Enhancing Service Delivery in Local Government: Challenges and Solutions

1. PRESENTATION OUTLINE • Defining the Context • Economic Dynamics • Institutional Arrangements • Functionality Risks • Challenges • Support to improve Service Delivery • Suggested Way Forward

2. SALGA MANDATE The Voice of Local Government Lobby, Advocate & Represent Knowledge & Information Sharing SALGA Mandate Support & Advice Employer Body Strategic Profiling Capacity Building Transform local government to enable it to fulfil its developmental mandate. Act as an employer body representing all municipal members and, by agreement, associate members. Lobby, advocate, protect and represent the interest of local government at relevant structures and platforms. Support and advise our members on a range of issues to assist effective execution of their mandate. Build the capacity of the municipality as an institution as well as leadership and technical capacity of both Councillors and Officials. Serve as the custodian of local government intelligence and facilitate inter-municipal peer learning Build the profile and image of local government within South Africa as well as outside the country. The Voice of Local Government 2

3. WSA FUNCTION (Governance Function) • Ensuring access to water services • Bylaws and regulation • Policy development • Tariff determination • Allocation of equitable share and financial planning and decision making • Financial management (budget) • Infrastructure development • Prepare water services development plan (WSDP) • Selecting Water Services Provider institutional arrangements • Taking Transfer WATER SERVICES AUTHORITY (WSAs)

4. 1 WATER SERVICES PROVIDER (WSPs) 2 3 5 4

5. 13 years in the water business Water Services Trajectory

6. Operational Service Challenge (h-holds served) The Authorised DMs are amongst the largest WSAs in the country Census 2011

7. POPULATION and HOUSEHOLD DYNAMICS Total EC population: 4.7 mil Total households: 210,852 %share of households in Chris Hani District (2011) • Of the total population in the Eastern Cape province, Chris Hani DM accounts for 17.1% making it the third largest District after O.R Tambo (29.3%) and Alfred Nzo (17.2%) DMs. • Chris Hani is made up of eight LMs with Lukanji LM having the highest population size and Inkwanca being the smallest in population size • With regards to the total households in the District, a similar pattern is evident where Lukanji remains in the lead with the highest proportion of households and Inkwanca with the least households in 2011. • The DM in 1996 had a total of 168,754 households. An additional 40,298 households have been recorded to reach 210,852 households in 2011, a 1.6% growth over the two periods. % share of District population to EC Province population (2011)

8. GDP CONTRIBUTION 2011 R19.0bn • According to StatsSA simulated estimates of municipal GDP, in 2007 Chris Hani had a GDP of R7.3 bn which grew by 27% to reach R19.0 bn in 2011. • Emalahleni’s contribution to the GDP of the District grew from 6.0% in 2007 to 50.0% in 2011, making it the major driver of economic growth in the District. This is because it is an administrative area with Government and Services sectors the major employers. • The economic contribution of Inxuba Yethemba and Lukanji to the total GDP of the District declined significantly compared to the decline recorded by the remaining LMs. • However these two LMs continue to be major drivers to economic growth in the District. 2007 R7.3bn

9. UEMPLOYMENT RATE • Unemployment rate in the District and in the LMs has declined between 2001 and 2011. The unemployment rates have been highest in Emalahleni, Engcobo and Instika Yethu LMs in 2001 peaking at an average of 68%. However significant declines have been recorded although at high rates of over 46% in 2011. • Inxuba Yethemba has the lowest unemployment rate in the District. Community services and finance are main economic sectors driving employment in the area.

10. Water Services Delivery Institutional Arrangements – Chris Hani • No Water Board • All Local Municipalities were Water Services Providers until 1 July 2014 • Water Services Authority • Regulates • Infrastructure Planning and investments

11. Key:- Level of Service rsp = rural (stand-pipe) ryard = rural (yard connection) rhouse = rural (house connection) usp = urban (stand-pipe uyard = urban (yard connection) uhouse = urban house connection) The CHDM Operational Dynamics • Areas in the west have more private connections. • Areas in the East are more rural and more people are served by • communal standpipes. • Lukanji is significantly bigger than other areas.

