Its turnaround or terminal decline for local government in SA

South Africans do not experience government and service delivery through policy documents, commissions of investigations, or national speeches. They experience it when they open a tap, switch on a light, drive on a road, or wait for refuse to be collected.

That lived experience is shaped almost entirely by local government actions, “the level of government closest to the people” (the Constitution, 1996). The year 2026 is the year of local government elections, and it must become the year we confront the crisis in municipalities and begin a credible turnaround.

Over the past few years, the national government has acknowledged that the local sphere is under severe strain. Successive State of the Nation Addresses have promised reform: reviewing the White Paper on Local Government, professionalising senior appointments, ring-fencing water and electricity services, and fixing municipal funding systems.

These are important intervention plans, but while reform is discussed at the national level, the reality in many towns and cities tells a harsher story – one of deteriorating infrastructure, financial distress and deep governance weaknesses.

A system under pressure

The overall state of local government in SA is one of uneven performance, with a few well-performing municipalities, but the majority are sub-standard. In most municipalities, basic service delivery has become unreliable. Water interruptions, sewage spills, electricity outages and crumbling roads have become common features of daily life. These are not isolated failures; they are symptoms of long-term under-maintenance and institutional weakness.

Financially, the situation is equally worrying. Only 16% of the 257 municipalities achieved clean audits in the latest Auditor-General analysis. Many municipalities continue to receive poor audit results, with recurring findings on weak internal controls, unreliable financial statements, and failure to act against irregular, fruitless and wasteful expenditure. Billions of rand are lost each year due to poor contract management, penalties and avoidable costs – money that should have gone into maintaining pipes, substations and roads.

The result is that local government, the sphere closest to the people, is also the sphere where public trust is eroding fastest. Municipalities are in debt and collectively owe Eskom well over R100-billion for bulk electricity. They also owe tens of billions to water boards for bulk water services.

At the same time, some national and provincial departments owe municipalities significant amounts for rates and services, further straining local cash flow. This creates a vicious cycle: municipalities cannot pay bulk suppliers, infrastructure deteriorates and service delivery worsens.

Stumbling blocks

Several structural obstacles explain why municipalities are struggling to turn the corner. Firstly, infrastructure maintenance has been neglected for years. Ageing water networks, wastewater treatment works, electricity substations and roads require regular upkeep. Instead, maintenance budgets have often been diverted to cover operating shortfalls.

When infrastructure fails, the repair costs are far higher than the cost of routine maintenance would have been. Investors will not invest where there is a lack of infrastructure capacity, and this leads to low levels of economic growth.

Secondly, revenue collection systems are weak. In many municipalities, billing systems are inaccurate, meters are faulty or not read, and indigent registers are poorly managed. Non-payment by consumers, including government departments, further erodes municipal income.

Without predictable revenue, municipalities cannot plan or maintain services properly. Most municipalities do not have sufficient income to deliver on their mandate. A different financial model is required with more income from national budgets to support local government.

Thirdly, there is a severe shortage of technical and financial skills. Engineers, planners, artisans and experienced financial managers are in short supply in many municipalities. Critical posts are sometimes filled by people without the required qualifications or experience. This leads to poor project planning, cost overruns and infrastructure that fails soon after completion.

Fourthly, governance and political instability and interference undermine continuity. Frequent changes in councillors including mayors, council coalitions and senior administrators disrupt long-term planning. Acting appointments drag on for months or years, weakening accountability and slowing decision-making. Infrastructure projects stall while political battles play out. The local government system in SA has as its foundation instability, with politicians and senior managers on 5-year contracts.

Finally, consequence management remains weak. Officials responsible for financial mismanagement or service delivery failures are seldom held accountable in a meaningful way. Without consequences, poor practices are repeated year after year.

Quick fixes to start a turnaround

While the challenges are deep structural issues, there are practical steps that could produce visible improvements if implemented immediately.

Good governance. The foundation of any turnaround strategy must be based on good governance. Stable governance is required, especially with the ongoing increase in coalition councils. Political interference should be reduced, and clear boundaries between political oversight and administrative management must be enforced. Stability allows projects to run to completion and strengthens accountability.

Improved financial management. Facilitate improvements regarding income and expenditure. Fix billing and revenue collection. Municipalities need a nationally supported programme to audit meters, clean up customer databases, and modernise billing systems. Expanding prepaid and smart metering, combined with fair but firm credit control, could significantly improve cash flow. Government departments must also be compelled to pay municipal bills on time. The equitable share allocated by the national government also needs to be increased substantially. A large percentage of revenue collected from water and electricity services must be allocated for maintenance and extension of capacity. In addition, expenditure must be better controlled with no wasteful and fruitless expenditure. Corruption must be prevented at all costs and the supply chain management system needs to be controlled by objective professional officials or even independent individuals.

Professionalise local government. Key management positions should have mandatory minimum qualifications and experience requirements with a clear good governance track record. Recruitment should be transparent and competency-based, drawing on skilled professionals from both the public and private sectors. A stable, qualified municipal labour force is essential for credible planning and execution. Appoint only the best of the best in all positions, not only in leadership positions.

Prioritise maintenance and infrastructure capacity. A substantial share of the municipal budget should be allocated to infrastructure development, with a focus on maintenance and capital expenditure. Municipalities must make sure enough capacity is available for new developments to facilitate investment and economic development.

A turning point, or more of the same?

Local government is where democracy meets daily life. When municipalities fail, the social and economic costs are immediate: businesses cannot operate, schools and clinics struggle, and public frustration grows. Conversely, when local government works, communities thrive.

If 2026 is to be remembered as the year of local government renewal, it will not be because of new policies alone. It will be because the country chose to fix the fundamentals: competent people, protected service revenues, reliable billing, proper maintenance, and stable administration.

SA does not need to reinvent local government; it needs to do the basics well. The crisis is visible, what remains is the political will to implement the practical fixes that can restore basic services and rebuild public trust from the ground up. DM

Professor Daniel Meyer is a professor in the School of Public Management, Governance and Public Policy in the College of Business and Economics at the University of Johannesburg.