Modelling Municipal Cost Inefficiencies in the Frances Baard District of South Africa and Their Impact on Service Delivery

Section 195(b) of South Africa’s Constitution calls for the efficient use of resources in public administration, while the White Paper on Local Government similarly emphasizes the efficient provision of basic services such as refuse collection and water. Despite these policy commitments, South Afric...

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Main Author: Brian Tavonga Mazorodze
Format: Article
Language:English
Published: MDPI AG 2025-06-01
Series:Administrative Sciences
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Online Access:https://www.mdpi.com/2076-3387/15/6/229
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author Brian Tavonga Mazorodze
author_facet Brian Tavonga Mazorodze
author_sort Brian Tavonga Mazorodze
collection DOAJ
description Section 195(b) of South Africa’s Constitution calls for the efficient use of resources in public administration, while the White Paper on Local Government similarly emphasizes the efficient provision of basic services such as refuse collection and water. Despite these policy commitments, South African municipalities continue to be characterized by financial mismanagement and poor service delivery. In light of the limited empirical evidence on this issue, this study pursues two objectives. First, it estimates the levels of cost inefficiency in four local municipalities within the Frances Baard District from 2006 to 2023. Second, it determines how cost inefficiencies affect service delivery, focusing on water and refuse collection. Using a stochastic frontier analysis, several key results are confirmed. First, on average, the four municipalities are found to have spent 17.23% above the minimum cost required to deliver existing services. Second, service delivery is found to have been 23% lower than its potential. Third, operating costs and contracted services are found to have been key drivers of wasteful expenditure. Lastly, cost inefficiencies are found to have culminated in poor service delivery. Against this background, municipalities are urged to consider cutting non-essential operational spending such as entertainment and travel allowances, coupled with improved accountability on contracted services.
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spelling doaj-art-4605a9f4e09740ba8e34c879fa22eac62025-08-20T03:26:09ZengMDPI AGAdministrative Sciences2076-33872025-06-0115622910.3390/admsci15060229Modelling Municipal Cost Inefficiencies in the Frances Baard District of South Africa and Their Impact on Service DeliveryBrian Tavonga Mazorodze0Faculty of Economic and Management Sciences, Department of Accounting and Economics, Sol Plaatje University, Kimberley 8301, South AfricaSection 195(b) of South Africa’s Constitution calls for the efficient use of resources in public administration, while the White Paper on Local Government similarly emphasizes the efficient provision of basic services such as refuse collection and water. Despite these policy commitments, South African municipalities continue to be characterized by financial mismanagement and poor service delivery. In light of the limited empirical evidence on this issue, this study pursues two objectives. First, it estimates the levels of cost inefficiency in four local municipalities within the Frances Baard District from 2006 to 2023. Second, it determines how cost inefficiencies affect service delivery, focusing on water and refuse collection. Using a stochastic frontier analysis, several key results are confirmed. First, on average, the four municipalities are found to have spent 17.23% above the minimum cost required to deliver existing services. Second, service delivery is found to have been 23% lower than its potential. Third, operating costs and contracted services are found to have been key drivers of wasteful expenditure. Lastly, cost inefficiencies are found to have culminated in poor service delivery. Against this background, municipalities are urged to consider cutting non-essential operational spending such as entertainment and travel allowances, coupled with improved accountability on contracted services.https://www.mdpi.com/2076-3387/15/6/229municipal cost inefficiencylocal municipalitiesservice delivery
spellingShingle Brian Tavonga Mazorodze
Modelling Municipal Cost Inefficiencies in the Frances Baard District of South Africa and Their Impact on Service Delivery
Administrative Sciences
municipal cost inefficiency
local municipalities
service delivery
title Modelling Municipal Cost Inefficiencies in the Frances Baard District of South Africa and Their Impact on Service Delivery
title_full Modelling Municipal Cost Inefficiencies in the Frances Baard District of South Africa and Their Impact on Service Delivery
title_fullStr Modelling Municipal Cost Inefficiencies in the Frances Baard District of South Africa and Their Impact on Service Delivery
title_full_unstemmed Modelling Municipal Cost Inefficiencies in the Frances Baard District of South Africa and Their Impact on Service Delivery
title_short Modelling Municipal Cost Inefficiencies in the Frances Baard District of South Africa and Their Impact on Service Delivery
title_sort modelling municipal cost inefficiencies in the frances baard district of south africa and their impact on service delivery
topic municipal cost inefficiency
local municipalities
service delivery
url https://www.mdpi.com/2076-3387/15/6/229
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