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Evaluating the impact of covid-19 pandemic on the financial sustainability of Northern Cape Local Municipalities

Thesis (MPA)--Stellenbosch University, 2022.

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Main Author: Hintsa, Lalelani
Other Authors: Ajam, Tania
Format: Thesis
Language:en_ZA
Published: Stellenbosch : Stellenbosch University 2022
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access_status_str Open Access
author Hintsa, Lalelani
author2 Ajam, Tania
author_browse Ajam, Tania
Hintsa, Lalelani
author_facet Ajam, Tania
Hintsa, Lalelani
author_sort Hintsa, Lalelani
collection Thesis
dc_rights_str_mv Stellenbosch University
description Thesis (MPA)--Stellenbosch University, 2022.
format Thesis
id oai:scholar.sun.ac.za:10019.1/126044
institution Stellenbosch University (South Africa)
language en_ZA
last_indexed 2026-06-10T12:43:28.625Z
license_str Other — see source repository
provenance_str_mv Harvested via OAI-PMH from SUNScholar — Stellenbosch University Repository
publishDate 2022
publishDateRange 2022
publishDateSort 2022
publisher Stellenbosch : Stellenbosch University
publisherStr Stellenbosch : Stellenbosch University
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source_str SUNScholar — Stellenbosch University Repository
spelling oai:scholar.sun.ac.za:10019.1/126044 Evaluating the impact of covid-19 pandemic on the financial sustainability of Northern Cape Local Municipalities Hintsa, Lalelani Ajam, Tania Stellenbosch University. Faculty of Economic and Management Sciences. School of Public Leadership. Local government -- Northern Cape -- Finance COVID-19 Pandemic, 2020- -- Economic aspects -- Northern Cape Local government -- Economic aspects -- Northern Cape UCTD Thesis (MPA)--Stellenbosch University, 2022. ENGLISH SUMMARY: As a result of the Covid-19 outbreak, most institutions, including municipalities, suffered disruptions in service continuity and financial devastation. Economic activities came to a grinding halt, resulting in the rise in unemployment, slow growth and unsustainable service delivery. The purpose of this study was to assess the impact of the Covid-19 pandemic on financial sustainability of Northern Cape municipalities. The researcher identified financial ratios, Medium-term Revenue and Expenditure Frameworks and analysis of financial management capacity as key variables to evaluate local government financial sustainability. Through the review of academic and policy literature, many compelling definitions of these variables emerged and evolved. The study utilised a case study research approach within the context of social science paradigm context. A purposive sampling technique was employed in selecting the Northern Cape local municipalities to participate in the study. The study applied a mixed method approach based on deductive and inductive reasoning rooted in quantitative and qualitative research approaches, following an explanatory sequential analysis of data. The mixed method information gathering approaches informed the descriptive and explanatory mechanisms of research design. Financial ratio trend analysis and interviews with municipal financial officials and a questionnaire were utilised as data collection methods. The findings of the study revealed the extent to which the responding municipalities were affected by Covid-19 pandemic relative to their performance before the pandemic. The results are indicative of an ailing state of financial affairs and unsustainable operations. The responding municipalities failed to meet crucial financial obligations with evident failures in systems and processes, both before and after the pandemic. Furthermore, the findings depicted deteriorating financial sustainability and health before the pandemic, and the financial condition worsened, thereafter, during the Covid-19 lockdown. The limitation of the study was its sample size which did not allow for statistical analysis, consequently, the results cannot be generalised. Further research is required that would broaden insights in this area of research, including addition of variables such as the dynamics of the political-administrative interface. AFRIKAANSE OPSOMMING: As gevolg van