Government transfers, municipal financial performance, and access to improved sanitation in urban South Africa

Abstract

ABSTRACT This study examines the impact of national government transfers and municipal financial performance on access to sanitation in South Africa. The study uses fixed and random effects models to analyse annual panel data for 35 urban municipalities during the period 2005–20. Results show that municipalities require between R12 200 and R14 300 (about US$714 and US$836) from the national government to provide each household unit with access to a flush toilet. This figure is lower in smaller urban municipalities, which require between R8 404 and R10 205 (about US$492 and US$597). Equally, smaller urban municipalities require fewer surpluses to provide households with flush toilets compared to metropolitan municipalities. These results have implications for the level of national government spending and municipal financial performance needed to address sanitation backlogs. Thus, the study contributes to the ongoing discussion on the feasibility of developing countries attaining SDG 6 targets by 2030.