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Analysis of the challenges faced by municipalities in implementing municipal property rates Act no 6 of 2004 : the case study: three local municipalities within the Dr Kaunda District Municipality in North West Province, South Africa
(Stellenbosch : Stellenbosch University, 2022-04) Kgoete, Oupa; Ajam, Tania; Stellenbosch University. Faculty of Economic and Management Sciences. School of Public Leadership.
ENGLISH SUMMARY: The Municipal Property Rates Act No 6 of 2004 was promulgated and came into effect on 2 July 2005. To this end, all municipalities in the Republic of South Africa were required to conform with the Act. The Municipal Property Rates Act (MPRA) was contemplated as a means to assist municipalities to maximise revenue through property taxes. To achieve this, the process involved developing Rates By-laws, Rates Policy and General Valuation Roll so as to enable municipalities to bill all rateable properties as per the approved General Valuation roll. The Act in its entirety, therefore, sought to assist municipalities to expand their revenue bases in an endeavour to better provide basic services and perform their constitutionally mandated functions. The implementation of the MPRA required good planning and in-depth consideration in order to achieve the smooth transition from the old to the new rating arrangements. The newly developed valuation roll needed to undergo quality assurance before implementation. Similarly, the Rates Policy needed Council approval. This study sets out to describe the revenue sources of municipalities and to understand the challenges faced by municipalities in implementing the MPRA so as to make recommendations that would enable the municipalities to realise the intentions of the MPRA. Literature review was performed, cases were analysed and a mixed methods approach was used. The mixed methods comprised in-depth qualitative interviews with key informants from the selected municipalities of the City of Matlosana, JB Marks and Maquassi Hills in Dr Kenneth Kaunda District as well as a self-administered structured survey distributed to all employees involved with the MPRA in all the three municipalities. The literature review showed that addressing all implementation risks presented severe challenges to municipalities. Many of them experienced serious problems with the implementation of the new Act. For instance, the Knysna Municipality aborted its tender enquiry for a general valuation and instead replaced it with a call for proposals. Others faced legal challenges because they do not yet have rates policies in place or if they do, these are flawed. The case analysis showed that the legal challenges resulted in severe loss of revenue. Furthermore, municipalities were slow in understanding that the new MPRA meant that traditional valuation methods could no longer be used and that the Act introduced a difference in the approach to the rates paid by different categories of ratepayers; for instance, those who owned vacant stands compared to those who owned the biggest houses in a suburb. It has taken long for many municipalities to completely understand these changes, incorporate them in their rolls and apply them in a manner consistent with the new act. Given the results of this study, it is recommended that municipalities should make a concerted effort to learn from previous experience, especially from court cases whose outcomes resulted in revenue reduction. The municipalities’ annual reports could include a section on “lesson learned” which can be addressed by the municipalities. Municipalities should implement a hybrid rate unit within their establishments, where they appoint a private and experienced municipal valuer to work with in-house valuers. The misunderstanding of the MPRA should be addressed through stakeholder outreach programmes, training and awareness, particularly in the agricultural and farming category. The education of the customers about the MPRA 2004 needs to be infused into the consultative process. This will be achieved if the municipal management plan well in advance and involve the public in everything they do, particularly on issues that involve the public’s money or properties such as the MPRA. Education and experience are important variables for municipalities to consider in hiring officials. However, it should be noted that experience can be acquired on-the-job and that in-house training can bring less experienced personnel up to speed.
Effectiveness of municipal public accounts committees in fiscal oversight: a case study of Sakhisizwe Municipality
(Stellenbosch : Stellenbosch University, 2021-12) Suka, Siyabonga; Ajam, Tania; Stellenbosch University. Faculty of Economic and Management Sciences. School of Public Leadership.
