Abstract
South African municipalities are constitutionally mandated to provide essential services; however, many struggle to collect the revenue needed to sustain them. Weak enforcement of credit control, outdated debt collection systems, and inequitable indigent management leave municipalities, including the City of Ekurhuleni, falling short of their financial targets and compromising service delivery. While research highlights revenue shortfalls, little is known about the effectiveness of credit control and debt collection policies in addressing these challenges. This study examines the impact of these policies regarding municipal revenue collection, revealing that systemic inefficiencies are a key barrier to sustainable service delivery.
Methodology: This study adopts a pragmatic research paradigm, employing a mixed-methods approach to investigate the effectiveness of credit control and debt collection policies on municipal revenue collection in the City of Ekurhuleni. The target population consisted of ratepayers, municipal employees, and ward councillors. Qualitative data were collected through semi-structured interviews with 12 municipal staff and 6 councillors, and quantitative data were gathered via survey questionnaires administered to 615 community members from selected townships. A convergent parallel design was used, combining qualitative semi-structured interviews with quantitative closed ended survey questionnaires. Non-empirical methods, including a literature review and document analysis, provided the theoretical and legislative context, while empirical methods captured first-hand insights into policy implementation and community payment behaviour. Moreover, qualitative data were analysed thematically using Atlas.ti to explore perceptions and experiences, while quantitative data were statistically analysed using SPSS to assess trends, attitudes, and knowledge regarding municipal billing and revenue management. This integrated methodology provided a comprehensive understanding of the interplay between municipal policies, service delivery, and citizen payment behaviour, presenting evidence to inform future policy development and revenue collection strategies. Findings from both methods were compared to provide a comprehensive understanding of factors influencing municipal revenue collection.
Findings: The study found that, while some Ekurhuleni residents consistently pay municipal bills, many default due to financial hardship, service dissatisfaction, and limited awareness of credit control policies. Accordingly, non-payment was strongly linked to perceptions of unfairness, poor service quality, and weak communication, although incentives and penalties were shown to improve compliance. Correlation analysis confirmed significant relationships between payment behaviour, policy awareness, indigent support,...