EISSN: 2707-0425
East African Journal of Science, Technology and Innovation, Vol. 2 (3): June 2021
This article is licensed under a Creative Commons license, Attribution 4.0 International
(CC BY 4.0)
Revolutionization of Revenue Collection with Government E-Payment Gateway
System in Tanzania: A Public Value Creation Perspective
1*SAUSI J M., 1MTEBE J S
1University
of Dar es Salaam, Tanzania
*Corresponding author: macsausi@yahoo.co.uk
Abstract
Through the Ministry of Finance and Planning, the Government of Tanzania implemented the Government
Electronic Payment Gateway (GePG) system to provide an e-payment gateway platform in order to
improve government revenue collection in the country. As of July 2020, the system was implemented in
660 public institutions and is integrated into 28 commercial banks and 6 mobile money operators. While
the system has been widely accepted, evaluation on its adequate and performance is necessary as many
similar initiatives implemented in Africa have failed to deliver the desired outcomes. This study evaluated
the performance of the system by drawing success measures based on public value: efficiency,
effectiveness, and social value. The study adopted a concurrent mixed research design where the
questionnaire was integrated within interviews in a single investigation involving 442 respondents from
271 public institutions in 11 regions in Tanzania. The study found that the use of the system increased
revenue collection by 44.28% while reducing the cost associated with revenue collection by 27.10% between
2015/2016 and 2019/2020 in the surveyed institutions. Moreover, the use of the system enhanced the trust
between citizens and government, increased transparency and traceability in the process of revenue
collection. Nonetheless, the lack of integration of the GePG system with institutional billing systems and
the lack of self-service facility in some institutions were found to the challenges. The findings from this
study contribute to an understanding of the effectiveness of e-government systems based on public value.
Keywords: Electronic government; E- Government; GePG; public value; revenue collection
Cite as: Sausi and Mtebe, (2021). Revolutionization of Revenue Collection with Received: 04/11/20
Government E-Payment Gateway System in Tanzania: A Public Value Creation Accepted: 12/04/21
Perspective. East African Journal of Science, Technology and Innovation 2(3). Published: 25/06/21
Introduction
In the last few years, many developing countries allow the government to interact with its citizens
have been taking advantage of the development via the Internet and lower operation costs
of ICT infrastructure and the proliferation of (Kondoro & Mtebe, 2018).
mobile telephone to implement various e-
government initiatives in order to improve the Given these benefits, developing countries have
quality of public services. The e-government been investing heavily in e-government
initiatives can reduce cost, improve data access, initiatives despite their limited budget (Lessa,
increase accountability, and improve decision 2019). The government of Tanzania, for instance,
processes (Goh & Arenas, 2020). They can also has been investing heavily in improving
Information and Communication Technologies
1
(ICT) infrastructure and increasing the speed of stakeholders that direct funds to government
the Internet as part of creating conducive accounts. In this case, citizens all over the country
environment for implementing e-government can pay for government services through a single
initiatives. As of 2015, the country had a high point given they are provided with the control
capacity broadband connection to the rest of the number with the amount of bill need to be paid.
world through the Eastern Africa Submarine On the other hand, the GePG system is connected
Cable System (EASSy), with 4.72Tbps, SEACOM to institutional billing systems enabling
with a capacity of 1.28 Tbps, and National ICT institutions to generate invoices, reports, and
Broadband Backbone Optic Fibre Cable with a viewing collected revenue in real-time. As of July
capacity of 4.8Tbps (MWTC, 2016). The National 2020, the system was implemented in 660 public
ICT Broadband Backbone and submarine cables institutions and integrated into 28 commercial
have reduced backhaul transport bandwidth cost banks and 6 mobile money operators.
by 99%. These initiatives formed a backbone
necessary for speeding up implementing various Since the adoption of the system, few studies
e-government initiatives across the country have evaluated its effectiveness in meeting the
(Lupilya & Jung, 2015). expected benefits. It should be noted that many
e-government initiatives implemented in Africa
Against this backdrop, many institutions have have failed to deliver the desired outcomes
been implementing e-government initiatives to (Gichoya, 2005; Gunawong & Gao, 2017; Hughes
enhance various public services. The most et al., 2016; Kamau & Wausi, 2015; Mukoya, 2009).
notable successful e-government initiatives In Tanzania, for instance, the e-government
include the National Payment System, Electronic initiatives such as Dodoma Urban Water Supply
Clearing House, Integrated Financial and Sanitation Authority, and the UTUMISHI
Management System, and Retail Payment System portal failed to meet the expected benefits
(MWTC, 2016; Sæbø, 2012). Other notable (Ishengoma et al., 2019). Worldwide, 80% of the
systems include an integrated Human Resource government transformation efforts do not
and Payroll system, Land Management System, translate to value for citizens (Allas et al., 2018).
