Development Incentives in the South African Local Government and Administration, a Significant Growth Factor for Municipal Planning, Innovation and Service Delivery During and Post-Covid 19

The world recognises South Africa as one of the African countries that are economically growing and developing. This recognition has been noticeable despite levels of Moody’s Investors Services downgrades. The negative rating recorded means that the persistent deterioration in fiscal strength and weak growth, which needs restructuring with associated policies to ensure efficacy are properly addressed. For the government to restore its economic outlook both during the pre and post-Covid-19 pandemic requires systematic and deliberate reform of legislation, policy, and implementation strategies. It further requires proper strategic planning, cost–benefit analysis, and monitoring and evaluation by various ministries when performing their constitutionally mandated functions. Metropolitan municipalities in the Gauteng Province have been struggling to provide much-needed essential services and to attract more investors to boost the ailing economy and create employment. This paper thus assesses the value of development incentives as an innovative measure to overturn the negative economic outlook and render local government financially sustainable in dealing with service delivery and infrastructure provision. The research answered two main questions: whether municipal planning is innovative enough to influence the country’s economic growth and social development? and if development incentives can attract, retain, and restore investment in a particular geographical area. To further evaluate whether the benefits of development incentives can have a spill-over benefit to other municipalities and, eventually, the country at large to transform the economy and create viable and sustainable communities. The study further identified sectors where various development incentives are explored with practical results. Existing research and case studies relevant to this topic were evaluated to validate and support the findings and recommendations made. The variable used is the development principles as the guiding factor for municipal planning, infrastructure provision, and service delivery.