Learner Guide

Interpret and analyse the impact of legislative framework on local government
US ID: 255579
NQF LEVEL 5
LEARNER GUIDE
SAQA ID: 255579 Learner Guide
Field 03 - Business, Commerce and Management Studies

NQF Level 5
2nd Edition Nov 2012
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Impact of legislative framework on local government 2

Table of Content
1.Introduction.........................................................................................................................7
2. About the programme..................................................................................................7
2.1 Unit standard Alignment........................................................................................7
2.2 Learner Support....................................................................................................8
3. Assessment..................................................................................................................8
3.1 Formative Assessment..........................................................................................8
3.2 Summative Assessment........................................................................................8
4. Navigating the Learner Guide......................................................................................9
4.1 Use of Icons..........................................................................................................9
Group Activity / Pair Activity:.............................................................................9
Individual Activity:...............................................................................................9
4. Learner Administration...............................................................................................10
4.1 Attendance Register............................................................................................11
4.2 Learner Registration Form..................................................................................11
4.3 Programme Evaluation Form..............................................................................11
Learning Map......................................................................................................................12
Introduction.......................................................................................................................13
UNIT 1..................................................................................................................................14
SO1 AC1-5.......................................................................................................................14
Introduction.......................................................................................................................14
AC1: The Municipal Systems Act (MSA)..........................................................................15
Individual Activity: 1.1 ac1...............................................................................22
1.2 'Developmental local government'..............................................................................23
Integrated Development Planning (IDP) and budgeting........................................25
Performance Management.....................................................................................25
Working together with local citizens and partners..................................................25
Individual Activity: 1.2 AC2..............................................................................26
Challenges for local government and governance.......................................................27
1.3 'Integrated Development Planner'..............................................................................30
1. WHAT IS INTEGRATED DEVELOPMENT PLANNING?...................................35

2. WHY IS IT NECESSARY TO DO AN IDP..........................................................36
3. WHO ARE THE STAKEHOLDERS IN THE IDP PROCESS?............................37
4. WHAT IS THE IDP PROCESS?.........................................................................37
PHASE 1 ANALYSIS..............................................................................................38
PHASE 2: STRATEGIES........................................................................................38
PHASE 3: PROJECTS...........................................................................................39
PHASE 4: INTEGRATION......................................................................................39
PHASE 5: APPROVAL...........................................................................................39
5. THE IDP AND PUBLIC PARTICIPATION...........................................................39
1.4 Components and process requirements of IDP.........................................................41
SECTION A: EXECUTIVE SUMMARY............................................................................44
IDP COMPONENT: SPATIAL DEVELOPMENT FRAMEWORK.....................................48
HIGH CAPACITY LOCAL MUNICIPALITY WITH LARGE URBAN AREAS....................49
1.5 Policy framework for development.............................................................................51
The three spheres of Government................................................................................51
Different kinds of municipalities..............................................................................53
Functions of municipalities.....................................................................................54
Unit 2: functions of a municipal government.................................................................56
SO2: AC1-4......................................................................................................................56
Introduction.......................................................................................................................56
2.1 The role of a municipal government to deliver basic services...................................57
2.2 The role of a municipal government to deliver basic services...................................67
1. Why should organisations understand municipal services?...............................67
2. Important things to know about municipal services............................................68
What is a municipal service?..................................................................................68
Who is responsible for providing services?............................................................68
Capacity building....................................................................................................69
Corporatisation.......................................................................................................69
Municipal service partnerships [MSPs]..................................................................69
Factors to be considered before deciding on service delivery options......................69

Service levels..........................................................................................................69
Table 1: Service Levels..........................................................................................69
Provision of free basic municipal services..............................................................70
Options for free basic service.................................................................................70
Municipal service partnerships...............................................................................70
Types of MSPs.......................................................................................................71
Service contracts....................................................................................................71
Leases....................................................................................................................71
Concessions...........................................................................................................71
3. How does a municipality implement a MSP?......................................................72
How does a MSP operate?.....................................................................................72
Role of citizens in MSP's........................................................................................72
2.3 The role of a municipal government to guide and co-ordinate public sector and
private sector investment..................................................................................................73
2.4: The role of the municipal government as an active development agent...................76
Urban Renewal Programme (URP)..............................................................................78
Unit 3: Role of other spheres of government and role players in municipal areas....80
Introduction.......................................................................................................................80
3.1 AC1: The role and responsibility of provincial and national spheres.........................81
Individual Activity:3.1 AC1...............................................................................82
3.2 The roles of the private sector, NGOs, CBOs and a range of other role players in the
development of a municipal area.....................................................................................84
3.3 AC3 The importance of integrated development and partnerships for a municipality
..........................................................................................................................................87
Drawing up an Integrated Development Plan (IDP)..................................................87
3.4 The national and provincial intergovernmental development planning framework....88
1. Cooperative governance.....................................................................................88
2. Intergovernmental relations.................................................................................88
3. The government programme and planning in government.................................90
4. Integrated development plan (IDP).....................................................................90


Unit 4: Principles of municipal integrated development planning...............................92
SO4: AC1- 5.....................................................................................................................92
Introduction.......................................................................................................................92
4.1 planning and implementation processes and practices.............................................94
4.2 importance of and determine ways to ensure the sustainability of municipal planning
and implementation..........................................................................................................95
4.3 AC3, 4, 5 strategic thinking and governance.............................................................96
What do we do?............................................................................................................96
Software and Development Advisory.........................................................................96
IT Governance and Risk Management......................................................................96
Education and Mentorship.........................................................................................97
Additional Services....................................................................................................97
Software Licensing Advice.....................................................................................97
Website registration................................................................................................97
Hosting....................................................................................................................97
Equipment Purchasing Advice................................................................................98
Telecoms Provider selection..................................................................................98
How do we do it?...........................................................................................................98
Individual Activity: 4.5,6...................................................................................98
Self Assessment...............................................................................................................99
Learner Evaluation Form...................................................................................................100

Introduction
1. Introduction
Welcome to Learning Unit Standard 255579. This unit standard is for learners working
within a local government structure, who participate in municipal governance and have
been elected as municipal councillors, where the acquisition of competence against this
standard will add value to one's job and managerial capabilities. The completion of this
standard will enable the learner to interpret and analyse the impact of the relevant
legislative framework on local government so that all councillor functions are performed
according to legislative parameters.
The qualifying learner is capable of:
 Demonstrating an understanding of the background and founding provision of the

Constitution and how this impacts local government.
 Analysing and interpreting the concept of co-operative government.
 Identifying and explaining the broad spectrum of municipal and related

administrative legislation and regulations that guide and direct the daily functioning
of local government.
 Identifying and explaining the objectives of local government.
2. About the programme
2.1 Unit standard overview
Interpret and analyse the impact of legislative framework on local

government
SAQA US UNIT STANDARD TITLE
ID
255579 Interpret and analyse the impact of legislative framework on local
government
ORIGINATOR ORIGINATING PROVIDER
SGB Administration
QUALITY ASSURING BODY
-
FIELD SUBFIELD
Field 03 - Business, Commerce and Public Administration

Management Studies
ABET UNIT PRE-2009 NQF NQF LEVEL CREDITS
BAND STANDARD LEVEL
TYPE
Undefined Regular Level 5 New Level 8
Assignment Pend.
REGISTRATION STATUS REGISTRATION REGISTRATION SAQA
START DATE END DATE DECISION
NUMBER
Reregistered 2012-07-01 2015-06-30 SAQA
0695/12
LAST DATE FOR LAST DATE FOR ACHIEVEMENT
ENROLMENT
2016-06-30 2019-06-30
2.2 Learner Support
Please remember that as the programme is outcomes based – this implies the following:
 You are responsible for your own learning – make sure you manage your study,
practical, workplace and portfolio time responsibly.
 Learning activities are learner driven – make sure you use the Learner Guide and
Portfolio Guide in the manner intended, and are familiar with the Portfolio
requirements.
 The Facilitator is there to reasonably assist you during contact, practical and workplace
time of this programme – make sure that you have his/her contact details.
3. Assessment
Learning Outcomes:
Please refer to the beginning of each module for the learning
outcomes that will be covered per module.
3.1 Formative Assessment
In each Learner Guide, several activities are spaced within the content to assist you in
understanding the material through application. Please make sure that you complete ALL
activities in the Learner Guide, whether it was done during the contact session, or not!

3.2 Summative Assessment
You will be required to complete a Portfolio of Evidence for summative assessment

purposes. A portfolio is a collection of different types of evidence relating to the work being
assessed. It can include a variety of work samples.
The Portfolio Guide will assist you in identifying the portfolio and evidence requirements for
final assessment purposes. You will be required to complete Portfolio activities on your
own time, using real life projects in your workplace environment in preparing evidence
towards your portfolio.
Portfolio Activity:
DO NOT WAIT until the end – the programme is designed to assist
you in evidence preparation as you go along – make use of the
opportunity!
Remember:
If it is not documented, it did not happen!
In some evidence, the process you followed is more important than

actual outcome / end-product.
Therefore …
Please make sure all steps for the Portfolio Activities are shown
where required.
4. Navigating the Learner Guide
4.1 Use of Icons
Throughout the learning programme icons are used to focus your attention on important
aspects of the learning programme. The following icons are used in this learning
programme to direct your attention in using at as a reference guide.
Group Activity / Pair Activity:

You will be required to complete an activity in your group or in pairs
with fellow colleagues / programme participants, and provide
feedback to the participants in a report back or presentation session.
Individual Activity:
You will be required to complete an activity on your own that relates
to the outcomes covered in the module.

Portfolio Activity:
Complete the assessment activity that will be assessed as part of
your Portfolio of Evidence for the particular module.
Self Reflection:
Reflect on the question(s) asked to identify the relevance of learning
outcomes in your own working environment.
Learner Tip:
A useful tip or essential element regarding the concept under
discussion is given as a basis to further discussion.
Resources:
Possible sources for further research and study is listed under this
icon. Resources may include additional reading, handouts, web-
sites, multimedia
Facilitators Note:
Content matter that is critical to the understanding of the module.
The learner must pay careful attention to this section.
Mentored Discussion:
Refer to your Mentor or Workplace Supervisor to assist in this
activity, as they will conduct the assessment or sign off of the activity
once completed.
Learning Outcomes:
Please refer to the beginning of each module for the learning
outcomes that will be covered per module.
Self Assessment:
You have come to the end of this module – please take the time to
review what you have learnt to date, and conduct a self assessment
against the learning outcomes of this module

4. Learner Administration
Learner Tip:
The following Learner Administration is critical in assisting your
provider in managing this programme effectively.
Please take a moment to familiarize yourself with the requirements.
4.1 Attendance Register
You are required to sign the Attendance Register every day of attendance. Please make
sure you sign daily!
4.2 Learner Registration Form
Pease refer to the end of the Learner Guide for the Learner Registration Form. Make sure
you complete it using the Key Document, and submit to your Facilitator before the end of
the contact session with a copy of your ID document.
Learner Tip/Truths:
Without the Learner Registration and ID Documents we will not be
able to register you with LGSETA for certification purposes.
4.3 Programme Evaluation Form
At the end of the Learning Guide is a Learning programme Evaluation Form. Please
complete the form before the end of the contact sessions, as this will assist us in improving
our service and programme material. Your assistance is highly appreciated!

Learning Map
Module 1: SO1
Module 2: SO2
Module 3: SO3
Module 4: SO4

Local government Framework' and 'integrated

development planning'
Learning Outcomes:
The following learning outcomes are covered in this module.
1. Demonstrating an understanding of relevant legislation and

policies.
2. Demonstrating an understanding of the core powers and
functions of a municipal government in terms of relevant
legislation and policies.
3. Demonstrating an understanding of the role of other spheres
of government and role players in municipal areas.
4. Demonstrating an ability to apply the principles of municipal
integrated development planning in relation to other role
players and spheres of government.
Introduction
Local government is the sphere of government closest to the people. Many basic services
are delivered by local municipalities and local ward councillors are the politicians closest to
communities. Organisations that play an activist and/or developmental role should
understand how local government works and how to influence it.
The South African government has clear policies that local municipalities and councillors
should be sensitive to community views and responsive to local problems. Partnerships
should be built between civil society and local government to address local issues. A
number of laws outline participation processes that municipalities have to use to consult
the community.
This guide is part of a series that explains different aspects of local government and the
mechanisms for participation and consultation that organisations can access.
The other guides on local government are:
 Understanding local government

 Ward committees
 Integrated development planning
 Municipal budgets and finance
 Municipal service delivery

UNIT 1
SO1 AC1-5
The following Learning Assessment criteria are covered: in this

module.
1. The term and concept of 'municipality' is explained in terms of

the Municipal Systems Act (MSA).
2. The term and concept of 'developmental local government' in
terms of the White Paper on Local Government is interpreted
in relation to the overall functions of local government.
3. The value and role of the 'Integrated Development Planner'

are identified in terms of relevant legislation.
4. The purpose and rationale of the various components and

process requirements of IDP are explained with examples and
the use of case studies.
5. The broad policy framework for development is

comprehended and interpreted for integrated development
planning at a municipal sphere.
Introduction
The local government election held on 5 December 2000 were the first fully democratic local
elections in South Africa. New municipal boundaries were drawn that included every part of the
country and broke the old apartheid divisions.
The vision and policies for how local government should work is set out in the government White
Paper. All laws and procedures are written in terms of this policy.
The White Paper states that local government must play a "developmental role". The Constitution
states that government must take reasonable steps, within available resources, to ensure that all
South Africans have access to adequate housing, health care, education, food, water and social
security.

AC1: The Municipal Systems Act (MSA).
A) INTRODUCTION
The Constitution of South Africa envisages a robust

local government system, which can provide
democratic and accountable government for local
communities; ensure the provision of services to
communities in a sustainable manner; promote
social and economic development; promote a safe
and healthy living environment; and encourage the
involvement of communities and community
organisations in the matters of local government.
The Municipal Systems Act is part of a series of

legislation which aims to empower local government
to fulfil its Constitutional objects. In 1998 the
government issued a Local Government White
Paper, which outlined a policy framework for local
government. Later that year government passed the
Municipal Demarcation Act, which enabled the re-
demarcation of municipal boundaries; and the
Municipal Structures Act, which defined the structures of local government. The Municipal
Systems Act will complement these pieces of legislation, by regulating key municipal
organisational, planning, participatory and service delivery systems. National government
has also prepared the Municipal Financial Management Bill, which regulates municipal
financial matters. Together, these pieces of legislation provide a framework for a
democratic, accountable and developmental local government system, as envisaged by
the Constitution.
This booklet provides a summary of the Municipal Systems Act. It is divided into eleven
sections:
a. Introduction
b. The legal nature of municipalities
c. Municipal powers, functions and duties
d. Community participation
e. Integrated development planning
f. Performance management
g. Local public administration and human resources
h. Municipal services

i. Credit control and debt collection
j. Provincial and national monitoring and standard setting
k. National regulations and guidelines
(B) THE LEGAL NATURE OF MUNICIPALITIES
The Municipal Systems Act defines the legal nature of municipalities as part of a system of
co-operative government. It also clarifies the rights and duties of the municipal council,
local communities, and the municipal administration. Clarifying the rights and obligations of
different parties is an important step towards strengthening the democratic contract at the
local level.
THE MUNICIPALITY AS AN ORGAN OF STATE
Definition of municipality
The Municipal Structures Act defines a municipality as the structures, political office
bearers and administration of the municipality; a geographic area; and the community of
the municipality. In other words, a municipality consists of a municipal institution (political
and administrative structures), and the people who live in the local area. The term can also
be used to refer to a local area which falls within a municipal boundary.
The municipal institution is an organ of state, and has a separate legal personality. The
local community cannot be held liable for the actions of the municipal institution.
Co-operative government
The municipal institution is an organ of state, which exercises legislative and executive
powers. Municipal powers are exercised in a system of co-operative government which
allows the three spheres of government to work together effectively. To enable co-
operative government, municipalities are consulted on a range of national and provincial
issues. However, it is not always practical to consult hundreds of municipalities on an
individual basis. Municipalities are therefore represented in national processes through
organised local government.
Municipalities should participate in organised local government structures so that their

views are represented in national processes. Participation in organised local government
also allows municipalities to draw on each other’s experiences and develop common
approaches and find solutions to common problems.
RIGHTS AND DUTIES OF MUNICIPAL COUNCILS
The council of a municipality has the right to govern, on its own initiative, the local
government affairs of the local community; and to exercise the municipality’s executive
and legislative authority without interference. Municipal councils must respect the rights of
citizens in the way in which they exercise their powers.
A municipal council may finance the affairs of the municipality by charging fees for
services, imposing surcharges on fees or property rates, and (when allowed by national
legislation) imposing surcharges on other taxes, levies and duties.
Municipal councils have duties as well as rights. These include the duties to:
 exercise their powers and use their resources in the best interests of the local
community;
 provide, without favour or prejudice, democratic and accountable government
 encourage the participation of the local community;
 ensure that municipal services are provided to the local community in an equitable,
and financially and environmentally sustainable manner;
 promote development in the municipality;
 promote gender equity;
 promote a safe and healthy environment in the municipality; and
 contribute to the progressive realisation of the fundamental rights contained in the

Constitution.
The Municipal Systems Act obliges municipal councils to consult the local community
about municipal services. Communities should have a say in the way in which services are
delivered (for example, by the municipal administration or through a service agreement);
the level of services (for example, VIP latrines or waterborne sanitation); the quality of
services (for example, how quickly the municipality processes planning applications); and
the range of services which are provided (for example, whether the municipal council
should provide recycling facilities).
Municipalities must fulfil these duties as far as possible, taking account of the budget and
capacity they have available. For example, a municipality with a small budget may not be
able to spend a lot of money on media campaigns to promote environmental issues.
However, that municipality could still fulfil their duty by ensuring that the way they deliver
services is environmentally friendly.
RIGHTS AND DUTIES OF MEMBERS OF THE LOCAL COMMUNITY
Just like municipal councils have rights and duties, members of municipal communities
also have rights and duties.
Members of the local community have the right to participate in the decision-making
processes of the municipality. They have the right to use and enjoy public facilities, and
the right to access to municipal services. They also have the right to submit
recommendations, complaints or representations to the municipality, and to expect prompt
responses from the municipality.
Members of the local community have the right to be informed of decisions of the
municipal council, and to expect the council to disclose information about its business and
finances. They have the right to attend meetings of the municipal council and its
committees, and to demand that the council acts in a transparent and impartial way.
Members of local communities also have duties. In some instances, their rights are directly
linked to their duties. For example, members of the local community have a duty to pay
service fees, rates and taxes. Their right to access municipal services is linked to their duty
to pay for those services. Similarly, members of the local community have a right to
participate in municipal decision-making, linked to a duty to utilise the procedures and
mechanisms established to enable participation.
Members of the local community have a duty to allow municipal officials reasonable
access to their property for the performance of municipal functions, to comply with
municipal by-laws, and to respect the municipal rights of other members of the local
community.
DUTIES OF MUNICIPAL ADMINISTRATIONS
Municipal administrations have a number of duties towards local communities, including:
 being responsive to the needs of the local community;

 establishing clear channels of communication with the local community;
 informing the local community about the services which they are entitled to receive;
and
 informing the local community how the municipality is managed, what it spends its
money on, and who is in charge.
Municipal administrations also have the duties of facilitating a culture of public service and
accountability amongst staff, and taking measures to prevent corruption. The organisation
of municipal administrations is discussed later in this booklet.
(C) MUNICIPAL POWERS, FUNCTIONS AND DUTIES
The Municipal Systems Act clarifies several issues relating to municipal powers, functions
and duties. A municipality has all the functions and powers assigned to it in terms of the
Constitution. It has the right to do anything reasonably necessary for, or incidental to, the
effective performance of its functions and the exercise of its powers.
ASSIGNING POWERS TO LOCAL GOVERNMENT
Assigning powers to local government generally
National and provincial government sometimes assign additional functions powers to local
government, when those powers are best exercised at a local level. The Municipal
Systems Act regulates the process of assigning powers and functions to local government.
This is important to ensure that municipalities receive adequate funding to fulfil assigned
powers and functions. It also helps to ensure that the three spheres of government work in
a co-ordinated way.
When a member of the national cabinet (a Minister) or a Deputy-Minister; or a member of

a provincial cabinet (a MEC), wants to assign a power or function to local government, he
or she must first:
 consult organised local government at a national or provincial level;

 consult the Minister or MEC responsible for finance;

 consult the Minister or MEC responsible for local government; and
 consider the assessment of the Financial and Fiscal Commission.
If, after these consultations, the Minister or MEC decides to assign the power of function,
they must ensure that municipalities have adequate capacity and funding to fulfil the
assigned function. The Minister or MEC must ask the Financial and Fiscal Commission to
help them to assess how much funding should be given to municipalities to enable them to
fulfil the assigned function.
A draft of the legislation which assigns a power or function to local government must be
published for public comment before it is introduced in parliament or a provincial
legislature. Organised local government, municipalities, and other interested parties should
be allowed to make representations on the draft legislation.
Assigning powers to specific municipalities
As well as assigning powers to local government generally (ie: to all municipalities),

cabinet members and MECs may assign powers or functions to specific municipalities.
If a cabinet member wishes to assign a power to a specific municipality by way of

