2023/24 Budget Vote Speech By Deputy Minister Parks Tau, At The Parliament Good Hope Chamber

Honourable Members,

Allow me to rise on the protocol that has been observed by the Minister. 


Our mission is clearly defined in supporting integrated planning and accelerated implementation across all three spheres of government.

It should be stated upfront that in terms of the Community Works Programme (CWP), there are green shoots since, under Vote 3, R4.2 billion is allocated for the CWP programme.

  1. Municipal Infrastructure Grant (MIG)

The Municipal Infrastructure Grant provides capital finance to 217 municipalities to implement infrastructure-related projects to ensure basic service delivery to poor households in the areas of water, sanitation, roads and community facilities.

An amount of R17,6 billion or R55,0 billion over the 2023 MTEF has been allocated to municipalities in the 2023/24 financial year.

The momentum that must be built in this area has to be supported through the development of asset management planning and practices within municipalities. 

Comparing the 2020/21 and 2021/22 MIG allocations, perennial non-performance of the MIG has reduced from 39 to 36 municipalities. We envisage that this will be further reduced with the support coordinated through the DDM, especially the technical support provided by MISA, where required.

Underperforming municipalities will be supported to utilise the 5% set aside for the enhancement of project management capabilities, which will assist with scoping, expenditure tracking and quality management. We also take this opportunity to commend the 116 municipalities who have spent above 90% of their cumulative allocations, over the past four years!

In order to guard against MIG allocations being unspent by municipalities and returned to the national fiscus, CoGTA will intervene in municipalities where there is under-expenditure by applying provisions of the Division of Revenue Act that allows the department to retain a portion of the MIG allocation and create an indirect grant (Schedule 6B).

Understandably, this will empower CoGTA to directly intervene by implementing the MIG projects that municipalities fail to implement and avoid the grants being stopped and re-allocated to other municipalities. Furthermore, this will ensure that the deserving communities of the municipalities do not lose the benefit of the services emanating from the MIG projects as a result of municipalities not having the capability to spend the MIG.

2 Integrated Urban Development Grant (IUDG)

The purpose of the Integrated Urban Development Grant (IUDG) is, firstly, to provide funding for public investment in infrastructure for the poor and, secondly, to promote increased access to municipal own sources of capital finance in order to increase funding for public investment in economic infrastructure.

Municipalities receiving the IUDG must meet the set qualification criteria and currently there are 8 municipalities on the programme, namely, Polokwane, Sol Plaatje, Steve Tshwete, Mogale City, Ray Nkonyeni, Umhlathuze, Stellenbosch and Drakenstein, with George addition from the 2023/24 financial year.

3 Municipal Systems Improvement Grant (MSIG)

The MSIG is a Schedule 6 grant spent and accounted for directly by CoGTA for the benefit of municipalities. Its purpose is to assist municipalities to perform their functions and stabilise institutional and governance systems.

A total of 9 projects are currently been implemented by CoGTA as interventions to address a range of governance and institutional issues in identified municipalities and through the use of the MSIG.

Honourable Chairperson,


Our country has recently seen a number of disasters and this has highlighted the urgent need for a comprehensive disaster management plan. It is imperative we invest in disaster risk management capabilities, prioritise the rehabilitation and recovery of affected communities, work towards a more sustainable future, strengthen our partnerships, and ensure accountability and transparency in our response to disasters.

By doing this, we will ensure that South Africa is better prepared for future crises. Partnerships and targeted social compacting is prioritised by CoGTA in its partnership with the University of Johannesburg’s (UJ) Faculty of Engineering and Built Environment which is working on implementing the Internet of Things (IoT) with postgraduate candidates to address the water-energy-food nexus challenges.

The MTSF gave us the task to develop a Smart City Framework for Local Government. We will be implemented a DDM Smart City approach with UJ and Sentech and water boards such as Umgeni Water and Rand Water in supporting smart villages and cities.

The other systematic interventions we are putting in place involve The Municipal Demand Management Programme (MDMP) and the Municipal Revenue Management Programme (MRMP) which seek to address the following, amongst others:

  • reduce intensity of the Load Shedding within the municipal demarcated area of supply;
  • reduction of the municipality’s peak costs as less power will be procured on ESKOM elevated peak tariff like Megaflex tariff amongst others;
  • introduction of smart metering (electricity/water/etc.) technologies to accelerate the loadshedding mitigations measures through load limiting

This programme will also accelerate the adoption of the following interventions:

  • Municipalities adopting a Roof Top Solar and battery storage with government assistance.
  • Municipalities adopting Small Scale Embedded Generation initiatives for business situated within the municipal boundaries.
  • Municipalities to roll out Solar Hot water heating systems in most low-cost housing within their supply areas

Ladies and Gentlemen,

Quite clearly, CoGTA is endeavouring in practical fashion to ensure we make local government everyone’s business!

The Department has also facilitated the allocation of R3.3 billion during the budget adjustment period to the affected municipalities in the KwaZulu-Natal, Eastern Cape and Western Cape Provinces towards the reconstruction and rehabilitation of disaster damages in the provinces.

We remain committed to ensuring effective Spatial Urban Development Planning in our country. We do this as we navigate the complexities of urbanization and strive for sustainable, inclusive, and vibrant cities. It is our firm view that Spatial Urban Development Planning is a powerful tool that allows us to shape our urban landscapes, address the unique needs and challenges of our rapidly-evolving society.

It is for this reason that we continue to implement the Integrated Urban Development Framework (IUDF) as government’s policy position to guide the future growth and management of urban and rural areas and to support and guide SA cities, intermediate cities and small towns to achieve spatial transformation while protecting the environment.   

CoGTA has entered into a targetted public-private partnership with the World Resource Institute (WRI). This three-year partnership is aimed at strengthening cooperation in the effective implementation of the IUDF.

Moreover, in 2021, the WRI, through the Urban Water Resilience Initiative (UWR), partnered with African cities, the City of Johannesburg (CoJ) and Nelson Mandela Bay Municipality (NMBM), with the aim to build water resilience.

Ladies and Gentlemen,

The Department has also developed the Small-Town Regeneration strategy (STR) which is aimed at the regeneration, restoration, and fulfilling the economic potential of underperforming small towns. The STR will be piloted in this financial year in the following small towns:

  1. Piketberg situated in the Bergrivier Local Municipality (Western Cape)
  2. Senekal situated in the Setsoto Local Municipality (Free State)
  3. Modimolle situated in the Modimolle-Mookgophong Local Municipality (Limpopo)

In conclusion, we will implement the District Development Model in order to transform persistent apartheid spatial patterns that continue to reproduce poverty and inequality. 

We will advance the principles of The White Paper to “work with citizens and groups within the community to find sustainable ways to meet their social, economic and material needs” targeting, in particular women, the disabled, and the youth.

Realisation of the socio-economic rights is paramount not only in addressing the legacy of apartheid but in encouraging community participation by making sure Municipal Councillors empower communities through delegation of some of their authority and function to the Ward Committees.

By allowing communities to be self-governing, active citizenry becomes a part of the overall governance system.

It is our firm belief that aligning our efforts and resources through the DDM and the Results-based Management Office, we will be able to streamline service delivery and improve the lives of our people we serve.

I thank you.