Ramaphosa announces sweeping local government reforms as municipalities face mounting crisis

President Cyril Ramaphosa has announced plans for far-reaching reforms to South Africa’s local government system, warning that too many municipalities are failing to deliver reliable basic services to residents.

Speaking at the official launch of the Revised White Paper on Local Government at Birchwood Hotel and Conference Centre in Ekurhuleni on Thursday, Ramaphosa said the reform process would address structural weaknesses affecting municipal governance, finances and service delivery.

The revised policy proposes changes to how municipalities are structured, funded and managed, including a differentiated approach to assigning powers and responsibilities based on their size, financial resources, capabilities and performance.

Ramaphosa said the existing one-size-fits-all model needed to be reviewed, with some functions potentially shifted to other levels of government or delivered through regional arrangements, partnerships and concession agreements where municipalities lack the capacity to perform them.

The proposed changes could also require legislative amendments and, where necessary, constitutional changes.

“Too many of our municipalities are failing to meet the needs and expectations of the people they are meant to serve,” Ramaphosa said.

He said municipal failures were not simply problems confined to individual councils, arguing that national and provincial government also had a responsibility to ensure municipalities received appropriate support and that responsibilities were clearly defined.

The reforms will also introduce a separation between service authorities and service providers, alongside compulsory licensing requirements for water and electricity providers.

On municipal finances, Ramaphosa revealed that municipalities owe Eskom more than R120 billion, with many also in arrears to water boards.

He said the revised policy proposes stronger financial management, improved revenue collection, reduced losses and more responsible spending.

A key measure will be ring-fencing revenue generated from the sale of water and electricity to prioritise infrastructure maintenance.

“Going forward, revenues from the sale of electricity and water will be ring-fenced and used to maintain infrastructure before anything else,” he said.

Ramaphosa said municipalities could not continue investing in new infrastructure while neglecting existing networks, warning that the failure to maintain water systems, electricity infrastructure, roads and wastewater treatment plants undermined service delivery and economic growth.

The policy also proposes sweeping measures to professionalise municipal administrations, strengthen accountability and curb corruption and politically influenced appointments.

Ramaphosa said municipal officials should be appointed on merit, while political leaders should respect the responsibilities of professional administrators.

He added that public servants and political office-bearers must face fair and lawful consequences for corruption, procurement manipulation and neglect of their duties.

The President also called for stronger community participation, saying residents needed to know what municipalities had promised, what resources were available and whether commitments were being fulfilled.

The reform agenda will be implemented in phases, supported by a time-bound Local Government Transition Management Body involving the Department of Cooperative Governance, The Presidency and National Treasury.

A single Local Government Transition Plan will outline the changes, responsibilities, timelines and mechanisms to measure progress.

Ramaphosa said the body would coordinate the reforms without taking over the lawful responsibilities of ministers, provincial governments, councils or municipal administrations.

The launch comes ahead of the November 4 Local Government Elections, with Ramaphosa urging registered voters to participate.

He warned political parties against allowing disagreements and instability in municipal councils to disrupt essential services, budgets and development projects.

“A disagreement in council must never become an excuse for an unapproved budget, an abandoned project or the collapse of an essential service,” he said.

While acknowledging progress made since democracy, including expanded access to electricity, piped water and sanitation, Ramaphosa said persistent service delivery failures and inequalities showed the need for a fundamental reset.

He said the revised White Paper builds on the 2022 Presidential Local Government Summit and the government's reform agenda under Operation Vulindlela.

Ramaphosa said the reforms were intended to establish municipalities that could deliver reliable services, attract investment, support local economic growth and restore public confidence in government.

He called for the implementation of the reforms to continue beyond election cycles and municipal terms, saying the success of local government remained central to improving the quality of life of South Africans.