Speech by Minister Velenkosini Hlabisa at the engagement session with Mayors of Metropolitan Municipalities in South Africa, Birchwood Hotel and OR Tambo Conference Centre
Programme Director,
Honourable Ministers and Deputy Ministers,
Esteemed Executive Mayors of Metropolitan Municipalities,
Leadership of the South African Local Government Association,
Directors-General and Deputy Directors-General, all senior officials across all government departments
MECs Mamobolo & Williams
IEC Commissioner, Ms Janet Love
Municipal Dermactions Board representatives
Distinguished Guests,
The media houses
Ladies and Gentlemen.
We are grateful for your willingness to take time from your hectic schedules today to participate in this essential engagement session focusing on our Metropolitan municipalities.
Given that metropolitan municipalities house 62% of the nation’s population and generate over two-thirds of the GDP, it is imperative to recognise their critical role in South Africa's economic stability and social well-being as we work to improve governance and service delivery.
This session enjoins us, as local government leaders, to engage in a profound reflection on the current state of our municipalities.
Metropolitan municipalities across South Africa are facing systemic governance, fiscal, and institutional pressures that severely hinder their ability to serve their communities effectively.
Political instability in some of our metros impact negatively on the ability of our metropolitan municipalities to effectively govern and provide sustainable and efficient service delivery.
The poor decision-making and a lack of accountability, compounded by declining revenue and low municipal collection rates, leaving many areas financially strained.
Additionally, organisational inefficiencies and ageing infrastructure create significant barriers to delivering essential services, while rapid urbanisation heightens demand for these services, resulting in community dissatisfaction and protests.
Furthermore, many municipalities struggle to comply with their constitutional and legislative obligations, eroding public trust and emphasising the necessity for enhanced governance and accountability mechanisms.
It is critical to recognise that these issues are not isolated; they are interconnected. A lapse in governance and inefficiencies in service delivery feed into a broader narrative of declining trust and social unrest.
The protests we see are a direct result of this systemic failure, underscoring the urgent need for transformative change in our local government structures.
To address these challenges requires a concerted effort to improve intergovernmental relations and foster strategic partnerships that enable better resource allocation and sustainable planning for the future.
The theme of our gathering is: “Improving Intergovernmental Relations and Contracting to Improve Governance and Service Provision in Metropolitan Municipalities”. This theme embodies the significance of cooperative governance and strategic partnerships.
Colleagues, as we gather here today, it is crucial to address with urgency the hard reality of the deteriorating performance of our metropolitan municipalities.
We stand at a crossroads. The time for decisive action is now. We must commit ourselves to enhancing intergovernmental relations and fostering partnerships that can revitalise our governance framework.
It is through collaborative efforts that we can rise to the occasion, restore public trust, and, ultimately, improve the quality of life for all South Africans living in our metropolitan areas.
The development of more robust partnerships between CoGTA and metropolitan leadership will facilitate improved service delivery and governance across South Africa’s metropolitan centres. Metropolitan municipalities are essential to our economy.
The metros play a crucial role in improving the quality of life for communities by promoting inclusive local economic development and providing vital services, including housing, electricity, water, sanitation, and waste removal.
As executive mayors of metropolitan municipalities, you lead the governance and economic engines of our country. You carry the significant responsibility and civic duty of navigating the socio-economic complexities of modern urban life, often under challenging circumstances.
If these eight metropolitan municipalities are not fully functional or are in the state of collapse, the country will soon collapse.
Unfunded mandates, Unfunded budgets, and unauthorised, irregular, fruitless, wasteful and fruitless expenditures are a challenge for certain metropolitan areas. Most of them are indebted and are severely behind on payments to bulk suppliers, particularly Eskom and water boards.
On the other hand, metropolitan and local municipalities are owed money by the National and Provincial Departments. Together with the National Treasury, we are currently finalising the Cleaning of the data on the amount of money owed. The clean data will then be submitted to the Department of Public Works for verification of the figures, and the outcome will be taken to the Cabinet by the end of April 2026. This is a Cabinet resolution, and rest assured that the matter will now be resolved. Ultimately, as is the case with the withholding of funds to local municipalities when certain conditions are not met, the National Treasury would now be equally able to withhold funds from the Departments if they don’t pay their accounts or enter into some payment arrangements with the municipalities.
