Cabinet has approved the Revised White Paper on Local Government 2026, setting in motion an overhaul of South Africa’s collapsing municipal system just a month before the local government elections.
The approval, confirmed by the Government Communication and Information System (GCIS), is being billed as government’s boldest attempt yet to fix persistent governance failures, financial distress and service delivery breakdowns that have left municipalities bankrupt and residents without water and electricity.
According to Cabinet, the White Paper is intended to strengthen implementation, accountability, institutional coherence and financial sustainability across local government.
It has also endorsed a time-bound Transition Management Body and a phased implementation programme driven jointly by the Department of Cooperative Governance and Traditional Affairs, the Presidency and National Treasury.
President Cyril Ramaphosa has repeatedly flagged local government as a crisis point for the state.
In February, he said a fundamental overhaul was underway.
“A far-reaching overhaul is now underway to address the root causes of dysfunction in many municipalities,” Ramaphosa said.
He was blunt about the state of municipal administrations, arguing they had been hollowed out by patronage.
“In many places, local government administrations are weak and governed by patronage rather than technical capacity and merit,” the President said, adding that the revised White Paper would “reimagine the way that local government works” through a differentiated approach where powers and responsibilities match the capacity of individual municipalities.
CoGTA Minister Velenkosini Hlabisa said the policy will move immediately from paper to practice.
“It is going to be implemented immediately,” Hlabisa said, insisting that municipal appointments must in future be based on “capabilities and relevant experience” rather than political connections.
He added: “We want councillors to understand from day one that the reforms are about making municipalities work better for the people they serve.”
According to reports the Auditor-General’s 2024/25 local government assessment found only 35% of municipalities had good financial health, while 40% were classified as concerning and 25% as unfavourable.
Government has also conceded that basic services are failing. Ramaphosa said earlier this year: “Water outages are a symptom of a local government system that is not working.”
In response, government introduced a R54-billion incentive for metros to reform water, sanitation and electricity services.
COSATU has welcomed the White Paper but warned that approval is the easy part.
Parliamentary Coordinator Matthew Parks described the policy as “a timely response to the many deep crises facing local government” but said the focus must now shift to whether the state can actually implement it.
“The challenge will be to ensure its successful implementation,” Parks said.
COSATU, which engaged on the review through Nedlac, said financial viability remains the biggest threat.
Nedlac’s 2024/25 annual report confirms that a policy dialogue on the White Paper took place with social partners, covering service delivery and reform proposals.
“Key to this is putting in place a sustainable municipal funding model as most municipalities are in deep financial trouble and some are essentially bankrupt and lack a financial base,” Parks said.
He warned that without competent leadership and a crackdown on corruption, the reforms will collapse.
“Similarly critical is appointing competent managers and removing corrupt and criminal elements,” he said.
“Equally critical is to ensure municipalities pay their financial obligations timeously from workers’ salaries to suppliers’ invoices to monies owed to Eskom and water boards,” Parks added, also stressing that maintaining municipal infrastructure will be critical.
The South African Local Government Association (SALGA) has also backed the review, with its President Bheke Stofile saying the current system “has not consistently worked as intended” and calling for “practical, implementable reforms” that deliver “effective, responsive and accountable local governance.”
Meanwhile, opposition pressure is mounting.
On 29 September, DA Parliamentary Leader George Michalakis referred 10 municipal managers to Hlabisa for investigation, saying: “With more than half of our municipalities in financial distress, this is not isolated and results from maladministration.”