Socio-economic impact assessment of the Municipal Infrastructure Grant (MIG), with specific reference to Buffalo City Metro Municipality

Abstract

The focus of this study is primarily to assess the socio-economic impact of the Municipal Infrastructure Grant (MIG) in the provision of key basic services in the Buffalo City Metropolitan Municipality (BCMM). To that effect, the Public Finance Management Act (PFMA), 1999 (Act 1 of 1999) contends that National Treasury must make regulations for a range of matters to do with the effective and efficient management and use of financial resources.

The government of the Eastern Cape, despite the introduction of MIG as an alternative enabler for improved socio-economic development, is still faced with serious social and economic challenges such as low economic growth, increased poverty levels, unemployment and mostly stagnant service delivery. These challenges are largely manifested at municipal level, and BCM has been one of the selected metros where the above triple challenge manifests itself on an increased scale (Freud, 2014:14).

Section 152 of the RSA Constitution of 1996 mandates the Municipalities to promote social and economic development. The war against poverty in South Africa cannot be over- emphasized, because policies are developed but the main issue is the implementation of these programmes, and that is still a major challenge. Equally so, Chapter 7 of the RSA Constitution states that “…a municipality must structure and manage its administration and budgeting and planning processes to give priority to the basic needs of the community and to promote the social and economic development of the community”.

The study whose aim was to assess the impact of MIG adopted a qualitative research approach, where structured interviews were conducted with 20 purposely selected participants. One core finding of the study suggested that for the municipalities to effectively and efficiently implement the MIG there is a need of an inclusive MIG Implementation Model which combines capacity development.

One key recommendation is that it is crucial to adopt a project management model towards effective implementation of MIG projects at the municipal level and in South Africa as a whole. Secondly, it is proposed that MIG guidelines and implementation toolkits should be standardized in order to ensure synergy.