SOUTH AFRICAN CITY FINANCES Sustainable Development in the Urban Age - - PowerPoint PPT Presentation

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SOUTH AFRICAN CITY FINANCES Sustainable Development in the Urban Age - - PowerPoint PPT Presentation

Aug 24, 2023 165 likes •317 views

SOUTH AFRICAN CITY FINANCES Sustainable Development in the Urban Age Presentation Faculty of Law, North-West University Danga Mughogho Main Message Citizens and cities are in financial crisis. The problem is systemic, but an alternative

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SOUTH AFRICAN CITY FINANCES

Sustainable Development in the Urban Age Presentation Faculty of Law, North-West University Danga Mughogho

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Main Message

Citizens and cities are in financial crisis. The problem is systemic, but an alternative trajectory is possible.

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Citizens in Crisis

  • Growth in the cost of municipal bills is a focus
  • f consumer concern.
  • Most metros have regressive tariff structures

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Increasing Cost of Municipal Bills

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Municipal Bills are Regressive

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Affordability of Municipal Bills

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Affordability of Municipal Bills

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Systemic Problems – Financing Spatial Transformation

  • South Africa’s national urban agenda prioritises urban

densification.

  • The gap between city finance and spatial transformation

needs to be bridged.

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Revenue Impact of Development

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The Revenue Incentive

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Systemic Problems – Financing Infrastructure

  • Metros have a funding gap of between 10%

and 38% of their capital expenditure.

  • Unless this funding gap is closed, metros will

not be able to meet their core mandates over the medium to long term.

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The Capital Funding Gap

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Future Challenges

  • Electricity is both a major energy source and a

central component of big-city finances.

  • South Africa is one of the countries most

affected by climate change, resulting in economic losses, which are amplified in cities.

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Chapter Outline

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STATE OF CITY FINANCES 2018 CHAPTER OUTLINE SECTION/THEME CHAPTER CONTENT Financial Performance 1 State of City Finances & Financial Performance

  • Legacy chapter

2 Sustainability and Equity: The Tariffs Story

  • Legacy chapter

The Case for Fiscal Transformation 3 Financing Spatial Transformation

  • Property rates as a good government tax
  • The link between sprawl and property rates
  • Towards an alternative revenue logic

4 The Growing Funding Gap

  • Building on IGR/PDG report
  • Investigating the fiscal gap and proposing solutions

5 Localising Taxation

  • Building on SACN AMFM study
  • Assessing alternative own revenue streams for cities

The Rising Cost of Cities 6 Sustainably Financing Effective Public Transport Systems

  • Alternative sustainable finance mechanisms for urban

public transport

  • Assessing alternative mechanisms for sustainable financing
  • f public transport in SA cities

7 Cities and the Diversification of Energy Sources

  • The role of cities in electricity provision
  • The role of electricity revenue in city finance
  • Energy sector transition and city responses

8 Financing Climate Change Adaptation and Resilience

  • Understanding climate risks and the adaptation finance

landscape

  • Investing in resilience and adaptation
  • The fiscal impact of climate events

Emerging Innovations Two page spreads – distributed across the document

  • Smarter cities: Efficiencies of public services and

infrastructure

  • Digital democracy: Block Chain and public services
  • Transparency: mSCOA
  • Participation: Civic technology
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DANGA MUGHOGHO

danga@sacities.net