Performance Contracts for Senior Administrators in “Unsettled” Political and Economic Contexts

Abstract

Zimbabweans are interested in seeing how local governments will perform in providing services in the era of devolution and digital transformation. Scholars have begun to examine and evaluate the significance of devolution and digital transformation in a nation with a history of dictatorship and centralised authorities in decision-making processes. To enhance the performance of devolved local governments, the Government of Zimbabwe (GoZ) introduced a performance management system in 2020 as a Human Resources Management reform that mandates all local governments to have performance contracts for senior administrators. The introduction of performance contracts for senior administrators arose from the need to address persistent service delivery and administrative challenges in local governments, particularly urban local authorities. Policymakers believed that the introduction of a performance management system for senior administrators would enhance digital transformation, public value and fundamental principles of local governance, namely, effectiveness, efficiency, economy, accountability, responsiveness, and integrity. There have been relatively few studies investigating implementation experiences since a performance management system that placed senior local government administrators on performance contracts was introduced. Consequently, the topic of performance contracts and how Zimbabwe's unstable political and economic environment affects their execution is covered in this chapter. Data to address the preceding question was generated qualitatively through documentary reviews and key informant interviews. Since the performance contract system is relatively new, the authors conducted some key informant interviews to gain insights into the implementation experiences. The chapter found that the unsettled economic and political contexts and sluggish digital transformation pose an existential threat to its implementation. Economic instability, poor revenue generation, brain drain and associated human capacity constraints, political influence and the nature of performance contracts and assessment framework compromise the viability of performance contracts. To improve the implementation of performance contracts, the chapter recommends the Office of the President and Cabinet (OPC) review the performance contracts in light of implementation experiences. The review process should be done in a participatory manner so that the views of the implementing agencies are heard and factored in. The chapter also recommends the use of digital systems to enhance the implementation of performance contracts.