The National Treasury will in the coming financial year introduce a new funding model for the countrys struggling municipalities. This is part of efforts to enhance the delivery of services through reforms into local government, and spatial integration introduced in the second phase of Operation Vulindlela.
The Treasury and the Presidency held a dialogue with economists on the released 1st quarter report into the operations second phase. The second phase targets thousands of job opportunities and 3,5 economic growth in the coming five years.
The Presidencys Saul Musker says their turnaround starts with getting the right people in place.
The main reason why our water systems and electricity distribution systems are not working effectively is because we havent invested in them for many, many years. Through the Vulindlela program, one key aspect is about putting more funding towards water and electricity infrastructure through the Metro trading Services reform Program, says Musker.
He says there is R54 billion in additional funding over the next six years for metros that implement certain reforms to improve their water and electricity utilities.