Every Municipality Must Work

BUDGET VOTE SPEECH 2026/27

MINISTER VELENKOSINI HLABISA

National Assembly | Parliament of the Republic of South Africa

MAY 2026

Honourable Speaker,

Honourable Members of the National Assembly,

Cabinet Colleagues, Deputy Ministers,

Dr Dickson Masemola and Burns Ncamashe

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

President of SALGA,

Members of this House

Chairperson of the Municipal Demarcation Board,

Directors-General,

Leaders of Organised Labour,

Fellow South Africans,

Good afternoon.

It is my honour to present to this House Budget Vote 3: Cooperative Governance and Budget Vote 15: Traditional Affairs for the 2026/27 financial year.

BUDGET ALLOCATIONS

The 2026/27 Medium-Term Expenditure Framework allocates a total of R423.4 billion to Votes 3 and 15: Cooperative Governance and Traditional Affairs.

Of this:

  • R422.5 billion is allocated to Vote 3: Cooperative Governance;
  • R900 million is allocated to Vote 15: Traditional Affairs.

These allocations support our mandate to strengthen local government, support the institution of traditional leadership, and ensure that cooperative governance functions effectively across all spheres of government.

Honourable Members, this budget must be understood in context.

In the previous financial year, the government allocated:

  • R2.161 billion to 92 municipalities for disaster recovery across provinces such as the Eastern Cape, KwaZulu-Natal, Limpopo, Mpumalanga and North West;
  • and R191.16 million through the Disaster Response Grant to support municipalities facing immediate pressures.

Additional allocations are being finalised:

  • R151 million for provinces, and
  • R203 million for municipalities.

Furthermore, R166 million was reprioritised from the Municipal Infrastructure Grant to respond to recent floods, especially in Limpopo, Mpumalanga and other provinces.

Honourable Members, this budget is not an accounting exercise; it is a delivery instrument. It must translate into functioning municipalities and improved lives.

REFORMING THE LOCAL GOVERNMENT SYSTEM

Honourable Members, our people expect municipalities to work.

Last year, we committed to reviewing the White Paper on local government to better serve our people. The review of the White Paper on Local Government has now been completed under the theme:

“Every Municipality Must Work.”

This is not a slogan, it is a commitment.

The revised White Paper recognises that local government today operates in a far more complex environment than in 1998. It provides a renewed and realistic framework to strengthen governance, accountability and service delivery.

To give effect to this, we are advancing key legislative reforms:

  • The Local Government: General Laws Amendment Bill will improve governance and operational efficiency;
  • The Municipal Structures Amendment Bill (Coalitions Bill) will address instability in coalition governments. Political parties that will form a coalition government post 4 November 2026 will have to enter into coalition agreements
  • The Independent Municipal Demarcation Authority Bill will strengthen transparency and accountability; and
  • The Draft Fire Services Bill will modernise fire service governance.

These reforms are about one thing: stabilising municipalities so that service delivery becomes reliable, predictable and consistent.

PREPARING FOR THE 2026 LOCAL GOVERNMENT ELECTIONS, 2026

Preparations for the 2026 Local Government Elections, scheduled for 4 November 2026, are firmly on track.

We have achieved critical milestones:

  • Establishment of an Inter-Ministerial Committee on Municipal Elections;
  • Finalisation of councillor numbers;
  • Delimitation of 4,488 wards nationally; and
  • Ongoing work by the IEC, including voter registration, is well underway

The key principle guiding us is simple:

The elections must be free, fair, credible, and beyond reproach.

BUILDING CAPABLE, ETHICAL AND ACCOUNTABLE MUNICIPALITIES

A capable state requires capable institutions.

Municipalities cannot function where:

  • appointments are irregular,
  • leadership is unstable, and
  • accountability is weak.

We are therefore strengthening:

  • competency-based recruitment;
  • professionalisation of municipal administration;
  • performance management systems;
  • and ethical leadership.

The introduction of the Code for Ethical Leadership, together with ethics training programmes, is reinforcing accountability.

