Browsing by Author "Hintsa, Lalelani"

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    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.