legislation, he or she must consult with the Minister for local government before the draft
legislation is introduced in parliament. If a cabinet member wishes to assign a power to a
specific municipality by way of an agreement, in terms of Section 99 of the Constitution, he
or she must consult the Minister for local government before the agreement is concluded.
Similar rules apply at the provincial level- the MEC for local government must be consulted
before legislation is introduced in the relevant provincial legislature, and the MEC for local
government must be consulted before an agreement to assign a power to a municipality is
concluded.
If an assigned power or function does not already fall within local government’s
competence (in other words, if it is not listed in Part B of Schedules 4 and 5 of the
Constitution), and there are financial implications involved in fulfilling the assigned power,
Ministers and MECs must make sure that the municipality is equipped to exercise the
assigned power or function. Ministers and MECs who initiate the assignment of powers to
a municipality must ensure that the municipality has adequate funding and capacity to fulfil
the assigned power or function.
MUNICIPALITIES’ EXECUTIVE AND LEGISLATIVE AUTHORITY
The executive and legislative authority of a municipality is exercised by the council of the
municipality, and the council takes all the decisions of the municipality. A council may
delegate some of its powers to take decisions- this is discussed later in this booklet.
Municipalities exercise their executive and legislative authority in a number of ways,

including by developing and adopting policies, plans, strategies and programmes;
establishing and maintaining an administration; promoting and undertaking development;
setting targets for delivery; providing municipal services or regulating the provision of
municipal services; implementing national and provincial legislation and its own by-laws;
preparing, approving and implementing its budgets; setting and collecting service charges
and other fees; and so on.
A municipality exercises executive and legislative authority within its boundaries. However,
municipalities may enter into written agreements which allow one municipality to exercise
executive authority in another municipality’s area of jurisdiction.
MUNICIPAL LEGISLATIVE PROCEDURES
Laws made by municipalities are called by-laws. Only a member or committee of a

municipal council may introduce a draft by-law in the council. Before a by-law is passed, it
must be published for public comment, and all members of the municipal council must
have a reasonable amount of time to consider the by-law. To pass a by-law, the majority of
council members must vote in favour of the by-law. Once a by-law has been passed by a
municipal council, it must be promptly published in the Provincial Gazette. Municipalities
should, where practical, also publish the by-law in local newspapers, or bring it to the
attention of the local community in another way.
Standard draft by-laws
Many of the issues which municipalities deal with are common across local government
nationally, or provincially. The Municipal Systems Bill therefore allows the national Minister
or provincial MECs responsible for local government to make standard by-laws. A
municipal council needs to adopt these by-laws before they apply in that municipality.
Once a municipal council has adopted a standard by-law, it continues to apply in that
municipality even if the standard by-law is repealed.
The Minister can make standard by-laws when requested to do so by organised local
government, or after consulting the MECs for local government and organised local
government.
The Minister must publish the proposed draft by-law in the Gazette for public comment,
and consult any cabinet member whose area of responsibility affects the by-law. Similarly,
if a provincial MEC wishes to make a standard by-law, he or she must first publish it for
public comment and consult with affected MECs.
MUNICIPAL CODE
A municipality must compile and maintain a compilation of all its by-laws. This is called the
municipal code. Municipalities may keep the municipal code in bound or loose-leaf form,
and when feasible also in an electronic format. The municipal code must be constantly
updated, and must be kept at the municipality’s head office.
Municipalities must make copies of the municipal code, or extracts from the municipal
code, available on request at a reasonable cost.
(D) COMMUNITY PARTICIPATION
ENABLING COMMUNITY PARTICIPATION
The development of community participation
The Municipal Systems Act says that municipalities must develop a culture of municipal
governance that complements formal representative government with a system of
participatory governance.
Municipalities are the sphere of government closest to the people. They have powers and
duties which directly affect the development of local areas and the daily lives of local
residents. Formal systems of governance (such as elections) ensure that municipal
councils are representative of the local community. However, the local community should
not only participate in the governance of their local area once every five years when they
vote for a new municipal council. Rather, local communities should be actively involved in
shaping their living environments through participating in municipal processes.
Community participation deepens democracy by giving local citizens a direct say in a

range of decisions and processes which affect them, for example, municipal planning and
budgeting. Community participation also strengthens the relationship between municipal
councils and community groups, and enhances the accountability of municipal councils to
local citizens.
Municipalities must therefore encourage, and create conditions for, the local community to
participate in the affairs of the municipality, including in:
 the preparation, implementation and review of the municipal integrated

development plan;
 the establishment, implementation and review of the municipal performance
management system;
 the monitoring and review of municipal performance, including outcomes and

impact;
 the preparation of the municipal budget; and
 strategic decisions relating to the provision of municipal services.
Building capacity for community participation
Municipal processes such as planning, budgeting, and service delivery, can be complex
and difficult to understand. Local residents and groups with access to skills and resources
may be in a better position to participate in these complex processes than other, less
resourced residents and groups. To ‘level the playing field’ and ensure that all residents
and groups are able to participate effectively, municipalities must take steps to build the
capacity of the local community to participate.
It is also important that municipal councillors and staff have the skills to facilitate
community participation. Municipalities must therefore build the capacity of local
councillors and staff, to ensure that they are able to foster meaningful community
participation.
Funding community participation
Processes which enable community participation often cost money. For example, there are
costs attached to printing information to disseminate to community groups, or holding
public meetings. There is also a cost attached to building the capacity of the local
community, councillors and staff. Municipalities must therefore allocate funds in their
annual budget to facilitate and build capacity for community participation.
PARTICIPATION IN MUNICIPAL STRUCTURES

There are a number of ways in which community groups can participate in local
governance, including through political structures. For example, the local community can
participate through ward committees, as defined in the Municipal Structures Act. The
Municipal Systems Act also allows municipalities to establish advisory committees to
advise the council on any aspect of its business.
Communities can also participate in meetings of the council and council committees. The
Municipal Systems Act obliges municipalities to provide notice to the public of the date,
time and venue of council meetings. Municipalities must set aside space for the public in
their meeting venues.
All meetings of a municipal council and its committees should be open to the public
(including the media), with the following exceptions:
 Meetings of the executive committee or mayoral committee. These committees may

close any or all of their meetings to the public;
 Municipalities may close meetings to the public when the nature of the business
being discussed in the meeting makes it reasonable for the council to do so.
A council may not exclude the public from meetings of council, or meetings of council
committees, when those meetings deal with:
 draft by-laws or a budget which has been tabled in the council; or

 the municipality’s draft integrated development plan or any amendments to it which
have been tabled in the council; or
 the municipality’s draft performance management system or any amendments to it

which have been tabled in the council; or
 decisions to enter into service delivery agreements.
PARTICIPATION IN MUNICIPAL PROCESSES
Municipalities must enable participation in municipal processes, such as integrated

development planning, performance management, municipal budgeting, and strategic
decision-making regarding the delivery of municipal services.
The Municipal Systems Act obliges municipalities to establish procedures for:
 receiving and responding to petitions and complaints lodged by members of the

community;
 giving notice of public meetings, and allowing for public comment when appropriate;
 holding consultative sessions with locally recognised community organisations and,

where appropriate, with traditional authorities; and
 reporting back to the local community.
Municipalities should strive to ensure that everyone in the community is able to participate.
They must therefore take account of the special needs of people who cannot read and

write; people with disabilities; women; and other disadvantaged groups. For example,
municipalities could consider allowing people who cannot write to lodge verbal complaints
and petitions. They could try to hold public meetings in venues with wheelchair access.
They could schedule meetings at times which are convenient to women, who often find it
difficult to attend meetings after work when they are busy making dinner for the family.
COMMUNICATING INFORMATION ABOUT COMMUNITY PARTICIPATION
To encourage participation, municipalities should ensure that communities are aware of

the different ways in which they can participate in municipal affairs. Municipalities should
also ensure that members of the community know what their rights and duties are.
Municipalities must provide the community with information about municipal governance, management and
development, so that the community is able to make informed inputs into participatory processes. When
providing this information, municipalities must take account of the different languages which are used in the
area, and the special needs of people who cannot read and write.
Individual Activity: 1.1 ac1
1. Explain the term and concept of 'municipality' in terms of the

Municipal Systems Act (MSA).
2. Demonstrate the importance of the Municipal Systems Act
(MSA).
1.2 'Developmental local government'
Developmental local government means a local government committed to "work with citizens and
groups within the community to find sustainable ways to meet their social, economic and material
needs and improve the quality of their lives". It should target especially those members and groups
within communities that are most often marginalised or excluded, such as women, disabled people
and very poor people. (White Paper, 1998)
Municipalities face great challenges in promoting human rights and meeting human needs,
addressing past backlogs and problems caused by apartheid planning, and planning for a
sustainable future.
They can only meet these challenges by working together with local citizens, communities and
businesses, and adopting a developmental approach.
Developmental Local Government has four interrelated characteristics:
1. Maximising social development and economic growth
Everything that a municipality does should be done to impact as much as possible on the social
development of an area. In particular, municipalities must be serious about their responsibility to
provide services that meet the basic needs of the poor in their communities in a cost-effective and
affordable manner.
This could be achieved in two ways:

 Municipalities should provide some relief for the poor. Government policy is to
provide a free basic amount of service for particularly water and electricity to
households that otherwise do not have access to these services. They can also
promote social development through arts and culture, the provision of recreational
and community facilities, and the delivery of social welfare services.
 Municipalities have great influence over local economic development and therefore
need to work in partnership with local business to improve job creation and
investment. It is not the role of local government to create jobs but it can take active
steps to improve the conditions in the area for the creation of employment
opportunities. When the municipality provides new basic household infrastructure
such as water and sewage, contracts should preferably be given to local small
businesses that will employ local people. Other programmes that could be initiated
to alleviate poverty and enhance job creation are for example, the provision of
support services, such as training to small businesses or community development
organisations.
2. Integrating and co-ordinating
In most local areas there are many different agencies that contribute towards the development of
the area, such as national and provincial government departments, parastatals [like Eskom and
Spoornet], trade unions, community groups and private sector organisations.
Developmental local government must provide leadership to all those who have a role to play in
achieving local prosperity. One of the most important methods for achieving greater co-ordination
and integration is integrated development planning. [See the guide on IDP]
3. Democratising development
Municipal Councils play a central role in promoting local democracy. In addition to representing
community interests within the Council, councillors should make sure that citizens and community
groups are involved in the design and delivery of municipal programmes. Ward committees and
community consultation are important ways of achieving greater involvement. [See the guide on
Ward Committees]
Municipalities can also do a lot to support individual and community initiatives, and to direct them
to benefit the area as a whole. The involvement of youth organisations in this regard is particularly
important.
4. Leading and learning
Extremely rapid changes at the global, national and local levels are forcing local communities to
rethink the way they are organised and governed. All over the world communities must find new
ways to sustain their economies, build their societies, protect their environments, improve personal
safety and eliminate poverty.
The leadership of a developmental municipality should stay on top of developments and change.
They should be able to strategise, develop visions and policies and mobilise a range of resources
to meet basic needs and achieve developmental goals in their area.
3. How do you know if your municipality is developmental?
Your municipality is developmental if it is able to deliver on the following:

Provision of household infrastructure and services – this includes services such as water,
sanitation, local roads, storm water drainage, refuse collection and electricity.
Not only are these services a constitutional right but they can help people to support their families,
find jobs and develop their skills to start their own small businesses.
Creation of liveable, integrated cities, towns and rural areas
Apartheid planning has left deep scars on the way our cities, towns and rural areas look. Cities and
towns are racially segregated, with the poor often living in townships kilometres away from the
business and industrial areas. The spatial integration of our settlements is critical. It will make our
areas economically more efficient since it will be easier and cheaper to provide services, reduce
the costs of public transport for workers, and enable social development. Spatial integration is also
central to nation building.
Local economic development
Local government can play an important role in promoting job creation and boosting the local
economy. By providing good quality cost-effective services and by making the local area a
pleasant place to live and work in the municipality will have made a good start to sustainable local
economic development.
4. What can municipalities do to ensure that they are developmental?
For municipalities to become developmental in nature, they have to change the way that they work.
The following are some tools that municipalities must apply to assist them to become more
developmental: [Each of these will be covered in more details elsewhere in this web site.]
Integrated Development Planning (IDP) and budgeting
Integrated Development Planning is a planning method to help municipalities develop a coherent,

long-term plan for the co-ordination of all development and delivery in their area.
Municipalities face immense challenges in developing sustainable settlements, which meet the
needs and improve the quality of life of local communities.
In order to meet these challenges, they will need to understand the various dynamics within their
area, develop a concrete vision for the area, and strategies for realising and financing that vision in
partnership with other stakeholders. [See the guide on IDP]
Performance Management
Performance management is a system that is used to make sure that all parts of the municipality
work together to achieve the goals and targets that are set.
The municipality must have clear goals and specific targets of what has to be done to make sure
the goals are achieved.
Every department and staff member should be clear what they have to do and how their
performance will contribute to achieving overall goals and targets.
Performance of individuals, departments and the municipality as a whole should be monitored to

make sure the targets are met.

Performance management is of critical importance to ensure that plans are being implemented,
that they are having the desired development impact, and that resources are being used efficiently.
[See the guide on Performance Management]
Working together with local citizens and partners
Building local democracy is a central role of

local government, and municipalities should
develop strategies and mechanisms to
continuously involve citizens, business and
community groups in processes such as
planning and budgeting.
One of the strengths of integrated

development planning is that it involves the
community in development, delivery and
democracy.
Community and activist organisations can use

mechanisms like ward committees, IDP and
development forums, budget consultation
meetings and ward councillor public meetings to
influence the policies and programmes of local
government
Individual Activity: 1.2 AC2
1. Explain the concept of 'developmental local government'

2. Discuss the structures of 'developmental local government'

Challenges for local government and governance.
Persistent challenges in local municipalities
The State of Local Government in South Africa: an Overview Report (2009) shows that
although many support programmes for local government have been put in place to assist
in specific ways, it is still clear that a number of stubborn service delivery and governance
problems that have been identified in municipalities over a number of years persist. These
remain consistently at the forefront of government's developmental challenges and some
of these problems were also highlighted in the Auditor General report (2009/10). The
priority areas identified include:
 Huge service delivery and backlog challenges, e.g. housing, water and sanitation;
 Poor communication and accountability relationships with communities;
 Problems with the political administrative interface;
 Corruption and fraud;
 Poor financial management, e.g. negative audit opinions;
 Number of (violent) service delivery protests;
 Weak civil society formations;
 Intra - and inter-political party issues negatively affecting governance and delivery;
and
 Insufficient municipal capacity due to lack of scarce skills (The State of Local
Government in South Africa: an Overview Report, 2009)
The State of Local Government report also shows that in seeking to answer the question
of why local government performance outcomes have been so disappointing, the national
government begun to do things differently. The Constitution, the White Paper on Local
Government and the rest of the rest of the other legislation relating to local government
provide municipalities with a structure to manage their administration. The report also
outlines political decision-making systems, and defines principles for structuring
administrations.
Municipal Mayors and municipal performance
while municipalities' woes continue to rip communities apart, Municipal Mayors as political
heads of municipalities find themselves in the spotlight. Legislatively, a Mayor is a political
head of a municipality and is accountable for the overall performance of that particular
municipality.
When municipalities fail to deliver, all eyes turn to the Mayor. Mayors are often caught in

the middle of many of the following challenges highlighted in the State of Local
Government report:
 tensions between the political and administrative interface;

 poor ability of many councillors to deal with the demands of local government;
 insufficient separation of powers between political parties and municipal councils;
 lack of clear separation between the legislative and executive;
 inadequate accountability measures and support systems and resources for local
democracy; and
 Poor compliance with the legislative and regulatory frameworks for municipalities.
Mayors were fingered again by the Auditor General's report which stated that, "Mayors and
Municipal Managers must set an example by consistently executing their legislated duties
and then ensuring that compliance oriented control environments exist within
municipalities and municipal entities" (Auditor General South Africa (2009/10).
The Auditor General's report continues to highlight Mayors' failures to meet some of their
legislative responsibilities, such as:
 Coordinating the annual revision of the Integrated Development Plan and

coordinating the preparation of the annual budget;
 Determining how the Integrated Development Plan was to be taken into account or
revised for the purposes of the annual budget;
 Tabling the annual budget at a council meeting at least 90 days before the start of
the budget year;
 Ensuring that the council approves the municipality's service delivery and budget
implementation plan within 28 days after the approval of the annual budget;
Supervising budgetary control and early identification of financial problems. (Auditor

General South Africa (2009/10).
The State of Local Government report (2009) indicates that the effective functioning of a
municipality begins with its political leadership. In respect to governance the overarching
question during the assessment process centred on the effectiveness, capability and
integrity of the local political council leadership, with the mayor being part of this
leadership.
After launching the Local Government Turnaround Strategy (2009), the Minister of
Cooperative Governance and Traditional Affairs summoned all Municipal Mayors and local
government MECs in October 2010 to demonstrate their commitment to the strategy by
signing service delivery performance agreements.
The level of non-compliance with laws and regulations applicable to municipalities and
municipal entities is an area of concern.

The minister proudly said, "Today we are part of real history in the making. For the first
time the country will witness the signing ceremony between myself, and the MECs for
Local Government (LG) and between the MECs and the Mayors of the Delivery Agreement
on Outcome 9. This signing constitutes our public commitment to create a responsive,
accountable, effective and efficient Local Government (LG)".
The signing of this agreement with the minister came on the eve of 2011 Local
Government elections which was also six months before the end of Mayors' terms in office.
An official term of a Mayor in the office is equal to the local government period which is five
years; and so these Mayors were made to sign performance agreements six months
before the end of their terms. The whole idea of signing these agreements was
questionable as the timing was bad, some were not even sure if they were to make it in the
next round of elections, leaving the signing of the performance agreement as a media
parade rather than a genuine performance monitoring issue and a service delivery
concern.
The signing of performance agreements continued after the 2011 Local Government
elections in various provinces. During the signing of these performance agreements, in the
Eastern Cape Province the MEC for Local Government and Traditional Affairs Mr. Mlibo
Qoboshiyane said, "Zero tolerance for complacency, incompetence and excuses in service
delivery is going to be exercised in the Eastern Cape". It is clear that there is a move to
bring into effect the oath that Mayors take when they are inaugurated that they would
honestly and diligently serve their communities through the signing of these performance
agreements.
Beyond the Mayors' control
While Mayors face scrutiny after municipal failures, there are many issues which are
beyond their control which need to be weighed and compared with their line of
accountability. Sections 154 (1) and 155 (6) and (7) of the Constitution, mandate the
provincial government with the obligation to supervise, monitor and support local
government. The provincial sphere can intervene in a municipality within its jurisdiction in
terms of section 139 of the Constitution if the situation calls for that. The State of Local
Government report shows that the last decade of local government was marred by poor
performance, with only about 30 municipalities having experienced an intervention from
provinces. The report said that "it has shown that the mechanisms in place were not well-
supported by national government or sufficiently institutionalised, due to the absence of
post-intervention measurement of improvement, and the weak application of
intergovernmental checks and balances, i.e. the oversight and review process by the
Minister, the NCOP and the Provincial Legislatures" (State of Local Government report
(2009)).
A few Mayors were sacked on the spot as their municipalities experienced service delivery
protests and rated as underperforming. In September 2009, the Thaba Chweu
municipality's executive Mayor, Mrs. Clara Ndlovu in Mpumalanga Province, was sacked
following two months of service delivery protests. In Standerton - a Lekwa Municipality
Mayor Mrs. Juliet Radebe-Khumalo also in Mpumalanga Province became a casualty.
A few Mayors were sacked on the spot as their municipalities experienced service delivery
protests and rated as underperforming.

Explain the challenges that are faced in your municipality and

demonstrate possible solutions for the listed challenges.

1.3 'Integrated Development Planner'
INTEGRATED DEVELOPMENT PLANNING
KEY PLANNING REQUIREMENTS
Each municipal council must adopt a single, inclusive and strategic plan for the
development of the municipality. This plan is called the integrated development plan.
National regulations will prescribe a timeframe for the adoption of integrated development
plans, for example, three months or six months after the council is elected.
A municipal integrated development plan must link, integrate and co-ordinate all the
municipality’s plans. It must also take into account any proposals on the table for the
development of the local area. For example, a municipality may have one set of plans
which aims to stimulate economic development through tourism. At the same time, there
may be proposals to build a conference centre, a sports stadium and a craft market in the
area. The municipality will need to link these plans, and decide whether they will
concentrate on attracting business tourism, sports tourism, or leisure tourism. Factors such
as the other facilities on offer in the town, the viability and potential benefits of each option,
and the resources required to support different tourism promotion strategies would need to
be considered.
An integrated development plan must align the resources and capacity of the municipality
with the implementation of the plan. Integrated development plans form the policy
framework and general basis on which annual municipal budgets must be based. For
example, if a municipality decides to encourage leisure tourism, it may need to budget for
improving the transport route from the airport to the town, or allocate more money to
cleansing services near tourist attractions.
Municipalities are also required to participate in national and provincial development

programmes, and must include these programmes in their planning processes. For
example, municipalities must take land reform and restitution into account when drafting
their integrated development plans.
Because local government is part of state, it must plan in ways which take the spirit of the
Constitution into account. The Constitution envisages a developmental role for local
government. This means municipalities must plan to achieve the Constitutional objects of
local government; give priority to meeting the basic needs of local communities; promote
social and economic development; and together with other organs of state, contribute to
the progressive realisation of the fundamental rights contained in the Constitution.
Once a municipality has adopted an integrated development plan, it must, within 14 days,
notify the public that an integrated development plan has been adopted. The municipality
must make copies of the plan, or extracts from the plan, available for public inspection. It
must also publicise a summary of the plan.
An adopted integrated development plan will remain in force until a new integrated
development plan is adopted by the next elected council.

