Rebuilding Trust: A New Vision for Local Government in SA

Main takeaways

• 65% of SA municipalities are in financial distress
• The 1998 White Paper is under review to guide new reforms
• Citizen engagement and modern systems are key to recovery

Rebuilding Trust

South Africa’s 257 municipalities are in crisis. They face a crippling combination of financial mismanagement, decaying infrastructure, and an erosion of public trust. While the 1998 White Paper on local government once offered a bold roadmap for transformation, its vision is now falling short of current realities.

Now under review, this 27-year-old blueprint is being re-examined to identify what worked, where it failed, and how to reshape local government for the future.

The Problem: Breakdown in Trust, Systems & Delivery

Despite a strong legislative framework under Chapter 7 of the Constitution, most municipalities are failing to deliver the basics. As President Cyril Ramaphosa stated in his 2025 State of the Nation Address:

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“In many cities and towns across the country, roads are not maintained, water and electricity supply are often disrupted, refuse is not collected, and sewage runs in the streets.”

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Key Issues

• 65% of municipalities are in financial distress
• R348 billion is owed by households for services
• R18 billion in unspent funds were returned due to poor planning
• Trust in municipalities has collapsed, leading to a vicious revenue cycle

The Municipal Financial Management Act and Municipal Property Rates Act provide strong governance structures. But without enforcement, capacity, and transparency, they remain paper promises.

Solutions: Systems, Strategy, and Citizen Engagement

Fixing this crisis is not just about policy. it’s about rebuilding the relationship between municipalities and citizens. This means:

1. Getting the Basics Right

• Implement smart meters, updated property valuations, and integrated billing
• Use geospatial data and digital tools for accurate infrastructure mapping
• Enforce strict, transparent credit control and debt recovery

2. Structural and Technological Reforms

• Restructure revenue departments for greater accountability
• Centralise billing and collections for consistency
• Introduce performance-based systems and tighter internal controls

3. Real Citizen Engagement

• Move beyond box-ticking consultations, foster genuine, ongoing dialogue
• Educate communities on tariffs, free basic service limits, and co-responsibility
• Ensure transparency in how funds are collected, used, and reported

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“When citizens are treated as partners, not just payers, trust improves and so does revenue,” says Rantloane.

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The Way Forward: A New Social Contract

The review of the White Paper is a crucial opportunity to reset South Africa’s local governance model. But it must deliver real reforms, not theoretical fixes.

A new era of local government must be:

• Modern: enabled by technology and data-driven decision-making
• Transparent: with open communication on service delivery and tariffs
• Participatory: with citizens involved in shaping their communities
• Capable: with trained leadership and systems that actually work

This is more than a policy update, it’s a chance to restore the social contract between citizens and municipalities, unlocking local government’s true role as a driver of national development.

Trust is earned. Systems must deliver. The time for half-measures is over.

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