President Cyril Ramaphosa has warned that municipalities that fail to deliver essential services could lose some of their functions as government moves to overhaul South Africa’s local government system.
Ramaphosa was speaking at the launch of the Revised White Paper on Local Government at the Birchwood Hotel and Conference Centre in Boksburg, Ekurhuleni, on Thursday.
The reforms propose linking municipal powers and responsibilities to their size, financial resources, capacity and performance, with some functions potentially transferred to other institutions or delivered at a regional level.
“This White Paper represents a fundamental reassessment of how local government is structured, financed, managed and held accountable,” Ramaphosa said.
“It is not simply about changing legislation or rearranging institutions. It is about changing the lived experience of our people.”
The President said too many municipalities were failing to meet residents’ needs, with communities facing unreliable services, deteriorating infrastructure and unresponsive administrations.
He said government could no longer ignore the shortcomings in local government, which directly affect access to water, electricity, sanitation, roads and refuse removal.
“When these services work, people experience the promise of democracy. When they fail, it is not merely an inconvenience. It affects people’s health, their livelihoods, their safety and their dignity,” he said.
Municipal functions could be reassigned
The revised policy proposes moving away from a one-size-fits-all approach that gives municipalities similar responsibilities regardless of their capacity to fulfil them.
Ramaphosa said some municipalities were better equipped to perform certain functions, while others lacked the revenue base, resources or technical expertise to do so.
“Where a municipality is unable to carry out a particular responsibility, that responsibility should be assigned elsewhere,” he said.
He added that some services could be delivered more effectively at a regional level or through partnerships and concession arrangements.
The proposals could require legislative changes and, where necessary, constitutional amendments.
Ramaphosa said national and provincial governments also had to take responsibility for addressing municipal failures, arguing that overlapping mandates, poorly coordinated investments and delayed support contributed to service delivery problems.
The White Paper proposes separating the roles of service authority and service provider, alongside compulsory licensing for all water and electricity providers.
The intention is to strengthen the regulation of essential services while improving support for municipalities.
Municipalities owe Eskom more than R120 billion
The President also raised concerns about the financial sustainability of municipalities, revealing that they collectively owe Eskom more than R120 billion, while many are also in arrears with water boards.
He said reforms would focus on stronger financial management, improved revenue collection, reduced losses and more responsible spending.
Under the proposals, revenue generated from the sale of electricity and water will be ring-fenced to prioritise infrastructure maintenance.
“Going forward, revenues from the sale of electricity and water will be ring-fenced and used to maintain infrastructure before anything else,” Ramaphosa said.
He argued that municipalities could not continue building new infrastructure while neglecting existing water networks, electricity systems, roads and wastewater treatment plants.
“Maintenance must become a planned, funded and monitored obligation,” he said.
The reforms also seek to address corruption, weak accountability and the politicisation of municipal appointments.
Ramaphosa calls for professional municipal administrations
Ramaphosa said municipalities needed qualified officials who were appointed on merit and could perform their duties without undue political interference.
“We need administrations led and staffed by people appointed for their competence and commitment to public service,” he said.
He called on political leaders to respect the responsibilities of professional administrators and stressed that officials must be held accountable when public resources are stolen, procurement processes are manipulated or duties are neglected.
The President said communities should also play a meaningful role in monitoring municipal performance.
“Trust will not be restored by speeches. It will be restored when a reported fault is fixed promptly. When a resident receives an honest response to a complaint. When municipal leaders account openly for their decisions,” he said.
The policy further places local government at the centre of economic development, arguing that reliable municipal services and predictable decisions are necessary to attract investment, support businesses and create opportunities.
Reforms to be implemented in phases
Cabinet has endorsed a phased approach to implementing the reforms, supported by a time-bound Local Government Transition Management Body involving the Department of Cooperative Governance, The Presidency and National Treasury.
According to Ramaphosa, the body will coordinate implementation and ensure that responsibilities are clearly assigned and progress is monitored. It will not take over the lawful responsibilities of ministers, provincial governments, councils or municipal administrations.
A Local Government Transition Plan will outline the changes, the institutions responsible for implementing them and how progress will be measured.
Some proposals will require new legislation, financing arrangements, institutional capacity and potentially constitutional amendments.
The launch comes ahead of the local government elections scheduled for 4 November.
Ramaphosa urged political parties to put service delivery ahead of political differences once elected, warning that instability in municipal councils should not disrupt essential services.
“A disagreement in council must never become an excuse for an unapproved budget, an abandoned project or the collapse of an essential service,” he said.
“Our people must never be held hostage by political instability.”
The Revised White Paper seeks to update the framework established in 1998, addressing structural weaknesses that government says have contributed to persistent municipal dysfunction.
Ramaphosa said the ultimate objective was to ensure that municipalities across the country were capable of delivering services, supporting economic growth and restoring public confidence in democratic institutions.
