Budget Vote 3: Cooperative Governance & Budget Vote 15: Traditional Affairs Minister Velenkosini Hlabisa National Assembly, Parliament of South Africa
Honourable Speaker
Honourable Members of the National Assembly
Cabinet Colleagues and Deputy Ministers
Chairperson of the House of Traditional and Khoi-San Leaders
President of the South African Local Government Association
Directors-General of DCOG and DTA
CEO of MISA
Leadership of IMATU & SAMWU
Fellow South Africans
Paid tribute to the passing of the former President, the late Mr David Mabuza.
It is an honour to deliver the 2025/26 Budget Votes 3 and 15 of the Department of Cooperative Governance and the Department of Traditional Affairs before this House. We meet at a time of grief as just 4 weeks ago, KwaZulu-Natal, Western Cape, and at most the Eastern Cape faced catastrophic flooding, with Nelson Mandela Bay, Chris Hani and OR Tambo districts suffering the most significant devastation.
One hundred and seven (107) lives were lost, thousands were displaced, and critical infrastructure – schools, clinics, roads – was destroyed. We know that many families are still yet to lay to rest their beloved ones. On behalf of the Ministry, we extend our deepest condolences. May the souls of the departed rest in peace. Following the declaration of a national disaster on June 5, 2025, municipalities, provincial, and national departments initiated the process of adjusting their budget allocations to address the disaster that had occurred.
I am partially pleased that on Monday, 07 July 2025, we communicated the release of R1.255 billion to the Eastern Cape, KwaZulu-Natal, Free State, Mpumalanga, Limpopo, and North-West to address the February 2025 disasters. The Eastern Cape will receive R504 million of the R1.255 billion.
In relation to June 2025 disasters, we have received the assessments from all provinces at an estimated cost of R6.3 billion. Our technical team, under MISA, is on the ground conducting verification to initiate recovery. On 5 August 2025, which will be 60 days after the disaster is classified, we will announce the allocations to intervene in June disasters to “build back better”. As we move forward, our disaster response and intervention will be completed within 60 days to release available funds.
CoGTA is leading the G20 Disaster Risk Reduction Working Group. Together with G20 Member States and global experts, we are advancing priority themes such as:
- Nature-Based Disaster Risk Reduction
- Resilient Infrastructure & Recovery
- Early Warning Systems, Inclusive, and Alternative Financing
Budget Allocation: Investing in Functionality and Resilience
The 2025/26 MTEF allocates:
- R410.9 billion to Vote 3: Cooperative Governance, with 96.7% directed to intergovernmental transfers and support to municipalities and entities
- R195.5 million to Vote 15: Traditional Affairs, with R46.9 million earmarked for transfers and subsidies, including support to the CRL Rights Commission
Within Vote 3, allocations fund key programmes over the MTEF period:
- R57 billion for the Municipal Infrastructure Grant (MIG) to fast-track basic services
- R4.1 billion for the Integrated Urban Development Grant (IUDG) to support spatial transformation in targeted cities
- R474.6 million for the Municipal Systems Improvement Grant (MSIG) to strengthen governance systems
- R1.163 billion to support the Municipal Infrastructure Support Agent (MISA) and its deployment of technical capacity
- Funding for disaster management contingency reserves, the District Development Model, and partnership frameworks with SALGA
Within Vote 15, the budget enables:
- Enforcement of the Customary Initiation Act
- Implementation of the Traditional and Khoi-San Leadership Act
- Resources for tools of trade for the Department and the National House of Traditional and Khoi-San leaders, recognition processes, and cultural documentation projects
This is a budget that anchors stability, resilience and deepening of democracy across spheres of governance.
White Paper Review: Reimagining Local Government for a New Era
On 19 May 2025, we officially launched the review of the 1998 White Paper on Local Government.
This review is not a ceremonial exercise. It is a strategic imperative.
The current model, while visionary in its time, has not kept pace with the realities of:
- Urbanisation and spatial inequality
- Climate change and infrastructure fragility
- Youth unemployment and digital transformation
- Revenue shortfalls and governance instability
The review process, now extended to 31 July 2025 to allow broader participation, is guided by the principle that “Every Municipality Must Work”, not just in theory, but in practice.
Key objectives of the review include:
- Restoring public trust through transparency, accountability, and ethical leadership
- Revisiting the funding model, particularly the flawed assumption that municipalities can self-fund 90% of their operations
- Professionalising local government, with minimum qualifications and ethical standards for councillors and officials
- Empowering traditional leaders and rural communities within a constitutional framework
- Embedding smart governance tools, such as real-time performance tracking and open budgeting
- Strengthening intergovernmental coordination
The WPLG Review is our opportunity to rewrite the rulebook, to build a local government system that is capable, ethical, inclusive, and future-fit.
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