South Africa Metro Trading Services Program

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The development objective of Metro Trading Services Program for South Africa is to improve the accountability, financial and operational performance of trading services in South Africa’s metropolitan municipalities. While South Africa’s local government infrastructure grant system endows municipalities with substantial fiscal resources to support investments in municipal infrastructure, especially to the metropolitan municipalities, it lacks effective incentives that focus on results. The government program leverages a holistic set of reforms aligned with various national policy objectives emanating from NT, DWS, the Department of Mineral Resources and Energy (DMRE), the Department of Forestry, Fisheries and the Environment (DFFE), the Department of Cooperative Governance (DCOG), and the National Department of Human Settlements. The government Program (the Metro Trading Services Program, MTSP) will consist of a new targeted performance-based fiscal transfer (grant) to the metros (the Metro Trading Services Component of the Urban Development Financing Grant, UDFG) that will be allocated to metros on achievement of specific results over the following six years. The Program supports the MTSP and the implementation of PIAPs through the provision of funds to the metros with the aim of improving the accountability, financial and operational performance of the trading services. The MTSP is South Africa’s first Program for Results (PforR) and highlights the relevance and economic impact that cities have on the country’s development trajectory. The program focuses on the following results areas: Results Area 1: Improve Accountability Performance of Metro Trading Services; Results Area 2: Improve Financial Performance of Metro Trading Services; and Results Area 3: Improve Operational Performance of Metro Trading Service.