CoGTA Calls for Urgent Governance Reset in Metros Ahead of 2026 Elections

The session concluded with a call for collective action and practical solutions, as government and municipalities work to reverse declining performance.

In a strong push to address declining municipal performance, Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa has called for urgent strengthening of intergovernmental relations and strategic partnerships to revitalise governance and service delivery in South Africa’s metropolitan municipalities.

Speaking at a high-level engagement with metro mayors in Gauteng, held under the theme “Improving Intergovernmental Relations and Contracting to Improve Governance and Service Provision in Metropolitan Municipalities,” the Minister warned that decisive action is needed to restore efficiency, accountability, and public trust.

Metros Critical to Economy, Yet Under Strain

Hlabisa underscored the central role of metropolitan municipalities, noting that they:

• House 62% of South Africa’s population

• Contribute over two-thirds of national GDP

Despite this, many metros are facing deep structural challenges affecting governance and service delivery.

“We stand at a crossroads. The time for decisive action is now,” Hlabisa said.

Governance and Financial Challenges Deepen Crisis

The Minister painted a stark picture of the issues confronting metros:

• Political instability and weak decision-making

• Lack of accountability and governance failures

• Declining revenue and poor collection rates

• Ageing infrastructure and organisational inefficiencies

• Rising service demand due to rapid urbanisation

These pressures have led to:

• Worsening service delivery

• Increased community dissatisfaction and protests

• Erosion of public confidence in local government

Mounting Debt and Financial Mismanagement

A major concern remains the financial health of municipalities:

• Significant debt to Eskom and water boards

• Ongoing issues of unauthorised and wasteful expenditure

• Burden of unfunded mandates

At the same time, municipalities are owed substantial amounts by national and provincial departments.

Hlabisa revealed that:

• Verified data on these debts is being finalised with National Treasury

• A report will be presented to Cabinet by end-April 2026

In a major policy shift, Treasury may:

• Withhold funds from departments that fail to settle municipal debts

Push for Stronger Intergovernmental Coordination

The Minister stressed that improving outcomes requires a whole-of-government approach, including:

• Enhanced coordination across national, provincial, and local spheres

• Stronger alignment in policy, planning, and execution

• Improved administrative and institutional collaboration

Private Sector Partnerships to Fill Capacity Gaps

Hlabisa urged metros to leverage public-private partnerships to address skills and funding shortages, particularly in:

• Engineering and infrastructure development

• Financial management and governance systems

Such collaborations are expected to bring in technical expertise and investment to improve service delivery.

District Development Model Gains Momentum

Central to the reform agenda is the District Development Model (DDM), which promotes integrated planning through:

• “One Plan, One Budget” approach

• Coverage across 44 districts and 8 metros

The Minister announced that:

• DDM 2026 Regulations will be gazetted from April 2026

• The framework has been agreed upon by all metros, including Cape Town

Water Crisis in Focus

Addressing another critical issue, Hlabisa highlighted the role of the newly formed National Water Crisis Committee:

• First meeting held on March 18, 2026

• Next meeting scheduled for March 24, 2026

The committee aims to coordinate national efforts to tackle water shortages and infrastructure challenges.

Elections 2026: A Test of Governance Credibility

The engagement comes ahead of the 2026/27 Local Government Elections, adding urgency to reform efforts.

Key priorities include:

• Institutional readiness and stability

• Improved transparency and accountability

• Restoring public trust in municipalities

A Turning Point for Local Government

The session concluded with a call for collective action and practical solutions, as government and municipalities work to reverse declining performance.

With metros playing a pivotal role in South Africa’s economy and service delivery, the reforms discussed are expected to be critical in shaping a more resilient, efficient, and citizen-focused local government system.