget planning, implementation, and execution within the Ministry of Finance and National Planning (MoFNP):

  • Budget credibility is enhanced through improving multi-year macroeconomic and fiscal planning and introducing output-based budgeting in all ministries.
  • For improved budget execution control and accountability, work focuses on mechanisms to prevent arrears, address payroll control and issue timely and accurate reports.
  • The Zambia Public Procurement Authority’s (ZPPA) procurement oversight is being improved through organisational development and a shift to e-procurement.

(2) increasing tax revenues collected by the Zambian Revenue Authority (ZRA):

  • ZRA’s risk and audit management is enhanced by a data analysis system to assess taxpayer compliance risks. Tax auditors are equipped with specialised skills to effectively audit companies and individual taxpayers.
  • To make tax compliance easier, a customer experience strategy and mobile applications are being developed and mobile tax offices procured to extend the reach of ZRA to rural regions.
  • Lastly, GFG III supports MoFNP in developing a national Revenue Action Plan, reviewing the tax-policy making process and improving the ministry’s revenue forecasting capabilities.

Last update: January 2023

Additional information