Abstract

The majority of South African municipalities facing the challenges of unemployment, poverty and weak infrastructure are in rural areas. To fulfil their mandate, they depend significantly on financial transfers. This is something that the government is focused on minimising as evidenced by the recent Department of Cooperative Governance and Traditional Affairs proposal of amalgamating many municipalities to make them self-reliant and functional. This paper asks the question: ‘will amalgamations of rural municipalities correct for financial viability and functionality’? Using case studies of amalgamated municipalities, the paper observes that amalgamations will not make all rural municipalities self-sufficient and functional.

Highlights

  • Introduction and problem statementLocal government in South Africa is facing a myriad of challenges that include poor economic growth and high levels of unemployment and poverty

  • According to the South African Department of Cooperative Governance and Traditional Affairs (COGTA), a third of municipalities were classified as dysfunctional and unviable, while another third are at risk, and the remaining third are functional and viable (Department of Cooperative Governance and Traditional Affairs 2015)

  • The purpose of this study is to assess whether municipalities which were due for demarcation during the 2016 local government elections will be viable and functional, at least according to the COGTA definition of viability and functionality

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Summary

Introduction

Introduction and problem statementLocal government in South Africa is facing a myriad of challenges that include poor economic growth and high levels of unemployment and poverty. Under the Group Areas Amendment Act of 1962, provincial administrators constituted ‘Local Affairs Committees’ or ‘Management Committees’ in designated Coloured and Indian areas In their initial phases, these committees were intended to act in a purely consultative capacity in relation to WLAs, which retained administrative control over their areas. These committees were intended to act in a purely consultative capacity in relation to WLAs, which retained administrative control over their areas These committees would subsequently be granted full local authority status in terms of the criteria set out by provincial administrators in relation to a prescribed range of local issues. Despite their transformation into wholly elected entities, very few attained full local authority, as the majority of the committees status remained mere advisory bodies with little powers beyond granting trading licenses” (Lemon 1992)

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