The document discusses the implementation of the DLREV management software for enhancing revenue collection at the local government level in Ghana, aiming to address inefficiencies in municipal revenue mobilization. DLREV is an open-source tool designed to improve property tax and business permit collection, significantly increasing the internally generated funds of municipalities by streamlining processes and improving data management. Financial analysis over four years reveals total costs of GHS 489,000 and expected benefits of GHS 4.3 million, primarily from increased revenue and reduced operational inefficiencies.

1. EminentPanelConference,Accra,August7th -9th,2020
The Implementation of the dLRev Management
Software for Improved Revenue Mobilization at Local
Government Level
Governance For Inclusive Development / Support for Decentralisation
Reforms (SfDR), Deutsche Gesellschaft für Internationale
Zusammenarbeit (GIZ) GmbHand the Copenhagen Consensus Center

2. This is why my topic is important in 7 minutes
MMDAs have important planning and coordination functions, as well as the
responsibility for infrastructure and service delivery in key sectors: waste
management, transport, roads, housing, disaster prevention, births and deaths,
among others, yet:
MMDAs only generate, on average, approximately 20 percent of their total budget from their own
sources;
Most MMDAs issue hand written bills;
Without a formal addressing system, the distribution of the bills poses a challenge;
In some MMDAs the billing is decentralized; sub-districts print own bills and issue them to
taxpayers, causing leakages, and
Some MMDAs outsource revenue collection, which raises concerns about the proprietary nature
of the data collected, the extent to which they can monitor and sanction service providers, the
modalities for procurement, among others.
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3. The Implementation of dLRev management
software in a model MMDA in Ghana

4. 1 minute description of the solution
The efficient taxation of properties within their respective jurisdictions is a huge
untapped potential to increase local governments’ internally generated funds.
The dLRev is an open-source data tracking and revenue collection software and is free to use.
The dLRev is a web-based application with a digital address map (local plan) of a district produced using a
geographic information system.
The local plan has a spatial database and with a corresponding fiscal cadastre of revenue items.
The software is currently set-up for property rates and business operating permits.
Analysis is based on the deployment of the dLRev revenue management software in 9 MMDAs, which used
the dLRev software in the fiscal year 2019: Agona West, Cape Coast, Komenda-Edina-Eguafo-Abirem (KEEA),
Suhum, Adenta, Ga South, Bibiani-Anhwiaso-Bekwai, Shama, Prestea Huni - Valley
The model MMDA is essentially a weighted average of the 9 contributing municipalities; the weight based on
the size of the population served by dLRev relative to their respective total population.
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5. Total discounted costs (8%) are GHS 489,000 for a single MMDA.
Notes
• Period of analysis is 4 years: one year
of implementation/training + 3 years
revenue collection.
• One-off costs: upload of initial map;
purchase of computing & internet
hardware; data collection.
• Recurrent costs: salaries; internet
connectivity, printing demand notices,
adding ratepayers; revenue collection.
• The annual salaries of the management
team and the printing of demand
notices are the main cost drivers.
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GHS
Years
Implementation and operating costs
(GHS)
Print demand notices
Revenue collection
Internet costs
Hardware costs
Management team
Upload new data
Data collection
Upload local plan

6. Total discounted benefits (8%) are valued at GHS 4.3 million,
with vast majority (98%) from increased revenues.
There are 4 benefit streams:
• Reduction in data collection costs: from 120 to 20
man-days/10,000 parcels
• Efficiency gains from issuing demand notices:
from 25 to 2 man-days to print
• Efficiency gains from payment: from 40 to 17 days
for client paperwork preparation/submission to
pay collectors
• Better coverage of the tax base: 54% increase in
revenue collected.
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7. GHS millions Discount rate
5% 8% 14%
Benefits 4.54 4.3 3.87
Cost 0.508 0.489 0.455
BCR 8.9 8.8 8.5
The dLRev management software increases internally-generated
funds because it:
(1) reduces the number of manual procedures, which increases the
productivity of municipal employees.
(2) reduces the possibility of leakages by revenue collectors.
(3) provides for improved identification of ratepayers, which results in
better coverage.
(4) builds confidence in municipal financial management, attracting
previously non-compliant rate-payers.