SRO-SA International Consultant assignment for the production of a “Policy manual on enhanced Domestic Resource Mobilization in Zambia post-COVID”

Result of Service The overall objective is to produce a well-informed “Policy Manual on enhanced Domestic Resource Mobilization in Zambia post-COVID” aimed at providing the Zambian Government with policy guidelines and procedures for decisions, actions and principles to enhance Domestic Resource Mobilization in Zambia in the post-COVID era.

Work Location Remote

Expected duration Six (6) Months

Duties and Responsibilities PROJECT BACKGROUND:

The ECA Subregional Office for Southern Africa, along with other implementing partners, including the United Nations Conference on Trade and Development(UNCTAD) is implementing a Development Account project on Integrated National Financing Framework in Zambia funded. The project is funded by United Nations Department for Economic and Social Affairs (UNDESA) and focuses on activities related to enhancing economic governance, domestic resource mobilization, leveraging innovative sources of finance and strengthening SDG-based reporting tools.

ECA (2022) emphasized the significance of exploring new financing avenues to address the effects of the COVID-19 pandemic and enhance Domestic Resource Mobilization capacity.. As part of the project, a handbook titled "Innovative Finance for Industrialization and Private Sector Development in Zambia" will be developed as a complementary deliverable. This handbook will focus on financial instruments involving the private sector, allowing the existing Policy Manual to concentrate on fiscal policy, which primarily falls within the purview of the public sector.

The challenge of financing is particularly striking in Zambia. In November 2020, the country opted to skip a $42.5 million eurobond repayment, becoming the first African nation to default on its debt in the COVID-19 era. According to World Bank data, the debt-to-GDP ratio for Zambia almost doubled from 2019 to 2020, moving up from 61.9% in 2019 to 103.7% in 2020. According to the Zambian Ministry of Finance, the budgetary deficit in Zambia was recorded at 7.8 percent of GDP in 2017 and rose to a peak of 14.4 percent in 2020. These figures indicate an increasingly pressing need to strengthen the capacity to effectively mobilize resources necessary for tackling numerous and significant challenges faced by the country.

Domestic Resource Mobilization is a key component of the Integrated National Financing Framework. The 8th NDP refers to Domestic Resource Mobilization as a significant conventional source of finance for generating the required resources to implement the plan he NDP specifically highlights several measures, including streamlining the tax system, creating a stable and predictable tax environment, leveraging on ICT platforms to curb revenue leakages, increasing compliance and enhancing non-tax revenue collections. Moreover, the plan sets a target of mobilizing K671.2 billion in domestic resources throughout the Plan period.

Against this background, the present Policy Manual on “Enhanced domestic resource mobilization in Zambia post-COVID” is meant to provide the policymakers with specific tools that may remedy the Domestic Resource Mobilization challenges specific for Zambia, focusing particularly on support for fiscal policy. The policy manual will review theoretical knowledge and practical experience on Domestic Resource Mobilization measures, and review the specific challenges applicable to Zambia. The specific scope of the Policy Manual should be worked out in close collaboration with the relevant Government entities, notably the Ministry of Finance and National Planning of Zambia and the Zambia Revenue Authority, to maximise the applicability of findings, notably to complement the recently adopted Domestic Resource Mobilization Action Plan, 2023-2025.

The Policy Manual will as address various topics, including broadening the tax base; taxation of the informal sector; combatting tax avoidance; easing the complexity of taxation; streamlining tax incentives; facilitating the use of ICT tools to strengthen tax collection capacity; strengthening the taxation of the mining sector and combatting illicit financial flows. Furthermore, the Manual will give specific attention to the impact of COVID-19, examining both opportunities like the renewed focus on digitalization and challenges such as the need for a larger resource envelope due to expenditures related to the pandemic.

Duties and Responsibilities

Under the overall supervision of the Chief of the Subregional Initiatives Section of the Sub-Regional Office for Southern Africa, and the direct supervision of the Associate Economic Affairs Officer of the Section, and in close collaboration with the secondary/national consultant; the successful candidate shall:

a) Prepare an inception report detailing among other things, the work to be undertaken, the conceptual framework, the methodology, the task division across the two consultants, work plan and annotated outline of the report; b) Review relevant past and current literature, key analytical frameworks, methodologies and other documents relevant to domestic resource mobilization, particularly the Domestic Resource Mobilisation Action Plan for 2023-2025, with support from the national consultant; c) Establish an effective methodology and present an appropriate analytical framework to determine the Domestic Resource Mobilization challenges and opportunities for Zambia; d) Prepare data collection tools, including a survey questionnaire, undertake a desk review, as well as compilation of data from databases to collect data and information relevant to the assignment, and oversee the national consultant to carry out interviews and other necessary consultations as required; e) Analyze data and information gathered from different sources, notably as submitted by the national consultant to inform the drafting of the report using appropriate methodologies and tools; f) Engage on an ongoing basis with the ECA-SRO-SA and the Ministry of Finance and National Planning of Zambia to conduct needs based assessment in terms of policy support for Domestic Resource Mobilization efforts in Zambia; g) Review and analyse case studies of successful domestic resource mobilization policies and procedures, good practices and lessons in countries across Africa and other developing regions which could be applied for the specific Domestic Resource Mobilization challenges encountered in Zambia; h) Analyze the impact of COVID-19 on fiscal space and Domestic Resource Mobilization in Zambia, taking into account challenges and the opportunities emerging from the pandemic; i) Prepare and submit for review by ECA-SRO-SA and the Ministry of Finance and Planning of Zambia, a well-informed “Policy manual on enhanced Domestic Resource Mobilization in Zambia post-COVID”, including action-oriented recommendations on its effective operationalization; j) Serve as the main resource person for the review of the draft policy manual; k) Finalize the manual based on the inputs and comments provided at the review session, and subsequently by ECA-SRO-SA and the Ministry of Finance and Planning of Zambia.

Expected outcomes

The development of the Policy Manual is expected to deliver the following outcomes: a) Improved understanding and awareness of the theories, concepts and principles relevant to domestic resource mobilization, as well as specific challenges and opportunities for Domestic Resource Mobilization in Zambia and their impact on the economy. b) In-depth understanding of possible policies and procedures pursued globally to address the Domestic Resource Mobilization challenges; c) Practical recommendations on policy strategies and procedures to enhance domestic resource mobilization; d) Enhanced capacity of the government entities in applying policies for strengthening Domestic Resource Mobilization in Zambia.

Qualifications/special skills Advanced university degree (at least a Masters Degree or equivalent) in economics, finance, international development, public policy or related discipline is required .A First Degree with additional 2 years qualifying experience may be accepted in Lieu of the Advanced Degree. A minimum of seven years of progressively responsible experience at the national and/or international level in international development, international finance and/or fiscal policy work. Experience in research/analytical work on fiscal policy, development finance, including Domestic Resource Mobilization in Africa, either in the academia or in private, public or civil society organizations is an advantage.

Languages English and French are the working languages of the UN ,for this consultancy Fluency in English both written and spoken is required .

No Fee THE UNITED NATIONS DOES NOT CHARGE A FEE AT ANY STAGE OF THE RECRUITMENT PROCESS (APPLICATION, INTERVIEW MEETING, PROCESSING, OR TRAINING). THE UNITED NATIONS DOES NOT CONCERN ITSELF WITH INFORMATION ON APPLICANTS’ BANK ACCOUNTS.