Opening address by Minister Velenkosini Hlabisa on the occasion of the engagement process on the White Paper on the Local Government Review, final consultative process, East London ICC, Eastern Cape
Programme director,
The executive mayor
Leaders of business and industry,
Representatives of organised commerce,
Colleagues from the government,
Ladies and gentlemen
Good morning.
It is both an honour and a responsibility to stand before you today, at what marks the final leg of our national consultation journey on the review of the White Paper on Local Government.
And I can think of no better place to conclude this journey than here — in East London, a city that reflects the resilience, complexity, and potential of our local governance system.
We gather here not for ceremony, but for substance.
We are here because the 1998 White Paper on Local Government, while visionary in its time, no longer reflects the realities of today.
That document laid the foundation for democratic local governance in post-apartheid South Africa. It introduced the concept of developmental local government, and it helped us build institutions where none had existed before.
But the world has changed.
And so must we.
Today, our municipalities operate in a vastly different environment — one marked by:
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rapid urbanisation, which places immense pressure on infrastructure and services
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climate change, which has already devastated communities across the Eastern Cape, KwaZulu-Natal, and beyond
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youth unemployment, which threatens the social fabric of our towns and cities
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fiscal strain, with many municipalities unable to meet even their basic obligations
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a crisis of public trust, where citizens no longer believe that local government can deliver
These are not abstract challenges.
They are real, they are urgent, and they are interconnected.
Last night, at the gala dinner with the Border-Kei Chamber of Business, other business chambers and CEOs of companies, we heard powerful reflections — not just on what is broken, but on what is possible.
We heard a call for an enabling framework — one that allows business and government to collaborate meaningfully, not just in theory, but in practice.
We heard about the leadership compact signed last December with the municipality — a bold step toward shared stewardship and accountability.
We heard from the President of the Border-Kei Chamber of Business about the need to diversify industry, especially in manufacturing, where the government’s external procurement practices have stifled local growth.
We heard frustrations about political instability and the urgent need for consequence management when resources are misused or leadership fails.
We also heard from Absa about their support for SMMEs and farmers, and the agreements they’ve signed to fund agricultural development. These are the kinds of partnerships we must enable — through legislation, incentives, and local facilitation.
Local Economic Development units must be capacitated to facilitate match-making processes between SMMEs and opportunities — not just in agriculture, but across sectors.
We must also address the logistics and ICT connectivity gaps that hinder growth.
If metros are engines of growth, then connectivity is the fuel.
We need infrastructure that links rural producers to urban markets, and digital systems that enable efficient service delivery and business operations.
And we heard a clear message:
It is no longer just a government responsibility.
Since April, we have travelled across the country — from Gauteng to KwaZulu-Natal, from the Northern Cape to Mpumalanga and reached out throughout the country.
We have listened to:
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youth and women, who demand a seat at the table
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traditional leaders, who seek recognition and integration
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civil society, who call for transparency and accountability
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and business leaders, like yourselves, who want a local government system that is predictable, ethical, and enabling
And across all these engagements, one message has echoed clearly:
“Every municipality must work.”
Not some.
Not most.
Every single one.
The review of the White Paper on Local Government is not a cosmetic update.
It is a strategic reset.
It is our opportunity to build a local government system that is:
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fit for purpose in the 21st century
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responsive to the needs of citizens and the economy
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and resilient in the face of future shocks
Let me share with you some of the key shifts that are being proposed:
1. Fiscal and financial reform]
Reviewing the funding model for municipalities.
Too many municipalities lack a viable revenue base.
The process is recommending the following issues for exploration:
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new grant structures that reward performance
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debt recovery mechanisms that are enforceable
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and co-financing models that enable public-private investment in infrastructure
2. Ethical and capable leadership]
We have been tasked with addressing the culture of impunity that has taken root in some municipalities.
The revised White Paper will propose:
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stronger accountability mechanisms
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professionalisation of the municipal workforce
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and clear consequences for unethical behaviour
Because without ethical leadership, no system can succeed.
3. Economic enablement and industrial diversification]
We are to reposition municipalities not just as service providers — but as economic enablers.
This means:
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streamlining regulatory processes
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supporting local procurement and enterprise development
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creating investment-friendly environments in every town and city
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and encouraging manufacturing industries, especially in regions where the potential is high but underutilised
Our systems must stop exporting opportunities.
The country must start building locally.
4. Climate-responsive governance]
The floods that devastated parts of the Eastern Cape in June — claiming over 100 lives — were a tragic reminder of the climate crisis we face.
The new White Paper is directed to embed climate resilience into local planning, budgeting, and infrastructure development.
Because we cannot build for the future if we are not prepared for the storms ahead.
5. Inclusive governance and skills development]
As a government, we should be committed to a system that includes:
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youth, not just as beneficiaries, but as decision-makers
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women, not just as stakeholders, but as leaders
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and traditional leaders, whose wisdom and legitimacy must be integrated into our governance framework
We also heard last night about the need for:
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reskilling programmes
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artisan development
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and technical skills for service delivery
These are not side issues.
They are central to sustainability.
But the government cannot do this alone.
We need you — the business community — to be co-creators of this new system.
We need your:
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practical insights — to shape policy that works on the ground
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investment foresight — to help us plan for growth
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and institutional partnerships — to build capacity where it is needed most
Let us be clear:
This is not just a consultation. It is a call to collective action.
6. Professionalisation of local government – competence and accountability]
Colleagues,
We have heard during the engagements with political parties that if we are serious about building a local government system that works, then we must be serious about who we entrust to lead it.
The deployment of competent mayors, deputy mayors, speakers, and members of municipal executive councils is not a luxury — it is a necessity.
These officials are the custodians of service delivery, the stewards of public trust, and the architects of local development.
We must consider the possibility of moving toward a model where all councillors are full-time, appropriately remunerated, and fully focused on the work of governance — not distracted by other employment, but dedicated to the communities they serve.
This is not just about efficiency.
It is about accountability.
It is about professionalisation.
Equally important is the appointment of appropriately qualified municipal managers, chief financial officers, and technical directors.
These are not ceremonial roles.
They are technical leadership positions that require expertise, experience, and integrity.
When these posts are filled by professionals —
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budgets are managed responsibly
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infrastructure is maintained
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and services are delivered with consistency and quality
This is how we build competent municipalities.
This is how we restore public confidence.
Let me emphasise:
The professionalisation of local government is not optional.
It is the foundation upon which everything else must rest.
We must deploy the right people,
Support them with the right systems,
And hold them to the highest standards.
Only then can we say — with conviction —
That every municipality must work.
Colleagues,
We are at a crossroads.
We can continue with business as usual —
Or we can choose bold, inclusive, and evidence-based reform.
The revised White Paper is scheduled to be submitted to Cabinet by March 2026. The deadline for submissions is tomorrow, 31 July 2025, at midnight.
But its success will not be measured by the thickness of the document —
It will be measured by the quality of contributions and submissions from the partnerships we build, as well as the impact we deliver.
Let us leave here today with a shared commitment:
That every municipality must work —
Not just for government,
Not just for business,
But for the people of South Africa.
Let us build a local government system that is:
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trusted by citizens
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respected by investors
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and worthy of our democracy
I thank you.
#ServiceDeliveryZA
