FOR IMMEDIATE RELEASE: 04 MAY 2017
Revenue Experts Reveal How Downtrodden Municipalities Can Begin To Beat a New Path
JOHANNESBURG, South Africa: On May 16, 2017 – The Municipal Revenue Conversion Strategies Report, will be launched during a peer business breakfast which is to be hosted at The Forum in Bryanston. The report was authored by Ntiyiso Consulting – a Management Consulting firm that has a strong focus on Municipal Revenue Management.
Anyone who has paid attention to the news headlines of late will know the dire state in which South African municipal finances are in, and so it is for this reason that The Municipal Revenue Conversion Strategies Report begins with an in-depth analysis of the revenue challenges facing municipalities in South Africa.
These obstacles center around two main challenges, namely: Revenue Coverage and Revenue Conversion. With respect to Revenue Coverage, the authors make the bold claim that South African municipalities could increase their revenues by between 35 to 65 Billion Rands per annum. Increases in property rates and water tariffs; the reduction of electricity non-technical losses; and adding new revenue streams, are all identified as key areas of opportunity.
With respect to Revenue Conversion, the authors discuss the issues that have led to municipalities in South Africa being owed more than 100 Billion Rands by their consumers. And this in-depth look identifies four sets of factors that influence Revenue Conversion rates, including consumers’ ability and willingness to pay their municipal bills. This discussion around revenue conversion seeks to enlighten the reader about some of the issues that lead to municipalities not recovering the revenues they levy for.
“This report brings to the fore the fact that revenue management is a discipline and not just a function that must be carried out. Revenue is the fuel that keeps all types of organisations functional, and if managed properly, organisations will thrive. This book is a first step towards creating a revenue mindset across a municipality, and to dispute the notion that a municipality is an office that deals with administrative issues only. A municipality is a business that must generate revenue, deliver services and keep itself running sustainably,” says Miyelani Holeni – one of the three partners at Ntiyiso Consulting.
“The findings in this report are drawn from extensive engagements with municipal officials in a South African municipalities, as well as extensive research on local and global best practices. These findings provide a number of useful examples of successful revenue coverage and conversion strategies that any municipal official would do well to keep in mind as they devise their own revenue strategies,” notes Zweli Gwebityala of Nascence Advisory and Research – a corporate research and advisory outfit that supported Ntiyiso Consulting in the research assembly of the report.
Municipal personnel including mayors and MMCs and other experts are expected to attend the launch event, which will include an expert panel discussion portion, which will be moderated by renowned finance journalist Siki Mgabadeli. The keynote speech to wrap up the event will be delivered by Minister of CoGTA, Honourable Des van Rooyen.
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