The ZDSP is a World Bank‑backed initiative (Program for Results) that helps Zambia turn its decentralisation vision into reality. It focuses on strengthening the financing, institutional performance, and accountability of rural local governments (Town Councils and other councils) so they can deliver better services to communities.

 Zambia’s new government committed to devolution to move decision‑making and resources closer to the people, especially in underserved rural areas.

Funding:

• Original concept – US $100 million IDA credit (2022‑2027).
• Current programme size – US $210 million hybrid financing (ZDSP) running 2022‑2027.

Key result areas:

1. Capital Grants to Town Councils – performance‑based grants (Basic Capital Grant $200 k, Performance‑based Capital Grant $500 k) for infrastructure and service projects.
2. Strengthened Public Financial Management, transparency & accountability – better budgeting, reporting, and own‑source revenue mobilisation.
3. Institutional capacity building – training in planning, procurement, financial management, safeguards, and M&E; Annual Performance Assessments (APA) to trigger grants.

Implementation framework:

Ministry of Finance and National Planning (MoFNP) coordinates, with the Decentralisation Secretariat and Ministry of Local Government & Rural Development.
Disbursement Linked Indicators (DLIs) ensure results are met before funds flow. Includes;

1. An Environmental & Social Management System (ESSA) to mitigate risks.
2. Impacts sought: Improved service delivery (water, sanitation, health, education).
3. More predictable fiscal transfers (equalisation grant + performance grant).
4. Enhanced citizen participation and accountability at local level.

ZDSP is the vehicle through which Zambia is getting financial and technical support to make devolution work – giving councils the money, skills, and incentives they need to deliver on the promises of decentralised governance