Lack of skills and poor spending at the core of service delivery crisis - research

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Poor service delivery by municipalities has led to negative economic development outcomes.
Poor service delivery by municipalities has led to negative economic development outcomes.
Deon Raath/Rapport

Low levels of capital spend can be considered one of the "greatest causes" of municipal failures, according to researchers.

The Bureau for Economic Research (BER) on Wednesday released a research note on municipal challenges and their impact on local economic development. The paper was authored by senior economist Helenya Fourie and director Professor Johann Kirsten. It comes just weeks ahead of local government elections, which will take place on 1 November.

The researchers noted how poor service delivery led to dairy group Clover relocating its cheese factory in Lichtenburg in the North West. The Clover operations suffered water and electricity disruptions in the Ditsobotla local municipality. It resulted in an estimated 330 job losses.

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