Strengthening municipal revenue governance in South Africa: A framework for debt collection and billing integrity

Abstract

South African municipalities face persistent challenges in revenue management and debt collection, with consequences for financial resilience and the reliability of basic service provision. Although legislative instruments require sound billing, credit control, and accountability, implementation is often uneven across departments and constrained by institutional routines, capacity limitations, and weak enforcement. This study develops an empirically informed framework for improving municipal revenue management and debt collection. A qualitative case study design was applied, drawing on semi-structured interviews with municipal officials and relevant stakeholders involved in billing, credit control, financial reporting, and related governance processes. Data were analysed through a thematic approach, combining inductive coding of participant accounts with deductive interpretation guided by institutional and organisational perspectives. The findings indicate that weak data integrity and billing accuracy, inconsistent application of indigent policies, limited consequence management, and fragmented coordination between finance and service departments are central contributors to persistent consumer debt. Participants also highlighted the need for clearer process ownership, improved communication with consumers, and more consistent monitoring of revenue collection performance. Based on these insights, the study proposes an integrated framework that aligns institutional compliance requirements with operational controls, stakeholder engagement, and enforcement mechanisms. The framework contributes a practical, context-sensitive tool that can guide municipal managers in strengthening revenue governance, improving implementation coherence, and supporting more sustainable local government finance.