An investigative study assessing the success factors and hindrances in the effective resource mobilisation for a municipal entity in the Eastern Cape

Boateng, Joyce (2013-03)

Thesis (MBA) -- Stellenbosch University, 2013.


Resources are the heartbeat of an institution. Without adequate resources, an institution will fail to implement its mandate and will also face problems as a going concern that could eventually lead to its collapse, thereby failing the hopes and aspirations of the people it claims to serve. An institution must develop a conscious effort to mobilise its resources by including this aspect in its business strategy and prioritising it. Ntinga O.R. Tambo Development Agency has been established to implement the LED strategy of the O.R. Tambo District Municipality. As a municipal entity this Development Agency is prohibited from trading to realise additional funding and depends solely on grants from the District Municipality, which are on the decline. Registering the entity as a state-owned company (SOC) would allow it to trade to generate revenue and be eligible to collaborate with investors in developing self-sustaining communities. Improving the socio-economic status of any community requires the development of capital infrastructure. Sustainable community development can only be achieved if proper processes are in place to facilitate an all-inclusive community participation process that allows the communities to decide on programmes that will improve their livelihoods and also take their cultural beliefs into consideration. Communities must be empowered to take decisions that affect their future and they must be consulted at the project initiation stage through to its implementation and finalisation. The community programmes that are implemented must be informed by community needs assessments that are properly undertaken and will utilise community resources to meet unmet needs. Successful community programmes are those that are embraced by the communities. Performance monitoring systems are important to assess the attainment of set objectives so that the programme’s impact on the socio-economic status of the communities can be evaluated. Management is responsible for mobilising resources. However, successful resource mobilisation requires the involvement of the board of directors and the establishment of a resource mobilisation advisory council, with its members being well connected. A lean resource mobilisation structure should be maintained and populated when the need arises. Good governance and clean audit reports are catalysts for successful resource mobilisation and all governance structures must be in place to ensure that fraud and theft are limited. Continuous risk assessments are critical in curbing fraud and theft. Relationship management with funders is important. It entails the development of trust and respect. Some funders will invest in a programme based on the common values they share with the organisation. The organisational culture must visibly display the shared values that are lived by all of the organisation’s employees. Resource mobilisation efforts should not rely solely on one income stream, but should be a combination of a number of efforts, from strategic partnerships in the form of public-private partnerships, to property management. An institution must be creative and innovative in adapting its operations in an environment that is ever-changing especially its agility in responding to constant changes in funding institutions’ requirements. Non-compliance with donor funding requirements and investor funding conditions is a barrier to resource mobilisation efforts. Lack of properly qualified personnel to manage investor and donor funding, which could lead to mismanagement of funds, erodes investor confidence in an institution.

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