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Debt Management: Payment of Residential Property Rates in a Selected District Municipality in South Africa

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Listed:
  • Prince Chukwuneme Enwereji

    (Department of Economics and Management Sciences, North-West University, Mafikeng Campus, South Africa, 2)

  • Frazer Kadama

    (North-West University, Mafikeng Campus, South Africa,)

Abstract

Payment of residential property rates continues to be a contentious issue among the leaseholders in South Africa. The study investigates the payment practices on residential properties in one municipality. The purpose of the study was to identify the causes of defaults in payment of rates and to proffer solutions to minimise defaults and to recover debts. Systems and contingency theories underpinned the study. A mixed method approach involving both qualitative and quantitative data was applied. The population comprised of five local municipalities, 185 268 residential leaseholders and 437 municipal workers. Data were collected using questionnaires and semi-structured interviews. Survey data were analysed using Statistical Package for the Social Science while data collected from the interviews were transcribed, coded and discussed. The study concluded that defaults in payment were, inter alia, caused by failure of municipalities to impress upon residents the importance of paying rates and to promote alternative payment options.

Suggested Citation

  • Prince Chukwuneme Enwereji & Frazer Kadama, 2018. "Debt Management: Payment of Residential Property Rates in a Selected District Municipality in South Africa," International Journal of Economics and Financial Issues, Econjournals, vol. 8(2), pages 277-286.
    • Handle: RePEc:eco:journ1:2018-02-33
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    References listed on IDEAS

    as
    1. de Mendonça, Helder Ferreira & Machado, Marcelo Rangel, 2013. "Public debt management and credibility: Evidence from an emerging economy," Economic Modelling, Elsevier, vol. 30(C), pages 10-21.
    2. Roy Kelly, 2013. "Making the Property Tax Work," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1311, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
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    Cited by:

    1. Munyati, C. & Drummond, J.H., 2020. "Loss of urban green spaces in Mafikeng, South Africa," World Development Perspectives, Elsevier, vol. 19(C).
    2. Prince Enwereji & M. Potgieter, 2022. "Strategic Leadership Qualities to Enhance the Payment Culture for Municipal Services within an African Context," International Review of Management and Marketing, Econjournals, vol. 12(3), pages 10-17, May.

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    More about this item

    Keywords

    Debt Management; Communication; Municipal Financial Administration;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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