Core components of integrated development plans
An integrated development plan must reflect—
 the municipal council’s vision for the long term development of the
municipality with special emphasis on the municipality’s most critical
development and internal transformation needs;
 an assessment of the existing level of development in the municipality,
which must include an identification of communities which do not have
access to basic municipal services;
 the council’s development priorities and objectives for its elected term,
including its local economic development aims and its internal
transformation needs;
 the council’s development strategies which must be aligned with any

national or provincial sectoral plans and planning requirements binding
on the municipality in terms of legislation;
 a spatial development framework which must include the provision of

basic guidelines for a land use management system for the
municipality;
 the council’s operational strategies;
 applicable disaster management plans;
 a financial plan, which must include a budget projection for at least the
next three years; and
 key municipal performance indicators and performance targets.
Status of a municipal integrated development plan
An integrated development plan adopted by the council of a municipality-
 is the principle strategic planning instrument which guides and informs all planning
and development, and all decisions with regard to planning, management and
development, in the municipality;
 binds the municipality except to the extent of any inconsistency between a
municipality’s integrated development plan and national or provincial legislation, in
which case such legislation prevails; and
 binds all persons to the extent that those parts of the integrated development plan
that impose duties or affect the rights of persons have been passed as a by-law.
A spatial development framework contained in an integrated development plan prevails

over a plan as defined in section 1 of the Physical Planning Act, 1991 (Act No. 125 of
1991).

There are currently a number of different pieces of national and provincial legislation which
apply to municipal planning. The national Minister for local government must initiate steps
to rationalise the different planning requirements which are placed on municipalities by
national and provincial legislation. This will make it easier for municipalities to plan in an
integrated manner.
DEVELOPING AN INTEGRATED DEVELOPMENT PLAN
Responsibility for the integrated development plan
Most municipalities will have either an executive mayor, or an executive committee, who
will be responsible for managing the drafting of the integrated development plan. If a
municipality has no executive committee or executive mayor, it must appoint a committee
of councils to manage the drafting of the integrated development plan.
The executive or committee responsible for the integrated development plan must assign
responsibilities for the integrated development plan to the municipal manager. When a
draft of the integrated development plan has been produced, the executive or committee
must submit the draft plan to the council. The council will consider the plan before adopting
it.
A municipal council must annually review its integrated development plan. If circumstances
in the municipality have changed, the council may amend its integrated development plan.
Process for drafting, adopting and reviewing integrated development plans
Each municipal council must adopt a process set out in writing to guide the planning,
drafting, adoption and review of its integrated development plan within a prescribed period
after the start of its elected term.
The process for drafting an integrated development plan must provide for the identification
of all plans and planning requirements binding on the municipality in terms of national and
provincial legislation. This is a useful ‘check-list’ for municipalities to have before beginning
their own planning process. It will help to ensure that municipal planning covers the issues
required by national and provincial government (for example, in terms of the Water
Services Act municipalities are responsible for drafting water services plans). It will also
contribute to inter-governmental co-ordination (for example, by ensuring that municipalities
are aware of provincial development strategies, and are able to develop local strategies
which complement those of the provincial government).
The process for drafting an integrated development plan must allow for the local
community to be consulted on its development needs and priorities; and for the local
community to participate in the drafting of the integrated development plan. It is also
important that organs of state and other role players are identified and consulted on the
drafting of the integrated development plan. For example, businesses in the local area
may be able to make useful contributions to the planning process.
Once a municipality has adopted a process for drafting their integrated development plan,
they must inform the community about the process. This will allow citizens and community
groups to prepare inputs into the integrated development plan, and participate in the
events and discussions in which they are most interested. The provincial MEC for local

government may monitor the process followed by a municipality to develop their integrated
development plan.
District Government Integrated Development Plans
It is important that district governments co-ordinate their integrated development plans with
those of local municipalities in the district area. If there is no proper co-ordination between
the district and local municipalities, their plans may contradict one another and end up
wasting resources.
District and local municipalities must consult one another when deciding on a process for
drafting their integrated development plans. District municipalities must also consult with
local municipalities in their area before adopting a district-wide integrated development
plan. Once adopted, the district-wide integrated development plan is binding on both the
district and local municipalities.
A district government integrated development plans must identify the plans and planning
requirements which are binding on the district municipality and local municipalities in the
district area. It must also identify the issues which require alignment in the district and local
municipality plans. For example, transport routes or local economic development
strategies. Once the district municipality has identified the issues which need to be co-
ordinated between the district and local municipalities, it must provide the required co-
ordination to deal with these issues. The district integrated development plan must also
determine procedures for consultation between the district municipality and the local
municipalities during the process of drafting their respective integrated development plans.
Ongoing communication between the district and local level will result in well co-ordinated
plans, which may enhance the impact of public investment in the area.
PROVINCIAL MONITORING AND SUPPORT
Provincial government can play a strategic role in supporting municipal planning

processes. Each municipality plans for their local area. When all these plans are ‘put
together’, they cover the entire area of a province. Provincial governments are therefore
able to assess municipal plans in the context of plans for the development of the whole
province. From this strategic viewpoint, provincial government may notice some issues
which need to be aligned between adjacent municipalities, or between municipalities and
provincial or national government. The Municipal Systems Act empowers provincial MECs
to facilitate the co-ordination and alignment of integrated development plans between
municipalities, and between municipalities and national and provincial organs of state. The
Act outlines a process which MECs can follow to enable alignment and co-ordination- this
process is explained in the next section of this booklet.
There may be times when disputes over the content of integrated development plans
arise. For example, one municipality may object to another municipality’s plans to zone an
industrial area close to their border, on the grounds that it would affect land values in a
near-by residential area, or be too close to an environmentally sensitive area. Disputes
between a municipality and groups in the local community may also arise. For example, a
community group may argue that were not given enough time to comment on a certain
issue which affects them. To ensure that these kind of disputes are solved, the provincial
MEC is empowered to take appropriate steps to resolve disputes or differences in
connection with the planning, drafting, adoption or review of an integrated development
plan.
As well as playing an important role in alignment, co-ordination and the resolution of

disputes, the provincial MEC can directly assist a municipality with the planning, drafting,
adoption and review of its integrated development plan.
Process to enable alignment and co-ordination at the provincial level
The municipal manager of a municipality must submit a copy of the integrated

development plan as adopted by the council of the municipality, to the provincial MEC for
local government in the province within 10 days of the adoption of the plan. This copy of
the plan must include any amendments which have been made to the plan, as well a copy
of the process used to develop the plan. Municipalities in district areas must also include a
copy of the district framework which shows how district and local municipalities consulted
one another during the drafting of the plan.
If the provincial MEC notices that a municipal integrated development plan does not
comply with the provisions of the Municipal Systems Act, or that it is not properly aligned to
the development plans and strategies of other affected municipalities or organs of state,
the MEC may request the municipality to revise its integrated development plan. The MEC
must make this request within 30 days of receiving a copy of the integrated development
plan (or an amendment to the plan).
A municipal council must consider the MEC’s proposals, and within 30 days of receiving
the MEC’s request must either revise its integrated development plan, or, if it disagrees
with the MEC’s proposals, object to the MEC’s request in writing.
If a municipality objects to a MECs request to change their integrated development plan,

the MEC may, within 21 days, refer the municipality’s objection to an ad hoc committee.
An ad hoc committee to decide on a municipal objection is appointed by the MEC, and
consists of members representing local government, the provincial government and the
national government.
The municipality which lodged the objection, as well as any other affected municipality,
must agree to the choice of people to represent local government on the committee. The
provincial and national government, particularly the part of the government responsible for
functional area in which the objection falls, must also agree to the choice of people to
represent provincial and national government on the committee. For example, if the
objection was over a transport planning issue, the provincial and national departments for
transport must agree on the choice of people to represent them.
The ad hoc committee will consider the objection in terms of a procedure which will be
prescribed in national regulations. If at least two spheres of government on the committee
agree on whether the objection is valid or not, the matter is decided. If the ad hoc
committee rejects the municipality’s objection, the municipality must, within 30 days of the
date on which the committee has taken the decision, comply with the MEC’s request.
1. Define the term IDP

2. Explain the functions and objectives of IDP within a local
government.


1. WHAT IS INTEGRATED DEVELOPMENT PLANNING?
Local municipalities in South Africa have to use "integrated development planning" as a method to
plan future development in their areas. Apartheid planning left us with cities and towns that:
 Have racially divided business and residential areas

 Are badly planned to cater for the poor - with long travelling distances to work and
poor access to business and other services.
 Have great differences in level of services between rich and poor areas
 Have sprawling informal settlements and spread out residential areas that make
cheap service delivery difficult.
Rural areas were left underdeveloped and largely unserviced. The new approach to local
government has to be developmental and aims to overcome the poor planning of the past.
Integrated Development Planning is an approach to planning that involves the entire municipality
and its citizens in finding the best solutions to achieve good long-term development.
An Integrated Development Plan is a super plan for an area that gives an overall framework for
development. It aims to co-ordinate the work of local and other spheres of government in a
coherent plan to improve the quality of life for all the people living in an area. It should take into
account the existing conditions and problems and resources available for development. The plan
should look at economic and social development for the area as a whole. It must set a framework
for how land should be used, what infrastructure and services are needed and how the
environment should be protected

All municipalities have to produce an Integrated Development Plan (IDP). The municipality is
responsible for the co-ordination of the IDP and must draw in other stakeholders in the area who
can impact on and/or benefit from development in the area.
Once the IDP is drawn up all municipal planning and projects should happen in terms of the IDP.
The annual council budget should be based on the IDP. Other government departments working in
the area should take the IDP into account when making their own plans.
It should take 6 to 9 months to develop an IDP. During this period service delivery and
development continues.
The IDP is reviewed every year and necessary changes can be made.
The IDP has a lifespan of 5 years that is linked directly to the term of office for local councillors.
After every local government elections, the new council has to decide on the future of the IDP. The
council can adopt the existing IDP or develop a new IDP that takes into consideration existing
plans.
The executive committee or executive mayors of the municipality have to manage the IDP. They
may assign this responsibility to the municipal manager.
In most municipalities, an IDP co-ordinator is appointed to oversee the process. The IDP co-
ordinator reports directly to the municipal manager and the executive committee or the executive
mayor.
The IDP has to be drawn up in consultation with forums and stakeholders. The final IDP document
has to be approved by the council.
2. WHY IS IT NECESSARY TO DO AN IDP
There are six main reasons why a municipality should have an IDP:
 Effective use of scarce resources
The IDP will help the local municipality focus on the most important needs of local communities
taking into account the resources available at local level.
The local municipality must find the most cost-effective ways of providing services and money will
be spent on the causes of problems in local areas.
For example, a municipality may decide to allocate resources to building a canal that will prevent
homes being damaged during the flood season. This will reduce the financial burden placed on the
municipality’s emergency services.
 It helps to speed up delivery
The IDP identifies the least serviced and most impoverished areas and points to where municipal
funds should be spent. Implementation is made easier because the relevant stakeholders have
been part of the process.
The IDP provides deadlock-breaking mechanisms to ensure that projects and programmes are
efficiently implemented. The IDP helps to develop realistic project proposals based on the
availability of resources.
 It helps to attract additional funds

Government departments and private investors are willing to invest where municipalities have clear
development plans.
 Strengthens democracy
Through the active participation of all the important stakeholders, decisions are made in a
democratic and transparent manner.
 Helps to overcome the legacy of apartheid
Municipal resources are used to integrate rural and urban areas and to extend services to the poor.
 Promotes co-ordination between local, provincial and national government
The different spheres of government are encouraged to work in a co-ordinated manner to tackle
the development needs in a local area.
For example: The Department of Health plans to build a clinic in an area. It has to check that the
municipality can provide services like water and sanitation for the effective functioning of the clinic.
3. WHO ARE THE STAKEHOLDERS IN THE IDP PROCESS?
 Municipality
The IDP guides the development plans of the local municipality.
 Councillors
The IDP gives councillors an opportunity to make decisions based on the needs and aspirations of
their constituencies.
 Communities and other stakeholders
The IDP is based on community needs and priorities. Communities have the chance to participate
in identifying their most important needs.
The IDP process encourages all stakeholders who reside and conduct business within a municipal
area to participate in the preparation and implementation of the development plan.
 National and provincial sector departments
Many government services are delivered by provincial and national government departments at
local level -for example: police stations, clinics and schools. Municipalities must take into account
the programmes and policies of these departments. The departments should participate in the IDP
process so that they can be guided how to use their resources to address local needs.
4. WHAT IS THE IDP PROCESS?
Before starting the planning process, an IDP Process Plan must be drawn up. This plan is meant
to ensure the proper management of the planning process.
This plan should outline:
 The structures that will manage the planning process

 How the public can participate and structures that will be created to ensure this
participation
 Time schedule for the planning process
 Who is responsible for what
 How will the process be monitored
At District Council level, a framework will be developed in consultation with all local municipalities
within the district. This framework will ensure co-ordination, consultation and alignment between
the district council and local municipalities. The framework will guide the development of the IDP
Process Plan for each local municipality.
The process undertaken to produce the IDP consists of 5 phases:
PHASE 1 ANALYSIS
During this phase information is collected on the existing conditions within the municipality. It
focuses on the types of problems faced by people in the area and the causes of these problems.
The identified problems are assessed and prioritised in terms of what is urgent and what needs to
be done first.
Information on availability of resources is also collected during this phase.
At the end of this phase, the municipality will be able to provide:
 An assessment of the existing level of development

 Details on priority issues and problems and their causes
 Information on available resources
PHASE 2: STRATEGIES
During this phase, the municipality works on finding solutions to the problems assessed in phase
one.
This entails:
 Developing a vision -
The vision is a statement of the ideal situation the municipality would like to achieve in the long
term once it has addressed the problems outlined in phase one. The following is an example of a
vision statement:
An economically vibrant city with citizens living in a secure, healthy and comfortable environment
 Defining development objectives
Development objectives are clear statements of what the municipality would like to achieve in the
medium term to deal with the problems outlined in phase one.

For example: Provide access to clean water for all residents living in the informal settlement
 Development strategies
Once the municipality has worked out where it wants to go and what it needs to do to get there, it
needs to work out how to get there. A development strategy is about finding the best way for the
municipality to meet a development objective.
For example: Co-operate with the Department of Water Affairs to provide one water stand pipe for
every 20 households.
 Project Identification
Once the municipality has identified the best methods to achieving its development objectives it
leads to the identification of specific projects.
PHASE 3: PROJECTS
During this phase the municipality works on the design and content of projects identified during
Phase 2.
Clear details for each project has to be worked out in terms of:
 Who is going to benefit from the project?

 How much is it going to cost?
 How is this project going to be funded?
 How long would it take to complete?
 Who is going to manage the project?
Clear targets must be set and indicators worked out to measure performance as well as the impact
of individual projects.
PHASE 4: INTEGRATION
Once all projects have been identified, the municipality has to check again that they contribute to
meeting the objectives outlined in Phase 2. These projects will provide an overall picture of the
development plans.
All the development plans must now be integrated. The municipality should also have overall
strategies for issues like dealing with AIDS, poverty alleviation and disaster management.
These strategies should be integrated with the overall IDP.
PHASE 5: APPROVAL
The IDP is presented to the council for consideration and adoption. The Council may adopt a draft
for public comment before approving a finalised IDP.
5. THE IDP AND PUBLIC PARTICIPATION

The DPLG proposes that an IDP Representative Forum be established to encourage the
participation of communities and other stakeholders.
The forum may include.
 Members of the executive committee of the council

 Councillors including district councillors
 Traditional leaders
 Ward committee representative
 Heads of departments and senior officials from municipal and government

department
 representatives from organised stakeholder groups
 People who fight for the rights of unorganised groups – e.g. A gender activist
 Resource people or advisors
 Community representatives (e.g. RDP Forum)
The purpose of the this forum is to:
 Provide an opportunity for stakeholders to represent the interests of their

constituencies.
 Provide a structure for discussion, negotiations and joint decision making
 Ensure proper communication between all stakeholders and the municipality
 Monitor the planning and implementation process
A code of conduct should be drawn up for these forums that provides details on:
 Meetings – frequency and attendance

 Agenda, facilitation and recording of proceedings
 Understanding the role of various stakeholders as representatives of their

constituencies
 How feedback to constituencies will take place
 Required majority for decisions to be taken
 How disputes will be resolved
The Council should also approve a strategy for public participation. The strategy must decide,
amongst other things, on:
 The roles of the different stakeholders during the participation process

 Ways to encourage the participation of unorganised groups

 Method to ensure participation during the different phases of planning
 Timeframes for public and stakeholder response, inputs and comments
 Ways to disseminate information
 Means to collect information on community needs
During the different stages of planning participation can be encouraged in these ways:
Planning phase Methods for Participation

 Community Meetings organised by the ward
Analysis councillor
 Stakeholder Meetings
 Surveys and opinion polls (getting views on

how people feel about a particular issue)
Strategies IDP Representative Forum
Public Debates on what can work best in solving a
problem
Meetings with affected communities and stakeholders
Projects
Representation of stakeholders on project
subcommittees
Integration IDP Representative Forum
Approval Public Discussion and consultation with

communities and stakeholders
Monitoring and IDP Representative Forum

Implementation
The elected council makes all the final decisions on the IDP.
Explain the components of an Integrated development plan.
1.4 Components and process requirements of IDP
An Integrated Development Plan (IDP):

(a) is the principal strategic planning instrument which guides and informs all
planning and development, and all decisions with regard to planning,
management and development, in the municipality;
(b) binds the municipality in the exercise of its executive authority, except to the
extent of any inconsistency between a municipality’s integrated development
plan and national or provincial legislation, in which case such legislation
prevails; and
(c) binds all other persons to the extent that those parts of the integrated
development plan that impose duties or affect the rights of those persons have
been passed as a by-law; and it
(d) should be a product of intergovernmental and inter-sphere planning
The integrating development planning (IDP) processes (phases/stages) in compiling the

municipal plan is as important as the final product, The IDP. Rigorous, shared, analysis
with sincere community and stakeholder consultations are necessary and sufficient
conditions, among others, for the IDP to be authentic. The consultative and analytical
processes must, however, be continuously enhanced and strengthened with each annual
review of the annual plan. Technology and innovation allows the state to deepen this two-
way communication process, the result of which must be a more responsive government.
Funding has also been ‘ring-fenced’ in the allocation of the 08/09 Municipal System
Improvement Grant (MSIG) for the improvement and effective functioning of the Ward
Committee System.
The development of the Long Term Growth and Development Strategy, based on the
vision, must encourage and allow for the meaningful contributions of the broader
community, all spheres of government, traditional authorities, business, labour and other
non-state actors. Such a process will result in the development of realistic and achievable
objectives for the five year term of office of the council. The related priorities would also be
realistic. Objectives are converted into strategies, plans, projects and activities, which must
be tracked and monitored. All draft IDPs are required to be approved by municipal councils
by 30th March annually. This is also in concert with the MFMA’s deadline of adopting the
draft budget 90 days before the end of the financial year. However, the final reviewed IDP
and budget must be approved by council by 30 th June of each year, as per the Municipal
Systems Act - 2000. Clearly, it is the annual plan that must be reviewed and not the entire
IDP, provided that all the processes and components preceding the development of the
annual plan are sound and informed by rigorous analysis. However, this annual review
must also be informed by a high level reflection of the performance of the municipality in
the previous years. The expenditure of conditional grants, the equitable share, and other
revenue would be central to this reflection. The Auditor-General’s reports and the
municipality’s evaluation of its service delivery and other related targets would also inform
the annual plan and the rolling three year plan.
The IDP integrates the needs of communities with the programmes of local, provincial and
national government. It ought to also integrate the national and provincial programmes in
the local space, thus becoming the expression of all of government plans. It serves as an
integrating agent of all differing needs of business, community organisations, the indigent,
and mediates the tensions between these needs and the resources available to meet
them. The IDP further integrates the various departments within a municipality for effective
implementation. A good, realistic IDP is therefore one that is guided by community
participation throughout its design and review processes, is resourced by a realistic budget
and an adequately skilled workforce and can be implemented and monitored.
1. Outcomes of IDPs
All Integrated Development Plans should have the following impacts, among others, in the
medium to long term:
 Integrated Sustainable Human Settlement

 Stimulating Growth of Robust Local Economy
 Social Inclusion, social cohesion and Nation Building – Non-racism, Non-
sexism, Democratic and accountable practices, equity, etc
 Environment Sustainability
These outputs should be treated as guiding principles and in striving to attain

these outcomes, an institution should not violate them. Further, at the core of
these would be the War against Poverty and the creation of an enabling
environment for job creation.
2. A Good (Credible) IDP
Since the inception of IDPs in 2000/1, the challenge has been the development of a
realistic plan that can be implemented, monitored and reported to the public on. The
criticism that was levelled from various quarters is that the IDP ‘is a wish-list’ and
therefore unrealistic. The dplg, The Presidency, The Provincial Local Government
Departments and the Offices of Premiers, including many other organs of state have
initiated the IDP Hearings 2002, IDP Hearings 2005, Project Consolidate, IDP
Engagements 2006/7, IDP Analysis, and the Alignment and Harmonization Process,
with a view to improving municipal, provincial and national planning and performance.
The Leadership of the Country questioned the Validity or Credibility of the Rustenburg
Local Municipal IDP during the Presidential Izimbizo in 2005. “Is the IDP Credible” was
the central question that the Izimbizo hung onto. Credible is derived from form the
Greek Work crediculus, which means realistic. Therefore in striving to have credible
IDPs, they need to be realistic and implementable.
A Realistic or Credible Integrated Development Plan must therefore both comply with
relevant legislation and convey the following:
 Consciousness by a municipality of its constitutional and policy mandate for

developmental local government, including its powers and functions.