ENGLISH SUMMARY : In the local government sphere, the committee that plays the oversight role such as the PAC in the National Assembly and the Provincial Legislature is the Municipal Public Accounts Committee (MPAC). The MPAC was established in terms of section 79 of the Municipal Structures Act of 1998. The National Treasury and Department of Cooperative Governance and Traditional Affairs (COGTA) jointly developed guidelines establishing the MPACs in municipalities. Burger argues that “only the legislature has the authority to demand accountability from the executive authority” (2014:77). When the Municipal Public Accounts Committees were introduced in municipalities it was a new phenomenon. Sakhisizwe Municipality is not different from other municipalities concerning how the introduction of Municipal Public Accounts Committees affected other municipalities. The introduction of this committee strengthens the oversight responsibility of the municipal Council over the executive and administration for them to be fully accountable for their actions in handling the public finances. The MPAC only invites the management to attend the meetings of the MPAC leaving out the Executive Committee. The municipality is not making available the oversight report on Annual Report for the public to have access to it, by placing it on the municipal website and the public libraries. MPAC has no dedicated personnel to support the secretariat and research function. No training that was provided by the municipality to the MPAC members other than the one that was provided by SALGA. For municipalities to strengthen the effectiveness of the MPAC they should consider appointing the chairperson from the ranks of the minority parties; this practice will ensure accountability and bias will be reduced. District forums and study groups by SALGA must be established in order to share the good practices amongst the municipalities.
Enhancing the effectiveness of data management to improve data quality for evidence-based decision-making : a case study of Pelonomi Tertiary Hospital
(Stellenbosch : Stellenbosch University, 2024-03) Malahleha, Mafumane Alice; Ajam, Tania; Stellenbosch University. Faculty of Economic and Management Sciences. School of Public Leadership.
ENGLISH SUMMARY: We are currently living in an era where effective data management has become a critical process for improving data quality and informing rational management decision-making across organisations. New technologies show promising results globally for managing data. The healthcare sector produces heterogenous data daily and big data solutions are used internationally to manage voluminous data as traditional data management systems cannot keep up. In the healthcare sector, the need for effective decision-making is high and the consequences of ill-informed decisions could lead to loss of life; this compels the decision-makers to have real-time data, sound data management policies and other essential resources to manage and improve the quality of data produced and used to inform such decisions. Good data management practices can assist in minimising potential errors by establishing efficient processes and policies for usage and building confidence in the data being used to make rational decisions about patient care and health outcomes across healthcare institutions. The study aims to enhance the effectiveness of data management practices at Pelonomi Tertiary Hospital to improve data quality for evidence-based decision-making. A qualitative case study approach is utilised. Self-administered questionnaires and semi-structured interviews have been deployed as data collection methods, purposeful sampling was done and an appropriate sample size was selected. The findings of the study revealed that gradual adoption of new technologies can assist in overcoming the system fragmentation and harmonise data management practices for improved data quality that can be used confidently for evidence-based decision-making. Management support is key to achieving data of high quality and there is a need to comply with data management human resource requirements as stipulated in the District Health Information Management Systems policy. The placement of data management personnel on the organogram needs urgent management attention if the hospital is to maintain high data quality and enhance data management practices. This will also assist in role clarification in data management activities and improve levels of accountability and ownership of data produced.
Evaluating the impact of covid-19 pandemic on the financial sustainability of Northern Cape Local Municipalities
(Stellenbosch : Stellenbosch University, 2022-12) Hintsa, Lalelani; Ajam, Tania; Stellenbosch University. Faculty of Economic and Management Sciences. School of Public Leadership.
