SALGA backs Ramaphosa’s plan to revamp local government funding

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