 Awareness by municipality of its role and place in the regional, provincial and
national context and economy including its intrinsic characteristics and criteria for
success. The degree of intergovernmental action and alignment to government
wide policies, plans, priorities and targets.
 A commitment by the municipal council to ensure community empowerment and
participation in the crafting, budget choices, implementation of this plan and
monitoring through sincere communication, participatory and decision making
mechanisms thereof.
 Comprehensive description of the area – the environment and its spatial
characteristics.
 Insights into the trade-offs and commitments that are being made regarding
economic choices, planning for Sustainable Human Settlements, integrated service
delivery, and a resource and financial plans that can enable the implementation of
such a plan
 The key deliverables for the next five years supported by a measurable budget and
translated into the Service Delivery Budget Implementation Plan.
 A monitoring system (OPMS and PMS), that’s based on the IDP indicators, targets,
time frames, and responsible agents.
 Determines the capacity and capability of the municipality to implement the plan
and how this capacity/capability would be improved through the Workplace Skills
Plan.
 Conveys a responsive and sincere government that cares about its people, the
environment and strives to build social cohesion
 Must show a commitment by the municipality (and all of government) to improve the
lives of the indigent, people with disabilities, women, youth and the aged.

3. COMPONENTS OF AN IDP
SECTION A: EXECUTIVE SUMMARY
An executive summary should give a concise overview of the municipality, its current
situation, key challenges and opportunities, as well as the priority strategies of the
municipality to improve its situation over the five year term of the IDP, indicating the
most critical targets to be achieved. The summary should also provide the concise
overview of the powers and function of the municipality. This section should only be a
few pages in length.
This summary should answer the following questions:
 Who are we?

 What are the issues we face?
 What opportunities do we offer?
 What are we doing to improve ourselves?
 What could you expect from us over the next five years?
 How will our progress be measured?
 How was this plan (IDP) developed?
Should broadly answer question of:

as-is assessment
What problem identification,
Review of existing assumptions, systems & challenges;
possible trajectory;
vision
What can reasonably possibly be achieved (not a wish list)

It should be cognisant of issues which may be addressed in short (three),
When medium (five) and long (ten) term
how are we doing with existing plans, policies & programmes.
Consultation process followed.

How Scientific, legal, political, environmental and other technical analysis that
informs the IDP.
How will process, substance and performance be measured?
Functional mandates:
Who is it a municipal mandate
address assigned, delegated or original mandates;
IGR Issues

with Ideally should have a resource plan/budget. Resource (human and material)
what: available to realize the plans. Section 26 (h) a financial plan, which must
include a budget projection for at least the next three years.
NB. Sustainability & viability of the Plans must be raised.
SECTION B : SITUATIONAL ANALYSIS
A detailed, deep and rigorous analysis of the status quo of the municipality with respect
to the internal and external environment needs to be conducted, in consultation with the
Community. It is imperative that the needs of the community are seriously considered
and the priority list be contained in the analysis. Other stakeholders that must contribute
to the analysis include Community Organizations, Private Sector, Non State Actors,
Sector Departments and Parastals/ SOEs.
There needs to be consideration of and alignment to national, provincial and local

policies and strategies e.g. AsgiSA, NSDP, MDGs, NIPF and PGDS. All sector plans
(local, provincial, national) must be analysed in relation to the municipality.
This section should include the identification and brief analysis of priority areas with
respect (but not limited to) the following: Demographics; Income & Employment;
Economic Sectors; Infrastructure & Housing; Education & Health; Social (particularly
women & youth, people with disability, elderly) and Cultural issues; Security and Safety,
Land and Environmental considerations. The Institutional arrangements, governance
and financial viability of the municipality must be assessed. A high level overview of the
performance of the municipality in the past years should be included. The
recommendations of the audit report should also be indicated. In addition, the capacity
and capability of the municipality and the comparative and competitive advantages must
be included.
A SWOT analysis is critical in relation to the areas above. This should be further
elaborated upon, in terms of offensive, defensive and development strategies. An
environmental scan needs to be included, as well as an outline of the specific
competitive and comparative advantages of the municipality. This section must also
assess existing and envisaged backlogs, services and their delivery, and estimated cost
thereof and reflect the entities responsible for services in terms of their powers and
functions. It is important that the critical institutional capacity constraints of the
municipality are also outlined. The IDP Nerve Centre Template should be utilized for
purposes of analysis.
The status quo analysis must relate directly to a Spatial Analysis. The spatial analysis
must consider the broad economic sectors and key structuring elements (nodes &
corridors). It is important that areas of need, potential (existing & latent) and decline are
shown spatially.

Challenges, a problem statement and final recommendations, in relation to above,

should provide the basis for visioning and strategy development in the next sections.
The following are considered key components of the analysis:
 Prioritised community needs per ward, local and district annually (in a table
format)
 Alignment with policy and strategy
 Brief profile of priority areas
 Institutional and financial viability assessment
 SWOT analysis
 Assessment of existing and envisaged backlogs and service delivery status
 Spatial Analysis
 Problem statement, Challenges and recommendations
Since the Analysis Section provides an overview of the area, the municipality and the
organisation’s capability, it would be the base for all plans that emanate in the following
sections, including sector plans.
All municipalities should aim to address the above deliverables. ‘Poorly’ capacitated
municipalities may address these deliverables in relation to their capacity constraints. The
situational analysis should be updated annually and a thorough review of the analysis
should be done on a 5 year basis or as required.
SECTION C:
a. Vision (Forward looking, Based on values and principles, Should be short, succinct,
long-term)
SECTION D:
b. Mission (Should be short, succinct, crisp and realistic, medium term)
SECTION E : STRATEGIC OBJECTIVES
What does the municipal council hope to have achieved by the end of its term of office?
4.6. SECTION F: DEVELOPMENT STRATEGIES

What strategies the municipalities needs to adopt so as to meet the objectives and
mission?
• Long Term Growth & Development Goals, which is suggested to be forecasted at

minimum of 10 – 15 Years
• These must be linked to the national imperatives and frameworks.
• In crafting the Strategies reference must be made to:
– Summary of the conclusions of the Situational Analysis
– Powers and Functions of the municipality
– Important Sector Plans (Depts. and SOE’s) linked to NSDP and PDGS
– Demonstration of linkages between the identified Strategies and the Sector
Plans
– Designated Groups (People with Disability, Women, Elderly and Youth)
• Environmental strategy should translate into the Environmental Sector Plan as an
attachment
• The District Municipal Development Strategies should not be in conflict with those of
its Local Municipalities’. It should reflect and be linked to those of the constituent
LM’s
• The Strategies must be focused, specific, measurable, time-bound and attainable
The District Growth and Development Summit resolutions should be used to inform the
strategies
These should be structured into 5 KPAs of the Five Year Local Government Strategic
Agenda. The Spatial Analysis would be a sixth focal Area.
Key Focal or Performance Areas
 Spatial Analysis and Rationale

 Basic Service Delivery
 Local Economic Development
 Municipal Transformation and Organisational Development
 Municipal Financial Viability and Management
 Good Governance and Public Participation
The KPAs, while organised as they are to facilitate ease of all of Government
planning and performance, cannot be seen as constructs separate from each other.
They overlap and affect each other.
SECTION F 1 - SPATIAL RATIONALE
There are different classifications of municipalities. The classifications are:
 Low and Medium Capacity Local Municipalities that are Predominantly Rural
 High Capacity Local Municipalities with Large Urban Areas

The classification of the municipality and categorisation is done by the OTP and the
Provincial LG department.

Table 2: Overview of Spatial Analysis and Rationale
IDP COMPONENT: SPATIAL DEVELOPMENT FRAMEWORK
MINIMUM REQUIREMENTS
DISTRICT MUNICIPALITY
 The District SDF must be developed and reviewed every 5-years aligned to
the IDP-Cycle;
 The District SDF must be aligned to the NSDP and PGDS (and Provincial
SDF if not included in the PGDS)
 Must include a strategic environmental assessment
 Policy for land use and development
 Analysis
o The District SDF must map ownership patterns (private/traditional or
trust/government/municipal)
o Must map various levels of basic services delivered
o Must map current economic sectors
 The District SDF must outline agreements on spatial principles that set the
basis for choices relating to new capital investments; maintenance and
management
 Must include a capital expenditure framework showing where the District
Municipality intends spending its capital budget
 The District SDF must map the key government anchor projects and
separately map the key anchor projects that have committed funding for
implementation (not funding for planning) and indicate the committed funding
on the map legend
LOW & MEDIUM CAPACITY LOCAL MUNICIPALITIES THAT ARE PREDOMINANTLY

RURAL
 Must participate and adopt the District SDF
 Adopt guidelines for land use management that inform the LUMS
 Must include a capital expenditure framework showing where the Local
Municipality intends spending its capital budget (mapping the projects (capital
and maintenance) included in the budget)
 Must consider to include a strategic environmental assessment for the areas
impacted by a key anchor project located in the municipality
 Must consider to indicate the interventions that will be implemented and
detailed design parameters that private sector and government must comply
with in turban centres

HIGH CAPACITY LOCAL MUNICIPALITY WITH LARGE URBAN

AREAS
 Must participate and adopt the District SDF

 Adopt guidelines for land use management that inform the LUMS
 Must include a capital expenditure framework showing where the Local
Municipality intends spending its capital budget(mapping the projects (capital
and maintenance) included in the budget)
 Must consider to include a strategic environmental assessment for the areas
impacted by a key anchor project located in the municipality
 Must indicate the interventions that will be implemented and detailed design
parameters that private sector and government must comply with in the urban
centres
SECTION F 2: BASIC SERVICE DELIVERY
This area must answer the Question “How is the municipality planning to deliver services
to its citizens” This should form the core of the IDP and be given adequate consideration.
Long and medium term considerations must inform the Short Term or annual plan of the
municipality. It is this area that will drive basic services and Free Basic Services. The
Indigent Policy, Targeting Designated Groups, backlog data, analysis, etc will inform the
delivery of services
As a minimum, a three year plan with an indicative budget is a necessary and sufficient
condition for this area to be acceptable. From general experiences in South Africa, this
area is a crucial area for community participation and empowerment.
Besides consulting communities about their needs, it is crucial that the municipal’s council
plans to inform communities about what is possible to deliver on in the next three years.
However, the annual plan must speak to the Service Delivery Budget Implementation plan.
SECTION F 3 - LOCAL ECONOMIC DEVELOPMENT
A thorough economic analysis of the municipal area needs to be conducted with the
intention to develop an LED strategy or plan. District Growth and Development / LED
Strategies for district municipalities and LED plans for local municipalities must be
developed with input from District Growth and Development Summits. The National LED
Framework should guide the development of these strategies and plans. The municipality
needs to identify key catalectic projects that will stimulate Local economic growth. In
terms of the targets set in the Provincial Growth and Development Strategy, mention the
strategies that have been put in place in order to ensure that the targets are met and how
they will be achieved. It is crucial to note that the first driver of LED is a well managed
municipality. It is also crucial to note that LED cannot be done by the municipality alone
but needs a partnership between civil society, business, non-state actors and government
for any level of success.
The following should be considered in order for the municipality to have a Credible LED
Strategy:
 Is the strategy aligned with the national, provincial and district objectives,
particularly in respect to infrastructure and skills development?
 Has there been adequate consideration of spatial issues relevant to economic
development?
 Is there empirical and statistical evidence to support the main development thrust of
the strategy?
 Have the financial implications been considered, at lest as far as an indicative
budget?
 Has a review taken place of institutional factors that need to be in place to deliver
the strategy?
 Is there evidence of adequate stakeholder and community involvement?
 Are there clearly identified objectives and can the attainment of these be
measured?
 Is there an indicative time frame for the delivery of the strategy?
 Are management arrangements in place, such as a coordinating committee, a
structure for reporting and an indicative format for work programmes?
 Have issues of improved governance relating to investment and job creation been
considered?
 Is the area comparative and competitive advantage understood?
 Are plans to provide support to small enterprises adequate?
 Is there a sustainable programme in place to stimulate the second economy and to
draw this closer to the first economy?
 Does the plan have full Council and stakeholder commitment?
 Is there leadership for the strategy among the stakeholders?
 Have monitoring and evaluation process been established?
1. Explain the role of each of the IDP Components listed in

activity 1.4 above
2. Explain the factors affecting the establishment of IDP.

1.5 Policy framework for development
The three spheres of Government
Government has the responsibility to make policies and laws about the rights and responsibilities
of citizens and the delivery of government services. Government collects revenue (income) from
taxes and uses this money to provide services and infrastructure that improves the lives of all the
people in the country, particularly the poor.
The Constitution of South Africa sets the rules for how government works. There are three spheres
of government in South Africa:
 National government
 Provincial government
 Local government
The spheres of government are autonomous and should not be seen as hierarchical. The
Constitution says: The spheres of government are distinctive, inter-related and inter-dependent. At
the same time they all operate according to the Constitution and laws and policies made by
national Parliament.
The government machinery is made up of three parts:
 The elected members (legislatures) – who represent the public, approve policies
and laws and monitor the work of the executive and departments.
 The Cabinet or Executive committee (executive)– who co-ordinate the making of
policies and laws and oversee implementation by the government departments
 The departments and public servants – who are responsible for doing the work of
government and account to the Executive
SPHERE LEGISLATURE EXECUTIVE ADMINISTRATION
NATIONAL Parliament President and Cabinet Directors General and departments
PROVINCIAL Legislature Premier and Executive Heads of Department and staff

Council
LOCAL Council Mayor and Mayoral Municipal Manager, HoDs and staff
Committee
The Judiciary is also defined as part of government, but they are independent so that courts can
protect citizens without being influenced or pressurised by government. The independence of the
Judiciary is a cornerstone of constitutional democracy. It guarantees the supremacy of the
Constitution. We do not deal with the Judiciary here since they are not formally part of the policy-
making or implementation machinery of government.
1. National: Role, powers and functions

Laws and policies are approved by Parliament which is made up of the National Assembly and the
National Council of Provinces (NCOP). The National Assembly is made up of members of
Parliament, elected every five years.
The NCOP was set up to ensure that provincial and local government are directly represented in
Parliament. It is made up of representatives of provincial legislatures and local government. Each
province has a set number of permanent and rotating representatives. The NCOP has to debate
and vote on any law or policy that affects provincial or local government.
The President is elected by Parliament and appoints a Cabinet of Ministers. They act as the
executive committee of government and each Minister is the political head of a government
department.
Each government department is responsible for implementing the laws and policies decided on by
Parliament or the Cabinet. Government departments are headed by a Director General and employ
Directors (managers) and public servants (staff) to do the work of government.
Every department prepares a budget for its work. The budgets are put into one national budget by
the Treasury (Department of Finance), which has to be approved by Parliament. The Treasury has
to balance the income and expenditure of government in the budget and will rarely give
departments everything they ask for.
The Presidency coordinates the work of government and provides direction and strategic support
to ministers and departments. The Presidency monitors and evaluates overall progress towards
achieving government goals.
The Department of Public Service and Administration (DPSA) sets the policies and framework for
the Public Service at national and provincial level. This role may be extended to local government
in the future.
Some departments only exist at national level because they deal with issues that concern the
whole country. Examples are Defence, Foreign Affairs, Water and Forestry, Science and
Technology, Trade and Industry, Mineral and Energy, Public Enterprises, Home Affairs and Public
Service and Administration. Other departments have national and provincial departments because
they deal with direct provincial service delivery. Examples are Education, Housing, Health and
Social Development.
Provincial or local government may not do anything that is against the laws or policies set down by
national government. Provincial government gets most of its money from the national government
through Treasury. Local government also gets grants and some loans through the Treasury.
The Department of Provincial and Local Government (which resides at the national level) is
responsible for national co-ordination of provinces and municipalities. In every province, the
provincial Departments of Local Government monitors and supports municipalities.
2. Provincial: Role, powers and functions
There are nine provincial governments. Every province has a Legislature made up of between 30
and 90 members of the Provincial Legislature (MPLs). Some provincial laws are approved by
Legislatures. The Legislature also passes a provincial budget every year. Legislatures are elected
in provincial elections that are held with national elections, every five years.
A Premier is elected by the Legislature and appoints Members of the Executive Council (MECs) to
be the political heads of each provincial department. The MECs and the Premier form the
Provincial Executive Council (Cabinet).

Provincial government is headed by a Director General and provincial departments are headed by
a Deputy Director General or a Head of Department. They employ Directors (managers) and public
servants to do the work of government. Most of the public servants in the country fall under
provincial government – these include teachers and nurses.
In each of the nine provinces there are usually at least twelve departments. The names are slightly
different and in some provinces departments are combined.
Some of them are:
 Finance
 Economic development
 Tourism
 Housing
 Education
 Health
 Social Development
 Transport
 Public works
 Planning and Environment
 Sport, recreation, art and culture
 Agriculture
 Local government
 Safety and security or Community Safety
Each province has to develop a Provincial Growth and Development Strategy (PGDS) that spells
out the overall framework and plan for developing the economy and improving services. Provinces
also have a Spatial Development Framework (SDF) that says where and how residential and
business development should take place and how the environment should be protected.
The provincial MEC and Department of Local Government are responsible for co-ordination,
monitoring and support of municipalities in each province.
3. Local (municipal): Role, powers and functions
The whole of South Africa is divided into local municipalities. Each municipality has a council
where decisions are made and municipal officials and staff who implement the work of the
municipality.

The Council is made up of elected members who approve policies and by-laws for their area. The
Council has to pass a budget for its municipality each year. They must also decide on development
plans and service delivery for their municipal area.
The work of the Council is co-ordinated by a Mayor who is elected by Council. The Mayor is
assisted by councillors in an Executive Committee (elected by council) or a Mayoral Committee
(appointed by the mayor). The Mayor together with the Executive or Mayoral Committee also
oversees the work of the Municipal Manager and department heads. In some very small
municipalities the whole Council forms the executive – this is called a Plenary Executive.
The work of the municipality is done by the municipal administration that is headed by the
Municipal Manager and other officials. S/he is responsible for employing staff and co-ordinating
them to implement all programmes approved by council.
Different kinds of municipalities
There are three different kinds of municipalities in South Africa:
1. Metropolitan municipalities (Category A):
Metropolitan municipalities exist in the six biggest cities in South Africa. They have more than 500
000 voters and the metropolitan municipality co-ordinates the delivery of services to the whole
area. There are metropolitan municipalities in Johannesburg, Cape Town, Ethekwini (Durban),
Tshwane (Pretoria), Nelson Mandela (Port Elizabeth) and the Ekhuruleni (East Rand).
These municipalities are broken into wards. Half the councillors are elected through a proportional
representation ballot, where voters vote for a party. The other half are elected as ward councillors
by the residents in each ward.
2. Local municipalities (Category B):
Areas that fall outside of the six metropolitan municipal areas are divided into local municipalities.
There are a total of 231 of these local municipalities and each municipality is broken into wards.
The residents in each ward are represented by a ward councillor.
Only people who live in low population areas, like game parks, do not fall under local
municipalities. The areas are called district management areas (DMA) and fall directly under the
district municipality.
In local municipalities, half the councillors are elected through a proportional representation ballot,
where voters vote for a party. The other half are elected as ward councillors by the residents in
each ward.
3. District municipalities (Category C):
District municipalities are made up of a number of local municipalities that fall in one district. There
are usually between 3 - 6 local municipalities that come together in a district council and there are
47 district municipalities in South Africa. Some district municipalities also include nature reserves
and the areas where few people live - district management areas. These fall directly under the
district council and have no local council. The district municipality has to co-ordinate development
and delivery in the whole district. It plays a stronger role in areas where local municipalities lack
capacity to deliver. It has its own administration (staff).
The district council is made up of two types of councillors:

 Elected councillors - they are elected for the district council on a proportional
representation ballot by all voters in the area. (40% of the district councillors)
 Councillors who represent local municipalities in the area - they are local
councillors sent by their council to represent it on the district council. (60% of
the district councillors)
While metropolitan municipalities are responsible for all local services development and delivery in
the metropolitan area, local municipalities share these responsibilities with district municipalities.
This is especially the case in very rural areas, where district municipalities will have more
responsibility for development and service delivery.
Functions of municipalities
Municipalities are responsible for the following functions:
Electricity delivery Water for household use
Sewage and sanitation Storm water systems
Refuse removal Fire fighting services
Municipal health services Decisions around land use
Municipal roads Municipal public transport
Street trading Abattoirs and fresh food markets
Parks and recreational areas Libraries and other facilities
Local tourism
1. Explain the three spheres of government.