ENGLISH SUMMARY: As a result of the Covid-19 outbreak, most institutions, including municipalities, suffered disruptions in service continuity and financial devastation. Economic activities came to a grinding halt, resulting in the rise in unemployment, slow growth and unsustainable service delivery. The purpose of this study was to assess the impact of the Covid-19 pandemic on financial sustainability of Northern Cape municipalities. The researcher identified financial ratios, Medium-term Revenue and Expenditure Frameworks and analysis of financial management capacity as key variables to evaluate local government financial sustainability. Through the review of academic and policy literature, many compelling definitions of these variables emerged and evolved. The study utilised a case study research approach within the context of social science paradigm context. A purposive sampling technique was employed in selecting the Northern Cape local municipalities to participate in the study. The study applied a mixed method approach based on deductive and inductive reasoning rooted in quantitative and qualitative research approaches, following an explanatory sequential analysis of data. The mixed method information gathering approaches informed the descriptive and explanatory mechanisms of research design. Financial ratio trend analysis and interviews with municipal financial officials and a questionnaire were utilised as data collection methods. The findings of the study revealed the extent to which the responding municipalities were affected by Covid-19 pandemic relative to their performance before the pandemic. The results are indicative of an ailing state of financial affairs and unsustainable operations. The responding municipalities failed to meet crucial financial obligations with evident failures in systems and processes, both before and after the pandemic. Furthermore, the findings depicted deteriorating financial sustainability and health before the pandemic, and the financial condition worsened, thereafter, during the Covid-19 lockdown. The limitation of the study was its sample size which did not allow for statistical analysis, consequently, the results cannot be generalised. Further research is required that would broaden insights in this area of research, including addition of variables such as the dynamics of the political-administrative interface.
Exploring the non-pecuniary costs of the administrative burden of public procurement : a case of the Western Cape Department of Transport and Public Works
(Stellenbosch : Stellenbosch University, 2021-12) Adams, Azra Leoni; Ajam, Tania; Stellenbosch University. Faculty of Economic and Management Sciences. School of Public Leadership.
ENGLISH SUMMARY : Understanding non-compliance to legislation that governs procurement in public entities requires knowledge of how rules are experienced by those who implement them. This study is an exploration of the non-pecuniary costs of the administrative burden of public procurement, using the Western Cape Department of Transport and Public Works (DTPW) as a case study. Administrative burdens are perceived by those who experience them through various non-pecuniary costs. This study aims to identify variables contributing to these costs and link them to the efficiency and effectiveness of procurement implementation. A qualitative research design was used in this study and the research was exploratory. A sample of nine (9) respondents was selected through purposive sampling to participate in the study. Two data collection methods were used: semi-structured interviews, and the researcher’s documented observations and personal experiences following an autoethnographic approach. Thematic analysis was used to analyse the data, using the deductive approach. The findings indicate that the extent to which administrative burdens are experienced by public procurement officials is indicative of the efficiency and effectiveness of the implementation of procurement regulations and policies. Furthermore, challenges with the implementation of SCM and procurement regulation and policy were revealed. These challenges include, inter alia, noncompliance with SCM policy and regulations because of lack of procurement planning, a lack of knowledge and skills, shortage of operational capacity, outdated operating systems, low staff morale and motivation. In addition, effective leadership and management, integrated ICT solution and the professionalisation of SCM personnel were found to be key success factors to manage these challenges and improve procurement implementation. The limitations of the study were its sample size and the use of one organisation as a case study. Future research in other public entities would be beneficial in broadening insights into this research phenomenon. The study provides empirical evidence which would contribute to the body of knowledge and address the gap in this research area.
The fourth industrial revolution : a case study of the impact of the Internet of Things on road travellers in the Western Cape
(Stellenbosch : Stellenbosch University, 2023-12) Fisher, Darren; Ajam, Tania; Stellenbosch University. Faculty of Economic and Management Sciences. School of Public Leadership.
