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Municipal Services and Financial Performance of Three Metropolitan Municipalities in South Africa


Affiliations
1 Department of Economics, Faculty of Economics and Finance, Tshwane University of Technology, Pretoria, South Africa
2 Tshwane University of Technology, Pretoria, South Africa

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The study aimed to evaluate the level of public satisfaction in the provision of municipal services. Specifically, the study examined the relationship between municipal services and financial performances in the three metropolitan municipalities in the Gauteng province of South Africa using secondary and primary data from a survey conducted in 2019. The study is based on the theory of social contract. The study employed both qualitative and quantitative techniques to examine the level of public satisfaction on municipal services delivered to the urban residents in the study areas. Data were gathered using semi-structured interviews and the annual financial statements from the three metropolitan municipalities in the Gauteng province of South Africa. The results from financial ratio indicators confirmed that the metropolitan municipalities were in a good financial position. However, the findings from financial ratio analysis should be used with utmost caution due to the major limitations and drawbacks associated with such financial measures. The content analysis in the study revealed that the demand for basic municipal services would remain high, costly, with severe backlogs, insufficient, and often with unresponsive management practices in the study areas. Moreover, the lack of entrepreneurial, innovative, and problem-solving skills and expertise among municipal managers compromised the provision of basic municipal services, and the residents remained unsatisfied in the three metropolitan municipalities of Gauteng Province. Other factors that contributed to the poor performances are also discussed.

Keywords

Content Analysis, Financial Performance, Financial Ratio Analysis, Municipal Services, South Africa.

JEL Classification Codes : G28, H72, R51

Paper Submission Date : December 30, 2021 ; Paper sent back for Revision : July 30, 2022 ; Paper Acceptance Date : October 6, 2022 ; Paper Published Online : December 15, 2022

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  • Municipal Services and Financial Performance of Three Metropolitan Municipalities in South Africa

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Authors

Mulatu F. Zerihun
Department of Economics, Faculty of Economics and Finance, Tshwane University of Technology, Pretoria, South Africa
Mariann P. Mashigo
Tshwane University of Technology, Pretoria, South Africa

Abstract


The study aimed to evaluate the level of public satisfaction in the provision of municipal services. Specifically, the study examined the relationship between municipal services and financial performances in the three metropolitan municipalities in the Gauteng province of South Africa using secondary and primary data from a survey conducted in 2019. The study is based on the theory of social contract. The study employed both qualitative and quantitative techniques to examine the level of public satisfaction on municipal services delivered to the urban residents in the study areas. Data were gathered using semi-structured interviews and the annual financial statements from the three metropolitan municipalities in the Gauteng province of South Africa. The results from financial ratio indicators confirmed that the metropolitan municipalities were in a good financial position. However, the findings from financial ratio analysis should be used with utmost caution due to the major limitations and drawbacks associated with such financial measures. The content analysis in the study revealed that the demand for basic municipal services would remain high, costly, with severe backlogs, insufficient, and often with unresponsive management practices in the study areas. Moreover, the lack of entrepreneurial, innovative, and problem-solving skills and expertise among municipal managers compromised the provision of basic municipal services, and the residents remained unsatisfied in the three metropolitan municipalities of Gauteng Province. Other factors that contributed to the poor performances are also discussed.

Keywords


Content Analysis, Financial Performance, Financial Ratio Analysis, Municipal Services, South Africa.

JEL Classification Codes : G28, H72, R51

Paper Submission Date : December 30, 2021 ; Paper sent back for Revision : July 30, 2022 ; Paper Acceptance Date : October 6, 2022 ; Paper Published Online : December 15, 2022


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DOI: https://doi.org/10.17010/ijf%2F2022%2Fv16i12%2F172570