Geographical Information System, and the
adoption of a Government web portal. For Previous studies have described low Internet
instance, the prepaid metering system used by connectivity, shortage of computers,
the Tanzania Electricity Supply Company has technological capabilities of end-users, and lack
enabled citizens to pay electricity bills through of electricity as challenges that hinder the success
mobile phones (Ishengoma et al., 2019). The land of e-government systems (Frost & Lal, 2019). The
ownership system has allowed citizens to obtain majority of these challenges have been addressed
necessary information about their surveyed plots due to the continued development and
online and avoid multiple allocations of plots and improvement of ICT infrastructure and
reduce citizens’ complaints about plot allocations proliferation of mobile phones in Africa. Yet,
(Lupilya & Jung, 2015). many e-government initiatives implemented in
Africa have failed to deliver the desired
Recently, through the Ministry of Finance and outcomes. Therefore, evaluating the performance
Planning, the government implemented the of GePG system after years of use was not only
Government Electronic Payment Gateway necessary but essential.
(GePG) system to provide an e-payment gateway
platform to improve government revenue This study aimed to measure the success of the
collection and ensure that revenue information is GePG system by drawing together a
visible in real-time. The system connects all comprehensive set of Net Benefits measures
stakeholders involved in revenue collection to based on Public Value theory. The public value
provide a single gateway to increase efficiency, was assessed in terms of system efficiency,
transparency, and visibility of the revenue effectiveness, and social value. The study
collection process. The system is integrated with adopted a concurrent triangulation design
electronic payment channels such as commercial whereby quantitative and qualitative data were
banks, mobile financial services, and other collected and analyzed at the same time.
Specifically, in a single investigation, closed-
2
ended question was supplemented by an open- in performing reconciliations, poor records
ended question to provide a more keeping, and the low quality of reports.
comprehensive understanding of the users’ view
on the performance of the GePG system. A total These challenges signified the need for an
of 442 respondents from 271 public institutions in electronic payment solution that would
11 regions completed the data collection streamline the revenue collection processes,
instrument. The findings from this study guarantee transaction visibility, and ensure
contribute towards an understanding of accountability and modest government revenue
evaluating the performance of information collection costs. The development of GePG
systems implemented in the public sector by started in June 2016 and was completed in June
drawing success measures based on public value. 2017 and was put into use during the 2017/2018
fiscal year with 7 government institutions. As of
The Government Electronic Payment Gateway July 2020, more than 660 government institutions
System (Service Providers) were using the GePG system.
The Government of Tanzania, through the
Ministry of Finance and Planning (MoFP) in The GePG system has centralized payment of
collaboration with Tanzania e-government government dues by using a control number that
Authority and other Government institutions, is centrally generated. The control number is
implemented the Government Electronic issued to a payer of government dues who need
Payment Gateway (GePG) in order to facilitate to make payment to the government. GePG
the collection of government revenue. The system takes advantage of number integrations
development of the system was driven by the done from the central bank, commercial bank,
Public Financial Act 2001 statutory requirements aggregators, and mobile money operators
and recommendations from two studies enabling control numbers to be settled in a wide
conducted by Price Waterhouse Coopers (PWC) range of payment outlets. Once payment
in 2009 and by Tanscott Associates (T) Limited in transaction is completed, GePG system generates
2014, which observed various weaknesses in an electronic receipt sent to the taxpayer via Short
revenue policy and the collection systems. The Message Service (SMS). To ensure an easy
amendment of the Financial Act 2017 included collection of revenue by institutions, the system
the provisions that direct accounting officers to has been integrated with the institution's billing
ensure public funds collected through the GePG systems. On the other hand, the generic billing
system as per the regulations developed under system was developed as a temporary solution
the Act. for institutions without proper billing systems.
The GePG system consists of various loosely
This e-government initiative was driven by the coupled components that work collectively to
previous practices where there were no standard connect Payment Service Providers, Ministry of
procedures for revenue collection. As a result, Finance and Planning, and institutions. Some of
some institutions had information systems to GePG system use cases include the secure
facilitate revenue collection, while other exchange of payment information between
institutions used agents, and some institutions government, payers, and payment service
collected revenue through physical cash. During providers or institutions. The exchange of
this time, there were several challenges in information is done in real-time to increase
collecting revenues, including high costs control, monitoring, and revenue flow visibility.
associated with service offered by revenue Other use cases are generating revenue reports,
collection agents, complicated procedures for performing reconciliation, and the timely transfer
paying for government services, limited payment of the collection to the central government
options, and lack of real-time visibility of the collection accounts at the Bank of Tanzania.
revenue. Other challenges included the difficulty Figure 1 shows the description of the
implementation of the GePG system.