ENGLISH SUMMARY: The research conducted for this study explored a component of the Fourth Industrial Revolution (4IR), most notably the Internet of Things (IoT). The research was a case study based on the impact of the IoT on road users in the City of Cape Town (CoCT) in the Western Cape province of South Africa. The 4IR is loosely premised on the flow of information across enabled devices to enable users to access a service – in this case, road users must have access to information that will enable them to make decisions on optimising their travel experience in the CoCT. An IoT system requires a critical mass of users for it to be effective. Staggered access to the IoT will result in a digital divide, which is a stymieing factor to the provision of seamless services to citizens, especially road users in the CoCT. Such digital divide can be caused by several factors that include, inter alia, the adaptability of IoT applications to an environment, the interoperability of disjointed systems and the ease of access to the system by citizens. A key aim of the research was to analyse the legislative and policy gaps that exist in the process of advancing, implementing and adapting IoT technologies for use on the roads of the CoCT. The exponential growth of the IoT has brought about a significant challenge in the way governmental and other regulatory bodies attempt to create a semblance of standardisation. A global standard has yet to be developed, not least a country strategy nor a provincial strategy. If the boundaries of the fields applicable to the IoT are not defined and made distinct, the undertaking of developing the ideal policy may prove to be arduous. Public administrators have difficulty pinpointing a direct source of law or relevant historical background on which to base decisions relating to the most appropriate approach to the IoT. There is no one piece of legislation dedicated to the IoT in South Africa (SA). There exist several diverse pieces of legislation related to information technology, disjointed elements of which can be extracted to regulate the IoT in South Africa. It is therefore a significant omission that there is no dedicated legislation regarding the IoT in South Africa. The case of the IoT in advancing transport efficiency on the roads of the CoCT provides an opportunity to assess the value that public–private partnerships (PPPs) can add. The research provides an evaluation of the advantages and disadvantages of the IoT in relation to roads in the CoCT, in particular the minibus taxis and the MyCiTi bus coaches managed by the CoCT. Risks exist with the technology; however, the advantages outweigh the risks associated with the IoT in the case of the CoCT. The symbiotic relationship between the partners in a PPP is relative to its success. In the case of the CoCT, the goal is to provide a cost-effective, efficient transport support service. PPPs are often complex structures, the more complex the higher the associated costs. In addition, the higher the number of participants involved in the implementation of a PPP, the higher the level of complexity, hence the higher the risk of failure. The research concludes with the assertion that the presence of the IoT is better than having no IoT. There is still much that needs to be done to optimise the use of the IoT to benefit road users in the CoCT and the system requires constant updates, because nothing works together unless everything works together.
Funding free basic services through the local government equitable share : a case study of the City of Tshwane Metropolitan Municipality
(Stellenbosch : Stellenbosch University, 2023-12) Matlali, Elellwang; Ajam, Tania; Stellenbosch University. Faculty of Economic and Management Sciences. School of Public Leadership.
ENGLISH SUMMARY: At the national level, the government offers social assistance in the form of social grants to children, the elderly, and people living with disabilities and in the last few years, even the unemployed through the Social Relief of Distress grant. In the local government sphere, there is a similar initiative, which is through the provision of Free Basic Services (FBS). The government introduced the FBS policy in 2001 to alleviate poverty in the country. The White Paper on Local Government, 1998 envisaged an initiation of programmes and new policies aimed at alleviating poverty in the country. FBS (i.e. water, electricity, sanitation, and refuse removal) are provided to those households unable to pay for basic services, defined as indigent households. Indigent households are those that are unable to make monetary contributions towards basic services. In 2023, the qualifying threshold income was R4 216. Qualifying households were required to register for FBS with the municipality and their indigency status was reviewed from time to time, generally on an annual basis. This qualifying income threshold was used at both national departments and at the City of Tshwane to determine the affordability threshold. This study investigates the funding of FBS through the Local Government Equitable Share (LGES) intergovernmental grant using the City of Tshwane (CoT) Metropolitan Municipality as a case study. The LGES is a transfer to local government from the nationally raised revenue. The LGES is an unconditional transfer meant to be used at the discretion of the local government. The LGES has three components, one of them being the Basic Services component which assists municipalities with the provision of FBS and