Page 13 - Research Report 2025.1

The integration of traditional leadership into rural governance is crucial for maintaining social cohesion and ensuring that policies are aligned with local customs.
It fosters a sense of continuity and stability, ensuring that rural communities remain connected to both their cultural heritage and broader governance frameworks.
However, managing the balance between formal political structures and traditional leadership requires careful coordination. It is essential to ensure that both systems work together without conflict, allowing for inclusive and participatory decision-making that reflects the needs and values of the entire community.
Reliance on Government Grants
Participants noted the heavy reliance of rural municipalities on government grants for their financial sustainability. Participant 2 pointed out that due to the rurality and limited economic opportunities in these areas, municipalities depend primarily on grants from provincial or national governments to support their operations. The lack of local revenue generation is a direct result of the socio-economic characteristics of rural areas, where economic opportunities are scarce, and many residents face economic hardships.
Participant 5 further elaborated that the district municipality relies on grants, such as the Municipal Infrastructure Grant, to fund infrastructure development projects. The participant added that the effort for the municipality to generate its own revenue is minimal, which limits its ability to invest in long-term growth initiatives.
The heavy dependence on government grants highlights a vulnerability in the economic structure of rural municipalities. It presents significant challenges for the fiscal sustainability of rural municipalities without local revenue streams, municipalities have limited flexibility to address immediate local needs or respond to unexpected challenges. Additionally, this reliance constrains their ability to engage in long-term, independent development planning.
Participant 3
In terms of intergovernmental relations, sector departments, we work with all the sector departments. Because we have a structure called IGR. Yeah. Stand-alone unit to IGR that coordinates different departments to come together with all the all the other departments.”
Participant 5
“There’s, district health council that was derived. We’ve got this looking at the issues of health within the district. There is also the disaster management forum for the district, which is coordinated by the district municipality looking into ideas of responses to the disaster and then also the issues of preparedness of the municipality or in the district as a whole to issues of, of disaster.
Theme 2:
Governance and coordination structures
This theme explores the governance structures and coordination mechanisms that are essential for effective management and service delivery in rural municipalities. The findings highlight the importance of intergovernmental relations (IGR), the role of the legislative framework and the critical aspect of public participation in ensuring that rural municipalities like Alfred Nzo can meet the needs of their communities.
Departmental Coordination
Intergovernmental relations (IGR) are a key component of effective governance in rural municipalities, facilitating collaboration between various sector departments and ensuring that policies and programs are implemented successfully. Participant 3 emphasised the importance of IGR structures, noting that these coordination mechanisms allow different departments to work together and align their efforts. The Intergovernmental Relations (IGR) unit, which operates within the municipality, plays a critical role in bringing various stakeholders together to address issues like disaster management and public participation.
Participant 5 added that the district health council and the disaster management forum play significant roles in addressing local health and disaster preparedness issues. These forums, coordinated by the district municipality, are vital for responding to disasters and ensuring that the municipality is prepared to handle emergencies.
Participants noted that strong intergovernmental coordination is crucial for rural municipalities to address cross-cutting issues like disaster management and service delivery. Effective departmental coordination allows rural municipalities to pool resources and expertise from various governmental levels, enabling them to meet the specific needs of their communities.
RESEARCH REPORT 2025 | 11