Unit 2: functions of a municipal government
SO2: AC1-4
Learning Outcomes:
The following learning assessment criteria are covered in this unit.
1. The role of a municipal government to deliver basic services

to improve quality of life of citizens at a household level is
summarized.
2. The role of a municipal government to deliver basic services
to enable the creation of sustainable human settlements is
explained.
3. The role of a municipal government to guide and co-ordinate

public sector and private sector investment to create
sustainable human settlements through its planning
frameworks and policies are explained.
4. The role of the municipal government as an active

development agent is explained with examples.
Introduction
The roles played by municipal councils are to:
 Pass by-laws - local laws and regulations about any of the functions they are
responsible for. By-laws may not go against any national laws and aresubject to the
Constitution.
 Approve budgets and development plans - every year a municipal budget must be
passed that sets down how money will be raised and spent. The Council must also
approve the 'integrated development plan'.
 Impose rates and other taxes, for example, property tax.
 Charge service fees - for using municipal services like water, electricity, libraries,
and so on.
 Impose fines - for people who break municipal by-laws, for example, traffic fines,
littering.
 Draw up, approve or amend integrated development plans (IDPs).

In playing their role, municipal councils have a duty to:
 use their resources in the best interests of the communities

 be democratic and accountable in the way they govern
 encourage communities to be involved in the affairs of local government
 provide services to the community
 make sure the environment is safe and healthy
Municipalities are responsible for the following functions in terms of Part B of Schedule 4
and Part B of Schedule 5 of the Constitution:
 electricity delivery
 water for household use
 sewage and sanitation
 storm water systems
 refuse removal
 fire fighting services
 municipal health services
 decisions around land use
 local roads
 local public transport
 street trading
 abattoirs and fresh food markets
 parks and recreational areas
 other community facilities
 local tourism
Municipal councils have executive and legislative powers for these functions. In other
words, they have the right to make laws and decisions about the affairs of residents and
communities in their areas and to claim service fees from residents

2.1 The role of a municipal government to deliver basic services
Municipal councils have a number of structures (such as an executive committee or

committees of council) and political office bearers (such as the executive mayor.)
Municipalities must define the specific role and area of responsibility of each structure and
political office bearer within the municipality. The definition of roles and responsibilities
must be in writing, and can include a list of the powers delegated to a structure or political
office bearer. When defining roles, the municipality must think about how structures and
political office bearers will interact with one another, and how they will interact with the
municipal manager, municipal staff members, and with the local community. If a
municipality has ward councillors or subcommittees, it should also think about how these
structures will interact with its administration.
Municipalities should try to develop clear lines of accountability for structures and political
office bearers, and minimise unnecessary overlapping of responsibilities between different
structures. Municipalities must also develop a process for dealing with disputes between
structures and political office bearers.
The role and responsibilities of the municipal manager
The municipal manager is the head of the municipal administration. Subject to the policy
directions of the municipal council, the municipal manager is responsible and accountable
for the formation and development of an economical, effective, efficient and accountable
administration. The municipal manager must make sure the administration is equipped to
implement the municipality’s integrated development plan, that it operates in accordance
with the municipality’s performance management system, and that it is responsive to the
needs of the local community.
The municipal manager has special responsibilities to ensure that the municipality’s
integrated development plan is implemented and monitored, and that services are
provided to local communities in a sustainable manner. The municipal manager must also
facilitate the participation of the local community in municipal affairs.
As the head of the administration, the municipal manager is responsible for a number of
staff functions, such as the appointment of staff below the level of managers directly
accountable to the municipal manager, the management and training of staff, the
maintenance of discipline of staff, and the promotion of sound labour relations.
The municipal manager must:
 approve a staff establishment for the municipality;

 provide a job description for each post on the staff establishment;
 align the remuneration and other conditions of service for each post on the staff
establishment in accordance with any applicable labour legislation; and
 regularly evaluate the staff establishment and, if necessary, review the staff
establishment and the remuneration and conditions of service.
These functions must be fulfilled in terms of a policy framework determined by the

municipal council, and in accordance with the Employment Equity Act.

The municipal manager is a key interface between political structures and political office
bearers, and the administration. He or she must manage communication between the
municipality’s administration and its political structures. The municipal manager must also
provide advice to council structures and political office bearers of the municipality, and
carry out their decisions.
The municipal manager is responsible for the administration and implementation of the
municipality’s by-laws, as well as for the implementation of national and provincial
legislation applicable to the municipality.
The municipal manager is also the accounting officer for the municipality. This means that
he or she is responsible and accountable for all income and expenditure of the
municipality; all assets and the discharge of all liabilities of the municipality; and proper
and diligent compliance with applicable municipal finance management legislation.
Employment contracts for municipal managers and managers directly accountable

to municipal managers
Municipalities must appoint their municipal manager, and people directly accountable to
the municipal manager, in terms of the Municipal Systems Act.
To increase administrative accountability, the Act requires that the municipal manager and
the senior staff who report directly to the municipal manager are appointed on written
employment contracts, which include a performance agreement. This performance
agreement should outline performance objectives and targets that must be met, and the
time frames within which those performance objectives and targets must be met. It must
allow for standards and procedures for evaluating performance, and spell out the
consequences of substandard performance.
The Municipal Systems Act also aims to increase transparency, by specifying that every
municipality must, on or before 31 October of each year, publish the salary scales and
benefits applicable to posts of the municipal manager and every manager that is directly
accountable to the municipal manager, in a local newspaper.
Any municipal manager who is appointed after the Municipal Systems Act takes effect,
must be appointed on a fixed term of employment. The term of employment must end
within the first two years after a new municipal council is elected. For example, if a
municipal manager is appointed five months before a local government election, their term
of employment cannot be longer than two years and five months. Fixed term employment
contracts must include a provision which allows the contract to be renewed with the
agreement of both the employer and employee, and a provision which allows the contract
to be cancelled if the municipal manager does not comply with the terms of their contract.
Municipalities may choose whether they want to appoint the next level of management
(staff who report directly to the municipal manager) on fixed term contracts or not.
DELEGATIONS
Developing a system of delegations

Municipal councils may delegate any of their powers, except for those municipal powers
which the Constitution does not allow to be delegated, and the approval of the integrated
development plan.
The following powers may be delegated to an executive committee or executive mayor,

but not to any other structure:
 decisions to expropriate immovable property or rights in or to immovable property;

 the determination or alteration of the remuneration, benefits or other conditions of
service of the municipal manager or managers directly responsible to the municipal
manager; and
 decisions to make investments on behalf of the municipality.
A municipal council must develop a system of delegation that will maximise administrative
and operational efficiency, and provide for adequate checks and balances. Delegations
must be made in writing, and are subject to any limitations, conditions and directions the
municipal council may impose. Municipal councils may allow for the sub-delegation of
powers. For example, they may delegate responsibility for developing a local economic
development strategy to a council committee, but allow the committee to delegate this
responsibility to a task team.
Reviewing decisions
A municipal council remains responsible for all of its functions, even if some of those
functions have been delegated. A council may review any decision taken by a structure,
political office bearer, councillor or staff member to whom it has delegated authority. A
municipal council may decide to review a decision because such a review process is in
line with the municipality’s procedures, rules and orders. Alternatively, if a quarter of the
councillors in the council make a written request, the council must review a decision taken
by a structure with delegated authority. The council must confirm, vary or revoke the
decision. It may also request the executive committee or executive mayor to review the
decision.
Appeals
If a person’s rights have been affected by a decision of a structure operating with

delegated powers, that person may appeal against the decision. An appeal must be
written, and handed to the municipal manager within 21 days of the person being notified
of the decision. The municipal manager will hand the appeal to an appeal authority. If the
appeal is against a decision taken by a staff member, the appeal authority will be the
municipal manager. If the appeal is against a decision taken by the municipal manager,
the appeal authority will be the municipality’s political executive (ie: its executive mayor,
executive committee, or council). If the appeal is against a decision taken by a councillor,
the appeal authority will be the municipal council, or a group of councillors who were not
part of taking the decision. The appeal authority must revoke, vary or confirm the decision.
However, even if the appeal authority revokes the decision, it does not detract from any
rights which have accrued as a result of the decision.
HUMAN RESOURCES
Human resource management

A municipality must adopt appropriate procedures providing for fair, efficient, effective and
transparent personnel administration, including -
 the recruitment, selection and appointment of persons as staff members;

 service conditions of staff;
 the supervision and management of staff;
 the monitoring, measuring and evaluating of performance of staff;
 the promotion and demotion of staff;
 the transfer of staff;
 grievance and disciplinary procedures;
 the investigation of allegations of misconduct and complaints against staff;
 the dismissal and retrenchment of staff.
These staff procedures must be consistent with applicable labour legislation. The
municipal manager must ensure that every staff member and every relevant trade union
has easy access to a copy of these staff procedures. Provision must be made to ensure
that staff members who cannot read understand the municipality’s staff procedures.
Capacity building
A municipality must develop its human resource capacity to a level that enables it to
perform its functions and exercise its powers in an economical, effective, efficient and
accountable way. Municipalities must comply with legislation which applies to human
resource development, such as the Skills Development Act and the Skills Development
Levies Act.
Municipalities may fund their human resource development programmes through a training
levy (in terms of the Skills Development Levies Act), or by making provision for training in
their own budgets, or by applying for funding to the Sector Education and Training
Authority for local government.
Labour relations
Municipalities must comply with any collective agreements concluded by organised local
government, provided that these agreements fall within the mandate of organised local
government to act on behalf of local government in the relevant bargaining council.
Code of Conduct for municipal staff members
The Municipal Systems Act includes a Code of Conduct, which applies to every staff
member of a municipality. The municipal manager must provide every staff member with a
copy of the Code of Conduct, and any amendments to it. He or she must ensure that the
purpose, contents and consequences of the Code of Conduct are explained to staff
members who cannot read.

(H) MUNICIPAL SERVICES
Each municipality must ensure that all members of the local community are provided with
basic municipal services. Basic municipal services are services which are necessary to
ensure an acceptable and reasonable quality of life. The non-provision of these services
results in a risk to public health, or the safety of the environment.
Services must be provided in a manner that is equitable and accessible, as well as

financially and environmentally sustainable. Municipalities should monitor and review the
provision of municipal services, with the goal of ongoing improvement in levels and quality
of service.
CHOOSING A SERVICE DELIVERY MECHANISM
Mechanisms for provision of services
Municipalities have a number of options for the provision of municipal services in their
areas. A municipality may provide a service internally (for example, through a municipal
department or business unit), or through a service delivery agreement with a third party.
A service delivery agreement may be entered into between a municipality and
 another municipality;
 an organ of state, which may include a water committee, a traditional authority, or
any service provider recognised in terms of national legislation;
 a municipal entity;
 a community based organisation or non-governmental organisation; or
 any other person legally competent to operate a business activity.
Reviewing and deciding on mechanisms to provide municipal services
Municipalities should periodically review, assess and adjust the mechanisms in place for
service provision, in order to adapt to changing circumstances, and to meet the continually
evolving needs of the local community.
Service delivery mechanisms should be reviewed when a new service is to be provided, or

an existing service upgraded or extended. Municipalities must also review their service
delivery mechanisms when preparing or reviewing their integrated development plan, or
when a performance review points to the need to review mechanisms for delivering a
particular service. If a municipality is requested to review any of its service delivery
mechanisms by the provincial MEC, or by part of the local community, it must do so.
When a municipality is deciding which service delivery mechanisms are best suited to its
circumstances, it must take various factors into consideration. Firstly, the municipality must
assess whether it has the financial and human resources to provide a service itself, and
whether it has the capacity to improve and extend that service in the future. The direct and
indirect costs and benefits associated with the provision of a service by a municipality
need to be carefully considered. Municipalities should also consider whether they would be

able to deliver the service more effectively if they restructured their internal service delivery
mechanisms, for example, by establishing a business unit.
If a municipality has considered all the above variables and decides to explore the
possibility of service provision through a service delivery agreement, it must meet a
number of requirements before taking a decision. Firstly, the local community must be
given notice of the municipality’s intention to consider a service delivery agreement.
Secondly, the various costs and benefits of entering into a service delivery agreement
must be carefully considered. Municipalities must consider the impact of entering into a
service delivery agreement on the environment, the community, and employment and
development patterns in the area. The views of the local community and organised labour
should be considered. The capacity and potential future capacity of any prospective
service provider should be thoroughly assessed to ensure that the service provider has the
necessary skills, expertise and resources for the provision of the service.
After weighing up the costs and benefits of different mechanisms for delivering a service, a
municipality must select the option that will achieve the best outcome. It is important to
choose the mechanism that makes the most effective use of available resources to provide
the highest standard of service possible. Factors such as the equitability, accessibility, and
financial and environmental sustainability of the proposed service delivery method must be
carefully considered.
Before finally taking a decision, municipalities need to ensure that the decision complies
with national legislation relating to the appointment of a third party service provider, and
any other requirements that may be prescribed by regulation.
PROVISION OF SERVICES THROUGH INTERNAL MUNICIPAL MECHANISMS
If a municipality decides to provide a service through its own administration, it must

allocate adequate human and financial resources for the proper provision of the service.
The municipality must transform the provision of the service in accordance with the
requirements of the Municipal Systems Act. In other words, the municipality must ensure
that the service is provided in an efficient, effective and sustainable manner, that the
service is equitable and accessible, and that the best possible use is made of available
resources.
PROVISION OF SERVICES THROUGH SERVICE DELIVERY AGREEMENTS
A municipality may decide that the best method to provide a service is by way of a service
delivery agreement. If a municipality decides to provide a service through such an
agreement with another municipality, a municipal entity, or a national or provincial organ of
state, it may negotiate and enter into the agreement.
If a municipality decides to enter into a service delivery agreement with any other
institution or person, it must follow a competitive bidding procedure.
Responsibilities of municipalities when providing services through service delivery

agreements
If a municipality enters into a service delivery agreement with a third party, the municipality
remains responsible for ensuring that the service is delivered. The municipality must
regulate the provision of the service, and control the setting of tariffs by the service
provider in line with its tariff policy. The municipality must monitor the provision of the
service, and ensure uninterrupted delivery of the service to the local community.
If the service which is being provided through a service delivery agreement falls within one
of the municipality’s development priorities and objectives (as outlined in the municipality’s
integrated development plan), the municipality must ensure that the service is part of its
normal performance management and integrated development planning processes.
While the municipality remains responsible for the provision of the service, a service
delivery agreement may authorise the municipality to assign various responsibilities to the
service provider. Responsibilities that may be assigned to the service provider include:
 the development and implementation of a detailed service delivery plan, within the
framework of the municipality’s integrated development plan;
 the operational planning, management and provision of the service;
 undertaking social and economic development that is directly related to the

provision of the service;
 customer management;
 managing its own accounting, financial management, budgeting, investment and

borrowing activities within a framework of transparency, accountability, reporting
and financial control determined by the municipality;
 the collection of service fees from users of services in accordance with the
municipal council’s tariff policy, and in accordance with the credit control measures
outlined in the Municipal Systems Act.
It is the municipality’s responsibility to review and adjust tariffs. Where applicable, funds for
the subsidisation of services to the poor must be passed on to the service provider. The
system for transferring such funds must be transparent and subject to performance
monitoring and audits.
The municipality must ensure that the service will continue to be provided in the event of
the service provider becoming insolvent, being liquidated, or if the service provider for any
reason becomes unable to perform in terms of the service delivery agreement. The
municipality may ensure the continuity of service by taking over the management of the
service provider, or by providing for judicial management of the service provider, or by
other means.
When a municipality enters into a service agreement, staff may be transferred or seconded
to the service provider, with the agreement of the staff concerned. The municipality must
take over the municipal service and assets when the agreement expires or is terminated.
A service delivery agreement may be amended by agreement between the parties, except
where the agreement has followed a competitive bidding process. An amendment to an
agreement made through a competitive bidding process can only be made after the local
community has been given reasonable notice of the intention to amend the agreement.
The local community must also be given sufficient opportunity to make representations to
the municipality.

No councillor or staff member of a municipality may share in any profits or receive any
benefits from a service provider providing a municipal service in terms of a service delivery
agreement.
Municipal entities, including service utilities
Municipalities may wish to deliver some services through municipal entities. Municipal
entities are usually responsible for a single municipal function, or for a set of related
functions. They are corporate entities which operate under the ‘ownership control’ of one
or more municipality. ‘Ownership control’ means that the municipality (or municipalities)
which own the entity have control over its financial and operating policies. They can
exercise this control in a number of ways, such as:
 appointing or removing at least the majority of directors (or members of the

governing body);
 appointing or removing the entity’s chief executive officer;
 casting the majority of votes at meetings of the board of directors (or governing
body); or
 controlling at least the majority of votes at a general meeting (if the entity is a
company, co-operative, or other body which has members).
If a municipality decides to provide a service through a service delivery agreement with a

municipal entity, it may establish a company, co-operative, trust fund, or other corporate
entity to provide the service. It may also acquire ownership control in any existing
corporate entity that as its main business intends to provide that municipal service in terms
of a service delivery agreement with the municipality.
Municipalities may also establish a service utility to provide a specific municipal service. A
service utility is a specific type of municipal entity. It is separate juristic person, which is
established by a municipal by-law. The municipality that established the utility must
exercise ownership control of it. To establish a service utility, a municipality must pass a
by-law which regulates the functioning and control of the utility.
Competitive bidding
If a municipality decides to provide a service through a service delivery agreement with

any service provider other than another municipality, a national or provincial organ of state,
or a municipal entity, then the municipality must select the service provider through a fair
and competitive process. The process of selection must be equitable, transparent and
cost-effective. All prospective bidders must have equal and simultaneous access to
relevant information. The municipality must minimise the risk of fraud and corruption.
A municipality may show preference for categories of service providers in order to advance
the interest of persons disadvantaged by unfair discrimination, as long as the quality, cost,
coverage and developmental impact of the service is not compromised by such
preference. Any preference exercised must be within the provisions of the Preferential
Procurement Policy Act (Act 5 of 2000).
When choosing a service provider, municipalities must assess the potential service
provider’s capacity to provide the service, and take into account future capacity
requirements. Municipalities must also take into account the direct and indirect costs and
benefits associated with the provision of the service by the service provider.
Negotiation and agreement with prospective service provider
Once the municipality has selected a prospective service provider, it must negotiate the
final terms and conditions of the service delivery agreement with the preferred service
provider. If these negotiations are successful, the municipality must enter into a service
delivery agreement with the service provider. The agreement must be based on the terms
and conditions specified in the bidding documents, and modified or supplemented in the
negotiations. Changes to the original bidding documents, which arise from the negotiations
between the prospective service provider and municipality, may not materially affect the
bid in a way that compromises the bidding process. In other words, the prospective service
provider should have fairly won the bidding process on the strength of their original bid,
regardless of any subsequent negotiated changes.
If the municipality fails to reach an agreement with the preferred service provider within a
reasonable time, the municipality may negotiate with their second choice of service
provider.
When a municipality enters into a service delivery agreement, it must give notice to the
community of the particulars of the agreement. This must be done by making copies of the
agreement available for public inspection at its offices, and by publishing the particulars of
the service that will be provided, along with the name of the service provider, in a locally
circulated newspaper.
SERVICE DISTRICTS
Internal municipal service districts
If it will facilitate the provision of a service in an area, a municipality may establish an

internal municipal service district for part of its area of jurisdiction. If a municipality decides
to establish a service district, it must first consult the local community on the proposed
borders of the district, the nature of the service which will be provided, the way in which
the service will be financed, and the proposed mechanism for delivering the service. The
majority of members of the local community within the service district, who contribute to
the service (eg: by paying service charges), must agree to the establishment of the service
district.
When a municipality establishes an internal municipal service district, it must determine

the borders of the district, and the method by which the service in the district will be
delivered. In order to finance the service in that district, the municipality may impose a
special surcharge on the tariff, or increase the tariff for the service to that district. Separate
accounting systems and records must be kept for each service district.
The municipality may establish a committee of representatives from the community to

consult and advise the municipality on matters relating to the service in that district.
Policy framework for internal municipal service districts
Municipalities which wish to establish internal municipal service districts must adopt a
policy framework to guide the establishment, regulation and management of their service
districts. When developing this policy framework, municipalities should think about how the
establishment of internal service districts will promote social, economic and spatial
integration, and local economic development in the municipality. The policy framework
must ensure that the needs of parts of the municipality are balanced with the needs of the
municipality as a whole. It is important that internal service districts do not entrench or
contribute to creating disparities in service provision across the municipal area.
Multi-jurisdictional municipal service districts
If it will facilitate the provision of a municipal service, two or more municipalities may
decide to establish designated parts of their municipal areas as a multi-jurisdictional
municipal service district. The national Minister for local government may also request
municipalities to establish a multi-jurisdictional service district, where the Minister thinks
this will be in the national interest.
If two or more municipalities enter into an agreement to establish a multi-jurisdictional

municipal service district, the agreement must describe the rights, obligations and
responsibilities of each participating municipality in detail.
The agreement must determine the boundaries of the district, identify the service to be
provided, and determine the mechanism by which the service will be provided. The
agreement must also specify budgetary, funding and scheduling arrangements for
implementation of the agreement.
Municipalities must establish a governing body for the multi-jurisdictional service district.
The governing body is a juristic person, and must consist of between three and fifteen
representatives. The agreement between municipalities which establishes the multi-
jurisdictional service district must include the details of the governing body, such as:
 the appointment of representatives of the participating municipalities to the

governing body;
 the number of representatives appointed from each municipality (including their
terms and conditions of appointment);
 the appointment of a chairperson;
 the operating procedures of the governing body;
 the delegations of powers and duties from participating municipalities to the

governing body; and
 any other matters relating to the functioning of the governing body.
The agreement must also provide for the appointment of staff by the governing body, the
transfer of staff to the governing body, and for the acquisition of infrastructure, goods and
services.
The agreement must include details of the conditions of withdrawal of a municipality from
the service district. Termination of the agreement must also be covered, including issues
such as the conditions and consequences of termination, the method and schedule for
winding-up of operations, the distribution of proceeds, and the allocation between
participating municipalities of any liabilities. If there is only one remaining participating
municipality in a multi-jurisdictional service district, the district will automatically terminate.

