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Factors affecting the implementation of revenue collection strategy: a case study of Nongoma Municipality, KwaZulu Natal, South Africa.

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Recent “studies have manifested significant challenges in revenue collection in South African local government system. The research assessed the revenue collection challenges in South African local authorities and the possible solutions using Nongoma Municipality as a case study. The study analysed the different sources of revenue and analysed their contribution to the budget and their collection rate. A case study research design was used in this assessment. A sample of one hundred and fifty respondents was chosen. The sample is made up of four strata and these are; Nongoma Municipality employees, Nongoma Municipality residents/ratepayers, commercial ratepayers and vendors. Both secondary and primary data were used in the collection of data. Data was collected from interviews, questionnaires and Nongoma Municipality reports and it was analysed to come up with conclusions. The study established that Nongoma Municipality is facing operational challenges and they are mainly attributed to its failure to effectively collect revenue. The local authority is also not fully utilising revenue sources at its disposal. Despite these challenges the Nongoma municipality remains obliged to provide services to communities as the Constitution of the Republic of South Africa mandate them, 2006. A conclusion was reached that, to have viable local authorities, local authorities should do the following: improve efficiency in service delivery, practice accurate billing, improve revenue collection mechanisms and they should curb corruption and embezzlement of funds by officials. Local authorities also need to have good relations and reputation with all stakeholders. They should uphold good corporate governance as this will encourage ratepayers to pay their bills. Local authorities are recommended to come up with debt collection policies and politicians should support local government’s initiatives in revenue collection. The study also recommended the central government to assist local authorities with grants for upgrading their old infrastructure. In addition, programmes that assist in the raising and collection of revenue must have the full backing of central government through legislation. Local Economic Development initiatives were also recommended as a way of opening new opportunities for local authorities’ revenue. The study concludes by recommending the development of proficiency through training and policy relating to municipal revenue planning on financial performance, and the involvement of role players in the revenue planning process, as well as the employment of good strategic methods of raising adequate municipal revenue.”


Masters Degree. University of KwaZulu-Natal, Durban.