‘This cannot continue’: Ramaphosa unveils a bold reset of South Africa’s failing municipalities

President Cyril Ramaphosa has launched the revised White Paper on Local Government, marking a significant effort to reform a system that has struggled with service delivery, financial instability, and administrative failure. Addressing the nation, the President acknowledged that the current state of many municipalities is unsustainable.

We must therefore acknowledge, without qualification, that too many of our municipalities are failing to meet the needs and expectations of the people they are meant to serve. This cannot continue.

The new policy framework proposes a “bold reset” of the local government system, nearly three decades after the original White Paper was adopted. A core component of this reform is the introduction of a differentiated model that links municipal powers and functions to a council’s actual size, capability, and performance. Under this approach, if a municipality lacks the capacity to deliver specific services, those responsibilities may be reassigned elsewhere, likely at a regional level.

Financial management is another critical focus of the reset. Ramaphosa highlighted that municipal debt to Eskom has exceeded R120 billion, with many councils also in arrears to water boards. To address this, the government plans to ring-fence revenue generated from the sale of electricity and water to ensure these funds are prioritized for infrastructure maintenance rather than being diverted to other functions.

The President also emphasized the need to professionalize municipal administrations and reduce the impact of politicized appointments, which have contributed to corruption and a lack of accountability. By aligning municipal responsibilities with administrative capacity and strengthening oversight, the government aims to transform local government into a more effective partner in national growth and service delivery.