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Municipalities Can Play A Key Role In South Africa’s Economic Development. Here’s How

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JOHANN KIRSTEN and HELANYA FOURIE

Local economic development and better municipal service delivery are vital if South Africa wants to broaden economic participation and reverse its unemployment trend.

To achieve these objectives, it is necessary to strengthen municipal finances and investment. Good municipal governance is a prerequisite. Intermediate city municipalities have an important role to play, because urban development is critical for growth and investment. It may also reduce the pressure caused by urbanisation to metros.

Municipalities should:

  • provide democratic and accountable governance for local communities
  • ensure the provision of services in a sustainable way
  • promote social and economic development as well as a safe and healthy environment
  • encourage the involvement of communities in matters of local government.

Current outcomes suggest that South Africa’s municipalities are failing in many of these respects.

The consequences for the country are dire and widespread. Municipal failure not only affects large businesses. It also

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