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The financial distortion caused by urbanisation and immigration in municipalities: The case of the city of Tshwane Metropolitan Municipality.

Boa, Samester
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Abstract
The focus of this study recognises metropolitan municipalities that are under pressure to ensure affordability and quality of services. Theoretically, the rates which are collected by municipalities, together with services charges, should partly fund services. In practice this is not happening due to consistent challenges. One of the most important issues is migration as a result of urbanization, where people are moving from rural areas into cities at a constant rate, as well as the infiltration of immigrants from neighbouring countries; the reasons being possible employment and better services, which add to the existing burden that metropolitan municipalities in the Republic of South Africa (RSA) currently struggle with. The rise in population brought on by urban migration is one of the main issues that causes municipalities' finances to become distorted.. Many people move to cities on a daily basis for a variety of reasons. The most important reasons for migration are employment opportunities, better education, health care services, basic services delivery, and housing. Municipalities are struggling with factors such as current populations, population growth and the need for additional services, while facing financial constraints due to low incomes. Through this study the researcher aimed to determine how the City of Tshwane Metropolitan Municipality makes provision in their planning to eliminate the financial distortion caused by urbanisation and migration within the municipality’s geographical area. The research instrument includes face-to-face and electronic semi-structured interviews. The participants included officials at the Budget, Finance and Planning and Development departments within the City of Tshwane Metropolitan Municipality that are directly involved in the financial affairs of the Municipality.
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Submitted in fulfilment of the requirements for the degree Magister Technologiae: Cost and Management Accounting in the Department of Finance and Investment Faculty of Economics and Finance at the Tshwane University of Technology
Date
2023-06-13
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Tshwane University of Technology
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Keywords
Basic municipal services, Urbanisation, Migration, Metropolitan municipality, Service delivery
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