A multi-jurisdictional service district can also be terminated by written agreement among all
participating municipalities, or in terms of any conditions specified in the agreement.
Powers and duties of service utilities of multi-jurisdictional municipal service

districts
Participating municipalities must delegate powers to the governing body of a multi-

jurisdictional service district. The governing body must, in terms of the delegation, perform
all the duties a municipality would normally perform when providing that service. In effect,
the powers and duties of the municipality with respect to the delivery of that service are
delegated to the governing body, subject to any limitations, unit standards and directives
set out in the agreement.
A governing body, subject to any limitations set out in the agreement, has the following
additional powers:
 to determine its own staff establishment and appoint persons to posts on its staff
establishment;
 to obtain the services of any person or entity to perform any specific act or function;
 to open a bank account;
 to acquire or dispose of any right in or to property;
 to insure itself against any loss, damage, risk or liability;
 to perform legal acts, or institute or defend any legal action in its own name; and
 to do anything that is incidental to the exercise of any of its powers or duties.
Control of service utilities of multi-jurisdictional municipal service districts
The governing body of a multi-jurisdictional service district is accountable to the

participating municipalities. Any legislation applicable to the financial management of
municipalities is also applicable to the governing body.
Participating municipalities may require the governing body to submit regular written
reports and information regarding the governing body’s activities and performance.
Participating municipalities may also appoint a nominee to inspect the records and
operations of the governing body, and its contractors.
1. Explain the role of municipalities in relation to government

service delivery.
2. Identify the basic services provided by the Municipalities.
3. List ways of increasing service delivery

2.2 The role of a municipal government to deliver basic services
1. Why should organisations understand municipal services?
The South African Constitution states that municipalities have the responsibility to make
sure that all citizens are provided with services to satisfy their basic needs. In this guide we
will look at what those services are and the various ways in which municipalities can
provide them in an affordable manner. We will also look at what role ordinary citizens can
play to help municipalities decide what services to provide and how they will be provided.
Organisations can participate in many consultation and decision-making processes at local level -
for example ward committees, budget consultations, ward meetings, Integrated Development
Planning Forums, and so on. If you want to represent people and fight for their interests, it is very
important to understand the level of services that are available, the ways services can be delivered
and the choices for how to deliver services that your municipality faces.
2. Important things to know about municipal services
What is a municipal service?
Municipalities must make sure that people in their areas have at least the basic services they need.
There are a large number of services that they provide, the most important of which are:
o Water supply
o Sewage collection and disposal
o Refuse removal
o Electricity and gas supply
o Municipal health services
o Municipal roads and storm water drainage
o Street lighting
o Municipal parks and recreation
These services have a direct and immediate effect on the quality of the lives of the people in that
community. For example, if the water that is provided is of a poor quality or refuse is not collected
regularly, it will contribute to the creation of unhealthy and unsafe living environments. Poor
services can also make it difficult to attract business or industry to an area and will limit job
opportunities for residents.
Basic services needed in rural areas may be different from those that urban communities need.

Who is responsible for providing services?
Local government [municipality] is the sphere of government closest to the people, they are elected
by citizens to represent them and are responsible to ensure that services are delivered to the
community. One way in which municipalities can do this is to provide the service themselves
through the use of their own resources - finance, equipment and employees. A municipality may
also outsource the provision of a service. In other words, it may choose to hire someone else to
deliver the service but it remains the responsibility of the municipality to choose the service
provider and to make sure that they deliver the service properly.
Many municipalities, however, are unable to deliver services to residents. This might be because of
lack of finances or lack of capacity to provide a good service at an affordable price. Such
municipalities should find other ways to ensure that the services are improved and reach the
people most in need of them. Some options that they could consider are explained below:
Capacity building
It is possible for a municipality to improve and expand the delivery of services by improving their
own ability to do so. By improving a number of skills municipalities may be better able to deliver
services effectively and efficiently from inside. Better communication between the municipality and
citizens will help council determine the needs of the community and whether they are being met.
Improved financial planning will help find the best possible ways to use available funds. Better
technical skills will improve delivery of a particular municipal service.
Corporatisation
In some cases a municipality can improve the delivery of a service by corporatising it -that is by
creating a municipal company that will provide the service. The company belongs to council and is
accountable for its performance. Council usually appoints a board to oversee the work of the
company management. The company is able to function more independently than a municipal
department whilst acting under the overall control and supervision of council. Municipalities have to
deliver so many different services that it is not possible to focus on the best way to deliver certain
specialised services. By allowing the company some independence they are free to experiment
with new techniques and technology and able to provide better services at lower costs.
Municipal service partnerships [MSPs]
There are instances where a municipality might feel that instead of providing the service directly
they would rather hire someone else (service provider) to do it. Reasons why a municipality would
choose this route are that other municipalities, organisations (NGOs or CBOs) or private
companies may have better resources and management skills to provide the service.
Whatever method a municipality chooses it must always be in line with the overall goals of
improving the quality of services, extending services to residents who do not have them and
providing services at an affordable cost. We will look at the MSPs in more detail later on as there
are a number of factors that municipalities need to consider before deciding on one of these
options. It is important to provide services that are affordable but municipalities must do so without
compromising on its ability to operate and maintain existing services.
Factors to be considered before deciding on service delivery options
Service levels
The most important factor to consider is the level [or standard] at which the service is provided.
The choice of the level of a particular service is influenced by affordability as well as community

needs. When municipalities make decisions about the level of services they should seriously
consider the long-term viability of providing a service at that level. If a municipality provides a
service at a higher level the costs to provide the service increases and so does the price that the
municipality will have to charge its customers. Since municipalities rely heavily on income received
from users, if the costs are too high and people are unable to pay, the municipality will lose money
and as will not be able to continue to provide the service. The following table lists the different
service levels for the most important services:
Table 1: Service Levels
Service Type Level 1 Basic Level 2 Intermediate Level 3 Full
Water Communal standpipes Yard taps, yard tanks In house water
VIP Latrine Septic

Sanitation (Sewage collection/disposal Full water borne
tanks
5-8 Amp or non-grid

Electricity 20 Amps 60 Amps
electricity
Paved/tarred &
Roads Graded Gravel
kerbs
Stormwater
Earth lined open channel Open channel lined Piped systems
drainage
Solid Waste Communal

Communal (Residents) Kerbside
disposal (Contractors)
Provision of free basic municipal services
As part of its overall strategy to alleviate poverty in South Africa the government has put in place a
policy for the provision of a free basic level of municipal services. In his address at the inauguration
of the Executive Mayor of Tshwane on 10 February 2001, President Mbeki said: "The provision of
free basic amounts of electricity and water to our people will alleviate the plight of the poorest
among us while plans for the stimulation of the local economy should lead to the creation of new
jobs and the reduction of poverty."
From this statement it is clear that water and electricity has been prioritised as a free basic service
for the poor. However, in their recent submission the Financial and Fiscal Commission (FFC)
argues that other services certainly also fit the definition of "basic services".
For example, low-income residents in rural areas generally do not see electricity as critical as they
can access other sources of energy such as wood or paraffin. Roads, or rather the lack of
accessible roads negatively affects their daily/economic activity, mobility and safety. This implies
that some flexibility should be allowed for municipalities to determine which services they will
define as "basic service".

Options for free basic service
By far the most complex issue to consider when discussing the provision of free basic services is
the funding of such services. Municipalities receive their part of the equitable share, they can apply
for infrastructure grants and they raise their own revenue through service charges. [See guide on
municipal budgeting and financial management]
Municipalities need to analyse what their costs for free basic service provision is, what allocations
they receive and what their internal resource base is. This should then form the basis of what
would be affordable and therefore what the most suitable options for implementation would be.
Municipal service partnerships
What is a municipal service partnership?
A municipal service partnership (MSP) is an agreement between a municipality and a service

provider. A service provider may be another public authority (such as a water board or a district
municipality), a private company, a non-governmental organisation (NGO) or a community-based
organisation (CBO).
In terms of the agreement, a service provider undertakes to provide a particular municipal service
on behalf of a municipality within specific timeframes, budget and targets. The service provider will
either be responsible for delivering a service to the entire community or only a section thereof. It
may also be responsible to provide an entire or only a particular aspect of the service - for
example, a community based organisation can make an agreement to collect rubbish from
households and streets, and stack it in places where council trucks will collect it.
Planning for service delivery and improvement
One of a municipality's most important tasks is to find out the needs of its citizens and how best to
provide for these needs.
 Firstly, a municipality must determine what services it is providing, who is receiving

it and what is the quality of the thereof. For example: How often is the refuse
collected?
 Secondly, the municipality must determine what services should be expanded or
improved. Are some areas in the community very dirty and poorly maintained?
 Thirdly, the priorities for expanding or improving services must be decided.
Once it has been established which services are to be expanded or improved clear timeframes and
targets must be developed for that the municipality can decide the best ways to reach its goals. It
must also decide what resources - financial, equipment, and skills - it will require to meet its goals.
It may happen that a municipality discovers that it does not have sufficient resources and may
decide that it will phase the provision of services or only provide it to a section of the community. It
will also need to rethink how it will implement the provision of services. In other words, will it
provide the service directly or with a MSP or a combination of methods. There are a number of
MSP's to choose from they are explained below.
Types of MSPs
Service contracts
A service contract is an agreement between a municipality and a service provider to provide

a particular aspect of a municipal service on a short-term basis (only one or two years). The

municipality provides the budget and monitors the performance of the service provider to
ensure that the service provided is of a good quality and within the allocated budget.
An example of a service contract is repairs and maintenance of municipal equipment.

Management contracts
A management contract is an agreement between a municipality and a service provider in terms of

which the service provider is responsible for all aspects of a particular service. This type of
agreement typically lasts between three and five years. An example of a management contract is
refuse removal where the service provider is responsible for managing the collection of refuse,
while using the municipality's staff and equipment.
Leases
A lease is an agreement between the municipality and the service provider where the service
provider is responsible for the overall management and delivery of a municipal service. The
operating assets of the council are hired by the contractor to enable it to perform the service. The
contractor is also responsible for operating, repairs and maintenance costs for the service it
provides. The contractor may also take responsibility for collecting tariffs.
Concessions
A concession is an agreement between a municipality and service provider where the service
provider is responsible for the management, operation, repair and maintenance of a particular
service. The service provider is required to invest large sums of money to expand and improve the
service. For example, the service provider may be required to build a new water supply system for
the area. The contract period is often between twenty and thirty years to allow the service provider
enough opportunity to recover the costs on its investment. At the end of the contract the ownership
of the new plant and equipment belongs to municipality. Concessions are often called BOTs -
Build, Operate and Transfer.
3. How does a municipality implement a MSP?
When a municipality has decided to provide a service through a MSP it must then decide on an
appropriate service provider, meaning a provider that can meet the municipality's delivery goals at
an affordable price and by means of affirmative procurement procedures. This means that the
municipality must as far as possible ensure the participation of local residents and small
companies which are owned and operated by previously disadvantaged individuals.
Sometimes the appropriate service provider is a NGO or CBO, sometimes a private company or at
other times it could even be another public body such as another municipality or a water board,
etc.
Usually the best way to find the right service provider is to get a number of them to compete
against each other in a bidding process. This helps the municipality to decide on the provider,
which will provide it with the best quality of service at the best possible price. It also protects the
interests of citizens as it reduces the opportunity for corruption.
The various bids are then evaluated, a preferred bidder chosen and a contract negotiated. Once
the contract is signed the MSP can begin to operate.
How does a MSP operate?
The contract between the two parties will describe each side's rights and responsibilities. For
example, for a refuse collection contract in a particular part of the community the service provider

may be required to provide refuse tips in designated areas and empty them a certain number of
times a week.
The contract will also specify how often the service provider will receive payment. The fee may be
fixed or vary based on the provider's performance
The contract must also state that the municipality has the right to inspect the operations of the
service provider to make sure that they are doing what they are supposed to. If the service is not
provided at a satisfactory level the municipality has the right to take certain actions. For example,
the municipality could withhold payment until the service provider acts in terms of the contract and
in more serious cases the municipality could also end the contract.
The municipality's most important job during implementation of the MSP contract is to monitor
performance to ensure that all the requirements are being met and that citizens receive the correct
amount and quality of services.
Role of citizens in MSP's
Citizens and their organisations also have very important roles to play in the planning an
implementation of MSP's. Some of these are:
 Assisting the municipality to accurately decide on which services are to be

expanded and improved, particularly during the planning stages and insisting that
council consults citizens during decision-making
 Residents should also work with NGO's, CBO's and political parties to develop
proposals for council to consider
 Communities can also request the municipality to appoint a committee of

community representatives to monitor processes as well as to advise the
municipality on priorities for service extension and improvement.
 Communities or their representatives could also play some role in the evaluation of
potential service providers, the involvement of communities in service provision and
monitoring of the performance of service providers.
This kind of involvement from citizens will ensure that municipal planning and decision-making process will
reflect their needs and priorities and will lead to the types of decisions that will make for an open, fair and
democratic local government.
Explain factors affecting service delivery within local government.

2.3 The role of a municipal government to guide and co-ordinate public

sector and private sector investment
The Municipal Infrastructure Investment Framework (MIIF) sets out a basis whereby
Municipalities can plan, programme and budget for meeting the infrastructure service
needs in their areas.
The framework assists Municipalities to:
 determine the extent of infrastructure to be provided,

 determine the capital expenditure required to provide this infrastructure,
 methods of financing the capital expenditure,
 determining the operational expenditure to operate and maintain the service

delivery,
 methods of raising revenue to cover the operating expenditure, and
 monitoring and management systems.
The Framework was developed by the Department of Provincial and Local Government in
partnership with the Development Bank of South Africa
The Framework has been through several iterations and has been both expanded and
improved. The seminar provides a platform to be briefed on and interrogate the latest
version of the MIIF and to be part of a dialogue for determining a constructive way forward
for the application of the framework.
The private sector and the SOEs have a crucial role to play. Hence this meeting. Hence
our new “Business-Adopt-a- Municipality” campaign.
Essentially, the “Business Adopt-a-Municipality” campaign is a new initiative to mobilize

the private sector to play an increased role in the efforts to turn local government around.
Clearly, business cannot function effectively without effective municipalities. The costs of
doing business increase significantly with dysfunctional municipalities. How do businesses
function if there isn’t a constant supply of electricity? Or water runs out? Or the roads have
potholes? Or refuse is not being collected regularly? Or business licenses and other
applications are not approved in time? Business has a vested interest in effective
municipalities.
And municipalities have a vested interest in ensuring that businesses thrive. How do
municipalities function if they do not get enough rates and services revenue from
businesses? If businesses are unable to create new jobs? If businesses are unable to
transfer managerial capacity, new technology and specialized skills to municipalities?
So municipalities and business need each other. Now more than ever before. The
challenge is to find each other. To establish terms for a mutually beneficial relationship. It’s
towards this end that this meeting is being held.

After all, seeking to forge a developmental state. This means the market and state working
together as part of an overall national plan. The National Planning Minister and just
appointed National Planning Commission (NPC) are to begin work on this plan. And
business is well represented in the NPC.
The SOEs in particular with their more developmental role have an added responsibility to
ensure better engagement with municipalities.
The LGTAS is the best point of entry for businesses into municipalities. Business played
an important role in shaping the LGTAS. Now you have a responsibility to help to
implement it effectively.
Besides fully acquainting yourselves with the LGTAS, you might also want to look at “The
State of Local Government in South Africa Report” on which the LGTAS is based. This
report flows from an interactive, hands-on assessment of municipalities throughout the
country done between May and September last year. Essentially, the report concluded that
while some municipalities are performing well, municipalities in general are in distress.
A fuller presentation on the LGTAS is to be offered to you later this morning. But among
the reasons for the failure of municipalities to perform effectively I want to draw attention to
for now are the following:
 Inadequate resources to address both the economic and social infrastructure; and
 lack of capacity and shortage of skills, particularly in regard to technical, financial
and administrative capacity and systems.
The National LGTAS Framework revolves around a 10-point plan that includes the
following of immediate relevance to business:
• Improving the quantity and quality of municipal basic services to the people in terms of
access to water, sanitation, electricity, waste management, roads and disaster
management.
• Enhance the municipal contribution to job creation and sustainable livelihoods through
Local Economic Development (LED).
Within the National LGTAS Framework, each municipality is finalizing its own municipal-
specific turnaround plan, which will constitute the core of the IDP (Integrated Development
Plan) that provides the framework for the municipality’s budget to be implemented from 1
July. Businesses in each municipality should play an active role in shaping these
municipal-specific turnaround plans. If you haven’t played a role yet, you should reach out
to your municipality and seek to do so. It is crucial that businesses have a say in a
municipality’s IDP and turnaround plan on an on-going basis.
There are many areas in which municipalities and businesses can work together.
Businesses can help municipalities with financial, planning, administrative, technological,
managerial and other skills. The greater efficiencies that would result will provide a better
environment for businesses to flourish. What is certainly clear is that the inefficiencies of
municipalities impacts negatively on the output of businesses.
Businesses can also play a more active role in LED.
There are public-private partnerships that businesses could enter into with municipalities.

There are various mechanisms available for government and the private sector to
cooperate and these include:
• lease contracts and concessions;

• build-operate and transfer (BOTs) arrangements;
• public-private joint ventures; and
• informal and voluntary cooperation.
Areas of cooperation could include:
 The construction and operation of water, sewer, and waste treatment facilities.
 Contracts and concessions for other services and the management of facilities.
 The co-ownership or co-financing of projects.
 The development and implementation of economic initiatives such as ecotourism.
 The strengthening of the systems of municipalities to support accelerated service

delivery.
Another possible way of cooperation with the private sector is through what in other
countries, notably Brazil, is called public passive investment. This refers to where state
guarantees and incentives reduce private companies’ costs or increase the potential for
profits in activities that would, in their absence, seem risky or unprofitable. These
incentives may ultimately be less costly for government than providing services directly.
Guarantees and incentives can mobilize private sector financial resources that would
otherwise not be available to the government and assure that services are provided more
flexibly and efficiently than by government. However, both government officials and the
private sector can abuse the guarantees and incentives unless they are monitored and
supervised. And any such guarantees and incentives must be part of the overall IDP which
should provide for a variety of partnerships, including with NGOs and CBOs. There needs
to be more discussion about this option.
The LGTAS classifies municipalities into degrees of vulnerability. Business can shape their
approach to municipalities according to this classification. The most vulnerable are often in
the rural areas. It is important for businesses to assist these municipalities for many
reasons. One of them is that by strengthening rural municipalities, the flow of migrants into
the towns will be reduced, so easing the stresses on the infrastructure and services of
urban municipalities. This, in turn, means that the pressure on infrastructure and services
that the private sector uses is reduced.
But if business is prepared to work with municipalities, are municipalities prepared to work
with business? Not necessarily! We admit that not enough has been done to ensure that
municipalities are attuned to the value of working with business. COGTA (Cooperative

Governance and Traditional Affairs Department) and SALGA (South African Local
Government Association) will work towards ensuring this.
Municipalities need to show political and strategic leadership in engaging with business.
And COGTA and SALGA need to assist them to acquire this.
Councillors and officials must see engagement with businesses as a way of developing the
municipality, not as a means of advancing their own interests.
As COGTA, we will work closely with the provincial departments of local government to
educate municipalities about the importance of the “Business-Adopt-A-Municipality”
campaign. We will raise awareness of the campaign at the SALGA National Assembly next
week, at which municipalities from the country over will be present.
COGTA will have a special team with a co-ordinator to ensure the success of the
campaign and assist businesses having difficulty with accessing municipalities. The
provincial departments of local government will also be drawn in to play a role. We will also
assist with profiles of municipalities. COGTA will also play a role in finalsing Memorandum
of Understandings between businesses and municipalities where required to do so.
Explain the role of a municipal government to guide and co-ordinate

public sector and private sector investment to create sustainable
human settlements through its planning frameworks and policies.
2.4: The role of the municipal government as an active development

agent
PROVINCIAL MONITORING AND SUPPORT
Provincial government can play a strategic role in supporting municipal planning

processes. Each municipality plans for their local area. When all these plans are ‘put
together’, they cover the entire area of a province. Provincial governments are therefore
able to assess municipal plans in the context of plans for the development of the whole
province. From this strategic viewpoint, provincial government may notice some issues
which need to be aligned between adjacent municipalities, or between municipalities and
provincial or national government. The Municipal Systems Act empowers provincial MECs
to facilitate the co-ordination and alignment of integrated development plans between
municipalities, and between municipalities and national and provincial organs of state. The
Act outlines a process which MECs can follow to enable alignment and co-ordination- this
process is explained in the next section of this booklet.

