A new approach is needed

SOUTH Africa’s water and electricity crises are among the greatest inhibitors to investment in the country, and the knock-on effects could prove disastrous to everything from the development of small businesses to the population explosion in urban areas.

The three fundamental factors for investment are water, electricity and a road network, and while progress has been made, it is an unreliable supply of water and electricity that is playing its part in stagnating the economy.

Without a steady supply of water and electricity, rural economies cannot grow and instead the migration of people to urban areas will continue unabated with businesses choosing to remain near cities.

We have seen with the education crisis that urban areas are struggling to cope with the demands made by ever-growing populations.

Health, education, social welfare and other sectors will continue to be overburdened, while their budgets will never be enough to address the demand.

There will be no easing up on the demands of municipalities for service delivery until a point is reached where basic services are spread out in a more equitable manner right across the country.

This, coupled with Eskom’s threat to stop supplying electricity to three Free State municipalities because of the contravention of payment conditions, is indicative of the failure of municipalities to manage their finances and meet the demand for services.

A new approach is needed to provide services to all South Africans. Otherwise, the collapse of local government will become a reality in some parts of the country.