Increasing access to basic services
Mitigating against the risk of disasters
Creating income security in areas of high unemployment
Entities
The Cooperative Governance and Traditional Affairs (CoGTA) Ministry consists of the Department of Cooperative Governance (DCoG) and the Department of Traditional Affairs (DTA).
Department of Cooperative Governance
The DCoG is mandated to develop and monitor the implementation of national policy and legislation to enable government to fulfil its developmental role; develop, promote and monitor mechanisms, systems and structures to enable integrated service delivery and implementation within government; and promote sustainable development by providing support and exercising oversight of provincial, local government and its entities.
Chapter 13 of the NDP outlines a vision for building a capable and developmental state through interdepartmental coordination and strengthening local government. This vision is expressed specifically through Priority 4 (spatial integration, human settlements and local government) of government’s 2019 - 2024 MTSF, with which the work of the DCoG is closely aligned.
Over the medium term, the DCoG continues to focus on expanding access to essential services, strengthening disaster risk management, and creating work opportunities in high-unemployment regions. According to the latest projections, total expenditure is expected to grow at an average annual rate of approximately 5,6%, rising from R127 billion in 2023/24 to R148 billion in 2026/27. Transfers to provinces and municipalities remain the primary expenditure, constituting approximately 95% (R410 billion) of the department’s total budget over the Medium-Term Expenditure Framework (MTEF) period, funding the local government equitable share and infrastructure grants.
Expenditure on compensation of employees is projected to increase modestly from R382 million in 2023/24 to R394 million in 2026/27, reflecting a continued reduction in staff complement due to natural attrition, with personnel numbers anticipated to decline from 533 in 2023/24 to 497 in 2026/27.
Increasing access to basic services
The local government equitable share, an unconditional grant, helps municipalities cover the costs of providing basic services and administration, particularly in areas with limited revenue. Over the medium term, this grant accounts for approximately 83% (R341.5 billion) of departmental spending. Allocations to the Intergovernmental Policy and Governance programme are expected to increase at an average annual rate of 7,2%, reaching R123 billion by 2026/27. To help municipalities manage rising costs for bulk electricity and water, an additional R9.3 billion has been allocated to the equitable share over the MTEF period.
The municipal infrastructure grant and integrated urban development grant continue to support capital investment in basic infrastructure, aiming to reduce backlogs in underserved communities. The municipal infrastructure grant will provide R66.2 billion over the next three years, while the integrated urban development grant is set to invest R6.8 billion in public infrastructure in urban areas. The district development model will be implemented in at least 54 municipalities per year, encouraging integrated planning and more effective service delivery across all spheres of government.
Mitigating against the risk of disasters
Disaster management remains a key priority, with the
department focusing on supporting the most vulnerable
district municipalities to implement robust disaster risk
reduction strategies. The Disaster Risk Reduction and
Capacity Development subprogramme receives R162
million over the medium term. Expenditure for the National
Disaster Management Centre is expected to decrease as
COVID-19 and flood relief funding winds down, but ongoing
support for resilience-building and climate adaptation
measures remains sustained.
Creating income security in areas of high unemployment
The Community Work Programme remains a cornerstone of government’s employment initiatives, targeting 250 000 participants each year in communities with high unemployment rates. The programme is allocated R14.2 billion over the MTEF period, supporting job creation, community development and skills acquisition for vulnerable groups.
Legislation
The mandate of the DCoG is derived from the following legislation:
- Intergovernmental Relations Framework Act, 2005 (Act 13 of 2005);
- Municipal Property Rates Act, 2004 (Act 6 of 2004);
- Disaster Management Act, 2002 (Act 57 of 2002);
- Municipal Systems Act, 2000 (Act 32 of 2000); and
- Local Government: Municipal Structures Act, 1998 (Act 117 of 1998
Entities
Municipal Demarcation Board (MDB)
The MDB derives its legislative mandate from chapter 7 of the Constitution and Section 3 of the Local Government: Municipal Demarcation Act of 1998. The board is mandated to determine and redetermine municipal boundaries and render advisory services. In terms of the Local Government: Municipal Structures Act of 1998, the board is also mandated to delimit wards, conduct capacity assessments for municipalities, and assess the capacity of the executive council responsible for local government.
Over the MTEF period, the board will continue to improve its administrative and legislative functions, and begin ward delimitation processes to ensure that all municipalities that qualify to have wards are finalised in time for the 2026 local government elections.
Spending on compensation of employees accounts for an estimated 57,1% (R140.9 million) of total expenditure over the period ahead for the board’s 48 funded posts. Expenditure is expected to increase at an average annual rate of 0,1%, from R81.6 million in 2022/23 to R81.7 million in 2025/26. The board expects to derive 96.6% (R229.3 million) of its revenue over the MTEF period through transfers from the department.
Municipal Infrastructure Support Agent (MISA)
The MISA was established in terms of Section 7(5)(c) of the Public Service Act of 1994. The agent provides technical support to and builds technical capacity in municipalities to enhance their capability to efficiently plan, deliver, operate and maintain municipal infrastructure.
Over the medium term, the agent will continue to provide technical support to selected municipalities to improve access to and the reliability of basic services. To ensure the effective and efficient development, rollout and maintenance of municipal infrastructure, the agent plans to enrol 450 candidates for the young graduate programme and provide 1 500 municipal officials with technical skills training over the MTEF period.
Compensation of employees accounts for an estimated 62.1 per cent (R705.6 million) of total projected spending over the period ahead.
Expenditure is expected to decrease at an average annual rate of 1.4%, from R400.2 million in 2022/23 to R383.6 million in 2025/26, mainly due to the retention of surplus funding from a one-off allocation in 2021/22 for the innovative solid waste management project as part of the presidential employment initiative. The agent is set to derive 99,2% (R1.1 billion) of its revenue over the MTEF period through transfers from the department. Revenue is set to decrease in line with spending.
South African Local Government Association
The SALGA is an association of municipalities recognised by the Organised Local Government Act, 1997 (Act 52 of 1997). The association’s strategic role is to represent the interests of local government within the overall system of government, assist members to fulfil their developmental goals, participate actively in intergovernmental relations, voice local government interests and provide solutions to challenges in local government.
However, after reviewing the association’s legislative mandate, National Treasury has resolved that it has been incorrectly classified in the Public Finance Management Act (1999). The process to delist the association from the Act is currently under way. As the association’s core functions of research and municipal governance support are labour intensive, spending on compensation of employees accounts for an estimated 53.7% (R1.2 billion) of its total budget over the medium term for 406 personnel.
Total expenditure is expected to increase at an average annual rate of 4.7%, from R679.9 million in 2022/23 to R802 million in 2025/26. The association is set to derive 91.9% (R2.5 billion) of its revenue over the MTEF period through membership fees from municipalities. Revenue is expected to increase in line with expenditure.
Source: South Africa Yearbook 2024/2025