accounts for all indigent households – that is households that are deemed to be receiving an income below R4 216 that should be receiving these services, i.e. electricity, free basic water, sanitation and refuse removal services. The LGES covers the operational costs of providing FBS, which is the focus of this study. A mixed-methods approach was used in this study. The empirical component of the study relied on budget and financial management documents both from the national and local levels, National Treasury’s local government database, reports, and publications from various institutions. The non-empirical component was through interviews and literature reviews. For the interviews, purposive sampling was used to select the participants. The lack of clarity on the definition of “indigent” and reliance on indigent registers posed challenges for the implementation of FBS as not all indigent households were captured in the indigent registers. This is due to a qualifying criterion that is applied to FBS. The findings revealed that municipal costs of FBS provision diverge from subsidies received in the CoT and these resulted in overfunding for the periods under study, poor coverage in the subsidy amount, adequacy of the LGES, White Paper assumptions have not proven to be true, exogenous pressures on the revenue side, and that limited coverage in the FBS programme is not a funding issue. Recommendations flowing from this study relate to the need for reviewing the FBS policy. This is crucial to ensure that essential services are made available to vulnerable households. It will also contribute to better targeting of indigent households and the review of the LGES formula. This is pertinent in ensuring that municipalities have the financial resources required to provide FBS and account for variances in the costs of FBS provision across municipalities. The recommendations also speak to setting up a monitoring system at a national level to assess progress with FBS provision to provide valuable insights on the effectiveness of municipal indigent policies. This will enable policymakers to make evidence-based decisions to improve the lives of indigent people in the country. Re-evaluating the minimum service levels of the FBS policy will ensure that the policy is responsive and remains relevant to the needs of stakeholders. The recommendations address the mismatch between funded households in the LGES and those in municipal indigent registers looking into the collaborative efforts between different stakeholders. The recommendations also consider the merits of attaching conditions to FBS allocations and the impact this could have on service provision. Lastly, recommendations are made for dealing with inadequate investment in maintenance. Access to basic services has increased since 2001 but more work still needs to be done to ensure that all South African indigent households have access to basic services.
The impact of socioeconomic factors on municipal fiscal health in South Africa
(Stellenbosch : Stellenbosch University, 2022-04) Ruplal, Kavitha; Ajam, Tania; Stellenbosch University. Faculty of Economic and Management Sciences. School of Public Leadership.
ENGLISH SUMMARY: Municipal fiscal health and the measurement thereof has become a concern for governments and public administrators across the world. Significant episodes of fiscal stress experienced by the City of New York and Detroit in the 1970s and 1980s, as well as the global financial crisis in 2008, inspired a plethora of research into the topic. Since then, several approaches and methodologies have been developed by public finance experts, academics and practitioners on how local government fiscal health can be better measured and even predicted to avert potential fiscal crises. Despite there being no uniform definition of local government fiscal health after four decades of research into the topic, there is consensus that local government fiscal health is a multidimensional concept related to the fields of economics, public administration, public finance, accounting, planning, political science and sociology. There are thus different ways in which local government fiscal health can be measured and understood. Relying dogmatically on any one measurement system limits the ability to understand some of the other causes that may underlie the poor fiscal health of a local government institution. In South Africa, many municipalities are in crisis and despite the urgency of the situation and the myriad of reports capturing symptoms of fiscal distress, comparatively little is known about the underlying root causes from a structural and systemic perspective. In this research study, the researcher uses factor analysis to better understand how structural factors observed through a selection of practical and theoretically relevant socioeconomic variables impact the fiscal health of municipalities. This is particularly important within the context of South African local government given the country’s history of oppressive policies that have impacted the spatial, social, economic and financial landscape. To what extent are these structural issues still impeding the progress of municipalities in South Africa?
Institutionalising social dialogue: a micro-foundational perspective of the national economic and labour council of South Africa
(Stellenbosch : Stellenbosch University, 2021-12) Oosthuizen, Marius; Ajam, Tania; Stellenbosch University. Faculty of Economic and Management Sciences. School of Public Leadership.
