Research Publications (Management Sciences)
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Item Can commercialisation address consumer debt in local government : a case of South African metropolitan municipalities(Taylor and Francis Group, 2023-05-30) Murwirapachena, Genius; Kabange, Martin M.Consumer debt continues to challenge local government financial sustainability. There is a debate in the literature on whether developing countries should consider commercialising local service delivery. Using data from South African metropolitan municipalities, this study examines the impact of commercialising service delivery on consumer debt. Fixed effects modelling is adopted, and results show that commercialising sanitation increased consumer debt by 22.5 per cent, commercialising solid waste collection reduced consumer debt by 11.9 per cent, while commercialising electricity had no significant impact on consumer debt. These results imply that policymakers should consider the type and nature of public service when deciding its commercialisation.Item Non-payment culture and the financial performance of urban electricity utilities in South Africa(Informa UK Limited, 2023-05-04) Murwirapachena, Genius; Kabange, Martin M.; Ifeacho, Christopher I.Non-payment for services continues to challenge sustainability in municipal service delivery across South Africa. Literature provides that the culture of non-payment stems from the apartheid era where mass civil disobedience manifested through boycotting the payment of rates. This study examines the impact of the non-payment culture on municipal financial performance in South Africa. Panel data for 28 municipalities for the years 2005–19 is used, and the random-effects model is employed to estimate the relationship between municipal financial performance and non-payment. Results confirm that non-payment has a negative impact on financial performance. For every R1000 increase in bad debts written off, financial performance is reduced by R291. Further, grants from the national government, the number of consumers, and the number of household units receiving free basic electricity positively affect financial performance. These revelations warrant the need for more innovative approaches that transform non-payment into a culture of payment.