Program Director Prof Busani Ngcaweni

Deputy Ministers Masemola and Burns-Ncamashe

MECs

SALGA President Stofile

MDB Chairperson

Chairperson of the National House of Traditional and Khoi-San Leaders

Chairperson of the CoGTA Portfolio Committee: Dr Zweli Mkhize

Directors General

CEO of MISA

Advisors

All Senior Managers in their different categories

Ladies and gentlemen

Good morning

Let me first appreciate this important engagement which offers us a platform to engage face to face.

We gather here to engage and to chart a transformative course for the future. This session provides an invaluable platform to reflect on our shared challenges, to review past actions, and plan with renewed purpose.

As the CoGTA sector, our commitment remains to serve the people of South Africa with integrity, accountability, and an unrelenting focus on their socio-economic well-being. A lot of us have been in the sector for long enough to know that the stakes are high, and the responsibility upon our shoulders is immense.

Our mandate of facilitating and strengthening cooperative governance within and across the three spheres of government, and mobilizing the whole of society, around a common developmental programme, places us at the center of development in South Africa.

Together, we are tasked with nothing less than restoring faith in local government and fulfilling the constitutional promise of a dignified life for every citizen.

A GOVERNMENT OF NATIONAL UNITY: A NEW ERA

We meet today under the banner of the Government of National Unity (GNU). Since our appointment, we have seen a sector brimming with potential. MECs, municipal leaders, and traditional authorities or institution have shown their readiness to tackle pressing issues, from improving service delivery to inclusive economic growth.

The GNU embodies collaboration, shared accountability, and collective vision. These principles must drive every decision, every plan, and every action we take.

The Government of National Unity (GNU), as the custodian of the 7th Administration, has resolved to dedicate the next five years to three transformative priorities: driving inclusive growth and job creation, reducing poverty and tackling the high cost of living, and building a capable, ethical, and developmental state.

These priorities are not abstract ideals that the GNU came up with, rather they are a moral and Constitutional obligation to the people who have entrusted us to better their lives. At the heart of this agenda lies local government, the sphere of governance closest to the people. Local government is where policies become services, promises become infrastructure, and governance becomes tangible. Yet, local government is also where our deepest challenges are most visible.

EVERY MUNICIPALITY MUST WORK

Our theme, “Every Municipality Must Work,” is a rallying cry to action. When municipalities function effectively, communities thrive. When traditional leaders partner with municipalities, their collective strength uplifts society. But we must ask ourselves: Are we doing enough?

The South African Constitution, ACT 108 OF 1996 directs municipalities provide citizens with services to satisfy their basic needs – “clean drinking water, sanitation, electricity, shelter, waste removal and roads”. These are basic human rights, essential components of the right to dignity enshrined in our Constitution and Bill of Rights.

Therefore we need to ask ourselves some questions today – “to what extent are these services being provided? Are they commensurate with the ethos of our democracy and are they of the quality we will all be happy with? Are they provided in an affordable and consistent manner?

It is unacceptable that many municipalities are struggling to pay salaries, manage debt, or meet basic service delivery expectations. The President was clear when he said, “To achieve rapid, inclusive growth, we need to fix our struggling municipalities.” Growth happens at the local level, and it is in our towns, cities, and rural districts where the battle for better lives will be won.

The Auditor-General’s recent findings on municipal performance lay bare the depth of the crisis. The decline in clean audits, the increase in qualified opinions, and the persistence of unfunded budgets are symptoms of a system struggling under the weight of inadequate skills, governance failures, and a culture of impunity.

We cannot accept a state of affairs where:

• 71% of municipal debt to water boards is over 120 days overdue, jeopardizing basic services.
• Over 48% of annual performance reports lack credibility, undermining accountability.
• Communities face electricity and water cuts due to financial mismanagement.

This is not just a governance issue, it is a human rights issue. Behind every audit finding is a community waiting for water, a child walking to school in the dark, and a business struggling to survive.

I assure you that this administration is committed to ensuring every municipality delivers on its mandate and that failure is not an option.

INTEGRATED PLANNING AND THE DISTRICT DEVELOPMENT MODEL: A GAME CHANGER

As the CoGTA sector, we cannot continue to talk about integrated planning, when we ourselves continue to work in silos.

