Streaming issues? Report here
Nonn Botha 1500 x 1500 2020 Nonn Botha 1500 x 1500 2020
702 Music with Nonn Botha
14:30 - 18:00
volume_up
volume_mute

Up Next: This is Africa with Richard Nwamba
See full line-up
702 Music with Nonn Botha
14:30 - 18:00
Home
arrow_forward
Business
fiber_manual_record
Local
fiber_manual_record
Politics

Clover shuts down SA's largest cheese factory due to poor service delivery

8 June 2021 8:43 PM
Tags:
Durban
North West
The Money Show
Service delivery
Pothole
Bruce Whitfield
Urbanisation
Municipal IQ
Karen Heese
Lichtenburg
cheese
clover
Clover SA
dairy industry
Queensburgh
cheese factory
Ditsobotla Municipality

Bruce Whitfield talks to economist Karen Heese about Clover's decision to move its plant from Lichtenburg, North West to eThekwini

Dairy group Clover is spending R1.6 billion to move what is the country's biggest cheese factory from Lichtenburg in the North West, to Queensburgh near Durban.

The decision was forced because of the poor level of basic services provided by the Ditsobotla Local Municipality, says Clover.

123rf.com

Earlier this year, poultry producer Astral Foods took government to court over service delivery issues in the Lekwa (Standerton) Municipality in Mpumalanga.

RELATED: Poultry producer takes on govt, wins court order over poor service delivery

Bruce Whitfield interviews economist Karen Heese from Municipal IQ, which monitors and assesses "all of South Africa’s 257 municipalities".

Clover's decision to pull out of North West sends a strong message that the province needs to hear, she says.

It's actually spent a lot of time of late fighting against Kgetlengrivier residents who took control of water. Arguably, during that time they should have been wooing Clover.

Karen Heese, Economist - Municipal IQ

The very sad part, of course, is the 330 individuals who will be losing their jobs... For the local economy it's very serious and speaks quite poorly not only about the municipality but of the entire inter-governmental system that's meant to support the municipality.

Karen Heese, Economist - Municipal IQ

And all this because of "useless" municipalities, or is that too strong a term? asks Whitfield.

If we just look at service delivery the stats are very clear - about 30% of your expenditure (the little that there is) is irregular, unauthorised and fruitless... It is a very dysfunctional place, by all accounts.

Karen Heese, Economist - Municipal IQ

Potholes aren't the issue - there actually just aren't roads to have potholes in!

Karen Heese, Economist - Municipal IQ

There's raw sewerage, electricity and water are intermittent, so it's an unacceptable environment not only for businesses to operate but people to live.

Karen Heese, Economist - Municipal IQ

There's a particularly dysfunctional case in that municipality where you have two mayors, neither of whom is willing to step aside for the other.

Karen Heese, Economist - Municipal IQ

Listen to Heese discuss how situations like these accelerate urbanisation and hollow out our secondary cities:


This article first appeared on CapeTalk : Clover shuts down SA's largest cheese factory due to poor service delivery




8 June 2021 8:43 PM
Tags:
Durban
North West
The Money Show
Service delivery
Pothole
Bruce Whitfield
Urbanisation
Municipal IQ
Karen Heese
Lichtenburg
cheese
clover
Clover SA
dairy industry
Queensburgh
cheese factory
Ditsobotla Municipality

More from Business

More from Local

More from Politics