Abstract:
Despite the long-standing existence and use of digital technologies to improve revenue collection in
Tanzania, it has failed to meet the expectations of some Local Government Authorities (LGAs) in Tanzania,
as they have reported undercollection of revenues. This has been attributed to various challenges that
hamper effective revenue collection in LGAs, including poor infrastructure, a lack of strong and stable
networks in some areas, and some operators' incompetence, leading to undercollection of revenues and the
wastage of time.
The primary objective of this study was to comprehensively assess the effectiveness of digital technology in
revenue collection within Local Government Authorities in Tanzania, with a specific focus on Ifakara Town
Council. Employing a case study approach and adopting a qualitative research and case study design, the
study engaged 30 participants, including leaders, heads of departments, and management personnel within
Ifakara Town Council, chosen through purposive sampling for their valuable insights and experiences related
to revenue collection processes. Data collection was facilitated through interviews, allowing for an in-depth
exploration of the subject matter. The qualitative data gathered were subsequently analyzed using content
and narrative analysis techniques.
The findings revealed that the integration of digital technology significantly improved efficiency, transparency,
and accountability in revenue collection. However, challenges such as a lack of reliable internet connectivity,
insufficient training for staff, and recurring technical glitches were identified as impediments. Based on these
findings, recommendations include strategic investments in digital infrastructure, comprehensive training
programs for staff, and the establishment of a clear regulatory framework for digital payments in local
government authorities. These insights contribute to a nuanced understanding of the impact of digital
technology on revenue collection in Ifakara Town Council and offer valuable recommendations for enhancing
its effectiveness in similar contexts.
