Revised White Paper seeks to transform local government funding

Thursday, October 22, 2026

Cooperative Governance and Traditional Affairs (CoGTA) Minister Velenkosini Hlabisa says the revised White Paper on Local Government will introduce a differentiated funding approach and strengthen merit-based appointments to improve municipal performance and service delivery.

Hlabisa was speaking at the official launch of the Final Revised White Paper on Local Government in Boksburg, Gauteng, on Thursday.

The revised policy seeks to build capable, accountable, financially sustainable and developmental municipalities, addressing challenges that have affected the local government system since the original White Paper was introduced in 1998.

Hlabisa said the review was informed by lessons learnt over the past 28 years, including the shortcomings of a funding model that applied a largely uniform approach to municipalities with different needs and capacities.

“The funding model, the one-size-fits-all, has shown it doesn't work. If you treat a metro like a small, deep rural municipality in terms of allocation of resources, you are missing the point,” the Minister said.

The revised White Paper proposes a differentiated approach to municipal funding, recognising that metropolitan municipalities and smaller rural municipalities have different responsibilities, resource requirements and service delivery challenges.

Implementation and appointments on merit

Hlabisa said the policy also placed greater emphasis on implementation, warning that its recommendations will have little impact if they are not translated into practical action.

“The White Paper can become a good document, but it can collect dust on the table or on the shelves if there is no implementation.”

The Minister emphasised merit-based appointments as a key measure to strengthen municipal administration, saying municipalities need qualified professionals with the skills and expertise to perform their responsibilities.

He said the revised policy sought to move away from career-based deployment towards appointments based on merit, supported by competent councillors who can provide effective political oversight.

According to Hlabisa, capable municipal administrations and competent political leadership are essential to improving governance and accelerating service delivery.

The review identifies several interconnected challenges requiring coordinated reforms, including weak governance and ethics, limited administrative capacity, financial constraints, infrastructure backlogs and fragmented coordination across government.

It also highlights concerns about public trust and participation, particularly where communities do not see their input translating into visible action or improved service delivery.

Challenges

On governance, the policy identifies weaknesses in oversight, inconsistent accountability and limited consequences for poor performance. Administrative challenges include skills gaps, leadership and management weaknesses, institutional instability and uneven professional practices.

Financial viability remains another key concern, with revenue constraints, weak controls and fiscal arrangements that do not adequately reflect the different realities of municipalities. These challenges are compounded by ageing infrastructure, maintenance backlogs and unreliable services that affect residents' daily lives.

The revised policy further points to fragmented reform initiatives, which often operate independently with different reporting structures and limited coordination across the local government system.

Public trust

It emphasises the need to strengthen public trust and accountability by ensuring that community participation leads to visible action, feedback and improved outcomes.

Hlabisa said the launch came at an important time, with local government elections approaching and new municipal councils expected to take office following the polls.

“This comes at the right time. A revised White Paper with major recommendations to fast-track service delivery is coming at the time when we are going to have new councillors,” he said.

He said the introduction of the revised policy alongside the election of new councillors presented an opportunity to implement reforms and improve the performance of municipalities.

Hlabisa emphasised that local government is central to people's daily lives, as municipalities are responsible for delivering essential services to communities.

The revised White Paper is intended to provide a policy framework for addressing these systemic challenges, strengthening municipal governance and ensuring that municipalities are better equipped to meet their constitutional obligations and respond to residents' needs.

President Cyril Ramaphosa will officially launch the revised White Paper today, bringing together Cabinet Ministers, Premiers, MECs, mayors from municipalities across the country, traditional leaders, academics, civil society organisations, business representatives and organised labour.

Transition Plan

Hlabisa said the key focus following the launch will be the 90-day Local Government Transition Plan to translate the policy framework into practical action. He said the plan will identify immediate priorities, define responsibilities and timelines, and establish multi-sectoral workstreams to advance implementation across government and the local government sector.

“The transition process will also take into account the new municipal term, following the Local Government Elections scheduled for 4 November 2026. This includes supporting the induction of newly elected councillors and aligning municipal planning, budgeting and performance management with the objectives of the revised policy framework,” Hlabisa said. - SAnews.gov.za