Ramaphosa Launches Systemic Reform of South African Local Government

President Cyril Ramaphosa launched the Revised White Paper on Local Government on October 22, 2026, in Ekurhuleni, initiating a systemic overhaul of South Africa's municipal structures. The policy replaces the 1998 framework to address chronic service delivery failures, corruption, and unsustainable finances, including more than R120 billion in debt owed to Eskom.

The reforms move away from a one-size-fits-all approach, instead matching municipal responsibilities to the specific capacities of metropolitan, secondary-city, rural, and small-town municipalities. Key measures include separating the roles of service authority and service provider for water and electricity, introducing compulsory licensing for providers, and ring-fencing revenues from utility sales specifically for infrastructure maintenance. Ramaphosa stated that the state cannot "build its way out of failure" if existing assets are neglected.

To execute the transition, the Cabinet established a time-bound Local Government Transition Management Body coordinated by the Department of Cooperative Governance, the Presidency, and National Treasury. Complementing these structural changes, Finance Minister Enoch Godongwana announced the first comprehensive overhaul of municipal finance law in 23 years to strengthen revenue collection and expand Treasury's powers to investigate financial misconduct. These reforms are being implemented immediately preceding the Local Government Elections scheduled for November 4, 2026.