Local Government in 80 Indicators After 20 Years of …

1 Local Government in 80 Indicators After 20 Years of Democracy THE 80/20 REPORT: Local Government IN 80 Indicators . OVER 20 Years . Editor-in-chief FRANS CRONJE. Authors GEORGINA ALEXANDER. JOHN KANE-BERMAN. Editors LUCY HOLBORN. JOHN KANE-BERMAN. LERATO MOLOI. Typesetter SARAH ZWANE. ACKNOWLEDGEMENT. The IRR thanks all those who made the production of this report possible. Firstly, the IRR would like to thank the International Republican Institute for the funding that made this report possible. Secondly, we wish to acknowledge all the sources of our information. They are cited under the relevant table or in the text.

2 Thirdly, we wish to thank John Kane-Berman for contributing the conclusion to this report. Finally, the author would like to thank Sarah Zwane for doing the typesetting and Chinique Mortimer for proofreading. The 80/20 Report: Local Government in 80 Indicators After 20 Years of Democracy IRR. EXPLANATORY NOTES. 1. We have always attempted to include the latest and most up-to-date information, but a cut-off point was inevitable. In general, the statistical data is from 2011. 2. As the sections were completed at different times, it is possible that information given in one section may in some cases have been overtaken by information given in another.

3 3. In many cases tables contain a footnote saying that figures should add up but may not, owing to rounding'. This rounding may have been done either by the Institute or by the agency from which the material was obtained. 4. Our use of the term African' to mean black African' is not intended to imply that people of other races have any inferior claim on being Africans. Though still used elsewhere, the term non-white'. is widely regarded as offensive in South Africa. The IRR therefore usually uses black' as the col- lective term for African, coloured, Indian, and Asian people. Other organisations sometimes use black' to refer to Africans only.

4 5. Discrepancies in the spelling of names or styling of municipalities often occur in the press and other publications. The report uses the names as listed by the Gaffney Group, which is in partnership with the South African Local Government Association (SALGA). Where municipalities have been renamed, the new names are used. 6. In some cases the figures in the table do not appear to be correct. For example, in KwaZulu-Natal in the Umdoni Local municipality it appears that of households have their refuse removed by the Local authority/private company. These figures have been checked and are correct according to the source, Census 2011.

5 However, these mistakes are few and far between. The 80/20 Report: Local Government in 80 Indicators After 20 Years of Democracy IRR iii CONTENTS. ACKNOWLEDGEMENT .. ii EXPLANATORY NOTES .. iii INTRODUCTION.. 1. STRUCTURE, ROLES, AND RESPONSIBILITIES OF Local Government IN SOUTH AFRICA .. 3. Background .. 3. Structure of Local Government .. 3. Category A: Metropolitan municipalities .. 3. Category B: Local municipalities .. 4. Category C: District municipalities .. 4. Local Government elections .. 4. Metropolitan councils.. 4. Local councils .. 5. District councils .. 5. District Management Areas (DMAs).

6 5. Composition of municipal councils.. 5. Governing legislation .. 5. The Constitution of the Republic of South Africa of 1996 .. 6. Local Government : Municipal Structures Act of 1998 .. 6. Local Government : Municipal Systems Act of 2000 .. 6. Local Government : Municipal Systems Amendment Act of 2011 .. 6. Local Government : Municipal Finance Management Act of 2003 .. 6. Local Government : Municipal Property Rates Act of 2004 .. 6. Objectives of Local Government .. 6. Powers and functions of municipalities .. 7. Financing of Local Government .. 8. Equitable share .. 8. Property rates .. 8. Service charges or tariffs.

7 8. Main revenue sources .. 9. Fines .. 9. Other possible sources of income .. 9. External loans .. 9. Internal loans .. 9. Government grants .. 9. Donations and public contributions .. 9. Public/private partnerships (PPPS) .. 9. Municipal debt.. 10. Debt owed to municipalities .. 10. Debt owed by municipalities .. 10. Local Government in relation to national and provincial Government .. 10. DATA ANALYSIS OF 80 Indicators ON SOUTH AFRICA'S 278 MUNICIPALITIES .. 12. Data collecting process .. 12. Analysis: successes and failures .. 12. Poverty .. 12. Education .. 12. Employment .. 12. Income .. 13. Municipal services.

8 13. Municipal finance .. 14. Best and worst performing municipalities .. 15. The 80/20 Report: Local Government in 80 Indicators After 20 Years iv IRR. CONTENTS. Root problems facing Local Government .. 16. Political appointments .. 16. Lack of capacity .. 16. Lack of accountability .. 17. HISTORICAL CONTEXT, THE CURRENT CRISIS, AND POLICY ALTERNATIVES .. 18. Setting the scene .. 18. Early historical background .. 18. The interregnum from 1970 1994 .. 20. The post-1994 era .. 23. The current crisis .. 24. Where to from here? .. 30. Summary .. 32. Sources .. 32. Eighty Indicators for 278 Local municipalities.

9 33. Eastern Cape .. 33. Free State .. 48. Gauteng .. 58. KwaZulu-Natal .. 64. Limpopo .. 85. Mpumalanga .. 97. North West .. 105. Northern Cape.. 115. Western Cape .. 127. NOTES .. 139. Service delivery rankings by municipality .. 140. SOURCES .. 148. The 80/20 Report: Local Government in 80 Indicators After 20 Years of Democracy IRR v INTRODUCTION. Undoubtedly, as the IRR has repeatedly pointed out, living standards in South Africa are very much higher today than was the case at the dawn of our democracy in 1994. Yet it will not escape even the most casual observer of South Africa that at Local Government level there is much evidence of wastage, incompetence, and corruption.

10 Indeed Local Government is the focus of much of the, often violent, anti- Government protest action that has become such a feature of South Africa 20 Years into its democracy. It is easy for the superficial analyst to emphasise either the socio-economic progress that has been made, or the failures of governance that are so obvious, and then to come to a simple conclusion on whether Local governance in South Africa should be described as an example of failure and success. This sort of shallow and na ve analysis also produces na ve conclusions such as that better skills training' and improved delivery' will solve South Africa's Local Government problems.