South Africa Municipal Financial Management Technical Assistance Project
Complete
Country: South Africa
Funding Agency: World Bank
Duration: September 2003–June 2008
Partners: Cowater International Inc
Federation of Canadian Municipalities
IPAC Lead: Ann Masson amasson@ipac.ca
Project Description:
On the Municipal Financial Management Technical Assistance Project (MFMTAP), IPAC was asked to join a Canadian consortium of experts, led and managed by Cowater International Inc. The consortium, which also included the Federation of Canadian Municipalities, provided technical assistance on matters of municipal finance and administration to seventeen municipalities throughout South Africa, as well as to the South African National Treasury. The project was funded through a partnership among the Development Board of South Africa, World Bank, and U.K. Department for International Development. Working with municipalities ranging from Johannesburg to Bloemfontein and rural districts such as Ba Phalaborwa, we aimed to promote fiscal responsibility throughout the country, and buttress service delivery in poor locales. At the same time, the consortium strove to create a more stable, robust economy for the private sector. To assist in implementing the 2004 Municipal Financial Management Act, we helped municipalities improve their strategic planning, financial reporting, accounting procedures and performance measures at all levels.
Goals and Objectives:
• To assist municipalities to implement the Municipal Finance Management Act through modernization and automation of their financial management systems.
• To review, consolidate and build on the financial reform foundation
• To assist pilot municipalities in budget improvement, consultation processes and refining reports
• To create models and case studies for budget preparation
• To create awareness of steps required in attaining viability and retaining creditworthiness
• To build and enhance municipal financial capacity
Results and Achievements:
The MFMTAP began in 2003, and recently wrapped up in May 2008. The consortium is pleased to report some notable achievements. Overall, the financial management of the municipalities has been strengthened, thanks to improved strategic planning and the appropriate allocation of government resources to social services. This is key to overcoming poverty and economic disparity among South Africa’s majority black population. We are also pleased to report better understanding among political leaders (councilors) of their role in the reform process. Municipal Executive and Administration staff are now able to link the budget process to service delivery, using more participatory and gender-sensitive approaches. Other positive results include an improved multi-year planning process for social services, as well as modernized financial management, including better monitoring and reporting systems.
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