12. Grant Dependency NT MTEF

13. Reduction of Backlogs • CHDM have been the best performer in reducing water backlogs. • Reduction of 67% AG Reports 2013

14. Performance (functionality) The top performers are:- • Camdeboo - Kouga • Baviaans - Buffalo City Census 2011

15. MOPANI

16. Operational Service Challenge (h-holds served) The Authorised DMs are amongst the largest WSAs in the country Census 2011

17. POPULATION and HOUSEHOLD DYNAMICS Total LIM population: 5.4 mil %share of households in Mopani District (2011) Total households: 296,320 Total Mopani population: 1.1 mil % share of District population to Limpopo Province population (2011)

18. GROSS DOMESTIC PRODUCT (GDP) CONTRIBUTION • According to StatsSA simulated estimates of municipal Gross Domestic Product, Mopani District grew by an average growth rate of 7.5% between 2007 and 2011 • Of the five LMs in Mopani District, Greater Tzaneen and Ba-Phalaborwa LMs have contributed significantly to the economy of Mopani. • Greater Tzaneen is characterised by extensive and intensive farming activities and considerable untapped tourism potential. Major economic sectors in Greater Tzaneen include community services , finance, trade , agriculture and manufacturing. • Ba-Phalaborwa ‘s contribution to the District’s GDP grew significantly over the two periods from 27.1% in 2007 to 30.1% in 2011 – a 3.1 percentage growth. The area has vast tourism and manufacturing investment opportunities. • Main economic sectors include mining, agriculture, manufacturing and tourism .

19. UNEMPLOYMENT RATE • Mopani District has been characterised by high unemployment rate over the past 15 years. • Marginal increases in most of the LMs have been recorded except for Greater Giyani municipality. • The unemployment rate in Greater Giyani fell significantly by 21.6 percentage points from 68.6% in 1996 to 47% in 2011. Giyani Town is the largest and most densely populated centre, featuring the most employment opportunities, as well as the best shopping and recreational facilities. • The labour force consists of skilled, semi-skilled and a large percentage of unskilled people. his

20. Water Services Delivery Institutional Arrangements – Mopani DM • Supported by Lepelle Northern Water Board • All Local Municipalities are Water Services Providers • Water Services Authority • Regulates • Infrastructure Planning and investments

21. Potable Water (operational challenge) Mopani DM has a high proportion of rural yard taps … this could imply elevated consumption and difficult cost recovery Census 2011

22. Percent Reporting Interruptions Performance (functionality) Percent Long Interruptions

23. Performance (functionality) Ba Phalaborwa performed better than other LMs?? Census 2011

24. Challenges

25. Electro - Mech Bulk Supply and WTW the tasks Sewer and WWTW Pit Latrines Civils

26. Bulk Supply and WTW Electro - Mech operations Sewer and WWTW Civils Pit Latrines

27. Challenges (1) Operational • Vandalism of Infrastructure and Illegal Connection • Reliability of constant service • Types of Infrastructure Managed and its logistical arrangements (2) Financial • Grant Dependent • Non payment of services (cost of service vs equitable share)

28. Support to improve Service Delivery – (1) Political • Training of Cllrs – Understanding roles and responsibilities including service delivery imperatives (2014- 2016) and beyond • Water Sector Specific - unpacking the operational issues of water service delivery including legislative mandate of Council (2) Operational • Facilitate Training of Water Services Managers –Master Classes • Benchmarking to gauge municipal performance with peers – including blue and Green Drop Certification • Advisory on service delivery related issues (3) Financial • Analysis and understanding cost of providing services • Grant Infrastructure to include renewal of old infrastructure

29. Suggested Way Forward (1) Political • Continue with Cllr development programmes including post 2016 elections • Emphasise the role of Water Services Authority and Providers • Constant Community Engagements (payment and vandalism) (2) Operational • Bringing other players in the space to help with service delivery • Investment in renewal • Borehole management is key to service delivery (3) Financial • Analysis and understanding cost of providing services • Grant Infrastructure to include renewal of old infrastructure

30. THANK YOU William Moraka wmoraka@salga.org.za 012 369 8056 082 308 5519