3
Figure 1. Description of implementation of GePG system
Measuring public value of the public interest in the form of efficiency,
Measuring e-government systems success is a effectiveness, and social value (Bryson et al.,
difficult task (DeLone & McLean, 2016) as it 2014). In the context of this study, e-government
involves multiple perspectives while difficulties systems can provide improved efficiency,
in quantifying the benefits (Alshawi & Alalwany, services, and social values (e.g., democracy,
2009). Studies exist that provide some insight on transparency, and participation) (Twizeyimana
metrics and dimensions that can be used to & Andersson, 2019). Therefore, the public value
measure the performance of e-government is an essential measure for e-government
systems in various contexts. The majority of performance in any context (Scott et al., 2016).
studies have called for a broadening and
deepening of scholarly perspectives on e- Despite the adoption and use of public value as a
government success and mainly focusing performance measurement of e-government
on “Public Value” as a theoretical framework in systems, dimensions and metrics are still diverse,
understanding e-government success (DeLone & and some are not empirically examined. For
McLean, 2016). instance, Agbabiaka (2018) integrated updated
DeLone and McLean Information systems
Public value can be defined as citizens' collective success model and public value to propose
expectations concerning government and public democracy, reflexivity, and productivity as the
services (Moore, 1995). It helps connect what three dimensions for measuring e-government
citizen belief is valuable and requires public systems. Karunasena et al., (2011) evaluated the
resources, with an improved understanding of public value of e-government initiative in Sri
what ‘publics’ value and how we connect to them Lanka using four major dimensions: delivery of
(Lessa & Tsegaye, 2019). Public value provides a public services, the achievement of outcomes, the
new way of thinking about the evaluation of development of trust, and the effectiveness of
government activity and a new conceptualization public organizations.
4
Chen, Hu, Tseng, Juang, and Chang (2019) drew Consequently, assessing these benefits also
from the fields of e-government, collaborative varies according to the stakeholders' different
public management, and information system perspectives on these benefits (Alshawi &
success to develop a conceptual framework for Alalwany, 2009; DeLone & McLean, 2016).
evaluating the performance of the e-government
system. This framework consists of efficiency, Dimensions for measuring public value of GEPG
effectiveness, and accountability as key system
performance dimensions. Similarly, Suri and DeLone & McLean (2016) indicated that the
Sushil (2017) proposed efficiency, transparency, choice of the impact measures depends on the
systems to be evaluated and their purposes. This
interactivity, and decision support as dimensions
study focused on the success of the GePG system
of measuring the performance of the e-
government system. Scott et al., (2016) proposed from employees' perspective through adopting
efficiency, effectiveness, and improved efficiency, effectiveness, and social value as
democracy as dimensions for measuring e- critical dimensions for measuring the public
value. The efficiency was measured on the extent
government success through redefining the Net
to which the use of the system has reduced the
Benefits in the DeLone & McLean information
system success model. The authors cost associated with revenue collection,
simplified payment procedures, and reduced the
extended these dimensions to include: cost, time,
time required for processing invoices and
convenience, personalization, communication,
revenue collection. At the same time, the
information retrieval, trust, well-Informed, and
effectiveness was measured on how the system
participation.
has increased revenue collection while enabling
Twizeyimana & Andersson (2019) described users to personalize payment process and
improved public services, administrative revenue collection based on their own needs and
efficiency, ethical behavior and professionalism, institutional requirements.
social value and well-being, and open
government capabilities as dimensions of The social value was measured to the extent to
measuring the public value of e-government which the system increased transparency, trust,
initiatives. Finally, Deng et al., (2018) described traceability, and clarity in revenue sources. The
the delivery of quality public services, quality of dimensions of each factor have been extracted
information, functionalities of the electronic from various studies, as shown in Table 1, and
services, and user orientation as public value they are shown in Figure 2.
measurements. The diverse nature of dimensions
of public value as a measure of e-government
performance shows that these are dimensions are
still at the infant stage, and more work need to be
done (Mellouli et al., 2020). In addition, what is
publicly valued depends on the needs and
desires of the public and on the social and
environmental in which the system is
implemented (Alshawi & Alalwany, 2009).
