By Charles Molele and Alicia Mmashakana
The South African Local Government Association (SALGA) president Bheki Stofile has reaffirmed the sector’s support for President Cyril Ramaphosa’s plan to rejuvenate municipalities by reviewing the local government funding model.
Stofile was delivering his State of the Nation Address (SONA) debate on Wednesday in Parliament.
“Reflecting on the President’s address allows us in local government to assess critical national challenges,” said Stofile.
“Local government is the engine of economic activity and community development. Chief among these is [reviewing] the funding model for local government.”
Last month, Co-operative Governance and Traditional Affairs Minister Velenkosini Hlabisa said the funding model for local government is currently under review, as some of its underlying assumptions are flawed.
SALGA has long criticised the current allocation, arguing that the 9.6% share of national revenue, saying it is inadequate to meet municipalities’ constitutional service delivery obligations.
The organisation has consistently called for increased funding to improve the financial sustainability of municipalities because many continue to struggle with financial mismanagement and routinely fail to meet the Auditor-General’s standards.
While municipalities receive grants from the National Treasury, these funds are insufficient to offset poor revenue collection from residents who, in turn, suffer from inadequate basic services.
Stofile called for the need to revisit the 1998 White Paper on Local Government, considering the significant changes since its adoption.
“Mr President, we wish to highlight before this, as we move towards renewal of the 1998 White Paper. We request that it should not be a middle-class discussion. It should encompass all those that are involved benefiting in local government,” Stofile told MPs.
Stofile continued: “We also need to reconsider the 1998 White Paper on local government, given the developments since its inception. Local government serves as a hub of economic activity, driving community development forward. It’s crucial that we address the EPWP, examining their impact within our broader economy.”
“Another critical area is the state of rural roads and their significance to rural development, particularly in supporting traditional leaders and opening economic opportunities. Revisiting our approach to road development is essential, ensuring it aligns with environmental sustainability amidst global challenges like climate change.”
He further told MPs: “Our municipalities across South Africa are committed to partnering with national leadership on these initiatives. We believe that addressing these issues directly impacts the daily lives of our citizens.”
“As we look towards revitalising the 1998 White Paper, it’s important that this renewal process is inclusive, benefiting all stakeholders involved in local government. Our aim is clear: to foster development that reaches every community and promotes sustainable growth.”
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