SALGA Pushes Municipalities to Turn Development Plans Into Investment

South African municipalities need to turn their Integrated Development Plans into practical economic tools that connect community priorities with budgets, investment projects and clear delivery deadlines, SALGA President Bheke Stofile has said.

Speaking at the SALGA Eastern Cape Provincial Executive Committee Investment Lekgotla in East London, Stofile argued that an IDP should not become a document that receives attention mainly when municipalities need to demonstrate regulatory compliance. He wants development plans to function as active agreements that spell out projects, responsibilities, funding priorities and timelines that communities can follow.

The Investment Lekgotla forms part of the Eastern Cape Provincial Members Assembly, bringing municipal leaders together with government institutions and investors to examine progress during the sixth term of local government administration and prepare priorities for the next period.

IDPs need stronger connection with municipal budgets

Integrated Development Plans are central to how municipalities identify development needs and decide where resources should be directed, but Stofile said their value depends on whether the priorities written into them eventually become funded and measurable projects.

He described the IDP as a potential "living economic contract", where communities can see what their municipality intends to deliver and officials have clearly defined responsibilities for getting projects completed.

Creating a stronger connection between planning and budgeting could also make municipalities easier for investors to understand. Projects with defined timelines, financial requirements and expected economic benefits give potential private-sector partners a clearer basis for deciding whether they want to participate.

The Provincial Members Assembly will adopt the Eastern Cape programme of action, business plan and budget, while considering reports from provincial structures and oversight bodies and discussing challenges affecting municipalities throughout the province.

Eastern Cape municipalities pitch investment opportunities

The opening Investment Promotion Lekgotla is putting economic development directly alongside discussions about governance and service delivery, with municipalities presenting projects considered ready for investment.

The programme is designed to connect local governments with investors and encourage public-private partnerships that could help finance infrastructure and other development opportunities. Economic development departments and institutions are also outlining the support available to municipalities trying to turn local projects into viable investment propositions.

For many municipalities, attracting private capital requires more than identifying a project. Investors need confidence that local authorities can provide dependable administration, clear approval processes, functioning infrastructure and credible financial planning over the life of an investment.

SALGA wants municipalities to become investment hubs capable of using local opportunities to generate jobs and economic activity, with the benefits eventually reflected in better livelihoods and stronger municipal revenue bases.

Unpaid municipal accounts remain a financial pressure

Stofile also drew attention to money owed to municipalities by government departments, businesses and households, saying the financial position of local government cannot be properly understood without considering outstanding debt.

Municipalities depend on revenue from services to fund operations and maintain infrastructure, meaning persistent non-payment can leave them with less money for electricity, water, roads, waste management and other essential responsibilities.

The problem creates a difficult cycle when municipalities are expected to improve services while struggling to collect revenue already owed to them. Stofile's comments put payment discipline alongside better financial management as part of the wider conversation about making local government more sustainable.

Eastern Cape MEC for Cooperative Governance and Traditional Affairs Zolile Williams is expected to address the Assembly on its second day, reviewing achievements during the sixth administration and outlining priorities for the incoming seventh administration.

Assembly looks towards next phase of local government

The Provincial Members Assembly is taking place as SALGA marks three decades of advocacy for developmental local government, giving municipal leaders an opportunity to assess both recent performance and the wider experience of local governance over the past 30 years.

As SALGA's highest constitutional decision-making platform for member municipalities in the province, the Assembly provides a forum for councils to identify shared challenges and decide where greater cooperation or institutional support is required.

The immediate focus in the Eastern Cape is on making local government more capable of delivering basic services while creating conditions for economic activity. That places governance, investment and municipal finances in the same conversation, since weak administration or unstable finances can quickly undermine promising development projects.

For Stofile, turning the IDP into a working economic document is central to that change, giving municipalities a clearer route from community priorities to funded projects, private investment and visible improvements in everyday services.