Geci Karuri-Sebina‚ executive manager of the South African Cities Network‚ writes that metropolitan municipalities are well-run and can become key drivers of the economic growth that the country needs. The generally negative attitude towards local government in South Africa may be changing. Often viewed as a somewhat lesser sphere of government (compared to Big Brother‚ national government)‚ less capable‚ more corrupt‚ and so forth‚ there seems to be some signalling that the ugly duckling might yet turn out to be‚ in fact‚ the golden goose. At least starting with the larger ones.There is growing global recognition that cities are crucial in driving economies. South Africa‚ faced with a challenging economic outlook and having to seek out its proverbial “golden geese”‚ must examine this prospect: Are our cities‚ with their concentrated and complex dynamism‚ possibly at least one important goose? We must also consider how they can be assisted‚ or at least enabled‚ to deliver the socio-economic miracles that we so desperately need.In addressing the “city as golden goose” question‚ we need establish whether there really are signs that our cities demonstrate any potential to play goose.The signs are very positive. Cities are already making tremendous economic and social contributions in South Africa. Our cities host the highest population concentrations‚ with the estimated populace of the eight metros alone comprising 40% of the total national population (Census 2011).They are also leading contributors to our economic output‚ in that the eight metros contribute 57% of the national GDP (Quantec 2015). Therefore‚ urban centres must be acknowledged as important assets for our country’s economic development and social cohesion.A second question might be whether the cities are demonstrating any capacity to be competent ‘geese’. Their financial management and expenditure performance provide encouraging signs.The latest State of City Finances Report (SACN 2015) shows that South Africa’s largest cities manage R20-40 billion worth of revenue annually.Over a five-year period (2009 – 2014)‚ just nine cities spent a combined R117 billion on capital-related projects‚ and have been responsible for no less than half of the total capital investment within their municipal areas. The other half is contributed by other spheres of government and other non-governmental actors. This significant level of investment emphasises the important role the cities play in driving economic development. In relative market terms‚ one could argue that this would make them significant players if they were listed corporations.Consistent with their relative economic strength‚ our cities generate over 80% of their revenues through service fees and property rates‚ and receive less than 10% of the national equitable share distribution despite their majority GDP contribution.A common grumble is that municipalities do not administer their revenue collection effectively. In fact‚ the average municipal tax collection rate by metros is at around 95%‚ showing how much fiscal effort has improved. Past government under-spending has also gradually been addressed‚ as systems for planning‚ budgeting and implementation are strengthening and aligning.Despite this record‚ the issue of the trust South Africans have in their municipal governments remains an issue. There are a variety of definitions and experiences of what makes a citizen trust their local authority. What is generally encouraging‚ however‚ is to know that six out of eight metros received unqualified audits in 2014 and 2015‚ and the direction of change has generally been good across local government. This speaks to a tremendous effort by cities to get their houses in order and build confidence in their administrations.The metros have good credit ratings‚ and Tshwane‚ Cape Town‚ Ekurhuleni and Johannesburg all have bond issues which speaks to a level of market confidence. The 2015 Doing Business in South Africa study (World Bank 2015) indicated that the ease of doing business in our cities could be improved‚ their combined respective areas of strength or good practice would hypothetically combine into a city that would surpass the average performance of the OECD high-income economies on key indicators.The challenge for cities may lie in the current model used to fund our metropolitan municipalities. It is deficient relative to the short and long term pressures faced by cities‚ and the increasing functions that they are expected to perform.On the eve of key decisions about our national budget and economic strategies‚ these are important issues. South Africa’s cities are its golden geese (or at least among the more promising ones). For cities to work as real drivers of growth and development‚ there is a need to put the levers (financial leverage linked to the local economy) and tools in their hands. When they call for an increased share of the national purse‚ or for consideration of localised taxes (such as a business tax)‚ it is not because they are lazy‚ inefficient and corrupt (and where that is the case‚ it must certainly be censured and dealt with).There is an urgent need for stronger alignment between our economic strategies and the fiscal arrangements that we set up to effect governance.City governments need to become more vocal and visible actors in setting the agenda for both local and national development.Revenue generation and reinvestment at the metro level needs to be more closely linked to driving the inclusive growth that we seek in the economy. This explicit acknowledgement of the important role of metros is something that must be more apparent in the Minister of Finance’s address.The challenges and opportunities facing cities in shaping the future have never been greater than they are today.Given the crucial role of our cities in securing the future of the nation‚ getting it wrong at the metro level will have catastrophic‚ long-term consequences. It is tantamount to choking the golden goose. There is no more important time to better equip cities with the tools and support to effectively drive our growth and development.The obstacles and deficiencies facing our cities and their governments are not unique to South Africa. However here‚ as elsewhere‚ it is crucial to recognise and address the need for innovations and solutions in and for our metros which will carry them through a range of transitions towards a liveable future. Establishing sustainable financing arrangements will be a key part of this.- The South African Cities Network is an established network of South African cities and partners that encourages the exchange of information‚ experience and best practices on urban development and city management. It is an initiative of the Minister for Provincial and Local Government and nine of the country’s largest municipalities‚ in partnership with the South African Local Government Association (SALGA).The SACN Company is a non-profit voluntary organisation owned by and accountable to its members.The network identifies‚ assembles and disseminates information that enhances the ability of decision-makers to learn from the experience of others and efficiently use their resources to build sustainable cities...