5
Table 1. Dimensions and Items Adopted for Measuring the Public Value of GePG System
Dimension Items Source
Efficiency Cost reduction (Gilbert et al., 2004; Karunasena et al.,
2011; Scott et al., 2016; Suri & Sushil,
2017; Tan & Pan, 2003)
Saving time (Gilbert et al., 2004; Kolsaker & Lee-
Kelley, 2008; Scott et al., 2016; Tan & Pan,
2003)
Simplification of procedures (Karunasena et al., 2011; Scott et al., 2016;
Suri & Sushil, 2017)
Effectiveness Self-service (Chan et al., 2010; Gilbert et al., 2004;
Scott et al., 2016)
Enhanced core service (Scott et al., 2016)
(Chan et al., 2010; Gilbert et al., 2004;
Convivence Scott et al., 2016)
Personalization (Gilbert et al., 2004; Kolsaker & Lee-
Kelley, 2008; Scott et al., 2016; Tan & Pan,
2003)
Social value Increased Trust (Karunasena et al., 2011; Lessa &
Tsegaye, 2019; Scott et al., 2016)
Perceived usefulness (Lessa & Tsegaye, 2019).
Transparency (Karunasena et al., 2011; Scott et al., 2016;
Suri & Sushil, 2017)
Traceability (Karunasena et al., 2011; Lessa &
Tsegaye, 2019)
Figure 2. Representation of dimensions and items for measuring public value for the GePG syste
6
Materials and Methods Using the Yamane’s formula, the minimum
number of institutions required for the
In concurrent triangulation designs whereby evaluation study is 247. Therefore, a sample of
quantitative and qualitative data were collected 306 institutions was selected for evaluation
and analyzed at the same time. Specifically, in a purposes. To ensure that the sample is
single investigation, closed-ended question was representative of the institutions in the whole
supplemented by an open-ended question to country, the regions were divided into 7 zones.
provide a more comprehensive understanding of These zones were East Zone, Northern
the users’ view on the performance of the GePG Highlands Zone, Lake Zone, Western Zone,
system. In this design, priority is usually equal Central Zone, Southern Highlands, and Southern
and given to both forms of data while data Zone. In each zone, at least two regions were
analysis is usually separate, and integration included in the study. In cases where there were
usually occurs at the data interpretation stage only two regions in the zone, one region was
(Hanson et al., 2005). The adoption of mixed selected. In each of the selected regions, one
reseach design provides better understanding of district from a rural area and one district
research problem when compared with single representing urban areas was selected. A total of
approach (Creswell & Plano, 2007). 306 institutions from 11 regions were included in
the study. Of the selected 306 institutions, a total
Selection of Institutions of 271 institutions participated in the study.
The GePG system was implemented in 643
Selection of Respondents
institutions across the country when the study
In each of 271 institutions, at least 3 users of the
was conducted. Therefore, it was important to
system were expected to complete the data
determine the representative sample that will be
collection instrument. This is to say, a total of 813
used for evaluating the performance of the
respondents were expected to complete the data
system. In this case, Yamane's’ s approach was
collection instrument. However, of 900
adopted because this is a finite population whose
distributed questionnaires, 442 of respondents
size is known. Yamane provides a simplified
returned completed usable questionnaires. This
formula to calculate sample size with an
is equivalent to 49% response rate.
assumption of 95% confidence level (P=0.5)
(Yamane, 1967). The formula is presented below: Questionnaire
𝑁 The questionnaire was made simple with
𝑛= questions using a 5-Likert scale ranging from 1
𝐾 + 𝑁(𝑒)2
(Strongly Disagree) to 5 (Strongly Agree) with a
Where follow-up question for each answer. The
questions were adapted from previous studies
N = Population of study
(Chan et al., 2010; Gilbert et al., 2004; Scott et al.,
K = Constant (1) 2016) then modified in the context of this study.
The items in the instrument are presented in
e = degree of error expected Table 2.
n = sample size
7
Table 2. The Items for Each Dimension Used in the Questionnaire
Dimension Code Item
Efficiency EF1 The use of GePG has simplified payment procedures to clients at
your organization.
Please explain with examples
EF2 The GePG system has reduced time for completion of invoice
processing and revenue collection.
Please explain with examples
EF3 The GePG system has reduced the cost associated with the
processing of payments and revenue collection.
Please explain with examples
Effectiveness ES1 The use of the GePG system has increased revenue collection in your
organization.
Please explain with examples
ES2 GePG system enables me to process payment and collect revenue
from home, from the office, or at other locations while using various
devices.
Please explain with examples
ES3 I can fully personalize the reports generated from the GePG system
relevant to the reports required by my institution.
Please explain with examples
ES4 GePG system enables me to process payment and collect revenue for
various services from citizens without interacting with anyone.
