The Development of a Funding Matrix for Local Government

Client: South African Department of Provincial and Local Government
Faculty: Paul Smoke and John Gershman
Team: Yukimi Konno, Maria Margarita Vega-Cimadevilla, Tamara Zgonjanin
Year: 2003

In December 2000, the number of municipalities in South Africa was reduced from 843 to 284, as a result of demarcation to improve the efficiency of the public services provided by each municipality. Since then, the South African Department of Provincial and Local Government (DPLG) has monitored the transformation of the municipalities and is currently in the process of establishing a mechanism to assess funding requirements. DPLG requested that the Capstone team assist in developing a matrix for service provisions in order to determine the level of fiscal transfer for each municipality. The team undertook field visits to ten sample municipalities to identify information to be included in the matrix.