The Zambia Revenue Authority (ZRA) measures various KPIs designed to monitor the implementation of the Authority’s corporate, divisional and departmental strategic plans. The Corporate Strategic Plan (CSP) is developed by a Technical Committee made up of representatives from all its divisions and departments, who consult various stakeholders to understand how to better respond to their needs. Divisional and departmental plans, on the other hand, are developed by selected management members from the respective divisions/departments.

High level objectives include optimizing revenue collection, enhancing compliance, improving taxpayer satisfaction, improving business processes, enhancing trade facilitation, and increasing human capital and staff motivation.

Each plan has specific KPIs, while smaller entities in the organization – namely, units and sections – have what is called “targets”. Finally, at the individual level, performance management and development contracts (PMDCs) are signed by all members of staff in line with the plan of their respective division and the targets of their respective unit.

KPIs are monitored through Monthly Monitoring Reports, using Excel sheets. A colour system has been established to quickly distinguish areas where performance targets have been met:

• Cells in green are for revenue-related KPIs reaching 100% of the expected output and non-revenue KPIs reaching expected output at 75% and above.
• Cells in yellow are for revenue-related KPIs reaching between 95% and 100% of the expected output and non-revenue KPIs reaching between 40% and 75% of expected output.
• Cells in red are for revenue-related KPIs reaching less than 95% of the expected output and non-revenue KPIs reaching less than 40% of expected output.

To collect data, a combination of automated and manual processes is used. Most data is generated from ZRA IT systems such as TaxOnline and ASYCUDA World, which provide real-time data related to tax filings, revenue collection, and Customs declarations. In areas where automation is limited, data is collected manually with sometimes direct input from regional offices. Staff have been trained to minimize errors in manual processes and carry out regular data validation exercises to ensure the accuracy of manually entered data. Internal audits are also conducted to detect discrepancies and enforce quality standards.

Many KPIs aim to assess the quality of the work undertaken by ZRA officers. For example, revenue collection KPIs are both quantitative and qualitative. The Authority not only measures the percentage of revenue collected against targeted amounts, but also determines taxpayer compliance rates by analysing whether tax filings and payments are made on time, and by conducting post-clearance audits and field inspections. A high compliance rate indicates effective taxpayer engagement and robust enforcement measures. In addition, ZRA conducts surveys to assess the quality of its services and the delivery of the commitments laid down in the Taxpayer Service Charter, and collects data on indicators such as response times, clarity of communication and resolution of disputes.

Performance management and development contracts (PMDCs) are reviewed mid-year and at the end of the year. Benefits and rewards are offered to staff who meet and exceed targets. Such contracts are critical for ZRA in aligning individual staff efforts with organizational goals.

Accurately measuring some KPIs has proven difficult due to the use of manual monitoring tools, as well as the non-availability of data. Further, analysis of the implementation of the Strategic Plan highlighted several issues that negatively impacted achievement of strategic objectives, such as:

• lack of implementation of some strategies;
• low tax compliance;
• inadequate capacity to tax e-commerce;
• inefficiencies in the debt management process;
• unstable new ICT systems and inadequate ICT infrastructure;
• inadequate physical infrastructure and support facilities; and
• inadequate staffing levels.

In alignment with the provisions of the National Planning and Budgeting Act, the ZRA prolonged the Strategic Plan until 2026 while initiating an in-depth review to solve identified issues and weaknesses. Public and private stakeholders were engaged through surveys and meetings with ZRA representatives, during which they held open discussions on how the Authority should evolve and how they could support the required changes and the implementation of the extended Strategic Plan.

Experts from the WCO Secretariat also provided assistance in the process, advising ZRA Customs Division managers who formed part of the Technical Committee appointed by the Commissioner General to coordinate the extension of the Strategic Plan. As was expected, they recommended that ZRA integrate into the Plan the objectives and the KPIs developed by the WCO in its Performance Measurement Mechanism.

A Workshop on Performance Measurement was organized in June 2024 to familiarize ZRA staff with the PMM, especially with the KPIs’ description, calculation method, rationale and limitations. At the end of the workshop, 33 PMM KPIs to be incorporated into the Strategic Plan had been identified. Moreover, three strategic objectives were added: enhancing trade facilitation, improving staff integrity and professionalism, and promoting diversity and gender equity.

Other KPIs were also developed, including:

• the percentage of Articles in the WTO Trade Facilitation Agreement which have been implemented;
• the female/male staff recruitment rate, which compares the numbers of newly recruited female staff against the number of newly recruited male staff (the PMM recommends the use of this KPI in case the KPI “Gender Balance Ratio” is lower than in the prior performance period, to pinpoint the functional areas in which there is a need to take immediate action); and
• the number of measures addressing the plight of differently abled persons.

To see the list of KPIs, please download this file.

Employees were familiarized with the extended Strategic Plan and changes made to the assessment system through workshops and regular internal office memoranda. As part of the WCO PMM integration, ZRA also enhanced the Monthly Monitoring Report Template by including columns providing information on calculation method, data source, type of indicator, and means of verification. Employees are also encouraged to give their feedback, and their concerns are promptly addressed.

Data on strategic objectives, performance metrics and financial results are published in detailed annual reports available to the public on the Authority website. In addition, performance results are presented at the ZRA annual stakeholder meetings, which are attended by key partners, including representatives of several Ministries, economic operators and civil society.

By mainstreaming the WCO PMM into its performance measurement system, the ZRA aims to increase its capacities to identify areas of improvement and to achieve sustainable revenue growth; to respond quickly to new demands of Government and business alike; to adapt its Strategic Plan and ensure its strategic objectives are aligned with international recommendations; to participate in the standardization of Customs performance monitoring; and to enhance its reputation.

Increased investment in automation is needed to reduce the burden of manual data collection. Measuring taxpayer compliance is one area that would benefit from the development of IT solutions, as it requires complex analysis and robust, accurate data collection.

Other areas are also challenging, with data collection techniques being continuously refined as we learn. This is the case, for example, in quantifying customer satisfaction and subjective experiences. Among key possible solutions would be enhanced utilization of data analytics capability, particularly predictive analytics, to assess compliance trends, or increasing the number of surveys and focus groups to capture customer perspectives.

More information
Deputy Commissioner – Customs Business Policy & Support