Please explain with examples
Social value SV1 The use of the GePG system has improved the transparency of the
collected revenue information.
Please explain with examples
SV2 The GePG system has increased trust amongst your customers about
the services you offer.
Please explain with examples
SV3 I find the GePG system useful in the process of revenue collection.
Please explain with examples
SV4 The GePG system has improved the traceability of collected revenue
as well as the payment process.
Please explain with examples
Note. Scale labels: 1 – strongly disagree, 2 – disagree, 3 – neither agree nor disagree, 4 – agree, 5 – strongly agree.
8
required for processing the invoices and
Results collecting revenue. Of 442 respondents
completed the questionnaire, more than 82%
Efficiency agreed to this question (46% strongly agreed, and
Simplification of the revenue collection process 37% agreed).
One of the benefits of introducing government
The respondents' reasons were that paying using
initiative is to reduce the procedures citizens
control numbers via mobile money or banks
follow when acquiring the public service. In this
eliminated the need to prepare an invoice for
study, we were interested in evaluating the
clients. In this case, staff no longer waste time
extent to which the GePG system has simplified
dealing with a huge number of customers. On the
the process of collecting revenue. More than 80%
other hand, staff were no longer required to
of respondents (53% strongly agreed, and 34%
collect cheques from clients’ offices physically.
agreed) indicated that the system simplified the
Respondents repeated this view in many
process of collecting revenue compared to the
institutions, for instance, from Law School,
manual system. Some of the reasons that
Arusha International Conference Centre, and
attributed to this were the use of mobile money
Tanzania Institute of Education. The time
payments where clients were no longer required
required for institutions to perform reconciliation
to visit physically at the officer to pay for services.
from various banks and several accounts has
A good example was respondents from
been reduced. This was explicitly reported by the
Vocational Education and Training Authority
Tanzania Bureau of Standards, Musoma District
and Kariakoo Market Corporation. They
Council, Tropical Pesticides Research Institute,
reported that customers no longer need to
Contractors Registration Board, and National
physically visit their offices for payment-related
Council for Technical Education.
issues since they can make payments using
various payment channels (via bank, mobile, or Finally, the use of the system shortened the time
agents) given they have price lists and control required for clients to wait for government
numbers. services in different organizations. For instance,
respondents at Judiciary Fund pointed out that
Despite the reported benefits, 5% of respondents
the system reduced assessment to payment of
indicated that the use of the GePG system has
court services and received payment from 38
resulted in additional work and administrative
days to 1 day while reducing the time to issue
work for their staff. These claims were made in
license from 14 days to 3 days in the Ministry of
institutions where the system was not integrated
Natural Resources and Tourism.
with the institutional billing system. For instance,
respondents at the College of African Wildlife
Management, Tanzania Gemological Centre,
Mineral Resources Institute, Arusha Cost reduction
International Conference Centre, and Dar es Cost savings include savings to both the
Salaam Institute of Technology claimed that the individual and the organization, have been
system had increased administrative work for identified as one of the strongest predictors of
their staff as they must generate control numbers willingness to use the e-government system
for every individual student separately. (Gilbert et al., 2004). Consequently, it was
Previously, they could pay straight to the account essential to assess whether or not the use of the
number obtained from joining instructions. GePG system reduced the cost associated with
revenue collection. Respondents were also asked
Saving time to indicate the extent to which the GePG system
Users' perceptions that the time is saved due to reduced the cost associated with revenue
using the e-government system compared to the collection. More than 70% of respondents who
manual system is an important indicator that the responded to this question agreed (36% strongly
system positively impacts (Tan & Pan, 2003). agreed, and 42% agreed).
Therefore, it was important to assess whether the
use of GePG system enabled users to save time
9
Data from the interview revealed that the system Effectiveness
reduced the costs of paying agents, printing Increased revenue collection
Estimated Recovery Value (ERV) receipts, One of the objectives of the GePG system's
cashbooks, and aggregators during revenue introduction was to improve the revenue
collection. For instance, at Kasulu Water Supply collection process's effectiveness, which in turn,
and Sanitation Authority, the cost to distribute increase the revenue collection in each of the
bills using motorcycles could go as high as Tsh. Institutions involved. Therefore, it was essential
1,000,000-1,500,000 per month. TANESCO was to evaluate if the system has facilitated the
spending around 38 Billion per year on increase in revenue collection. To do so, first, a
facilitating its business in revenue collection. At Table was prepared for each of the 271
Mount Meru, Regional Referral Hospital institutions to indicate the revenue collected in
respondents claimed that they reduced the cost the last five years from 2015/16 to 2019/20. Data
incurred for using the payment card due to the show that revenue collection increased by 44.28%
GePG system. Many institutions were no longer between 2015/2016 and 2019/2020, as shown in
paying these costs as customers paid directly to Figure 3.
the institutions via existing payment channels.
