Hlabisa Calls for Urgent Reform to Stabilise South Africa’s Municipalities

The dialogue formed part of consultations on the revised draft White Paper on Local Government, guided by the theme “Every Municipality Must Work: A Call to Collective Action.”

Minister of Cooperative Governance and Traditional Affairs Velenkosini Hlabisa has called for urgent and coordinated reforms to strengthen South Africa’s local government system, emphasising that municipalities must become stable, capable and reliable drivers of economic growth and service delivery.

Hlabisa made the remarks during the White Paper on Local Government Executive Dialogue with business leaders in Centurion, organised by the National Business Initiative and hosted at Exxaro Resources.

“Every Municipality Must Work”

The dialogue formed part of consultations on the revised draft White Paper on Local Government, guided by the theme “Every Municipality Must Work: A Call to Collective Action.”

Hlabisa stressed that rebuilding effective local governance requires long-term structural reform rather than short-term fixes.

“South Africa requires a stable, capable and predictable local governance system that works consistently. Such a system cannot be rebuilt through short-term fixes,” the Minister said.

The reform framework adopts short-, medium- and long-term implementation horizons to ensure sustainable improvements in municipal governance.

Reimagining Local Government for the Next 30 Years

The Minister noted that the first White Paper on Local Government was adopted in 1998, and the current review aims to redefine the system for the next three decades.

“Today is about moving South Africa’s local government reforms from paper to practice, from discussion to disciplined execution,” Hlabisa said.

Government launched the review process last year and received 266 submissions from municipalities, business organisations, civil society, academia and traditional leaders, which informed the revised draft.

Municipal Challenges Highlight Need for Reform

The reforms come at a time when many municipalities face serious financial and governance pressures.

According to the Auditor-General’s consolidated municipal finance report, only 41 of South Africa’s 257 municipalities achieved clean audits in the 2023/24 financial year.

Hlabisa said these findings reflect challenges experienced by communities and businesses, including:

• Failing infrastructure

• Rising operational costs

• Declining trust in basic service delivery

Key Reform Proposals

The revised White Paper outlines several proposals to modernise the local government system, including:

Integrated Governance System

Treating local government as a coordinated national system rather than isolated municipal entities.

National Policy Coordination Centre

Establishing a central body to streamline municipal regulations and eliminate duplication or conflicting requirements.

Clearer Division of Responsibilities

Defining the powers and functions of the three spheres of government to reduce disputes and improve coordination.

Early Warning Oversight System

Introducing data-driven monitoring mechanisms to detect financial or governance risks early and trigger timely interventions.

Professionalising Municipal Administration

Implementing merit-based appointments and enforceable standards for senior municipal officials.

Digital Municipal Governance

Developing a digital governance platform integrating financial management, procurement, asset management and service delivery processes to improve transparency and accountability.

Business Sector Engagement Critical

Hlabisa emphasised that collaboration between government and business will be essential for successful implementation of reforms.

“This dialogue is not another consultation tick-box. It is a working session at a critical juncture,” he said, urging business leaders to contribute practical proposals to strengthen municipal governance and investment readiness.

The final draft of the White Paper on Local Government is expected to be submitted to Cabinet later this month for consideration.