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Municipalities are essential to both social and economic growth for any province in the country, resolving the pressing issues of service delivery and management will yield satisfactory results that benefit both the leadership and its citizens.
One of the most attractive factors to investors in municipalities and in any economy is stability; a more stable municipality with investment opportunities becomes a magnet to investment and business alike. This is a very fragile factor because it determines the success and growth rate of any municipality.
A drive through a municipality which streets are flowing with sewerage, bust water pipes, potholes, dilapidated and unmaintained infrastructure, unreliable and unstable supply of power; large numbers of people roaming the streets during the day, an indication of a high unemployment rate, service delivery protests and many more are repulsive towards investment and economic growth.
All of these point to a dysfunctional municipality that lacks either vision or is plagued by a high rate of corruption or even both. This becomes a concern for an investor because the impression it gives is that, once they inject money into whatever sector they fancy, its success probability is slim, once protests irrupt, they may delay progress and even their assets may be vandalised and stolen.
Projects may be halted due to lack of water supply and electricity; whatever the case, this is just too unstable to run a successful business, the roads are not conducive to transport their goods and services from one point to another.
The Free State province is projected to grow its economy to 1.6% in 2025, while this ambition is noble, a more stern focus on municipalities will go a long way in achieving this goal. The ANC in the Free State has taken a resolve to pay attention to the state of its municipalities and address the pressing issues of service delivery, which also impacted their voter support.
Premier Ms MaQueen Letsoha-Mathae during her State of the Province Address expressed her concern over the state of municipalities and further committed that provincial government will be assisting municipalities ensuring that they professionalise and service delivery is effective.
Mangaung Metro in the Free State, though it still has a long way to go, the tide is turning for the better, it has made serious inroads in professionalising and filling vacant managerial positions. It recently held an investment summit exposing potential investors to its diverse opportunities; there is light at the end of the tunnel.
In his budget speech, the MEC for Treasury Mr Ketso Makume said they have noticed that municipalities across the province have deviated from the financial management norms, as such, they have partnered with CoGTA and SALGA to correct this behaviour; more attention will be given to municipalities to ensure that they are functional and effective.
We need to get our municipalities right, get them running effectively by professionals and reduce the rate of corruption, get our municipalities stabilised and they will draw more investors and business. We need to create the much needed jobs and reduce poverty and inequality. Road infrastructure is key to economic growth, and entrepreneurship needs to be encouraged and small businesses be supported.
