Minister Hlabisa said cadre deployment has severely compromised local government performance, emphasizing that employment within municipalities must strictly be based on merit
The government has expressed immense optimism following the official launch of the Revised White Paper on Local Government.
During the launch event held on Thursday at the Birchwood Hotel in Boksburg, the Department of Cooperative Governance and Traditional Affairs (Cogta), various provincial MECs of Cogta and several mayors gathered to share their support for the finalised policy framework.
The revised policy aims to rectify long-standing institutional weaknesses and address the structural challenges plaguing municipalities across the country.
Analysts and officials alike view the policy review as a critical catalyst that will fundamentally transform municipal operations. Cabinet originally approved the document on 23 September and the government plans to begin full implementation within three months of its approval. This marks the first major overhaul of the policy since the original White Paper on Local Government was introduced in 1998.
Speaking to the SABC on the sidelines of the launch, Cogta Minister Velenkosini Hlabisa noted that 28 years after the initial framework was introduced, valuable lessons have been learned, among them a ‘‘one-size-fits-all" approach to local governance being ineffective.
Hlabisa argued that treating a major metropolitan area the same as a deep rural municipality when allocating resources misses the mark entirely.
‘‘The revised White Paper proposes a differentiated approach to funding," Hlabisa stated. ‘‘Bigger municipalities must not be funded the same way smaller ones are. This document significantly elevates the issue of municipal funding."
However, the Minister cautioned that policy alone is not enough. ‘‘The White Paper can become a good document, but it will simply collect dust on the shelves if there is no proper implementation."
He highlighted that cadre deployment has severely compromised local government performance, emphasizing that employment within municipalities must strictly be based on merit.
The revised framework dedicates substantial focus to investigating these systemic failures.
Furthermore, Hlabisa noted that policy success relies heavily on competent councillors, stating that the launch is uniquely timely as newly elected or appointed councillors prepare to enter local government structures.
Speaking to the Mail & Guardian, Ekurhuleni mayor Nkosindiphile Xhakaza said the 1998 guidelines no longer match the reality of modern metropolitan areas.
He said the rapid urbanisation has caused millions to flock to cities in search of work, many of whom cannot afford to pay for basic services.
According to Xhakaza, under the current model, metros are expected to generate 90% of their own revenue internally, with the national government contributing just 10% through the Division of Revenue Act. Xhakaza argued that this fiscal structure requires urgent intervention.
‘‘The threshold is currently 90:10, but this White Paper proposes shifting that balance to 80:20," Xhakaza explained.
‘‘This will offer metros some financial relief by securing an additional 10% in national funding. While it is still not entirely enough to match the influx of people into our cities, it is a step in the right direction."
Xhakaza also noted that rural municipalities face a different set of financial pressures saying under the old model, a lack of population growth meant these regions could not expand their local economies, leaving them without a viable revenue base.
‘‘If you visit a rural area without a mall or a town with a functioning economy, it means the national government historically did not allocate sufficient funding there," Xhakaza said.
‘‘The new framework is designed to be far more responsive to these specific on-the-ground conditions."
South African Local Government Association (Salga) Deputy President Xola Phakathi said the revised policy arrives at a critical juncture saying local government is currently navigating severe headwinds, including global economic shifts, structural reforms in trading services, electricity distribution disruptions and water reticulation failures.
These are compounded by deteriorating infrastructure, severe financial constraints and a skyrocketing municipal debt profile exceeding R484.5 billion, he said.
According to Phakathi, cumulative underfunding since 1994 has reached an alarming R1.5 trillion, with local government shortchanged by an estimated R150 billion annually.
He warned that the existing fiscal model is entirely unsustainable and threatens the core survival of the municipal system.
‘‘The choice before us is clear: either municipalities collapse under financial pressure and neglect, or they are strengthened and repositioned as the foundation of a truly democratic and developmental state," Phakathi said.
Welcoming the framework's emphasis on citizen-centric governance, Phakathi argued that municipal success also requires active civic participation.
He said communities must evolve from passive service recipients into active participants, fostering a renewed culture of civic responsibility.
‘‘It is time for all South Africans to take pride in their municipalities, actively participate in maintaining public spaces and contribute to their community’s well-being," he remarked. ‘‘We all share a responsibility to make our streets cleaner, our parks better and our neighbourhoods greener." Phakathi added that the revising the White Paper was far more than a standard policy exercise; it represents a pivotal moment that will shape the future of economic development, service delivery and local governance across South Africa. ‘‘This challenge must be met by all of us. Securing adequate funding, robust policies and the political will to enforce them is now required from national, provincial and local governments alike," Phakathi said.
‘‘To guarantee a sustainable, accountable and responsive local government, civic organisations, council members and municipal officials must unite around this common goal. Working together, we can revolutionise local government and build towns and cities that serve as thriving hubs for sustainable growth and quality services."
Deputy Minister of Water and Sanitation David Mahlobo also threw his weight behind the framework, calling the reforms fundamental to fixing service delivery.
Mahlobo urged all stakeholders to adopt a ‘‘whole-of-society" approach to the transition, adding that leaders must stop being defensive and instead embrace the structural changes required to move the country forward.