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Government Calls on Private Sector to Fix Municipalities

Posted on October 12, 2026
72

South Africa’s government is calling on private businesses to help address failing municipal infrastructure and improve service delivery across the country.

Deputy Minister of Cooperative Governance and Traditional Affairs Namane Dickson Masemola said partnerships with the private sector could provide the investment and technical expertise needed to repair and maintain municipal services.

According to BusinessTech, Masemola made the call while addressing the Social Justice Summit, where he warned that South Africa needed to move from planning towards implementation to tackle poverty, unemployment and inequality.

Private sector asked to help municipalities

Masemola said businesses should become important partners in government’s District Development Model, which aims to improve coordination between national, provincial and local government.

The model covers South Africa’s 44 district municipalities and eight metropolitan areas. It aims to coordinate government strategies, budgets and implementation through a single development plan for each district.

Masemola said stronger partnerships were needed to mobilise investment and expertise capable of supporting reliable infrastructure and municipal services.

He added that government could not achieve its development goals alone, calling for cooperation between businesses, labour, civil society, communities and other organisations.

Municipalities remain under pressure

Masemola acknowledged that many municipalities continue to face serious problems including financial distress, weak governance, poor planning and limited capacity.

These challenges have contributed to deteriorating infrastructure, unreliable electricity and water supplies and delays in housing projects.

He said residents ultimately carry the burden when municipal infrastructure and services fail.

The Deputy Minister also called for greater focus on maintaining existing public infrastructure instead of concentrating only on building new projects.

“It serves little purpose to build new assets if we cannot maintain those we already have,” Masemola said.

Focus shifts to maintaining infrastructure

Government’s revised approach includes strengthening infrastructure management, improving financial sustainability and building capable municipal administrations.

Masemola said some districts had already recorded progress under the District Development Model, particularly in infrastructure development and water security.

However, he warned that damaged public infrastructure including schools, clinics, roads, libraries and water facilities ultimately harms the communities that depend on these services.


Chanté Wyngaardt

Chanté Wyngaardt

I’m a writer, editor and software developer at Newsroom ZA.
I build things, break them (on purpose), then turn the chaos into clean, readable stories. You’ll usually find me bouncing between breaking news, politics and entertainment.

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