There may be times when disputes over the content of integrated development plans
arise. For example, one municipality may object to another municipality’s plans to zone an
industrial area close to their border, on the grounds that it would affect land values in a
near-by residential area, or be too close to an environmentally sensitive area. Disputes
between a municipality and groups in the local community may also arise. For example, a
community group may argue that were not given enough time to comment on a certain
issue which affects them. To ensure that these kind of disputes are solved, the provincial
MEC is empowered to take appropriate steps to resolve disputes or differences in
connection with the planning, drafting, adoption or review of an integrated development
plan.
As well as playing an important role in alignment, co-ordination and the resolution of

disputes, the provincial MEC can directly assist a municipality with the planning, drafting,
adoption and review of its integrated development plan.
Process to enable alignment and co-ordination at the provincial level
The municipal manager of a municipality must submit a copy of the integrated

development plan as adopted by the council of the municipality, to the provincial MEC for
local government in the province within 10 days of the adoption of the plan. This copy of
the plan must include any amendments which have been made to the plan, as well a copy
of the process used to develop the plan. Municipalities in district areas must also include a
copy of the district framework which shows how district and local municipalities consulted
one another during the drafting of the plan.
If the provincial MEC notices that a municipal integrated development plan does not
comply with the provisions of the Municipal Systems Act, or that it is not properly aligned to
the development plans and strategies of other affected municipalities or organs of state,
the MEC may request the municipality to revise its integrated development plan. The MEC
must make this request within 30 days of receiving a copy of the integrated development
plan (or an amendment to the plan).
A municipal council must consider the MEC’s proposals, and within 30 days of receiving
the MEC’s request must either revise its integrated development plan, or, if it disagrees
with the MEC’s proposals, object to the MEC’s request in writing.
If a municipality objects to a MECs request to change their integrated development plan,

the MEC may, within 21 days, refer the municipality’s objection to an ad hoc committee.
An ad hoc committee to decide on a municipal objection is appointed by the MEC, and
consists of members representing local government, the provincial government and the
national government.
The municipality which lodged the objection, as well as any other affected municipality,
must agree to the choice of people to represent local government on the committee. The
provincial and national government, particularly the part of the government responsible for
functional area in which the objection falls, must also agree to the choice of people to
represent provincial and national government on the committee. For example, if the
objection was over a transport planning issue, the provincial and national departments for
transport must agree on the choice of people to represent them.
The ad hoc committee will consider the objection in terms of a procedure which will be
prescribed in national regulations. If at least two spheres of government on the committee
agree on whether the objection is valid or not, the matter is decided. If the ad hoc
committee rejects the municipality’s objection, the municipality must, within 30 days of the
date on which the committee has taken the decision, comply with the MEC’s request.
Urban Renewal Programme (URP)
Urban Renewal Programme involves revitalization of strategic urban localities through refurbishing
of infrastructure, Local Economic Development projects and social integration. URP requires
cooperation and partnerships of all three spheres of government as well as the private sector.
Typical projects undertaken through this programme include schools refurbishment,roads

construction, backyard rental accommodation, skills and development centres for local
communities. The department is currently implementing URP ptojects in Alexandra, Bekkersdal
and Evaton.
Alexander Renewal Project (ARP)
http://www.alexandra.co.za: The project is charged with upgrading the living conditions and human
development potential with Alexandra. Alex is designated one of the 8 urban nodes in the South
African government's 10 year integrated sustainable Rural Development and Urban Renewal
Programme. There are 96 active projects of which work is happening with more focus on housing
and infrastructure development and upgrade
The Project is tasked with the following responsibilities:-
 Upgrading existing housing environments

 Creating additional affordable housing opportunities
 Substantially reducing levels of unemployment
 Creating a healthy and clean environment
 Reducing levels of crime and violence
Recognition of the Project
The first three years of the Project drew some criticism from quarters which felt that visible delivery
in key priority areas was not happening fast enough. These years were dominated by planning for
and undertaking major investments in bulk infrastructure necessary to support future development.
Most of this construction happened outside of Alexandra itself and was in effect intangible to the
community. However, without these investments the current housing projects would not have been
possible.
More recently the Project has attracted more positive attention. It provided a location for the
2007 Global Studio student initiative and has been selected by FIFA as the venue for the
2010 Football for Hope tournament that runs parallel to the 2010 Football World
Bekkersdal Renewal Projec (BRP)
http://www.bekkersdal.co.za :The Bekkersdal Renewal Project was launched in 2004 as the

Gauteng Premier's Project, with overall total project programme duration of seven years. The
Bekkersdal Renewal Project is a model of the Gauteng Provincial Government's strategy to create
sustainable communities on well-located land. These centre on the building of infrastructure closer

to where people work, and where there are schools, clinics and access to transport. It involves the
building of homes, recreational facilities, community centres and parks in a safe, healthy and clean
living environment.
The core objectives of the Bekkersdal Renewal Project are to address the plight of Bekkersdal
residents located on high-risk and dolomitic land through a relocation plan. Those affected include
communities residing in informal settlements, backyard shacks and hostel residents.
The Project is tasked with the following responsibilities:-
 Upgrading of taxi ranks

 Partial Streetscaping
 Park Development
 Construction of clinic & multi-purpose community centre
 Training facilities to boost the local economic development
 Substantially reducing levels of unemployment
 Creating a healthy and clean environment
 Reducing levels of crime and violence
In addition , the project aims to provide formal housing for people who have been living in informal
settlements, direct access to water, sanitation, electricity and adequate roads. It intends to create a
climate conducive to social stability through better access to education, health, safety and security
services and the protection of the environment,and also to eradicate entrenched social, economic
and physical problems. The long- term goal is to establish a self-sustaining, independent and
stable community.
Evaton Renewal Project (ERP)
http://www.evatonrenewal.co.za : The Evaton Renewal Project is a project of government aimed at

"renewing" or regenerating Evaton, to improve the quality of life of the Evaton community. The
priority areas of this project include: the development of infrastructure, such as the resurfacing of
roads and building of pavements; the development of the local economy through job creation and
Small, Micro and Medium Enterprise (SMME) projects, like grass-cutting and the setting up of
vegetable gardens and agriculture projects; and social upliftment through the upgrading of
dilapidated houses, providing community halls and municipal offices with better facilities to service
the community of Evaton.
The Evaton renewal Project is a partnership of various stakeholders: the Evaton community, the
Evaton Development Forum, the Emfuleni Municipality , the Sedibeng District Municipality , the
Gauteng Department of Housing and other provincial and national government departments, as
well as private sector businesses. The Gauteng Department of Housing is leading the project,
representing the provincial government. The department, however, manages this project jointly
with the Sedibeng District Municipality and the Emfuleni Local Municipality .
Breaking New Ground (BNG) national housing strategy
Major housing development projects within the province are implemented and on completion, it will
cater for the different needs of people based on their choice andwhat is affordable.

In terms of Formalisation and Eradication of Informal Settlements, the Premier has alluded
to the fact that 103 053 serviced sites are ready for construction of top structure and in this
regard 35 000 housing units will be delivered in various areas across the province. In order
to meet targets, the usage of alternative building technology will be upscaled to fast track
delivery.
The private sector partnerships on infrastructure development have had visible impact on
these projects. The involvement of Standard Bank in Evaton will result in major investment
and improvement of infrastructure and ensure that people have access to economic
opportunities.
Explain the role of the municipal government as an active

development agent
Unit 3: Role of other spheres of government and role

players in municipal areas
SO3: AC1-4
Learning Outcomes:
The following assessment criteria are covered in this unit.
1. The role and responsibility of provincial and national spheres,

planning systems and sector departments in a municipal area
and in municipal development are explained.
2. The roles of the private sector, NGOs, CBOs and a range of
other role players in the development of a municipal area are
identified.
3. The importance of integrated development and partnerships

for a municipality to govern is explained.
4. The national and provincial intergovernmental development

planning framework is explained briefly
Introduction
Development Planning is “… a participatory approach to integrate economic, sectoral,

spatial, social, institutional, environmental and fiscal strategies in order to support the
optimal allocation of scarce resources between sectors and geographical areas and

across the population in a manner that provides sustainable growth, equity and the
empowerment of the poor and the marginalised”. (Forum for Effective Planning and
Development1 (FEPD), 1995)
Each sphere of government in South Africa has to see to the optimal allocation and
application of resources for its area of jurisdiction. Development Planning is therefore an
executive function as it has to be overseen by the highest political office at each sphere
and should be ratified by the elected political representatives in that sphere. Development
Planning has to determine the way in which each sphere sets its budget. Its influence
should extend beyond that of government resources and it must serve to mobilize off-
budget resources (State Owned Enterprises, private sector and NGOs). Development
Plans also serve to inform the actions of a range of role players, so they have a broader
role than merely establishing a one-to-one relationship with budgets. They should also
serve to inspire and guide the self-action of communities and residents by presenting a
clear vision for the area and long, medium and short-term development priorities and
objectives.
Development Planning is a core part of the service delivery and development process.
Service delivery and development cannot occur without identifying relevant actions,
programming the activities and setting in place the requisite resources. The relevant
actions are the ones that have the most impact on addressing poverty and growing the
economy. They are sustainable and lead to long-term benefits for a particular area and its
people. It is always a challenge to determine these relevant actions in the face of huge
needs and limited resources. It requires formulating strategies that are innovative, inter-
sectoral and spatially targeted.
Development Planning is also central to any performance management system. The

setting of development objectives and targets is the basis for measuring performance
through appropriate monitoring and evaluation steps. Development Planning is therefore a
part of an integrated system of planning and delivery and does not sit as an isolated
process de-linked from the actual functioning of a municipality, province or the country.
3.1 AC1: The role and responsibility of provincial and national spheres
1.1 Local Government Sphere
Development Planning in the Local Government sphere is conducted through the Integrated
Development Planning instrument. Each municipality in terms of the Municipal Systems Act (2000)
is responsible for formulating, adopting and implementing and Integrated Development Plan (IDP).
The Mayor is responsible for the IDP and it has to be adopted by the municipal council. Community
participation and involvement is central to IDPs. Communities are encouraged to organize
themselves and take care of their own development working together with government.
Community/Ward based planning can be a useful way for making more structured inputs in the IDP
process and for organizing community/ward based self-action. IDPs are not a mere collection of
1
FEDP was a government advisory body.

community needs or plans but are municipal-wide plans that have to take community needs into
account together with wider strategic issues incorporating provincial and national priorities and
strategies. Mediating these various interests the IDP should reflect the best possible development
decisions and trade-offs that focus on viability and economic, social, environmental, financial and
institutional sustainability
1.2 Provincial Government Sphere
Development Planning in the provincial sphere occurs through the Provincial Growth &
Development Strategies (PGDSs) that are driven by the Premier’s office and adopted by
the provincial cabinet. Currently there is no national legislative framework, as is the case
with IDPs, that governs the formulation, adoption and implementation of PGDSs.
Nevertheless in practice all provinces do formulate an overarching strategic framework.
The PGDS should have effect over the entire province and therefore needs to be
completed in consultation with municipalities and key provincial stakeholders. The PGDS
and IDPs should be aligned so that a common strategic path is followed and there is
complementarity in the way resources are allocated and in the way delivery occurs.
1.3 National Government Sphere
Development Planning at national level occurs through the Medium Term Strategic
Framework (MTSF). The MTSF is prepared by the Presidency and approved by the
national Cabinet. Like the PGDS, the MTSF currently does not have a legal status. The
influencing nature of the MTSF over the national budget is still limited. This will improve as
the inter-sectoral, geographical and people-centred focus of the MTSF is deepened, and
as institutional preparedness issues are addressed.
Intergovernmental Planning, that is, the coordination of development planning across the
three spheres of government is a critical area for improvement 2 in order to realize the
objective of optimal resource allocation and implementation for the state as a whole for the
purpose of eradicating poverty and growing the economy. Enhanced development
planning across government will contribute to the existing Planning Framework that
includes the planning cycle which culminates in the MTSF and annual State of Nation
Address.
Individual Activity:3.1 AC1
Explain the structures of government spheres.
2
See Annexure 1 for review of development planning over the past decade and the critical areas for
improvement.


3.2 The roles of the private sector, NGOs, CBOs and a range of other
role players in the development of a municipal area
Public-private partnerships (PPPs) seem to be destined to play an increasing role in

assisting South African local authorities to come to grips with the challenges of service
delivery, and catching up on the backlog that has developed, as indicated by
announcements on this front in recent times.
The City of Joburg, for example, in February this year announced that the metropolitan
council has entered into a PPP that is to deal with the challenge of ever increasing waste
in the city.
On another front, it was announced by the South African Local Government Association
(Salga), the Local Government Sector Education and Training Authority (LG Seta), the
Development Bank of Southern Africa (DBSA) and Microsoft South Africa that a PPP has
been launched to help reduce South Africa’s service delivery backlog by placing skilled
graduates and high-level training initiatives directly into municipalities around the country.
In an article by Ndaba Dlamini on the official website of the Joburg council at

www.joburg.org.za, on the thinking behind the PPP created to deal with the challenges of
waste management, it is stated that the global economic downturn has left many
municipalities in the country cash strapped, some having to abandon essential service
delivery projects crucial to improving the lives of their citizens.
The country’s economic powerhouse of Johannesburg has not escaped this calamity, but it
has taken some innovative measures to ensure that residents enjoy quality services. One
City department that has taken the economic initiative is Infrastructure and Services, which
monitors the performance of the City’s waste management entity, Pikitup.
The department is implementing a PPP – the first ever to be undertaken by Joburg – in

which the department will join hands with a private company to dispose of waste through
an alternative waste technology plant.
Speaking at a Municipal Public Private Partnership Conference at Turffontein Racecourse

on 18 February, Palesa Mathibeli, director of the waste sector in the Infrastructure and
Services department, said the project would not only drastically reduce waste at landfill
sites, but also would bring in much needed revenue.
Landfill shortage
“The City is fast running out of landfills to dispose of waste, but at the same time, the
amount of waste is increasing. It is estimated that this PPP will reduce waste by 80%,”
said Mathibeli.
She added that it was difficult to establish new landfills because of the lack of suitable land
and new legislation that required 15% of waste to be diverted
from landfills.

Two landfills in the north of the city have closed down, leaving only four in the south.
Robinson Landfill has three years left before it is full, while Marie Louise and Ennerdale
have seven and 10 years left, respectively. Goudkoppies has 17 years.
The City is a signatory on the Polokwane Declaration, which states that municipalities
should put measures in place to reduce waste to landfills by 50% by 2012, and zero waste
to landfills by 2022 – making the alternative technology project all the more necessary.
“After the Polokwane Declaration, the City set itself targets to divert 15% of waste from
landfills by 2010. However, we are in 2010 now, but we are only managing 5% to 7%. But
we are working towards these targets,” said Mathibeli.
Electricity
Once implemented, the alternative waste technology plant would have the potential to
generate electricity for sale to residents, earning the City much needed revenue.
“We project that even though the cost per tonne to process waste to energy will be more
expensive than the cost per tonne without waste to energy, the total income from the sale
of electricity will be way over these costs,” said Mathibeli.
While the project is the first of its kind for Joburg, it has taken a leaf out of the book of
similar successful projects overseas.
“Municipalities have to be innovative. Not only government can enhance people’s lives, but
all communities must put their heads together, explore public-private partnerships to
increase service delivery.”
Khutsoane said there was a huge backlog in building infrastructure in municipalities.
After the advent of democracy, there was a notable reluctance by municipalities to explore
PPPs in developing infrastructure, but circumstances had changed.
Functions
The need for municipalities to hook in the private sector to enhance service delivery could
be illustrated by the dwindling of functions performed by local governments, according to
Allyson Lawless of the South African Institute of Civil Engineers.
Ideally, five functions were performed by municipalities:
 Non-income generating residential infrastructure;

 Income-generating residential infrastructure;
 Infrastructure to support commercial, industrial and economic development;

 Operations; and
 Maintenance of existing infrastructure.
Currently, most municipalities performed only two of these functions: provision of non-
income generating residential infrastructure and maintenance of existing infrastructure.

Identify the roles of the private sector, NGOs, CBOs and a range of
other role players in the development of a municipal area
3.3 AC3 The importance of integrated development and partnerships for

a municipality
Drawing up an Integrated Development Plan (IDP)
Integrated Development Planning is an approach to planning that involves the whole municipality and its
citizens in finding the best solutions to achieve effective long-term development. An IDP is a broad plan for
an area that gives an overall framework for development. It looks at existing conditions and facilities, at the
problems and needs and finally at the resources available for development. There are six main reasons why
a municipality should have an IDP. These are to:
 make good use of scarce resources

 help speed up delivery of services to poor areas
 attract additional funds (government departments and private investors are more willing to invest
their money where municipalities have an IDP)
 strengthen democracy
 overcome the inequalities and discrimination of the apartheid system
 promote co-ordination between local, provincial and national government
All municipalities have to draw up an IDP in consultation with local forums and stakeholders. In other words,
the public must participate fully in the process. The final IDP document has to be approved by the council.
The plan must show:
 the basic needs of disadvantaged sections of the community

 the long-term vision for meeting those needs
 the need for these sections of the community to advance socially and economically
 how the plan will be financed and whether it is financially sustainable, that there will be money in the
future to keep the plan going
 the capacity of the municipal council to carry out the plan and what resources are available to help
carry out the plan.
The municipality (the mayor and Exco who pass on responsibility to the municipal manager) is responsible
for co-ordinating the IDP and must draw in other stakeholders in the area who can help and/or benefit from
development in the area. All municipal planning must take place using the IDP as a guide and the annual
council budget should be based on the IDP.

Explain the importance of integrated development and partnerships

for a municipality to govern
3.4 The national and provincial intergovernmental development

planning framework
1. Cooperative governance
Cooperative governance means that the three spheres of government should work together
(cooperate) to provide citizens with a comprehensive package of services. The Constitution states
that the three spheres have to assist and support each other, share information and coordinate
their efforts.
Implementation of policies and government programmes require close cooperation between the
spheres of government, especially at Executive level.
Local government is represented in the National Council of the Provinces and other important
institutions like the Financial and Fiscal Commission (FFC). The FFC is an independent body that
is set up under the Constitution to advise government on the portion of revenue that should go to
provincial and local government to subsidise services for poor people (the equitable share).
The Division of Revenue Act (DORA) lays down how the total government income (revenue)
should be divided and allocated between the spheres of government and within government. Local
government is also represented on the Budget Council where the Minister of Finance discusses
the proposed budget with provincial and local government.
The South African Local Government Association (SALGA) is the official representative of local
government. SALGA has nine provincial offices. Local municipalities join SALGA at provincial level.
Executive elections and decisions on policies and programmes happen at provincial or national
general meetings. SALGA is also an employers' organisation for all municipal workers, and sits as
the employer in the South African Local Government Bargaining Council. SALGA’s main source of
funding is membership fees payable by municipalities.
The different spheres of government depend on each other for support in project implementation,
and regular communication is essential. For example, when a municipality proposes the
development of a new township in its Integrated Development Plan, health and education services
have to be provided by provincial government. Water services have to be provided by national
government, and finances for housing development have to be transferred from national to
provincial government from where it goes to the housing developers approved by the municipality.
2. Intergovernmental relations
In 2005, the Inter-governmental Relations Framework Act was passed to make sure that the
principles in Chapter Three of the Constitution on cooperative government are implemented. The
Act seeks to set up mechanisms to coordinate the work of all spheres of government in providing
services, alleviating poverty and promoting development. The Act also establishes a line of
communication that goes from municipalities to the provinces and directly to the Presidency.
Inter-governmental Structures at National Level

The President’s Coordinating Council (PCC) is the main coordinating body at national level. It
consists of the President, the Deputy President, key Ministers, Premiers and the South African
Local Government Association (SALGA). The PCC meets regularly to oversee the implementation
of national policies and legislation, and to ensure that national, provincial and local development
strategies are aligned to each other.
At national level, each department has an Inter-governmental Forum where Ministers meet with
MECs and SALGA. These forums are called MinMECs and are also attended by heads of
departments, as technical advisors. The purpose of MinMECs is to consult, coordinate
implementation and align programmes at national and provincial level.
Provincial Inter-governmental Structures
The Premier in each province is responsible for coordinating relationships between national,
provincial and local government in the province. A Premier’s Inter-governmental Forum (PIF)
consists of the Premier, the local government MEC, other MECs, Metro and District Mayors and
other Mayors where necessary. The PIF meets regularly and consults on broad development in the
province, as well as on the implementation of national and provincial policy and legislation. It also
seeks to coordinate the alignment of provincial and municipal development planning and strategic
planning. The PIF reports through the Premier to the PCC. PIF meetings are usually preceded by
PAF (Provincial Advisory Forum) meetings where provincial heads of departments meet with all
municipal managers.
Further optional forums can be established by the Premier. In the Western Cape, for example there
is a Metro Inter-governmental Forum (MIF) where the Provincial Cabinet meets with the Cape
Town Mayoral Committee on a regular basis. The reason for this is that around 70% of the
provincial population lives in the Metro, and most of the economic and urban development is taking
place in that area. There is therefore a huge overlap between the Metro’s budget and
responsibilities and those of the Province.
Inter-governmental forums may also be established at district level, where they would consist of
the District Mayor and Local Council Mayors.
Joint implementation and disputes
In many development projects, more than one sphere of government may be involved in
implementation. Where necessary, the different organs of state may enter into an implementation
protocol that describes the role and responsibility of each organ of state; outlines priorities and
desired outcomes; and provides for monitoring, evaluation, resource allocation and dispute
settlement procedures.
Any organ of state may declare an inter-governmental dispute. They must ensure that every
reasonable effort has been made to avoid or settle the dispute before declaring it. Different organs
of state cannot institute judicial proceedings against each other unless an inter-governmental
dispute has been declared, and all efforts have been made to resolve the dispute. Once a dispute
has been declared, organs of state must designate a facilitator and resolve the dispute.
It is very important for the principles of cooperative government, as contained in the Constitution, to
be respected and observed by all spheres of government. It is highly undesirable for different
spheres of government to take each other to court. The Inter-governmental Relations Act has been
set up to facilitate cooperation and avoid legal proceedings between different spheres of
government.
Inter-governmental relations go beyond the Act, and the Municipal Finance Management Act also
requires consultation in the budgeting and planning process. At provincial level, technical

committees should meet regularly to facilitate contact between departments and municipalities and
to make sure that there is an alignment of planning priority strategies and resources between
provincial and municipal government.
It is not enough for discussion to take place at PIF – regular contact is necessary to ensure that
development is coordinated, fast-tracked, and that obstacles are removed where they impede
delivery. This requires ongoing communication and open lines between the different spheres of
government.
3. The government programme and planning in government
All government programmes are developed based on the laws and policies that are made by
Parliament. The majority party in Parliament bases its policy input on the policies that are made at
party conferences.
The Cabinet, as the executive of government, meets each year in a Lekgotla to develop goals and
plans for the year and to assess progress made in the previous year.
Once Cabinet has set the broad goals and strategies, the Directors General (DGs) of all
departments and provinces come together to make more concrete plans. They meet in a structure
called Forum of South African Directors General (FOSAD). Every Director General has to make
sure that their department has clear implementation plans and that these will help to meet the
overall goals of government for that year. Concrete plans are presented to Cabinet and also to
Parliament, usually in the Budget Vote for that Ministry.
The budget drawn up by Treasury has to take these plans into account and no plans can be finally
approved unless there is funding available for them. Treasury develops a medium term
expenditure framework (MTEF) for every three year period so that departments can see more or
less how much money they can plan to spend in the medium term.
The President and Cabinet are responsible for overall monitoring and for making sure that plans
are implemented. They use mechanisms like the MINMECs, where all MECs meet with the
Minister, and the Presidential Coordinating Committee, where the President meets with all
Premiers and some Ministers.
Provincial intergovernmental forums (PIFs) are used to ensure cohesion between local and
provincial government plans.
Every department, and every unit within a department, has to develop implementation and action
plans based on the overall strategic plan of government. Apart from the Annual Performance Plan,
every department also has to develop a Service Delivery Improvement Plan.
4. Integrated development plan (IDP)
Every municipality has to draw up an Integrated Development Plan (IDP). An IDP is a super-plan
that gives a framework for development. It tries to address the needs of the people in the area,
draws in stakeholders and other spheres of government and plans for infrastructure and local
economic development.
It aims to co-ordinate the work of local and other spheres of government in a coherent plan to
improve the quality of life for all the people living in an area. It should take into account the existing
conditions and problems and resources available for development. The plan should look at
economic and social development for the area as a whole. It must set out a framework for how
land should be used, what infrastructure and services are needed and how the environment should
be protected.

