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Abstract
The aim of this article was to assess the financial and socio-economic impact of the two Industrial Development Zones (IDZs) emanating from the public-private partnerships (PPPs) arrangement in the Buffalo City and Nelson Mandela Metropolitan Municipalities, located in the Eastern Cape of South Africa. The metropolitan municipalities, despite the introduction of PPPs, are still faced with serious socio-economic challenges such as slow economic growth, increased poverty levels, unemployment and mostly stagnant infrastructure development as a result of underfunding. In addition, metropolitan municipalities remain obliged to deliver on their constitutional mandate, which is the provision of services to communities consistent with the Municipal Financed Management Act (MFMA) and Municipal Systems Act (MSA). Municipal financial planning and management leads to the development of methods to achieve sound financial performance in municipalities in line with service delivery demands. Sound municipal financial performance enables the municipalities to provide goods and services to all citizens. The study adopted a quantitative research approach, where a structured questionnaire was administered to 50 purposely selected participants. A core finding of the study suggested that the metropolitan municipalities benefited from the IDZs PPP arrangements where project planning, development and management skills were transferred to government officials, impacting on improved service delivery. A key recommendation forwarded suggests that both the national government and metropolitan municipalities need to champion PPP procurement through the enhancement of the Municipal Public Private Partnership Implementation Framework. The study concluded that a regulation, such as the aforementioned, without a structured implementation plan, eminently jeopardizes an investor’s interest in PPP arrangements, with negative financial consequences for the state.
Highlights
This article reflects on the financial and socioeconomic spin-offs resulting from Industrial Development Public-Private Partnerships (PPPs) with respect to local government metropolitan municipalities in the Eastern Cape Province, South Africa
Metropolitan municipalities remain obliged to deliver on their constitutional mandate, which is the provision of services to communities consistent with the Municipal Financed Management Act (MFMA) and Municipal Systems Act (MSA)
Data were collected by means of a structured questionnaire which was administered to purposely selected representatives heading the portfolio of Local Economic Development (LED), Integrated Development Plan (IDP), Senior Members affiliated to the Business Unit of Local Economic Development, Senior Managers of the Municipal Infrastructure Investment Unit (MIIY), Municipal Executive Managers. 50 questionnaires were distributed to the respondents
Summary
This article reflects on the financial and socioeconomic spin-offs resulting from Industrial Development Public-Private Partnerships (PPPs) with respect to local government metropolitan municipalities in the Eastern Cape Province, South Africa. The two metropolitan governments are Buffalo City and Nelson Mandela Bay. The aforementioned governments are characterized by two central urban points namely: Port Elizabeth and East London. The timeline of the study spans from the inception of democracy in South Africa in 1994, until the inception of the National Treasury PPP Practice Note Number 02 of 2004. In the South African local government sphere, according to Kanyane (2011), there are research findings that suggests that metropolitan government.
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