Investigating strategies to improve municipal infrastructure grant in Nelson Mandela Bay Municipality

Abstract

Background: The Municipal Infrastructure Grant (MIG) was introduced to promote infrastructure development at the local government level, particularly in rural areas, to address unemployment, poverty and inequality. The policy aimed to prioritise poverty eradication and socio-economic development; however, the National Treasury’s Report on Medium-Term Infrastructure Spending (2019/2021a) has highlighted that municipalities face challenges in spending their allocated MIG funds because of capacity constraints, particularly in project planning, despite pressing municipality needs.

Aim: This study aimed to investigate ways to improve the MIG Implementation Strategy in the Nelson Mandela Bay Metropolitan Municipality.

Methods: A mixed-methods approach was used with the explanatory research design. Structured questionnaires were distributed to 50 respondents, and qualitative data were collected through two focus group discussions. The quantitative data was analysed using descriptive statistics, structural equation modelling, Chi-square tests and factor analyses while the qualitative research data were analysed using Thematic analysis.

Results: Eighty per cent of respondents found MIG implementation ineffective, especially in the initial phases, as it fails to assist the municipality in providing essential services to the community. Furthermore, 60% of the respondents indicated that poorly structured plans are a key barrier. Seventy per cent of respondents suggested a more robust strategy for effective implementation.

Conclusion: The study concludes that the existing MIG policy framework is adequate but requires monitoring to ensure the proper implementation of infrastructure projects.

Contribution: Therefore, this study recommends that the MIG guidelines and implementation toolkits should be standardised and used by various MIG agencies and municipalities.