Local government must deliver services, provide facilities and build healthy and safe communities.
Municipal areas are large and within each municipality there are many different communities with
different needs. Municipal services cannot be delivered in bits and pieces: for example, if a new
housing settlement is planned it has to be supplied with roads, sewage, schools, houses, water,
electricity, parks, waste removal, streetlights, public transport, health services, etc. Each of these
come from a different department and sometimes even a different sphere of government and each
of these have to be paid for out of some department’s budget.
There are many opportunities for government, business, communities and organisations to
influence service delivery plans during the different phases of drawing up the IDP. The IDP has to
be drawn up in consultation with local forums and stakeholders.
The final IDP document has to be approved by the council.
Once the IDP is drawn up, all municipal planning and projects should happen in terms of the IDP.
The annual council budget should be based on the IDP. National and provincial government
departments working in the area should consider the municipal IDP when making their own plans.
After every local government election, the new council has to decide on the future of the IDP. The
council can adopt the existing IDP or develop a new IDP that takes into consideration existing
plans.
IDPs are reviewed each year. The IDP is the most important planning document of any
municipality and provides information that is very useful for all organised civil society and public
servants who work with local government.
Briefly explain the national and provincial intergovernmental

development planning framework.

Unit 4: Principles of municipal integrated

development planning
SO4: AC1- 5
Learning Outcomes:
The following assessment criteria are covered in this unit.
1. Demonstrate the importance of and determine ways to ensure

democratising of planning and implementation processes and
practices and appropriate involvement of various role payers
in the governance of a municipal area.
the sustainability of municipal planning and implementation

horizontal and vertical integration and collaboration between
different sectors and spheres in prioritisation, resource
allocation and implementation.

that municipal planning and governance are implementation
orientated.

strategic thinking and governance
Introduction
Local municipalities in South Africa have to use "integrated development planning" as a

method to plan future development in their areas. Apartheid planning left us with cities and
towns that:
 Have racially divided business and residential areas

 Are badly planned to cater for the poor - with long travelling distances to work and
poor access to business and other services.
 Have great differences in level of services between rich and poor areas
 Have sprawling informal settlements and spread out residential areas that make
cheap service delivery difficult.

Rural areas were left underdeveloped and largely unserviced. The new approach to local
government has to be developmental and aim to overcome the poor planning of the past.
Integrated Development Planning is an approach to planning that involves the entire

municipality and its citizens in finding the best solutions to achieve good long-term
development.
An Integrated Development Plan (IDP) is a super plan for an area that gives an overall
framework for development. It aims to co-ordinate the work of local and other spheres of
government in a coherent plan to improve the quality of life for all the people living in an
area. It should take into account the existing conditions and problems and resources
available for development. The plan should look at economic and social development for
the area as a whole. It must set a framework for how land should be used, what
infrastructure and services are needed and how the environment should be protected
All municipalities have to produce an Integrated Development Plan (IDP). The municipality
is responsible for the co-ordination of the IDP and must draw in other stakeholders in the
area who can impact on and/or benefit from development in the area.
Once the IDP is drawn up all municipal planning and projects should happen in terms of
the IDP. The annual council budget should be based on the IDP. Other government
departments working in the area should take the IDP into account when making their own
plans.
It should take 6 to 9 months to develop an IDP. During this period, service delivery and
development continues.
Review:
The IDP is reviewed every year and necessary changes can be made.
Lifespan:
The IDP has a lifespan of 5 years that is linked directly to the term of office for local
councillors. After every local government elections, the new council has to decide on the
future of the IDP. The council can adopt the existing IDP or develop a new IDP that takes
into consideration existing plans.
Management:
The executive committee or executive mayors of the municipality have to manage the IDP.
They may assign this responsibility to the municipal manager.
In most municipalities, the IDP manager /co-ordinator is appointed to oversee the process.
The IDP manager/co-ordinator reports directly to the municipal manager and the executive
committee or the executive mayor.
The IDP has to be drawn up in consultation with forums and stakeholders. The final IDP
document has to be approved by the council.
THE FOLLOWING GOVERNMENT ACTS & PRINCIPLES GUIDE THE IDP

PROCESSES
 Municipal Systems Act 32 of 2000

 Municipal Structures Act, 117 of 1998
 White Paper on Local Government (1998)
 Constitution of the Republic of South Africa (1996)
 Municipal Finance Management Act, 53 of 2003
 Batho Pele Principles

4.1 planning and implementation processes and practices
The Integrated Development Plan (IDP) is a plan for how the City will spend its money for
the next five years, on what, and where. It is a plan to help us set our budget priorities.
The IDP is agreed between local government and residents of the city. It is a plan for the
entire city and not just for specific areas. Thus a fine balance needs to be struck in
allocating scarce resources.
Consultation with residents resulted in three top priorities being defined – jobs, housing,
and safety and security.
Local government has a role in all three that is clearly defined by the Constitution.
To encourage the creation of more job opportunities, the City must provide effective
service delivery such as clean water; refuse removal and electricity as well as well-
maintained roads and infrastructure, and corruption-free administration. By doing that, it
will create a City where investors and entrepreneurs will want to do business – the main
source of sustainable job creation.
When it comes to housing, the City’s responsibility is to provide the service infrastructure
for housing such as access roads, water, electricity, sewage and waste disposal. We have
applied to the Provincial Government to become an accredited housing delivery agency.
In the case of safety and security, the City’s constitutional role, through the metro police, is
to enforce by-laws and traffic regulations. A recent by-law passed by the City enforces
stricter control regarding streets, public places and nuisance.
From what the public has said so far, it is clear that our main goal must be infrastructure-
led economic growth to promote job creation.
Demonstrate the importance of and determine ways to ensure

democratising of planning and implementation processes and
practices and appropriate involvement of various role payers in the
governance of a municipal area.

4.2 importance of and determine ways to ensure the sustainability of

municipal planning and implementation
The need for infrastructure services is intimately linked to the spatial development
framework of a municipality. The basis for the CIP will therefore be the current and
planned spatial development framework of the municipality, as well as its housing plans
and LED initiatives. These plans will serve as the point of departure for identifying the
anticipated needs for services at community level, taking into consideration the current
services provided, the condition of these services, and the potential future demands. The
different sector plans would be verified, and projects identified to address these needs.
Where necessary, refurbishment projects will be identified, as well as bulk supply into each
of the communities.
These inputs will be used in developing a medium term budget for the municipality using
the framework of the Infrastructure Investment Plan 3, which will model the financial
viability, the long term investment needs, and the ability to access loans. Additional plans
to bolster the institutional arrangements of the municipality will then be compiled, and
linked to step to improve revenue and reduce losses.
Demonstrate the importance of and determine ways to ensure the

sustainability of municipal planning and implementation.
3
As developed by DBSA

4.3 AC3, 4, 5 strategic thinking and governance.
 What do we do?
 How do we do it?
 Who are we?
 Talk to us
What do we do?
Strategic Thinking has three core business areas:
1. Software and Development Advisory

2. IT Governance and Risk Management
3. Education and Mentorship
We also engage in private asset management for our members. We can provide unqualified
industry and company investment analysis and advice on a case by case basis.
Software and Development Advisory
In this area, we specialise in financial software systems. We can provide detailed designs and
architecture for any financial system you may require.
We provide this service both to Independent Software Vendors requiring industry knowledge, as
well as financial services and other businesses who may require the software to be developed by a
third party.
Should you require the software to be developed outside of your organisation, we can facilitate the
development with our development partner Global Back Office, an established financial software
development agency based in London, UK and Cape Town, South Africa.
IT Governance and Risk Management
In this area, we provide a combination of legal, commercial and ICT skills to develop a strategy for
businesses of any size to manage IT governance and risk management within the enterprise.
We can help you establish bespoke employment agreements, service level agreements and
service development agreements.
Our particular area of focus is in the development of bespoke ECPs (Electronic Communication
Protocol), compliant with the ECT Act. In addition to providing the legal documentation around an
ECP we also conduct training and mediation sessions around the ECP and other IT governance
issues for all levels of staff (regular, management and executive).
We have innovated an additional HR risk product, in the form of 'Last Hurdle Assessment' - before
companies take on new development, business analyst or project management staff we can
provide a final independent stamp of approval as to a hire's suitability, outside of the recruiter's
desire for commission and the in-house decision maker's need to finalise a decision; consider it an
500 point AA check for a future employee, and a cheap way of avoiding costly hiring mistakes.
Education and Mentorship
Strategic Thinking recognises that in the knowledge economy businesses need new knowledge to
grow and gain the upper hand on the competition. At the same time, business principals and
knowledge workers are often too busy with day to day concerns to perform the research and
information gathering to extend their knowledge, and advance their competitive position.
We offer bespoke fortnightly, monthly or quarterly sessions designed around your business goals
and needs; for all ranges of staff. We are happy to provide the first session for free, and you can
poll your staff to see if they get more energised about their work, the company's goals, and feel
more confident around the knowledge they need to help your business achieve greatness - we are
sure you won't be disappointed!
We provide founder, entrepreneur and start-up mentoring. Our mentorship programmes are
customised around the needs of the founder or start-up and range from meet ups to bounce ideas
around, to assisting in licensing, commercial agreements and legal services.
In very special cases, we will also facilitate capital raising for start-ups.
Additional Services
We also provide a few other additional services outside of our core focus areas, all of which are
generally to assist in implementing our plans for small to medium businesses, as well as to help in
lowering costs:
 Software Licensing Advice

 Website registration
 Hosting
 Technical Equipment purchasing and advice
 Telecoms provider selection
Software Licensing Advice
You are almost certainly overpaying for the software in your business. We provide a no-obligations
service in which we will recommend and assist your business in managing its software licensing.
We then charge 20% of any annual savings that you make after receiving our licensing assistance.
We have no reseller agreements with any vendors, so we can assure you our complete indepence
when it comes to recommending providers.
Website registration
We can provide website registration assistance. We do this as a service for customers - we pass
on the domain costs directly to you. Prices from as low as R50 for a domain a year.
Hosting
We specialise in jurisdictional hosting advice, ensuring that your business transactions and data
are being processed and stored in the appropriate jurisdiction. We also provide general hosting
ourselves as well as with hosting partners.

We can provide the full range of hosting services to your business, both in-house and with external
providers. Contact us if you require hosting, or if you need help choosing a host. We are always
keen to share our knowledge of the various hosting providers and technologies both in South
Africa and abroad (including in tax havens such as the Isle of Man)
Equipment Purchasing Advice
We can assist you in server, desktop and other technical equipment purchasing. We can take all
the leg work out of the process by providing your comparitive costings from across the industry.
Telecoms Provider selection
We can assist you in choosing the appropriate telecoms provider(s) and packages based on the
current and future needs of your business. We can provide a detailed study of your needs, and a
coverage analysis of telecoms products within your company.
We have no reseller agreements with any vendors, so we can assure you our complete indepence
when it comes to recommending providers.
How do we do it?
What we do is on the door. We sell thought. That's not an easy sell by any means, the proof is in
the pudding. We are confident that when a business is exposed to any one of our services they'll
soon find them indispensable.
Our process with any client follows three distinct stages:
1. Inception - Getting to know each other (free advice and proof services)
2. Exploration - Detailed understanding of the business domain (paid consultancy)
3. Development - Deliverable pipelines of documentation, software, training and

advisory (cost per item)
The time we spend on any one phase is as much up to us, as it is up to you. We take an organic
approach to understanding your business - but we are sure it won't take us long to get to grips with
the opportunities and challenges your business faces.
We don't people who obfuscate prices. We have a set rate card for our services and deliverables. We will
share this with you during the inception phase, before we provide free proof services so you can know what
the costs you will be moving forward. We are sure you'll be pleasantly surprised at out costs!
Individual Activity: 4.5,6
Demonstrate the importance of and determine ways to ensure

strategic thinking and governance

Self Assessment
Self Assessment:
You have come to the end of this module – please take the time to
review what you have learnt to date, and conduct a self assessment
against the learning outcomes of this module by following the
instructions below:
Rate your understanding of each of the outcomes listed below :
Keys :  - no understanding
 - some idea
 - completely comfortable
SELF
RATING
NO OUTCOME
  
Demonstrating an understanding of relevant legislation and

policies.
Demonstrating an understanding of the core powers and

functions of a municipal government in terms of relevant
legislation and policies.
Demonstrating an understanding of the role of other spheres

of government and role players in municipal areas.
Demonstrating an ability to apply the principles of municipal

integrated development planning in relation to other role
players and spheres of government.
Complete the mind map below by listing the main point you remember from the module
you have just completed.
__________________
__________________
Demonstrating an understanding of
relevant legislation and policies. __________________
__________________
Demonstrating an understanding of the core __________________
powers and functions of a municipal
government in terms of relevant legislation and
__________________
policies. __
Demonstrating an understanding of
the role of other spheres of
government and role players in
municipal areas.
Demonstrating an ability to apply the

principles of municipal integrated
Impact of legislative framework
development planning in relationon
to local government 106
other role players and spheres of
government.
Learner Evaluation Form

Learning Facilitator Name
Programme Name
Learner name Dates of

(Optional) Facilitation
Employer / Work Date of

site Evaluation
Learner Tip:
Please complete the Evaluation Form as thoroughly as you are able

to, in order for us to continuously improve our training quality!
The purpose of the Evaluation Form is to evaluate the following:
 logistics and support

 facilitation
 training material
 assessment
Your honest and detailed input is therefore of great value to us, and
we appreciate your assistance in completing this evaluation form!
A Logistics and Support Evaluation

No Criteria / Question
Below Standard
Sufficient
Excellent
Standard
Above
Poor
1 Was communication regarding attendance of the

programme efficient and effective?
2 Was the Programme Coordinator helpful and efficient?
3 Was the training equipment and material used
effective and prepared?
4 Was the training venue conducive to learning (set-up
for convenience of learners, comfortable in terms of

temperature, etc.)?
Additional Comments on Logistics and Support
Above Standard
Below Standard
Sufficient
Excellent
Poor
B Facilitator Evaluation
1 The Facilitator was prepared and knowledgeable on the
subject of the programme
2 The Facilitator encouraged learner participation and input
3 The Facilitator made use of a variety of methods,
exercises, activities and discussions
4 The Facilitator used the material in a structured and
effective manner
5 The Facilitator was understandable, approachable and
respectful of the learners
6 The Facilitator was punctual and kept to the schedule
Additional Comments on Facilitation
Sufficient
Excellent
Standard
Standard
Above
Below
Poor
1 2 3 4 5
C Learning Programme Evaluation
1 The learning outcomes of the programme are
relevant and suitable.
2 The content of the programme was relevant
and suitable for the target group.
3 The length of the facilitation was suitable for
the programme.
4 The learning material assisted in learning new
knowledge and skills to apply in a practical
manner.
5 The Learning Material was free from spelling
and grammar errors
6 Handouts and Exercises are clear, concise
and relevant to the outcomes and content.
7 Learning material is generally of a high
standard, and user friendly
Additional Comments on Learning Programme

Sufficient
Excellent
Standard
Standard
Above
Below
Poor
1 2 3 4 5
C Learning Programme Evaluation
1 The learning outcomes of the programme are
relevant and suitable.
2 The content of the programme was relevant
and suitable for the target group.
3 The length of the facilitation was suitable for
the programme.
4 The learning material assisted in learning new
knowledge and skills to apply in a practical
manner.
5 The Learning Material was free from spelling
and grammar errors
6 Handouts and Exercises are clear, concise
and relevant to the outcomes and content.
7 Learning material is generally of a high
standard, and user friendly
D Assessment Evaluation
Sufficient
Excellent
Standard
Standard
Above
Below
Poor
1 2 3 4 5
1 A clear overview provided of the assessment
requirements of the programme was provided
2 The assessment process and time lines were clearly
explained
3 All assessment activities and activities were discussed
Additional Comments on Assessment

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Interpret and analyse the impact of legislative framework on local government

Field 03 - Business, Commerce and Management Studies

Impact of legislative framework on local government 2

1. WHAT IS INTEGRATED DEVELOPMENT PLANNING?...................................35

Impact of legislative framework on local government 4

Impact of legislative framework on local government 5

Individual Activity: 3.4 AC4..............................................................................91

Impact of legislative framework on local government 6

The qualifying learner is capable of:

 Demonstrating an understanding of the background and founding provision of the

 Identifying and explaining the broad spectrum of municipal and related

 Identifying and explaining the objectives of local government.

2. About the programme

2.1 Unit standard overview

Interpret and analyse the impact of legislative framework on local

Impact of legislative framework on local government 7

2.2 Learner Support

3.1 Formative Assessment

Impact of legislative framework on local government 8

3.2 Summative Assessment

You will be required to complete a Portfolio of Evidence for summative assessment

If it is not documented, it did not happen!

In some evidence, the process you followed is more important than

4. Navigating the Learner Guide

4.1 Use of Icons

Group Activity / Pair Activity:

Impact of legislative framework on local government 9

Impact of legislative framework on local government 10

Please take a moment to familiarize yourself with the requirements.

4.1 Attendance Register

4.2 Learner Registration Form

4.3 Programme Evaluation Form

Impact of legislative framework on local government 11

Impact of legislative framework on local government 12

Local government Framework' and 'integrated

The following learning outcomes are covered in this module.

1. Demonstrating an understanding of relevant legislation and

The other guides on local government are:

 Understanding local government

 Integrated development planning

 Municipal budgets and finance

 Municipal service delivery

The following Learning Assessment criteria are covered: in this

1. The term and concept of 'municipality' is explained in terms of

3. The value and role of the 'Integrated Development Planner'

4. The purpose and rationale of the various components and

5. The broad policy framework for development is

Impact of legislative framework on local government 14

AC1: The Municipal Systems Act (MSA).

The Constitution of South Africa envisages a robust

The Municipal Systems Act is part of a series of

c. Municipal powers, functions and duties

e. Integrated development planning

g. Local public administration and human resources

Impact of legislative framework on local government 15

i. Credit control and debt collection

j. Provincial and national monitoring and standard setting

k. National regulations and guidelines

(B) THE LEGAL NATURE OF MUNICIPALITIES

THE MUNICIPALITY AS AN ORGAN OF STATE

Municipalities should participate in organised local government structures so that their

RIGHTS AND DUTIES OF MUNICIPAL COUNCILS

 encourage the participation of the local community;

 promote development in the municipality;