By Lwazi Sikiti, a South African urban network*
aOnce the seventh management executive settles into the portfolio, they need to remember the hand-holding relationships they need to build and build to support the territory of South African local government.
National and state governments have the challenging challenge of supporting around 257 municipalities across the country to meet mandate, as required by the Constitution.
The current state of the South African local government sector can be characterized as being in a state of crisis. This not only threatens the delivery of critical services, but also puts the local governance fabric at risk.
The financial health of local governments remains an important concern that requires immediate and comprehensive reforms to prevent further deterioration and promote sustainable development at the local level.
Municipalities in South Africa face significant financial challenges due to systemic inefficiency, fraud management and inadequate revenues.
The 2023 Auditor's report revealed mixed performance in the local government sector. Thirty-three municipalities found to have better audit results than the previous fiscal year, while 29 had worse results. The report also shows that many municipalities are in financial difficulties and are unable to fulfill their obligations.
As a result, some municipalities have experienced a wave of protests in service delivery, and gradually erode public trust in this important sector of democratic governments.
One of the main challenges facing local governments is their revenue base that is insufficient to maintain their operations. An important factor contributing to this is the poor collection of local taxes and service charges, often due to inefficiency and unpaid cultures among residents.
What exacerbates this issue is the widespread problem of a poor billing system with a municipality-wide billing system and the lack of enforcement mechanisms to ensure residents, businesses and state agencies pay their debts.
Local governments rely heavily on grants from the central government, but these grants often do not cover all costs, making some important expenditure items an unsupplied mission. This creates a vicious cycle that leads to further non-payment and financial burdens as local governments lack the funds to improve services.
Lack of skills
Another important issue is that more capacity is needed within the local government. Many local governments suffer from a lack of skilled personnel, particularly in financial management and planning. This hinders our ability to effectively manage our finances and develop sound economic strategies that support sustainability.
One solution to this problem is to implement a targeted training programme for local practitioners and councillors. Municipalities need to attract skilled professionals to the local government sector to improve financial management.
The Seventh administration's support for the local government sector remains urgent and challenging. Priorities include numerous interventions by modernizing the billing system, improving local government revenue collection mechanisms, strengthening enforcement measures against default payers, and promoting payment culture.
Innovative approaches such as leveraging technology for fee tracking and collection will undoubtedly play a key role in addressing this revenue collection challenge.
The second important intervention in the administration is to implement strong measures to reduce mismanagement in local governments. This should include increasing transparency and accountability in governance, as well as providing comprehensive practices in local government planning and essential services to citizens.
It should also include strengthening national and state government oversight functions in local government operations. At the local level, strengthening support for watchdogs undoubtedly includes empowerment of council watchdogs such as local government public account committees to enforce accountability for the costs of public money.
training
The third intervention is to invest in capacity building mediation, including training programs and mentorship networks involving local and international stakeholders, and all social partnerships with private sector and civil society groups equally entitled to the success of local government services delivery.
These interventions must enable local governments to understand their rights and reliance on not relying on protests in service delivery, while equipping local government leaders and staff with the skills necessary to effectively send citizen duties.
Finally, a detailed review of the local government's financial framework is required to ensure that local governments receive appropriate funds to maintain their existing infrastructure and build new infrastructure that is commensurate with population growth.
The financial health of South African municipalities is a key point for the overall development and stability of the country. Addressing the deep sitting issues that plague local government finances is essential not only to improve service delivery and infrastructure, but also to restore local governance and, in fact, the public's trust in our democracy itself.
Strengthening revenue collection, strengthened governance, capacity building and financial reforms will enable South Africa to guide local governments towards a path of financial sustainability and effective service delivery.
Local government success relies on proper attention and support from domestic and state governments.
*Lwazi Sikiti is the policy research and advocacy manager for South Africa's urban networks.