I therefore hope that these two days are the beginning of coordination and integrated planning towards the development of a comprehensive plans which fostering collaboration across the three spheres of government

Integrated planning and execution therefore become key and the District Development Model (DDM), a tool through which this can be realized. It is therefore important that, the main planning instruments, the Annual Performance Plans (APPs) give a clear road map about what the CoGTA sector is planning to do across the 52 district spaces. Champions have been designated. The first workshop of DDM Champions will be early next year. Currently we are faced with the crisis around food born illnesses. It is DDM champions who must lead the programs on the ground to implement the gazzetted Standard By-Laws as we run the 21 days count down. As the lead department of DDM by tomorrow we must come out with the plan to activate DDM Champions to be operational.

The DDM as a blueprint for breaking down silos demands alignment, not only in planning, but also in execution, and it places communities at the center of our developmental agenda.

The DDM is more than a policy; it is a call to honor our Constitution. By working together -government, traditional leaders, private sector, and civil society – we can ensure that no community is left behind.

INSTITUTION OF TRADITIONAL LEADERSHIP

As we discuss the state of our local government and how to improve its functioning, we should not miss the opportunity to reflect on the interface that exist with the institution of traditional and khoi-san leadership.

It is not by mistake that Chapter 12 of the Constitution explicitly refers to need for national legislation to make provision “… for a role for traditional leadership as an institution at local level on matters affecting local communities”.  We should reflect on the progress we have made to give effect to this Constitutional injunction and identify opportunities and mechanisms we can leverage to strengthen the interface between traditional and khoi-san leadership and municipal governance . What progress have we made in terms of such national legislation, and here we must resist the temptation of limiting ourselves to legislation developed by the Department of Traditional Affairs. Our work on the Municipal Structures Act and the Municipal Systems Act become relevant here.

Similarly, the work of other national and provincial departments also becomes relevant here because the Traditional and Khoi-san Leadership Act is very clear that national government and provincial governments may, through legislative and other means provide roles for the institution of traditional leadership, and that they may also come up with legislative or other measures to regulate partnerships at local level between traditional councils and municipalities among others.

Have we made adequate progress on this, and if we have, has such progress been translated into actual  implementation and impact on the ground. I would actually also like us to extend this discussion to even reflect on whether in developing by-laws and adopting our own procedures as municipalities, have we done enough to ensure that the interface with the institution of traditional and khoi-san leadership is indeed improved.

The overriding consideration  in all these matters is a simple one, namely, we cannot expect optimal functioning of local government if we fail to leverage sound working relations with the institution of traditional and Khoi-san leadership. Even with all our well-intended efforts regarding the District Development Model, we must work with traditional and khoi-san leadership in those districts where it exists.

Deputy Minister Burns-Ncamashe will elaborate on some of these issues in his input.

FACING THE HARD TRUTHS = Standing Infront of the mirror.

Despite progress that we are all aware of, we must confront the harsh realities. The state of local government in South Africa is a matter of great concern. The Auditor-General’s report for 2022/2023 paints a bleak picture, with only 13% of municipalities receiving an unqualified audit opinion with no findings. This represents a decline from the previous year, highlighting the persistent challenges facing local government. While acknowledging this picture, we equally appreciate the improvements recorded in the report that we are all aware of.

KEY CHALLENGES IN LOCAL GOVERNMENT VS What reforms do we propose?

• Financial Mismanagement:
  • The AGSA identifies financial management as one of the main weaknesses hindering progress in municipalities.
  • Unfunded budgets and high unauthorised expenditure point to weaknesses in financial planning, directly impacting municipalities’ ability to deliver essential services.
  • Mounting debt to Eskom and water boards further exacerbates the financial strain and threatens basic service provision.
  • The Municipal IQ reports that debt to water boards has tripled since 2018, reaching R23 billion in 2024.
  • The majority of this debt is owed to just three water boards: Vaal Central, Rand Water, and Umngeni-uThukela Water.
  • Alarmingly, 85% of the debt is over 30 days in arrears, with 71% exceeding 120 days past due, raising concerns about the capacity of some municipalities to service their debt.
  • National Treasury and Provincial Treasuries have also identified a growing number of municipalities with unfunded budgets for 2024/25.
• Poor Governance and Accountability:
  • The AGSA highlights governance failures and a culture of no accountability as significant problems.
  • The 21-year review of local government points to failures in governance and political oversight as primary causes for the rise in dysfunctional municipalities.
  • Fraud, corruption, and unethical conduct, along with irregular appointments and procurement irregularities, remain major concerns.
  • A lack of consequences for wrongdoing further erodes public trust and undermines the effectiveness of local government.
• Service Delivery Failures:
  • The AGSA finds that reporting on service delivery is often absent or unreliable, hindering monitoring and decision-making.
  • Performance planning is inadequate, with delivery not properly planned or measured.
  • This lack of transparency and accountability makes it difficult to assess performance and leads to a decline in service delivery.
  • Poor waste management in many municipalities creates conditions for pests and health hazards, forcing communities to resort to unsafe and cheap solutions.