Without ethical leadership, no reform will succeed.

IMPROVING AUDIT OUTCOMES

Despite challenges, we are beginning to see progress:

  • 59 municipalities have improved audit outcomes;
  • 41 municipalities have achieved clean audits.

This tells us something important:

Where there is discipline, monitoring and consequence management, improvement follows.

However, we must be equally candid:

Too many municipalities continue to struggle. Weak governance and financial mismanagement remain a serious concern.

TARGETED INTERVENTIONS IN DISTRESSED MUNICIPALITIES

The government continues to provide differentiated support where municipalities are in distress.

In Emfuleni, a Special Purpose Vehicle with Rand Water is being established to stabilise water services.

In Ditsobotla, following chronic instability, national intervention has:

  • stabilised governance;
  • improved financial management;
  • and restored basic services.

We will not hesitate to intervene where municipalities fail communities.

STRENGTHENING SERVICE DELIVERY AND INFRASTRUCTURE

The District Development Model remains central to our work.

But we are now shifting it to a new phase:

From planning to delivery.

This includes:

  • stronger accountability mechanisms;
  • delivery dashboards;
  • clearer escalation protocols.

At the same time, infrastructure remains a major constraint.

We are exploring:

  • blended finance;
  • private sector partnerships;
  • and new funding models.

We must move beyond reliance on limited municipal balance sheets.

COMMUNITY DEVELOPMENT AND ECONOMIC PARTICIPATION

The Community Work Programme currently supports over 186 000 participants.

We are repositioning it toward:

  • skills development;
  • enterprise creation;
  • and sustainable livelihoods.

Participants are already contributing to:

  • waste management;
  • minor infrastructure repairs;
  • and local service delivery.

This programme must become a pathway to economic opportunity, not only income support.

DISASTER PREPAREDNESS AND RESILIENCE

Honourable Members, South Africa is experiencing increasingly frequent disasters.

Recent events have affected multiple provinces, including:

  • Western Cape,
  • Eastern Cape,
  • Northern Cape,
  • Free State,
  • North West, and
  • Mpumalanga.

It is important to distinguish between:

  • classification, which enables coordinated response; and
  • declaration, which enables extraordinary measures.

The increasing number of disaster classifications, including severe weather, drought and other risks, places growing pressure on:

  • the fiscus;
  • institutions;
  • and coordination systems.

Response alone is no longer sufficient.

We must strengthen:

  • early warning systems;
  • preparedness;
  • risk-informed planning;
  • and climate resilience.

Every disaster exposes underlying governance and planning weaknesses.

TRADITIONAL AFFAIRS

We continue to address the Constitutional Court ruling through the Traditional and Khoi-San Leadership Bill (2025), which has now been introduced in Parliament.

Progress is also being made on:

  • recognition of Khoi-San communities;
  • strengthening customary governance;
  • and integrating traditional leadership into development planning.

CUSTOMARY INITIATION

Government remains committed to achieving zero initiation fatalities.

We are strengthening:

  • regulations;
  • enforcement;
  • and accountability.

We are also exploring stronger legal consequences for negligence.

No cultural practice must result in loss of life.

INTEGRATION OF TRADITIONAL LEADERSHIP

We are strengthening the role of traditional leadership in governance.

This includes:

  • participation in development planning;
  • structured collaboration with municipalities;
  • alignment with the revised White Paper.

Development in rural areas will not succeed without this partnership.

CONCLUSION

Honourable Members,

This Budget Vote marks a clear shift:

From diagnosis to delivery.

We are:

  • stabilising municipalities;
  • strengthening governance;
  • restoring accountability;
  • and building resilience.

Guided by the principle:

“Every Municipality Must Work,”

We are committed to building a capable, ethical, and responsive system of local government.

I hereby table:

  • Budget Vote 3: Cooperative Governance, and
  • Budget Vote 15: Traditional Affairs

for consideration and approval by this Honourable House.

I thank you.