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This study interrogates the paradox of Zambia’s local authorities, which, despite possessing multiple revenue sources, remain financially fragile and heavily dependent on central government transfers. This study adopts a qualitative approach. It employs a case study design guided by the Resource-Based View (RBV) theory. Using secondary data and thematic analysis, the paper examines the implications of non-sustainable revenue strategies on four critical dimensions of local governance: autonomy, service provision, regional equity, and staff morale. Findings reveal that non-sustainable local authority revenue strategies erode a council's capacity to plan, implement, and sustain development projects. This compromises routine service delivery, constrains infrastructure investment, and diminishes council’s ability to respond to emergencies or build resilience. Capital projects are frequently stalled, while operational inefficiencies persist. Further, disparities between resource-rich urban councils and weaker rural councils have widened, creating deepening regional inequalities in infrastructure and service outcomes. Staff morale has deteriorated due to delayed salaries, unpaid gratuities, and limited career development, which in turn negatively affects revenue mobilization. Theoretically, the paper applies the resource-based view and federalism to illustrate how both resource weaknesses and structural centralization pressures undermine local governance. The study concludes by recommending reforms such as digitalization of own-source revenue collection, ring-fencing portions of the Equalization Fund, strengthening accountability against political interference, and improving staff welfare.
Published in: African Journal of Empirical Research
Volume 7, Issue 1, pp. 1471-1481