Slocal governanceSouth
Slocal governanceSouth Africa’s recovery depends ongovernment’s support of municipalitiesAddressing the deep-seated issues plaguing municipal finance is essential for improving service delivery and infrastructureand for restoring public trust in local governance and our very democracy itself.By Lwazi Sikiti, South African Cities Network*As our seventh administration executive settles into their portfolios,we must remember the hand-in-glove relationship they need toforge in working within and supporting the local government spherein South Africa.The national and provincial governments have the challengingtask, as required by the Constitution, of supporting approximately257 municipalities across the country in meeting their mandates.The current state of the local government sector in South Africacan be characterised as being in a state of crisis. This not onlythreatens the delivery of essential services but also puts the veryfabric of local governance at risk.The financial health of municipalities remains a critical concernthat requires immediate and comprehensive reform to prevent furtherdeterioration and to foster sustainable development at the local level.Municipalities in South Africa face significant financial challengesdue to systemic inefficiencies, maladministration and insufficientrevenue generation.The 2023 Auditor-General’s report revealed mixed performancesin the local government sector. It found that 33 municipalities hadbetter audit outcomes than in previous financial years, while 29 hadworse outcomes. The report also indicated that many municipalitieswere in financial distress and unable to meet their obligations.Consequently, some municipalities had experienced waves ofservice delivery protests, leading to a gradual erosion of public trustin this vital sector of our democratic government.One of the main challenges facing municipalities is theinsufficient revenue base to sustain their operations. A significantfactor contributing to this is the poor collection of local taxesand service fees, often due to inefficiencies and a culture of nonpaymentamong residents.Compounding this issue is the widespread problem of poorbilling systems across municipalities and a lack of enforcementmechanisms to ensure that residents, businesses and state agenciespay their debts.Article courtesy of Daily Maverick14 | Service magazine
local governanceSLocal governments rely heavily on grants from the nationalgovernment, but these grants often do not cover all their expenses,resulting in some vital expenditure items being unfundedmandates. This creates a vicious cycle where municipalities lack thefunds to improve services, leading to further non-payment andfinancial strain.Skills shortageAnother critical issue is the need for more capacity withinmunicipalities. Many local governments suffer from a shortage ofskilled personnel, particularly in financial management and planning.This hampers their ability to manage their finances effectively anddevelop sound economic strategies to support sustainability.One solution to this problem involves implementing targetedtraining programmes for local practitioners and councillors.Municipalities must attract skilled professionals to the localgovernment sector to improve financial management.The seventh administration’s support of the local governmentsector remains urgent and challenging. The priority involvesnumerous interventions to improve the revenue collectionmechanisms of our municipalities by modernising billing systems,enhancing enforcement measures against defaulting payers andpromoting a culture of payment.Innovative approaches, such as leveraging technology for bettertracking and collection of fees, will undoubtedly play a significantrole in addressing this revenue collection challenge.The second critical intervention for the administration shouldbe implementing strong measures to reduce maladministration inour municipalities. This should include increasing transparency andaccountability in governance and ensuring inclusive practices inmunicipal planning and the delivery of essential services to citizens.It should also involve strengthening the oversight functions ofthe national and provincial government on the business of localgovernment. At a local level, augmenting support for oversightinstitutions undoubtedly also involves the empowerment of counciloversight bodies such as the municipal public accounts committeesin enforcing accountability in how public monies are spent.Addressing the deep-seated issues plaguing municipal finance isnot only essential for improving service delivery and infrastructure,but also for restoring public trust in local governance and, indeed,our democracy itself.Through enhanced revenue collection, strengthened governance,capacity building and reforms in fiscal relations, South Africa cansteer its municipalities towards a path of financial sustainability andeffective service delivery.The success of local government depends on adequate attentionand support from the national and provincial governments. STrainingThe third intervention is to invest in capacity-building mediationsthat involve training programmes and mentorship networksinvolving local and international actors, as well as all-of-societypartnerships with the private sector and civil society groups that areequally vested in the success of municipal service delivery.These interventions must equip municipal leaders and officialswith the necessary skills to effectively dispatch their duties whileempowering the public to understand their rights and recourse inholding their local government accountable without resorting toservice delivery protests.Last, an in-depth review of the local government fiscal frameworkis needed to ensure that municipalities receive adequate fundingto maintain existing infrastructure and build new infrastructurecommensurate with their population growth.The financial health of municipalities in South Africa is alinchpin for the overall development and stability of the country.*Lwazi Sikiti is the Policy Research and Advocacy Manager at the South African Cities Network.