Figure 3. Revenue collected between 2015/2016 and 2019/2020
Giving some examples for specific institutions, Many respondents echoed the increase in
Mbeya City Council witnessed an increase in revenue due to making it easier for customers to
revenue collection from 92% in 2018 to 102.6% in pay for services, which motivated them to pay.
2019. Ubungo Municipal Council claimed that Moreover, the use of the system reduced leakages
the revenue collection increased from 48% in of collected revenue as customers were paying
2018/19 to 95% in June 2020. When respondents directly to the institution via various payment
were asked to rate their perceptions on whether channels. For instance, respondents at the
the use of the system increased the collection of Tanzania Civil Aviation Authority indicated an
revenue in their organizations. Out of 442 increase in revenue collection at a rate of 5.8%
respondents, more than two-thirds of every year because of making it easier for
respondents agreed (41% Strongly Agreed, and customers to pay for services using control
36% Agreed), while 6% of respondents disagreed, numbers. Respondents at the Copyright Society
and 16% of respondents were neutral. of Tanzania, Ministry of Education, Science and
10
Technology, Tanzania Rural and Urban Roads Self-service
Agency, and Musoma District Council pointed The presence of self-service facility that allows
out that the use of the system increased revenue users to receive public services without having to
because all payments go directly to their banks, interact with staff is a key indicator of the
and unfaithful accountants cannot steal the effectiveness of the system (Gilbert et al., 2004). In
money. this study, it was found that 64% of 271 surveyed
institutions had implemented the self-service
Of the 442 respondents, 16% were neutral, while facility that allowed customers to pay for the
6% disagreed that the use of the GePG system has service without the need to interact with staff or
increased revenue collection in various physically visit offices. In these institutions,
organizations. Data from the interview revealed customers could generate bills and control
that most of these institutions were those not numbers using institutional portals, which have
responsible for collecting revenue directly from been integrated with the GePG system. In turn,
customers. For instance, Tanzania Education the institutions could collect revenue in real-time
receives funds from the government, loan as customers continued to use various
repayments, and cooperate with social government services.
responsibility funds to distribute to schools and
universities. Therefore, they do not directly
collect revenue from customers. Similarly, Personalization
respondents at the Finance of Tanzania Food and The provision of user-centric functionalities to
Nutrition Centre indicated that a lot of their cater to users’ service expectations has been
collections are from donors, and therefore they advocated for e-government services (Tan et al.,
are cannot be categorized as revenue. 2013). The system should allow users to
customize services to fit their specific needs or
Convenience preferences (Chan et al., 2020). In this study, it
The ability of the e-government system to enable was evaluated by asking users to rate the extent
users to receive the service how and when the to which the GePG system enabled them to
users want is one of the crucial measurements of personalize data and information relevant to the
e-government performance (Gilbert et al., 2004). reports required by institutions. Of 442
In this case, the ability of the GePG system to respondents who responded to this question,
enable users to process payment and collect 52% indicated that the data and information
revenue from home, from the office, or at other obtained from the system did not help prepare
locations while using various devices was institutional reports. The majority of respondents
evaluated. Of 442 respondents, nearly 80% of who disagreed with this question were those
respondents answered this question agreed (42% whose institution have not integrated their
Strongly Agreed, and 40% Agreed), while 11% billing systems with the GePG system.
were neutral, and 7% disagreed. Using the Respondents from State Mining Corporation
generic portal, users can generate invoices and pointed out that the system does not show the
collect revenue anywhere and anytime without amount collected from each revenue source, e.g.,
necessarily being in the office. Respondents at loyalty from gold, building material, and other
Tanzania Engineering and Manufacturing minerals. Simultaneously, respondents at
Design Organization, Public Service Social Mwanza Urban Water and Sewage Authority
Security Fund Voluntary Scheme, Moshi Urban indicated that the system does not provide a
Water Supply and Sewage Authority, and report summary for some items/aspects such as
Songea District Council indicated they could water, new water connection, and sewage.
login into the system and conduct all activities
related to revenue collection such as Social Value
reconciliation, processing invoices, and Transparency
generating control numbers without being
Transparency of an e-government system refers
required to be at their offices physically.
to the level of which an organization reveals its
activities, processes, and procedures (Lessa &
Tsegaye, 2019) and provide the ability for users
11
to follow a process (e.g., service request) through requested Financial Act before donating. With
its entire life cycle (Chan et al., 2020). We asked the GePG system, donors no longer ask for
users to rate the extent to which the use of the Financial Act as they are confident that their
GePG system has improved the transparency of donations go to the proper place.
