ENHANCING GOOD GOVERNANCE IN SOUTH AFRICAN RURAL MUNICIPALITIES

Sustainable development requires strong state capacity to ensure equitable service delivery in local government. This study examines the role of state capacity in promoting sustainable development, focusing on the relationship between financial management practices, governance, and service delivery. A government's ability to manage financial resources, enforce laws, provide essential services, and maintain good governance. It examines the role of government capacity in promoting sustainable development, using Lepelle-Nkumpi Local Municipality to highlight the link between financial management, governance, and service delivery. Analysing challenges like non-compliance with financial regulations, limited public participation, and weak internal controls. The study proposes a framework to improve financial management, enhance service delivery, and support sustainable development. It argues that effective government capacity, strengthened through improved financial management and public participation, is crucial for sustainable development in rural municipalities. This qualitative study involved a desktop analysis of financial reports, compliance with the MFMA, and identifying gaps in transparency and internal controls at Lepelle-Nkumpi Local Municipality. The findings revealed weak public participation, financial mismanagement, and governance challenges that hinder sustainable development and service delivery in rural municipalities. The study proposes a framework to improve financial management, governance, and public engagement. The study recommends strengthening internal controls, enhancing transparency, and ensuring compliance with financial regulations. It also highlights the importance of promoting public participation in decision-making. A robust framework for financial accountability can support sustainable development and improve governance.