• Capacity and Skills Shortages:
  • The 21-year review highlights the scarcity of technical skills as a major contributor to capacity constraints in local government.
  • Municipalities struggle to recruit and retain qualified staff, further impacting their capacity to deliver services.
  • The AGSA reports poor quality performance reports submitted for audit, further illustrating the skills gap within municipalities.

These issues demand urgent, decisive action. We must enhance capacity building, enforce accountability, and create an enabling environment for municipalities to thrive.

GOVERNMENT INTERVENTIONS AND RESPONSES = How efficient are these interventions?

Recognising the severity of these challenges, we have implemented various interventions, these include:

• Section 139 Interventions:
  • Section 139 of the Constitution allows provincial executives to intervene in municipalities that fail to fulfil their obligations.
  • Since the adoption of the Constitution, there have been 217 interventions invoked, with the number increasing in recent years.
  • Currently, 49 municipalities are under intervention due to their inability to deliver services and execute their executive obligations.
  • The lack of legislation regulating the implementation of Section 139 presents challenges for provinces and municipalities in adhering to procedural and substantive requirements. Some are more than 10 years  under these interventions. What is our assessment? Why it takes so long with no required results? What review is needed here?
• Addressing the Foodborne Crisis:
  • Following a concerning rise in foodborne illnesses and deaths linked to contaminated food from informal vendors, we have taken action.
  • Standard Draft By-laws for Township Economies (SDBs) were published to promote inclusive spatial and economic development and ensure food safety.
  • These SDBs provide a framework for regulating businesses, including registration, permits, hygiene standards, and waste removal.
  • Municipalities are required to implement the SDBs and provide support to small businesses in townships.
  • Cabinet has also resolved to remove hazardous pesticides from circulation and protect children from exposure to hazardous substances.
  • OPPORTUNITY = To reshape and formalize the small and informal businesses, To ensure cleanliness in our towns, villages and traditional communities. How are we going to capitalize on these opportunities.
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• Combating Fraud and Corruption:
  • The Local Government Anti-corruption strategy calls for strong leadership in promoting ethics and integrity.
  • Engage with law enforcement agencies to enhance the fight against corruption and ensure accountability at the municipal level.

• Configuration of powers and functions across the three spheres of government
• We will also review the configuration of powers and functions across the three spheres of government to eliminate duplication, enhance clarity, and streamline service delivery.
• This is important as the Constitution, as the foundation of South Africa’s democracy, establishes a cooperative government system integrating national, provincial, and local spheres, each with defined powers and functions. However, challenges arise from overlapping responsibilities, unclear functional allocations, and inconsistencies between constitutional mandates and practical execution. This results in confusion, inefficiencies, and blurred accountability, undermining service delivery. Moreover, undefined functional areas and varied sectoral interpretations of municipal powers exacerbate these issues. The concept of concurrency, key to the governance framework, is often misunderstood, leading to fragmentation and reduced governmental effectiveness, ultimately impacting citizens.

Let me emphasize several priorities emerging from this session:

Strengthening the Interface Between Local Government and Traditional Leadership: The effective collaboration between municipalities and traditional leadership is essential for inclusive governance. By managing and strengthening this interface, we can ensure that the unique needs and aspirations of communities are fully integrated into development plans. The District Development Model (DDM) offers a framework to coordinate socio-economic development, especially in areas reliant on communal land for livelihoods.

Reducing Initiation Fatalities: The loss of young lives during initiation seasons remains a tragedy that we must end. Strengthening regulations, enhancing monitoring, and bolstering partnerships with traditional councils and communities are critical. This matter requires unwavering focus and alignment with the Customary Initiation Act.

Addressing Traditional Leadership Council Issues: The non-reconstitution of traditional leadership councils is hindering their effectiveness. Adequate funding and streamlined processes are needed to empower these statutory bodies to perform their functions effectively.

Resolving Leadership Succession Disputes: Traditional leadership succession disputes undermine governance and stability. We must work collaboratively to establish robust dispute-resolution mechanisms and ensure that leadership transitions are fair, transparent, and community-focused.

Reforming the Local Government Funding Model: The current funding model for local government must be reviewed to better serve rural municipalities and communities in need. This includes rethinking the appropriateness of current subsidies, enhancing the costing of community services, and exploring new avenues such as establishing a Municipal Bank to support municipal borrowing and capital investments.

