Coega and East London industrial development zones (IDZs): the financial and socio-economic impact of the Eastern Cape IDZs and their prospects

Abstract

The aim of this article was to assess the financial and socio-economic impact of the two Industrial Development Zones (IDZs) emanating from the public-private partnerships (PPPs) arrangement in the Buffalo City and Nelson Mandela Metropolitan Municipalities, located in the Eastern Cape of South Africa. The metropolitan municipalities, despite the introduction of PPPs, are still faced with serious socio-economic challenges such as slow economic growth, increased poverty levels, unemployment and mostly stagnant infrastructure development as a result of underfunding. In addition, metropolitan municipalities remain obliged to deliver on their constitutional mandate, which is the provision of services to communities consistent with the Municipal Financed Management Act (MFMA) and Municipal Systems Act (MSA). Municipal financial planning and management leads to the development of methods to achieve sound financial performance in municipalities in line with service delivery demands. Sound municipal financial performance enables the municipalities to provide goods and services to all citizens.