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Do LED budgets matter? Efficiency and welfare outcomes in South African Metropolitan Municipalities
Journal article   Open access   Peer reviewed

Do LED budgets matter? Efficiency and welfare outcomes in South African Metropolitan Municipalities

Keoagile Kobedi, Marinda Pretorius and B. Maphela
Development southern Africa (Sandton, South Africa), Vol.43(3), pp.383-400
2026
Handle:
https://hdl.handle.net/10210/522011

Abstract

data envelopment analysis developmental local government efficiency analysis Local economic development Metropolitan municipalities welfare outcomes
Local Economic Development (LED) is a key component of South Africa's developmental local government mandate, yet questions remain about whether LED units effectively convert public resources into improved welfare outcomes. This study assesses the efficiency of LED units across South Africa's eight metropolitan municipalities from 2010 to 2022 using a quantitative input-oriented Data Envelopment Analysis approach. LED budgets are evaluated against welfare indicators derived from the Human Development Index, including life expectancy, education, income, and unemployment. The findings reveal variation in technical, scale, and overall efficiency across metropolitan municipalities. The City of Tshwane and the Mangaung Metropolitan Municipality consistently perform well, while Buffalo City and eThekwini Metropolitan Municipalities exhibit inefficiencies. The city of Johannesburg demonstrates strong technical efficiency but weak scale efficiency, pointing to constraints. The study provides a performance-based framework for evaluating LED effectiveness and highlights the importance of institutional capacity and scale alignment in advancing welfare-oriented local development.
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url
https://doi.org/10.1080/0376835X.2026.2661576View
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