Overhauling the Local Government and Disaster Management Systems: A comprehensive review of the Local Government White Paper and the disaster management framework is necessary. The White Paper assumptions must align with the realities of today. Our disaster management approach must shift from reactive to proactive, focusing on disaster risk reduction as outlined in the Sendai Framework.

Improving Water Reticulation and Municipal Service Delivery: The decline in municipal water and sanitation systems, as highlighted in recent Blue, Green, and No Drop Watch reports, requires immediate intervention. This sector-wide challenge calls for coordinated efforts between COGTA, provinces, SALGA, MISA, National Treasury, and the Department of Water and Sanitation to restore and enhance service delivery.

Turning Around Municipalities in Distress: Local government dysfunctionality cannot continue. Together, we must address service delivery gaps, financial mismanagement, political instability, and administrative inefficiencies. By setting clear targets and forging partnerships with both state and non-state actors, we aim to reduce the number of distressed municipalities before the 2026 local government elections. Short term goals 4 months ( September 2024 – December 2024 ), Medium term goals 6 months ( January 2025 – June 2025 ) and long term goals 12 months ( July 2025 – June 2026 ) and the handover report over 5 months ( July 2026 – November 2026 ) The Turn Around Plan must be measured and yield to desired results.  

Enhancing Citizen Participation: Citizens are the cornerstone of a democratic local government. However, the growing disconnect between communities and municipalities is alarming. Strengthening citizen engagement mechanisms will ensure greater accountability and transparency in decision-making processes.

Revamping the Community Work Programme (CWP): The CWP must be restructured to enhance its impact on service delivery and community development. Governance challenges, leadership gaps, and implementation inefficiencies need urgent resolution to align the CWP with broader government programs effectively.

Developing a Social Compact for Sustainable Local Governance: Non-payment of municipal services is a pressing issue. To sustain local government systems, we must explore innovative solutions to ensure that all residents, businesses, and government departments are contributing fairly to municipal revenues.

Integrated Planning and Performance Measurement: To maximize impact and reduce duplication, national, provincial, and municipal entities must develop an Integrated Annual Performance Plan (APP). Rationalizing resources and aligning execution strategies will amplify the effectiveness of interventions across the board.

LEADERSHIP WITH INTEGRITY

We are all leaders in the spaces where we operate. As leaders, we are the stewards of the public trust. Leading and governing local government effectively requires more than compliance with regulations—it demands visionary leadership, ethical conduct, and relentless accountability.

Firstly, we must strengthen governance and ethical leadership. Fraud and corruption erode trust and drain resources meant for service delivery. We must root out unethical behavior by enforcing the Local Government Anti-Corruption Strategy and empowering law enforcement agencies to act decisively. Leadership must set an ethical tone, leading by example in every action and decision.

Secondly, we must capacitate municipalities with the right skills and resources. A municipality without engineers cannot deliver infrastructure. A council without financial experts cannot balance budgets. We need to intensify training, enhance recruitment strategies, and forge partnerships to fill critical gaps.

Thirdly, we must foster a culture of accountability. The era of impunity must end. When budgets are unfunded, when creditors are unpaid, or when performance reports are riddled with inaccuracies, there must be consequences. A capable state is an accountable state.

Having said all the above: The picture and state of municipalities is not good. This Session must be a game changer with robust and necessary reforms to improve the capacity of our municipalities to deliver services better.

We must attend : Indigent management, new Funding model.

What actions are needed to move the needle or bring meaningful change.

A CALL TO ACTION

I urge you to take these discussions forward with urgency and determination. Good intentions with no action plans are good for nothing. Let us commit to turning resolutions into realities. Every plan must have clear targets, measurable outcomes, and a shared accountability framework.

Your participation

Let me indicate that these two days engagement will not be worth anything unless you all participate actively and provide the valuable inputs that will surely enrich our discussions and the outcome of this strategic session.

Your attendance and enthusiasm will surely translate into a commitment to all serve our communities better, from provinces, municipalities and traditional leadership institution.

Building a Legacy for the Future

The 2026 Local Government Elections are a defining moment on the horizon. Between now and then, let us deliver a local government system that inspires confidence and improves lives. Let us build municipalities that attract investment, foster social cohesion, and deliver services that uphold the dignity of every citizen.

Our collective success lies in our hands. The journey ahead will not be easy, but it is necessary. Together, through collaboration, innovation, and unwavering resolve, we can transform local government into a beacon of hope and a driver of sustainable development.

Let us leave this session not only inspired but resolute, ready to deliver the South Africa our people deserve.

I thank you.