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effectively. Ulundi lacks the needed technical knowledge and skills to meet the
constitutional mandate of the local municipality. Most interviewees feel that poor
financial management is experienced due to corruption (two in every five
respondents), poor planning (one in every five response) and mismanagement (one in
every five). A very small group ofhousehold heads however cite lack oftransparency
and non-payment of services as reasons for the poor management of finances in the
municipality.
• According to the local council, the failure by the community of Ulundi to meet its
financial obligations (i.e., paying for the rates and municipal services rendered) to the
municipality is having a negative financial effect to the extent that statutory reserves
are being utilised to fund debtors. The result is that little or no funds are available for
infrastructure expansion and or replacement. The lOP of Ulundi Municipality is
therefore restricted to projects funded by way ofgrants.
• The existing infrastructural facilities are generally inadequate in ensuring sustainable
development in the municipality. Generally, the state of infrastructure is described as
poor. Meanwhile there is generally a poor level of proficiency of information
technology on productivity. The Ulundi municipal management indicated that it has
in place a performance management framework. The five key development issues on
the framework are infrastructure provision, land (and environment). LED. social
development and institutional capacity. The Ulundi municipal management believes
that the ageing infrastructure leads to poor service delivery and may worsen in the
years to come unless the trend ofno payment is reversed.
In order to present the recommended strategies for improved local economy. a SWOT
analysis based on the findings in the study area is significant (See Table 7.1). Ulundi is faced
with weaknesses and threats apart from its existing tourism and agricultural capabilities.
Particularly noteworthy among the weaknesses are non-diversified economy, limited
shopping and residential facilities as well as high rate of unemployment. The study further
acknowledges that the current ruling political party in the province (KZN) does not favour
Ulundi as the provincial capital. The loss of the legislature to Pietermaritzburg is seen as a
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