The combination of these factors, along with declining revenue, undermines the financial sustainability of our metros.
As part of our collective approach to effectively address the challenges, we need to strengthen intergovernmental coordination that underscores political, institutional, management, administrative, and governance collaboration.
Today, we come together not only to acknowledge these pressing issues but also to forge pathways towards tangible solutions. This engagement seeks to provide a constructive forum for open dialogue to mitigate the debilitating obstacles that impede growth and development in our respective municipalities.
Therefore, I encourage each of you to share your experiences, insights and best practices, as we collectively seek to address the obstacles before us.
Issues for discussion during this session will touch on three key areas:
First, the Current Status of Service Delivery and Sustainability;
Second, Sharing Best Practices by using lessons from Presidential Working groups;
Third, Developing Joint Strategies and Plans: We must reflect on how best to use the Metro Trading Services grant to change the narrative in our metropolitan cities: to improve billing, cash flow, and maintenance spending, increase capital investment, and achieve reliable, sustainable services.
We will ensure that this process does not erode the powers and functions of metropolitan municipalities.
The fundamental principle of the intergovernmental relations framework is cooperative governance and collaboration among the three spheres of government.
This collaboration has been reflected in the current District Development Model (DDM), which is intended to facilitate the implementation of priority projects and initiatives in a coherent and effective manner.
The 44 Districts and 8 Metros are sites for intergovernmental planning and coordination through the One Plan and One budget approach, rather than working in silos.
I am glad that the new regulations, published on 13 March 2026, will address all gaps and that we have a shared understanding. By 13/14 April 2026, we will begin processing the gazetting of the final DDM 2026 Regulations, which have been agreed upon by all metros, including the City of Cape Town.
As you are aware, during SONA, the President of the Republic of South Africa announced the establishment of the National Water Crisis Committee to address the nationwide water crisis. The first meeting was held on Wednesday, 18th of March 2026, and the next meeting will be held next week, Tuesday, 24th of March 2026.
For the WATERCOM to successfully unblock the water challenges in 6 months as a short-term, 24 months as a medium-term and 36 months as a long-term goal, the full co-operation of our 8 metros and 44 districts will be a critical prerequisite.
Our Metros are better placed to attract critical skills in key delivery areas, such as finance and engineering, which are essential for resource mobilisation and service delivery. I also want to encourage our metros to mobilise the private sector to be significantly more involved in the development and financing of capital projects.
The private sector has demonstrated a greater inclination to provide advice and partnerships to support the development and improvement of urban capacity.
Ladies and gentlemen, in our discussions today, it is imperative that we also reflect on the upcoming Local Government Elections (LGEs), scheduled for either later in 2026 or early 2027. The Voter Registration Weekend for the elections has been announced as 20 and 21 June 2026.
As municipalities prepare for these elections as part of our democratic journey, they need to strengthen governance systems, ensure transparent processes and maintain public trust in local government institutions.
Programme Director, I would like to reiterate the Ministry of CoGTA’s commitment to continue providing you with the necessary support during this transitional period. Let us reaffirm our dedication to democratic principles by ensuring a peaceful, stable environment that guarantees free and fair elections.
Our discussions must also focus on our readiness to support the elections and address potential challenges in electoral logistics and boundary changes.
As you are aware, the Ministry of CoGTA is in the process of reviewing the 1998 White Paper on Local Government, which is nearing completion. Your invaluable input will help shape the metros into centres of improved service delivery and sustained development that attract investment. Cogta, working together with the National Treasury and SALGA, will have a meeting in April 2026 to finalise the funding model discussion.
Let me assure our Executive Mayors and City Managers that the Staffing issue and upper limits proposals are work in progress as we are closing the gaps identified after gazetting them in December 2025. The dedicated team will conclude this work so that municipalities can fill the vacant positions before the end of the current municipal financial year on 30 June 2026.
In conclusion, I would like to underscore the importance of collaboration in our efforts to enhance service delivery and governance in local government.
Colleagues, we are three spheres of government but one country. We will successfully overcome the obstacles that our metropolitan municipalities are currently facing by working together.
This engagement must yield sustainable, meaningful contributions that keep our metros at the heart of economic growth and development.
I thank you.
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