THE WORK
CONTINUES Local government plays a central role in the provision of services to communities. We spoke to South African Local Government Association leaders about their plans to improve and inspire service delivery. By Puseletso Mompei
K
homotso Letsatsi, chief officer: municipal finance, fiscal policy and economic growth at the South African Local Government Association (SALGA), says one of the biggest challenges facing municipalities in South Africa is overdependency on fiscal to fund their operational and capital expenditure. ”This dependency is more pronounced in smaller municipalities that do not have a big commercial and industrial sector, as the rate base is thinner and the unemployment rate is higher.” She says SALGA aims to raise the profile of economic development as a function of municipalities, which if executed well, would help grow business and broaden the rate base while reducing unemployment. “The starting point is drawing the attention of new councillors to their role in developing an environment that is conducive to private business growth. SALGA will provide an induction programme for the councillors and emphasise that infrastructure maintenance, red-tape reduction, city cleanliness and ethical leadership are all ingredients of a city/town that is likely to attract new investments and retain existing ones.” She says the second area of focus is to assist small towns in reviving their economies. She explains that “we are focusing on a range of areas, from both a
sector point of view and a policy, fiscal, financial, institutional, regulatory and support point of view.” SALGA’s work includes advocating for policy shifts to enable municipalities to play their full role in the energy sector. “The required changes need to be brought about by the collective effort of all stakeholders. Our role is to make sure that the right policies, legislation, institutional arrangements and fiscal framework are in place and that policies and plans are properly implemented. Our aim is for our actions to bring about sustainable services that are affordable and reliable, and meet norms and standards, such as water quality.”
CHALLENGES AND THEIR IMPACT ON PEOPLE Letsatsi says that the deteriorating financial health of some municipalities is one of the biggest risks facing local government, and affects local government’s ability to fulfil its constitutional mandate. “Municipalities are experiencing billing challenges, thereby impacting their revenue-generating capacity negatively” she says, and creditworthiness adding that “being credit-unworthy impacts communities as municipalities are unable to obtain finance to implement services for communities.”
“SALGA will provide an induction programme for the councillors and emphasise that infrastructure maintenance, red-tape reduction, city cleanliness and ethical leadership are all ingredients of a city/town that is likely to attract new investments and retain existing ones.” – Khomotso Letsatsi
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VOICE OF LOCAL GOVERNMENT
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Khomotso Letsatsi
Letsatsi outlines the action plans, including sound financial management practices, effective oversight and good governance, for improving the financial health for municipalities and consequently the sustainable provision of services to communities. She says that the changes would result in increased investment in municipal infrastructure, which entails a guaranteed reliable supply of service to households, resulting in their willingness to pay for quality services rendered. In addition, she says, the inclusion of asset maintenance in municipal operational budgets entails funding for repairs and maintenance thereby improving the sustainable and reliable supply of basic services to communities. She admits that to implement these changes, there is a need to build capacity in data analytics, policy formulation, and research capabilities and adds that SALGA has entered into several Memorandums of Understanding with various strategic partners in all service delivery related sectors to address the challenges confronting municipalities and ensure these are aligned to the key performance targets.
ISSUE 37
2021/12/09 11:15 AM
