A Payment Culture Framework for Municipal Services in the North West Province

Abstract

Payment for municipal services in South Africa, especially in the North West province, has been a contentious issue as consumer debt keeps on escalating despite the managerial measures taken by municipal role-players to stop debt accruals. The purpose of this study was to identify the factors that could enhance payment compliance for municipal services, as well as to propose a payment culture framework for municipal services. Residents living within the municipal areas in the four district municipalities of the North West province, municipal role-players, councilors, as well as traditional leaders were involved in this study. Data were collected using a structured questionnaire and were analysed using SPSS. Findings obtained from the study indicate vast opportunities for municipalities to strategically enhance payment compliance. It was discovered that fiscal exchange is the most influential factor to induce residents’ inclination to pay for municipal services. Other factors identified to influence payment compliance include deterrence messages, social influence, payment education, budget transparency, service administration, traditional leadership, communication dynamics and adoption of emerging innovation options. Findings also indicate a lack of collaboration between municipal role-players and politicians resulting in administrative versus political dichotomy. The study recommended that municipalities should provide adequate services to residents and initiate payment enforcement measures, communication dynamics, emerging sustaining innovation options, effective collaborations, as well as encouraging traditional leadership to facilitate payment compliance for municipal services in the North West province.