the collected revenue information. More than
90% of respondents agreed (71% strongly agreed, Second, respondents reported that the GePG
and 26% agreed. Data from the interview system increased trust amongst institutions as it
indicated that the availability of the dashboard is now impossible for clients to forge receipts or
enabled users to view and track the collected bank cheques. Respondents at Water Institute
revenue in real-time, which was not possible and Adult Education pointed out that some
before. For instance, respondents from Arusha students used to bring forged bank receipts
Urban Water Supply and Sanitation Authority before introducing the system. The same views
and Higher Education Loans Board also noted were echoed in the Centre for Education
that before the GePG system, it was impossible to Development in Health.
know the amount of revenue collected in real- Traceability
time time unless there is a follow-up. The system One of the objectives of introducing the GePG
also enabled users to determine the amount of system was to improve the traceability of
revenue collected from each source compared to payment and the revenue collection process. To
the situation before. For instance, at Malya do so, users were asked to rate the extent to
College of Sports and Development, users which the system enhanced revenue collection
indicated that the system helped understand traceability compared to the manual system. In
daily and weekly collections without necessarily this question, more than 90% agreed (60%
going to the bank to ask for bank statements. strongly agreed, and 32% agreed), while 8%
disagreed. Data from the interview indicated that
Trust the system made it easier for institutions to
Establishing and stimulating high-trust relations manage and trace collected revenue from various
between citizens and the government and the sources. For instance, at the National Museum of
society is considered one of the strategic goals of Tanzania, users could easily control and record
e-government initiative (Agbabiaka, 2018) and transactions from seven centers scattered all over
has a major impact on the success of the system Tanzania. They pointed out further that before
(Karunasena et al., 2011; Rose et al., 2015). In the joining the GePG system, each center had its bank
same way, users were asked to indicate the extent account. Therefore, customers were paying
to which the use of the GePG system has services into different bank accounts, making it
increased trust amongst customers about the difficult to trace the payments when ones have
services they offer. The study found that 93% of claimed to have paid. Likewise, respondents at
respondents agreed (71% Strongly Agreed, and Small Industries Development Organization
22% Agreed), while 7% of them were neural. indicated that when there is a drop in collected
revenue, it is easy to trace and make follow-up
Data from the interview indicates that there were
and identify specific revenue sources that have
two ways the trust in the collected revenue was
caused the decline of revenue collection.
increased. First, the system has increased the
trust in accountants' office, whereby customers Finally, it was revealed that after the introduction
now are confident that the money they are of the GePG system, the revenue streams
paying for services is paid directly to the originating from various sources and/or units
government, especially when they receive a could easily be identified in the GePG system. It
notification message from the system. was revealed in Tanzania Trade Development
Respondents reported this in Mbeya University Authority that revenue that comes from gate
of Science and Technology, Mount Meru entrance fees, exhibition fees, and other services
Regional Referral Hospital, and Dar es Salaam are now easily identified with the GePG system.
City Council. Moreover, respondents from Before the GePG system, all revenue sources
Tanzania Food and Nutrition Centre, whereby were grouped as fees. Similarly, respondents at
before the GePG system, donors always the Tanzania Global Learning Agency and
12
Baraza la Kiswahili Tanzania pointed out that room for improvement. The government should
revenue from training and facilities hiring is now revisit the business process of services
grouped per Government Finance Statistics traditionally take a long time to be delivered in
(GFS) codes based on the institutional needs, the shortest time possible.
making it clear to clients.
It was also found that the system was effective on
Discussion its core function, i.e., increasing the collection of
revenue, whether direct or indirect, in many
surveyed institutions. Overall, revenue collection
This study aimed to evaluate the performance of
increased by 44.28% between 2015/2016 and
the GePG system by drawing success measures
2019/2020. Nonetheless, the lack of functionality
based on public value. The efficiency,
to prepare institutions reports was found to be a
effectiveness, and social value were adopted as
challenge in some institutions. While the data
dimensions of measuring the public value
obtained from the system was accurate, relevant,
through a concurrent mixed research design
and update, the preparation of institutional
where quantitative and qualitative data were
reports required the GePG system to be
integrated within a single investigation. A total
integrated with institutional billing systems.
of 442 respondents from 271 public institutions in
Therefore, institutions whose billing systems
11 regions completed the data collection
were not integrated with the GePG system could
instrument. The study found that the adoption
not generate these reports.