ENGLISH SUMMARY : This study examined The National Economic and Labour Council (Nedlac) of South Africa, from a micro-foundational institutional perspective, within a multi-layer framework, and in so doing, identifies the possible limitations for consensus-building that arise from inadequate management of competing logics and the required frame formation during social dialogue. Nedlac emerged during South Africa’s transition to democracy in 1994 and was tasked with facilitating consensus on economic and development policy. By examining the microfoundational interactions between policy actors in the institutional field and studying the historical employment of frames, frame conflict, and frame formation processes of policy actors in the economic policy discourse, the study examined institutional entrepreneurship, cast as integrative leadership activities by constituency representatives, undertaken in pursuit of consensus-building, or frame formation at Nedlac. The study interpreted these developments against the backdrop of South Africa's political economic context and addressed the need for scholars and practitioners to better understand institutional leadership within the context of policy deliberation as part of the institutional life of pluralistic democratic societies. The results contribute to a micro-foundational perspective of institutions, to theorise about cross-sectoral social dialogue, and in terms of practice, to policymaking in contexts such as South Africa that are beset with conflicting interests. The results of the study have implications for institutional design, for discursive approaches to policymaking and mediation, and leadership practices in multi-sectoral institutions. It enhances comprehension of the relationship between theory and practice and offers policymakers and institutional leaders in South Africa and elsewhere, executable insights into new approaches to consensus-building. The study proposes institutionalize social dialogue, underpinned by reflexive frame formation, as a means for social dialogue for securing the social contract and in response to new challenges emerging in policymaking and in public leadership as a result of increasingly complex, multi-stakeholder demands. It recognises that institutional pluralism must be accommodated and better understood by policymakers and institutional leaders and for the design and management of pluralistic institutions.
Measuring fiscal sustainability and its determinants in South African municipalities
(Stellenbosch : Stellenbosch University, 2022-04) Pakkies, Letsepa; Ajam, Tania; Burger, Johan; Mortimer, Len; Stellenbosch University. Faculty of Economic and Management Sciences. School of Public Leadership.
ENGLISH SUMMARY: African municipalities; the analysis also examines their ability to pay off long-term debts and to meet the current obligation. The composition of spending and how to improve efficiency are also studied. This study adopted a quantitative research approach. A combination of descriptive and correlational research and the data envelopment analysis (DEA) model was used. The documents and data analysed were published by the National Treasury; the Reserve Bank of South Africa; Statistics South Africa; the Auditor-General South Africa; and the municipal annual reports. The findings indicated that several municipalities were administratively intense. Over time, costs for the administrative component of municipal functions surpassed the service delivery spending. In addition, the research study finds that employee costs were the fastest growing item in municipal budgets and became the biggest budgetary pressure facing municipalities. Furthermore, inefficiency has largely nullified the impact of funding to local government, which was intended to improve service delivery. These trends must be reversed to attain economies of scale. Municipalities must change the composition of their expenditure and prioritise their service delivery. Municipal organisational structures should be fit-for-purpose, and functional duplications should be reduced. This dissertation is divided into four distinct but complementary papers. Each paper constitutes a chapter. There are also two general chapters, and the entire dissertation thus consists of six chapters. Paper I (Chapter 2) adopts a modification of the definitions of “sustainability” as formulated by Blanchard, Chouraqui, Hagemann and Sartor (1990) and by Hagist & Vatter (2009). The concepts of Auerbach, Gokhale and Kotlikoff (1991) are also included. The paper proposes a new model for measuring the fiscal sustainability of municipalities. This model accounts for demographic changes, performance of local economies and financial management at the municipal level. This paper assesses the sustainability of the supply of goods and services offered by South African municipalities. It examines their solvency (ability to pay off long-term debts), liquidity (ability to meet current obligations), and the composition of spending. The economic circumstances surrounding each municipality are also examined. The resultant indicators provide valuable data about the state of municipal finances. They can be used to assess the action needed to be followed at present to ensure the long-term fiscal sustainability of municipalities. For practical purposes, the proposed model is then applied to seven South African metropolitan municipalities. The last part of the paper proposes various approaches to close the fiscal gap. Paper II (Chapter 3) examines the scale effects and the determinants of administrative intensity within South African municipalities. Regression analysis, a form of predictive modelling technique, was performed. The results revealed that the spending by functions in municipalities is administratively orientated, with insufficient economies of scale. Regarding the determinants of administrative intensity, capital transfers and growth in the population were shown to be the most influential factors in determining the administrative costs of municipalities. Moreover, the findings indicated that the more own-source revenues