(Parliamentary debate on the role of local government in stimulating local economic growth)
The failure of local government in South Africa is one of the biggest reasons for the country's sinking economic ship. The country was already in a recession and unemployment was already a crisis even before the Covid-19 pandemic.
Rural areas are becoming depopulated and many businesses are forced to close their doors, mainly due to poor service delivery. No business enterprise can be successful without a stable water and electricity supply or with sewage flowing down the streets.
Local economies can only grow if the government creates an environment that facilitates conducting business and that attracts investors.
It will contribute to job creation, enlarge the tax base and improve everybody's standard of living – a successful local economy as defined by Sullivan and Sheffrin's economic principles.
Thus, municipalities' central duty is providing sustainable service delivery through proper governance and administration with an emphasis on the development and maintenance of infrastructure. Municipalities must earn taxes and not just collect them.
However, the ANC government is failing the people of South Africa miserably in this regard. Basic services are not provided. There are municipalities where there have been no garbage disposal services for three years and water and electricity supply are sporadic at best.
Infrastructure is not maintained and the state coffers are looted on all three levels of government; local, provincial and national.
The government's race-based, ideological empowerment policy empowers no-one. Only a select few cadres benefit from it at the expense of the rest of the population. The Auditor-General confirms this year in and year out.
The Constitution attributes certain core functions to municipalities and according to the AG, these are not fulfilled due to a number of reasons, including poor management, instability, political infighting, a lack of leadership and a lack of consequences for the blatant violation of legislation or offences.
Things will not change as long as the ANC is in power and keeps offering the people lip service about economic growth and job creation.
Labour legislation makes doing business harder and harder for entrepreneurs, while more and more people are becoming dependant on social grants, which have to be generated by fewer and fewer people.
The basic government functions must be fulfilled. Services must be delivered. State funds must be spent responsibly and the free market must be allowed to conduct business without race-based legislation and other restrictions. And then the economy will grow.
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