and use of the GePG system reduced the cost
associated with collecting revenue, such as those The government should also integrate the self-
related to paying agents, printing estimated service facility to enable users to pay for services
recovery value (ERV) receipts, and paying third without interacting with staff at a given
parties in many institutions where the system institution. The facility was missing in some
was implemented. Cost savings have been institutions causing citizens to visit offices to
identified as one of the strongest predictors of e- obtain and/or pay for the service. The self-
government systems success in developing service facility, accompanied by the availability
countries (Gilbert et al., 2004). The cost saving of of multiple payment channels (i.e., banks, mobile
e-government relates to the amount of money phones, or agents), will simplify the payment
that users can save through e-government service process while helping users save time and effort
compared to traditional government services required for paying for public services. The
(Karunasena et al., 2011). While the system has availability of self-service facility was a
managed to reduce the cost associated with determinant of e-government system success in
revenue collection, the government should several studies (Chan et al., 2010, 2020; Gilbert et
continue adding new features and services that al., 2004; Scott et al., 2016).
will enable the continued reduction of the costs
incurred by institutions during the process of The study also found that the use of the system
revenue collection. increased the trust between citizens and the
government. Many citizens were confident that
The use of the system also shortened the time to the money they are paying for services was paid
deliver the required services to citizens in many directly to the government due to the use of
institutions. Time saved due to using the e- control numbers. At the same time, forged
government system was an essential early receipts or bank cheques were no longer possible.
promise of the benefits of using e-government Such trust between citizens and the government
services in several studies such as those in (Scott increases the public value of the system
et al., 2016; Tan & Pan, 2003). In many institutions, (Karunasena et al., 2011; Rose et al., 2015).
the system reduced the time required for citizens
to wait for the services. For instance, the time Finally, the availability of the dashboard has
needed to obtain the service was reduced from 38 enabled users to trace and monitor the collected
days to 1 at the Judiciary Fund and 14 days to 3 revenue in real-time. This functionality enhanced
days in the Ministry of Natural Resources and the transparency of the revenue collection
Tourism. Despite these benefits, there is still a process as the institutions' staff could view the
13
revenue collection in real-time while determining implementing various e-government systems to
how much have been collected per day, per week, provide better services to citizens. Although
or per year. The dashboard helped institutions there is no specific figure, with investment in ICT
assess revenue sources that contribute less than infrastructure, human resource development,
others and, therefore, plan for strategies to ensure information system acquisitions, and other
those sources contribute as per set targets. resources that support the implementation of e-
Providing users the ability to track the revenue government initiatives, it is clear that thousands
collection process saves time in removing the of dollars are being spent.
need to follow up to the client's offices (Gilbert et
al., 2004). On the other hand, enabling users to This study evaluated the success of the GePG
follow the payment process results in confidence system by drawing success measures based on
in using the e-government system (Chan et al., public value: efficiency, effectiveness, and social
2020). value. The study adopted a concurrent mixed
research design where the questionnaire was
Despite these contributions, some limitations integrated within interviews in a single
were noted. First, this study was based on a investigation involving 442 respondents from 271
single e-government system, namely the GePG public institutions in 11 regions. The study found
system, in a particular context. This choice may that the use of the system increased revenue
limit the generalizability of the findings to other collection by 44.28% while reducing the cost
e-government systems implemented in Tanzania associated with revenue collection by 27.10%
and beyond. This is because different e- between 2015/2016 and 2019/2020 in surveyed
government systems have different attributes institutions.
and can vary between contexts and expected
public values. Second, e-government develops in Moreover, the use of the system enhanced the
parallel with government development and the trust between citizens and government,
digitalization of society in general increased transparency and traceability in the
(Mukamurenzi et al., 2019). These results process of revenue collection. Nonetheless, the
represent a snapshot in time, whereas many lack of integration of the GePG system with
dimensions of public value may not be static. institutional billing systems in some institutions
Future studies are needed to examine the hindered them from preparing institutional
causality and interrelationships between pubic reports. Moreover, the lack of self-service facility
value variables as e-government systems success. in some institutions was a challenge. The findings
from this study contribute to understanding the
Despite these limitations, this study contributes effectiveness of e-government systems based on
to reducing research gaps regarding e- the public value.
government success from government
employees' perspectives in developing countries. Acknowledgment
Additionally, an investigation of the factors that
This work would not have been possible without
best measure the success of e-government
support of the Ministry of Finance and Planning.
systems by taking dimensions from public value
We would also like to show our gratitude to Mr.
was needed.
Doto James, former Permanent Secretary and
Conclusion Paymaster General, for his guidance during the
course of this research and the overall
In many developing countries, governments are implementation of the GePG system in Tanzania.
spending a significant amount of resources
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