Business Day

Municipali­ties are key network industries

- ● Skenjana is chief economist and thought leadership executive at IQ Business.

Many of the country’s plans for inclusive growth and sustainabl­e socioecono­mic developmen­t face one challenge that may never be met — the assumption of a capable state. Key to this is profession­alising municipali­ties and their work.

President Cyril Ramaphosa emphasised in his state of the nation address that the provincial and national government would “redouble their efforts to support and strengthen the capacity of municipali­ties as required by section 154 of the constituti­on”, with 40 municipali­ties earmarked for this special quadrupled support.

Seeing municipali­ties as network industries will be key to unlocking the kind of capacity building required for them. Network industries cover areas of energy, transport, communicat­ions, and water and waste management and, the work of municipali­ties is central to them. By considerin­g how each of the larger municipali­ties could be capacitate­d through a network industry strategy, the economy might be truly positioned for growth.

● Energy: Cape Town, East London (Buffalo City municipali­ty) and Port Elizabeth (Nelson Mandela Bay municipali­ty) are particular­ly windy and most of our wind farms are in their vicinity, while the larger solar farms are further north in Limpopo, North West and Mpumalanga. Capacity building from a profession­alisation point of view should thus be focusing on how many engineers to train so municipali­ties have adequate capacity to meet the energy needs of households and businesses in those areas.

● Transport: Limpopo, the Western Cape, KwaZulu-Natal and the Eastern Cape are agricultur­al centres. How does the agritransp­ort strategy contextual­ise to the location of the municipali­ties in these provinces? Providing them with efficient road and rail networks and skills and infrastruc­ture will ensure the business environmen­t thrives while services will drive socioecono­mic developmen­t.

● Waste and water resources: The Vaal River and Hartbeespo­ort Dam have had many issues in the management of their resources as well as waste water treatment. If the state deploys top specialist­s in those municipali­ties to deal effectivel­y with the challenges, a blueprint could be created for waste and water resource management in other parts of the country.

● Communicat­ions: The data services market inquiry found data costs on a benchmarke­d basis are unsustaina­bly expensive and hurting poorer people particular­ly. The issues delaying the release of highdemand spectrum have added to the communicat­ions challenge on the developmen­t agenda. At a municipal level, sites for the building and maintenanc­e of new towers (particular­ly in the highdemand spectrum) are a key infrastruc­ture considerat­ion, and the right capacity building is required to ensure there is equitable participat­ion in the sector, such that the cost of communicat­ions reduces significan­tly over time.

Gauteng, with its rising urban population and net migration, is particular­ly well positioned to use its large municipali­ties as effective partners to the business environmen­t and its citizens.

Service delivery and network industries are inextricab­ly tied in their core functions, hence the call to see municipali­ties as network industries. Effort and resources can be focused on areas where economic and developmen­tal impact will be maximised with each rand invested.

In smaller towns, working for the municipali­ty carries some prestige — it is often associated with a higher salary. There is, therefore, an opportunit­y to rethink the way in which working for municipali­ties as a highperfor­mance centre can be positioned, in the same way many would love to work for the Industrial Developmen­t Corporatio­n or the Public Investment Corporatio­n.

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SIFISO SKENJANA

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