MANAGING CITY REVENUES - South African Cities Network

Report
FOR THE CITY OF NDOLA
ZAMBIA
PRESENTED BY CHARITY NANDA AND GILBERT SENDAMA
DATE: 25th MAY, 2011
VENUE: EKURHULENI COUNCIL CHAMBERS,KEMPTON PARK
INTRODUCTION
1.0 GENERAL OVERVIEW AND HISTORICAL BACKGROUND
 Physical Characteristics
 Location
 Topography
 Climate
 Challenges in managing City revenues
 Main sources of Finances for City Infrastructure
1.0 GENERAL OVERVIEW AND HISTORICAL
BACKGROUND
 Ndola the third largest city in Zambia
 total area of 110, 300 hectares
 population of about 374,757(2000 National census
report).
 The city began as a slave trading post during the slave
trade era, became a Village Management Board in
1920, a Municipality in 1932
 declared as a City in 1967, three years after the country
attained its independence from the British in the year
1964
HISTORICAL BACKGROUND
 1960s -70s Ndola became important commercial,
industrial and distributive center owing to booming
copper mining era and the city’s strategic location.
 1990s the city experienced a period of economic
decline due to liberalized economy
 privatization of national companies and loss of jobs.
 In recent years the city has seen economic activities
and infrastructure developments resulting in demand
for various services including Roads and other public
facilities
Physical Characteristics
Location
 The City of Ndola is the Headquarters of the
Copperbelt Province of Zambia
 lies between latitudes 120 and 160 South of the Equator
and between 250 and 300 east.
 The Copperbelt Province has nine districts namely,
Chililabombwe, Mufulira, Chingola, Kalulushi, ,
Luanshya, Mpongwe, Lufwanyama and Masaiti
districts and the City of Kitwe
Physical Characteristics
Location
 The city of Ndola shares administrative boundaries
with three towns namely Masaiti, Luanshya and Kitwe
 International boundary with the Democratic Republic
of Congo (DRC) to the north of Zambia
Topography
 Ndola lies at altitudes ranging from 1250 to 1455m and
an average elevation of 1200 m above sea level and falls
within the gently sloping Copperbelt regional
peneplain characterized by undulating terrain
 isolated high outcrops at Dola, Nakaputa and Kaloko
hills.
Rivers
 The City is dissected by four main tributaries namely
the Mwambashi, Muliashi, Kafubu and Luansobe
Rivers which are the principle drainage lines into the
Kafue River
Climate
Ndola has three distinct seasons typical of the savannah
climate
 warm rainy average annual rainfall of 400mm
influenced by the topography and prevailing winds
from the Congo (November to April)
 cool dry season (May to August)
 hot season (September to October).
 mean annual temperature 20°c and 25ºc (absolute
maximum temperatures of 32 degrees in January and
the absolute minimum temperature of 12 degrees in
June and July. )
 The mean humidity rate is at 81% with the highest in
January averaging 96% in the early morning and 66%
in the early afternoons.
 predominant direction of prevailing winds is 00 to 29
east of north at an average speed of 4.5 km per hour.
CHALLENGES IN MANAGING OF CITY REVENUES
FOR FINANCING OF PUBLIC INFRASTRUCTURE
Population distribution and its effect on urban
infrastructure situation
 Number of households in the City 71,053
 23,185 in Central part of the city with 112,129
inhabitants (higher rate payers).
 The combined total population for all the low income
areas is approx 226,000 inhabitants depend on
dilapidated infrastructure and unwilling to pay
Municipal taxes.
Other challenges
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Political interference
Preferential/Low government funding for capital
projects
Vandalism of infrastructure
Poor response to Public Private Partnership funding
High cost of borrowing from commercial Banks
Government Restriction on direct external borrowing
Poor corporate social (responsibility)participation
Government restrictions on local tax collections
POSITIVE INDICATORS
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New investment in mining related and other
developments
Donor funded projects
Council policy on procurement of plant and
Equipment
Effective use of Ward and Constituency Development
Funds
Strategic planning
Integrity committees, code of Ethics ,service charters
Good Governance
Timely salaries and motivation of workers
MAIN SOURCES OF FINANCES FOR CITY
INFRASTRUCTURE (DISTRICT FUND)
 LOCAL TAXES: Residential, Industrial Commercial,
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Mining/plant personal levy
FEES AND CHARGES: eg market, fees, Billboards,
telecommunication masts
LICENCES:Manufacture, retail, firearms etc
PERMITS:Business Permits, Nursery School Permits,
Fire certification
LAND FEES: Does not include services charge.
OTHER INCOME: Dividends on shares etc
MAIN SOURCES OF FINANCES FOR CITY
INFRASTRUCTURE
 GOVERNMENT GRANTS: Restructuring grant,
capital grant, grant in lieu of rates
 2011 TOTAL BUDGET ZMK 38.8 BILLION
 INFRASTRUCTURE
 GOVERNMENT POLICY IS 40 % OF TOTAL
ANNUAL BUDGET to be spent on services delivery
(mainly Infrastructure rehabilitation)
SERVICE PROVISION
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Maintenance of public infrastructure
Maintenance of plant equipment, motor vehicles
Roads and drainage maintenance
Bush clearing and Grass cutting
Street lighting, traffic lights
Sport recreation facilities
Public libraries and Training Centres
Community Development expenses
Labour cost towards services delivery
SERVICE PROVISION
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Hire of casual (wages)
Health campaign programmes
Ward Development fund
Fixed Assets/ plant and equipment
CONCLUSION
 It is envisaged that measures to be undertaken in the
short term period and medium term will be
successfully implemented within the next 12 months
and 24 months respectively.
 This is due to prudence in managing of the City
Revenues and the necessity for continuity of
programmes (highlighted major projects in the 20112015 STRATEGIC plan).
SIABONGA
Thank You Very Much

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