Zambia Devolution Support Program (ZDSP) – Overview

The Zambia Devolution Support Program (ZDSP) is a national initiative designed to strengthen the capacity of local authorities to effectively implement decentralization and improve service delivery at the local level. The program will run for a period of five years and six months, from July 2022 to June 2028, with an estimated total budget of US$698 million. Of this amount, US$200 million will be financed through an International Development Association (IDA) credit under the Programme-for-Results (PforR) mechanism, while US$10 million will support specific activities under the Investment Project Financing (IPF) component.

The programme financing framework combines resources from both the Central Government and the World Bank. Government funding covers key budget areas such as Local Government Equalisation Fund (LGEF) grants, grant-in-lieu of rates, matching grants, and allocations for government programme implementation, all aligned with the Medium-Term Expenditure Framework (MTEF). The World Bank support will focus on critical result areas, including the performance assessment process, capital grants for qualifying local authorities, and capacity building and institutional reforms aimed at strengthening devolution.

For participating local authorities such as Lusaka City Council, the ZDSP will provide access to capital grants to support priority development projects and infrastructure investment. These funds will be utilised in line with approved Integrated Development Plans (IDPs) and Annual Work Plans, enabling the Council to address local development needs, enhance service delivery, and promote sustainable growth within the district.