Metropolitan financing and development in South Africa: Quo Vadis?

Abstract

Metropolitan municipalities are largely regarded as the catalysts of economic development. The main finding of the paper globally. Eight metropolitan municipalities were introduced in the then new democratic South African state, post 1994. The article only reviewed the primary and secondary literature impacting on metropolitan financing and development, drawn from the desktop literature review and documentary analysis in the larger study. This article focussed on the three largest metropolitan municipalities, namely eThekwini; Cape Town and Tshwane City Councils. Increasing urbanisation and infrastructural decay has placed considerable pressure on these municipalities to deliver on their service delivery mandate, in the broader context of redistribution/equity. The accumulated developmental backlogs pre and post 1994 in South Africa are interrogated and the required funding for additional growth/development in metropolitan municipalities are explored. Public-private partnerships and alternative service delivery models are also examined as an option for enhancing service delivery. The issue of unfunded mandates has to be given serious consideration as they are currently impacting negatively on the finances of local government. The notion of a “smart city” and public private partnerships in the broader context of local economic development and financial sustainability has to be prioritised in terms of the overall socio – economic impact on local communities. A main finding of the paper was a funding gap in local government South Africa and the development of a model to address such a funding gap.

Keywords: Development, Financing, Income, Metropolitan, Municipalities, South Africa