In a move aimed at enhancing service delivery, government has announced a substantial budget allocation for Cooperative Governance, amounting to R410.9 billion over the Medium-Term Expenditure Framework (MTEF) period.
The Cooperative Governance and Traditional Affairs Minister, Velenkosini Hlabisa, announced that a staggering 96.7% of this budget is earmarked for intergovernmental transfers and support to various entities.
“This significant investment will enable us to implement critical initiatives that deliver tangible and measurable improvements in the lives of our people,” he said during the budget announcement on Wednesday.
He announced that the budget allocation is focused on ensuring that every South African benefits from this allocation, particularly in underserved communities.
In addition to the allocations for Cooperative Governance, Vote 15: Traditional Affairs, will see an appropriated budget of R195 530 million for the fiscal year 2025/26.
Within this allocation, Hlabisa said 24%, which is approximately R46.927 million, is specifically designated for transfers and subsidies, including a dedicated fund for the Commission for the Promotion and Protection of the Rights of Cultural, Religious, and Linguistic Communities.
The Minister recognised the vital role that traditional leadership plays in cultural preservation and community cohesion.
He believes that the budget reflects government’s commitment to supporting this crucial sector and ensuring that their voices are part of the national discourse.
The budget presentation and engagement form part of Parliament’s oversight function, providing a platform to transparently present the department’s financial allocations and strategic direction for the 2025/26 financial year.
The budget vote presentation detailed key areas of expenditure, offering a comprehensive breakdown of how the department’s resources will be allocated to drive impactful governance.
The Minister highlighted that a key component of the government’s reform agenda is the comprehensive review of the 1998 White Paper on Local Government, initiated on 19 May 2025.
This review is part of a strategy to modernise local governance structures and improve service delivery amid challenges like urban growth and youth unemployment.
“Through this review, we are committed to creating a local government system that is responsive to the needs of all South Africans and that delivers quality services to our communities.”
The Minister explained that the review’s importance extends beyond governance and embodies a commitment to socio-economic development, emphasising inclusivity in community engagement.
Empowering communities
He announced that government aims to rectify historical imbalances by providing a platform for the voices of informal traders, women, youth, and rural communities.
In response to the high demand for broader community engagement on the discussion document concerning the Review of the 1998 White Paper on Local Government (WPLG), the submission deadline for the review has been extended to 31 July 2025.
In addition to governance reforms, government is advancing targeted interventions in distressed municipalities, focusing on infrastructure maintenance and development support.
As part of this initiative, the Inter-Ministerial Committee (IMC) is dedicated to 10 distressed municipalities, addressing fundamental issues such as outstanding debt resolution and improving governance structures.
“We reiterate that for us to make an impact in addressing the challenges at the local government sphere, we should eradicate working in silos, as espoused by the District Development Model (DDM)," said Hlabisa.
He said the DDM remains government’s flagship intergovernmental planning, coordination, and service delivery strategy, bringing all three spheres of government around one table to address the specific challenges across the 52 districts and metros.
In addition, he announced that the Municipal Infrastructure Grant (MIG) is set to accelerate infrastructure delivery, with an allocation of R493.8 million to support critical projects in priority municipalities.
Hlabisa stated that the reallocation of R244.7 million from the MIG to the Integrated Urban Development Grant (IUDG) will promote integrated urban planning and development in growth areas.
Meanwhile, the Municipal Systems Improvement Grant (MSIG) is increasing from R151.1 million in 2025/26 to R165.3 million in 2027/28 to strengthen municipal systems and improve intergovernmental planning and budgeting under the DDM.
The Minister said collaboration with National Treasury is underway to establish a municipal debt relief framework, aimed at assisting municipalities in managing debt and enhancing financial sustainability.
With these substantial budget allocations and a renewed focus on local governance reforms, he stressed that government is positioning itself to create a responsive and effective local government system for all South Africans.
Hlabisa said the overarching goal remains clear, which includes delivering quality services that foster community development and resilience in democracy. – SAnews.gov.za
