"A capable state must start where people live and work," exclaimed President Cyril Ramaphosa during his State of the Nation Address (SONA) in February this year.
A lot of focus by the President and National Government has been placed on Local Government. Following soon on his words after his SONA Speech, the President wasted no time in visiting Johannesburg, amplifying how important the City and Local Government are in building a capable state. The visit by both the national and provincial governments underscored the importance of Johannesburg as the economic powerhouse.
Building a capable state starts with acknowledging that if local government works, then the country works. It speaks to building internal capacity in municipalities, reinvesting in basic infrastructure development, looking into the funding models of municipalities, stabilizing finances, improving revenue collection and getting value for money. Johannesburg, like many other municipalities across the country, faces the similar challenges of limited funds, revenue collection in the face of many households struggling to service their municipal debt, and stubborn unemployment. This has negatively affected the ability of municipalities to reinvest in new infrastructure development.
The City of Johannesburg has heeded the call to build a capable state. The metro is currently spearheading a strategy and plan to reduce reliance on service providers by building internal capacity, prioritizing efficiency and getting value for money for residents. This strategy will enable the City to build the necessary capacity to ensure that we have the internal capacity to collect the much-needed revenue which will be reinvested towards service delivery projects and infrastructure.
The City is currently intensifying its efforts to evaluate its debt collection strategies to ensure efficiency, compliance and effectiveness in revenue collection. Part of this evaluation includes assessing the performance of service providers in the revenue collection value chain.
While the City is still committed to working with the private sector in revenue collection, what is paramount for the City is to ensure that it gets value for money for services rendered. Residents of the City also want to see value for money from the rates they pay to the City. The City should continue to interrogate and review whether or not these partners are truly providing value for money.
By evaluating the performance of service providers and ensuring that funds are spent efficiently, the City is reinforcing the principle that public money should always be used in the best interests of the residents. These measures should also give the City an opportunity to invest in skills development of its workforce, technology, and infrastructure to better maximize revenue collection strategy.
One of the successful technological interventions, which has been implemented by the City as part of its Smart City initiatives, is the introduction of a self-help website dubbed e-Joburg. Through the e-Joburg website, the City has been able to bring efficiency to property owners while at the same time optimizing revenue collection. To date, more than 300 000 residents have registered on the self-help website and are transacting with the City online.
The e-Joburg platform allows residents to view their municipal statements, pay accounts, and manage their accounts independently in the comfort of their homes, office or wherever they find themselves. The platform has grown to include features such as the ability for residents to upload their own electricity and water meter readings and apply for payment arrangements should they fall on tough times – all these on a single platform. This virtual municipal account service has meant that residents no longer must travel distances to get to municipal offices for services they can perform themselves at home. They are saving both on transport and time.
It is in the best interest of the residents, business sector and government to build together a cable City that is self-reliant and delivers quality services. While the City seeks to turn things around, businesses, households, and government departments also have an important role to play. A capable City requires a culture of accountability, where residents, businesses, and government departments also pay their debt while demanding better service delivery.
Written by Tebogo Moraka, City of Johannesburg Group Chief Financial Officer.