The Role of Public Utilities in Accelerating Growth . A case study of Umgeni Water in the Mbizana Local Municipality

Abstract

The aim of this article was to determine the role of a public utility in accelerating growth in a local municipality. The South African (SA) Constitution of 1996 places an obligation on the national government to take reasonable action to give effect to the general rights of the population. While national government is required to establish a framework to ensure the realisation of rights relating to access to water, local government has the responsibility to ensure the delivery of services such as water to their local population, commerce and industry. These services form the foundation for growth and development in municipalities. Most municipalities do not have suffi cient capacity to maintain their infrastructure, and cannot implement large scale infrastructure projects. The national government can accelerate growth by engaging a partner with more capability than local government e.g. a public utility to assist municipalities in water services provision, thereby creating social development as well as assisting national government to deliver on their developmental mandate. This research analyses this solution by researching the case of Umgeni Water as an implementing agent of the Mbizana Local Municipality and assessing the impact of water provision on development in that area.