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Financial Viability of Merged Municipalities in Developing Countries: A Systematic Literature Review

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  • Cosmas Ambe

    (University of Mpumalanga)

Abstract

Municipalities in developing nations grapple with financial strain, rapid urbanisation and service delivery failures. While mergers are often proposed as a remedy, existing literature is heavily skewed towards developed contexts. This study bridges that gap through a systematic review of 24 studies (2014–2024) on merged municipalities in the Global South, guided by the PRISMA framework. Findings reveal a lack of consensus on the concept of financial viability, with South Africa dominating the discourse. Research output peaked in 2022 before declining. While most studies found that mergers fail to resolve financial instability, a few highlighted post-merger fiscal improvements, suggesting conditional success. The review calls on policy-makers to rethink merger strategies prioritising transparency, stakeholder engagement and broader criteria beyond fiscal metrics. Past demarcation decisions warrant reassessment, and the pace of mergers should be tempered to ensure effectiveness. This chapter offers a critical lens on the complexities of municipal reform, emphasising that fiscal health alone cannot guarantee success. Instead, robust governance and accountability must underpin any restructuring, regardless of municipal scale or resource capacity.

Suggested Citation

  • Cosmas Ambe, 2026. "Financial Viability of Merged Municipalities in Developing Countries: A Systematic Literature Review," Springer Proceedings in Business and Economics,, Springer.
    • Handle: RePEc:spr:prbchp:978-3-032-13384-7_3
    DOI: 10.1007/978-3-032-13384-7_3
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