a municipality has, the better it manages its finances. The results from the second model indicated that several municipalities were administratively intense. These findings are consistent with the further analysis in the third model, which show that, over time, the administrative component of municipal functions have surpassed service delivery spending. This trend must be reversed to attain economies of scale. Paper III (Chapter 4) examines the influence of personnel management regarding municipal finances. The sources were budget documents published annually by the municipalities, data from Statistics South Africa and annual financial statements audited by the South African Auditor-General. The analysis found that there is fundamental systemic incoherence within the present constellation of the composition of municipal spending. The most substantial budgetary pressure facing South African municipalities is the rising share of personnel expenditure. This expenditure has increased markedly over the last 12 years, without proportional increases in productivity or in the number of people employed at municipalities. The study found that these increases are considerably higher than in other spheres of government. They have a negative bearing on local government's ability to manage and fast-track service delivery. This excessive spending on personnel has impacted smaller municipalities the most. Such expenditure diverts resources away from service delivery requirements, which also causes tension with the policy objectives of local government. This situation has created substantial cost pressure on municipal budgets. In some municipalities, particularly rural ones, this cost pressure eclipsed other service delivery expenditure to the extent that it undermined the coverage and quality of services offered. There is, therefore, a need for local government to limit increases in employee costs. Paper IV (Chapter 5) examines the efficiency with which district municipalities that provide water and sanitation services deliver on those services. It analyses the expenditures and outputs attributable to these functions, using the DEA technique as applied to cross-sectional data for 2015–2016. The sample included 19 high service responsibility municipalities with water and sanitation functions. Among the 19 municipalities, 12 were found to be inefficient and spent a high proportion of their operational expenditure on municipal administration. Furthermore, using an instrumental variable approach, this study examined the determinants of variation in water and sanitation service efficiency. These drivers were identified as fiscal autonomy, value of assets and number of households within each municipal jurisdiction. The challenge is that municipalities already spend significantly more than they should on administration costs maintaining large administrative components, crowding out service delivery and investment expenditures. This scenario makes these municipalities fiscally unsustainable over time, as the asset base is highly dependent on grants and their asset management practices are below the required levels. If high service responsibility municipalities are to be efficient and sustainable, local government should do the following: create cost-savings measure, divert resources to frontline services and promote improved governance for the long-term sustainability of public finances.
The role of technical and vocational education and training institutions in the Namibian National System of Innovation : a case study of community skills development centres in the hospitality and tourism sectors
(Stellenbosch : Stellenbosch University, 2024-03) Katire, Ferdinand; Ajam, Tania; Stellenbosch University. Faculty of Economic and Management Sciences. School of Public Leadership.
ENGLISH SUMMARY: Critical skills produced through Technical and Vocational Education and Training (TVET) are expected to contribute significantly to Namibia’s transformation from a production-based economy into a knowledge economy by 2030. This research study thus examined the role of TVET institutions in the Namibian National System of Innovation (NSI). The study employed an exploratory case study method focusing on the role played by Community Skills Development Centres (COSDECs) in supporting and contributing to innovation in Namibia’s hospitality and tourism sectors. Semistructured interviews were conducted with participants from the COSDECs and the Community Skills Development Foundation (COSDEF) to seek their views on the role played by COSDECs. Further data was obtained by analysing the COSDEF’s Strategic Plan and other reports on COSDECs. Based on the literature review, a conceptual framework was developed to conceptualise and describe the role of COSDECs in supporting and promoting innovation in the hospitality and tourism sectors. The main constituents of the framework include enablers, innovative activities and outputs that contribute to stated outcomes. The findings and analysis thereof highlight the critical role played by COSDECs in various communities by providing critical skills to unemployed youth and previously disadvantaged groups to assist them in gaining meaningful employment and partaking in economic development activities. The study concludes that COSDECs and their trade programmes, particularly in hospitality and tourism, are not designed, focused or resourced to play a significant role in the NSI. A significant transformation is required for COSDECs and their programmes to drive and make meaningful contributions to innovation in their local ecosystems beyond the traditional vocational education and job training functions. The study concludes with national- and institutional-level recommendations, including the need for government and industry to collaborate to provide a range of in-house training facilities in COSDECs to enhance the delivery of the hospitality and tourism programmes. Furthermore, the study recommends developing and implementing specific action plans for innovation at the institutions.

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