die Covid-19-uitbreking het die meeste instellings, insluitend munisipaliteite, onderbrekings in dienskontinuïteit en finansiele verwoesting gely. Ekonomiese aktiwiteite het tot stilstand gekom, wat gelei het tot die toename in werkloosheid, stadige groei en onvolhoubare dienslewering. Die doel van hierdie studie was om die impak van die Covid-19-pandemie op finansiele volhoubaarheid van Noord-Kaapse munisipaliteite te evalueer. Die navorser het finansiele verhoudings, mediumtermyn inkomste- en uitgaweraamwerke en ontleding van finansiele bestuurskapasiteit as sleutelveranderlikes geidentifiseer om plaaslike regering se finansiele volhoubaarheid te evalueer. Deur die oorsig van akademiese en beleidsliteratuur het baie dwingende definisies van hierdie veranderlikes na vore gekom en ontwikkel. Die studie het 'n gevallestudie-navorsingsbenadering binne die konteks van die sosiale-wetenskaplike paradigma-konteks gebruik. 'n Doelgerigte steekproeftegniek is gebruik om die Noord-Kaapse plaaslike munisipaliteite te kies om aan die studie deel te neem. Die studie het 'n gemengde metode-benadering toegepas gebaseer op deduktiewe en induktiewe redenering wat gewortel is in kwantitatiewe en kwalitatiewe navorsingsbenaderings, na aanleiding van 'n verklarende opeenvolgende analise van data. Die gemengde metode-inligting-insamelingsbenaderings het die beskrywende en verklarende meganismes van navorsingsontwerp ingelig. Finansiele verhouding-tendensontleding en onderhoude met munisipale finansiele amptenare en 'n vraelys is as data-insamelingsmetodes gebruik. Die bevindinge van die studie het aan die lig gebring in watter mate die munisipaliteite wat reageer deur Covid-19-pandemie geraak is, relatief tot hul prestasie voor die pandemie. Die resultate is 'n aanduiding van 'n sieklike toestand van finansiele sake en onvolhoubare bedrywighede. Die antwoordende munisipaliteite het versuim om deurslaggewende finansiele verpligtinge na te kom met duidelike mislukkings in stelsels en prosesse, beide voor en na die pandemie. Verder het die bevindinge verswakkende finansiele volhoubaarheid en gesondheid voor die pandemie uitgebeeld, en die finansiele toestand het daarna versleg tydens die Covid-19-inperking. Die beperking van die studie was die steekproefgrootte wat nie vir statistiese ontleding toegelaat het nie, gevolglik kan die resultate nie veralgemeen word nie. Verdere navorsing word vereis wat insigte in hierdie navorsingsgebied sal verbreed, insluitend die toevoeging van veranderlikes soos die dinamika van die politiek-administratiewe koppelvlak. Masters 2022-11-23T13:58:20Z 2023-01-16T12:47:13Z 2022-11-23T13:58:20Z 2023-01-16T12:47:13Z 2022-12 Thesis http://hdl.handle.net/10019.1/126044 en_ZA Stellenbosch University xiv, 143 pages : illustrations, includes annexures application/pdf Stellenbosch : Stellenbosch University
spellingShingle Local government -- Northern Cape -- Finance
COVID-19 Pandemic, 2020- -- Economic aspects -- Northern Cape
Local government -- Economic aspects -- Northern Cape
UCTD
Hintsa, Lalelani
Evaluating the impact of covid-19 pandemic on the financial sustainability of Northern Cape Local Municipalities
title Evaluating the impact of covid-19 pandemic on the financial sustainability of Northern Cape Local Municipalities
title_full Evaluating the impact of covid-19 pandemic on the financial sustainability of Northern Cape Local Municipalities
title_fullStr Evaluating the impact of covid-19 pandemic on the financial sustainability of Northern Cape Local Municipalities
title_full_unstemmed Evaluating the impact of covid-19 pandemic on the financial sustainability of Northern Cape Local Municipalities
title_short Evaluating the impact of covid-19 pandemic on the financial sustainability of Northern Cape Local Municipalities
title_sort evaluating the impact of covid 19 pandemic on the financial sustainability of northern cape local municipalities
topic Local government -- Northern Cape -- Finance
COVID-19 Pandemic, 2020- -- Economic aspects -- Northern Cape
Local government -- Economic aspects -- Northern Cape
UCTD
url http://hdl.handle.net/10019.1/126044
work_keys_str_mv AT hintsalalelani evaluatingtheimpactofcovid19pandemiconthefinancialsustainabilityofnortherncapelocalmunicipalities