By Lebone Rodah Mosima
A total of R680.5 million has been allocated to the Gauteng Department of Cooperative Governance and Traditional Affairs for 2026/27, rising to R1.9 billion over the Medium-Term Expenditure Framework (MTEF).
This was announced by MEC for Finance and Economic Development, Lebogang Maile, during his provincial budget speech in the legislature in Johannesburg.
“These resources will be used to strengthen integrated planning, municipal support and coordination from the centre of government,” Maile said.
“This includes funding for disaster management capacity, community development workers, the e-indigent register, municipal metering interventions, IDP coordination aligned to the spatial development framework, and Expanded Public Works Programme (EPWP) support for employment creation initiatives and efforts to stabilise energy supply.”
Maile said municipalities remain at the coalface of service delivery.
“They are the first point of contact with government when residents need water, electricity, refuse removal, recreational facilities including parks, and other public services,” he said.
He noted that the National Budget had highlighted that many municipalities are facing financial and operational distress, and outlined reforms aimed at ring-fencing revenue and reinvesting it in basic services, with performance-linked consequences for failure.
“Local government is the backbone of service delivery and requires urgent improvement,” Maile said.
“When residents of Gauteng say that government is failing, they usually mean a tap, a streetlight, a refuse truck, or a billing system. This budget supports the efforts of municipalities to deliver bulk infrastructure through a project preparation facility under the Gauteng Infrastructure Financing Agency, in line with commitments made by the Premier in the State of the Province Address.”
The Gauteng Treasury has also warned that metropolitan and district municipalities continue to face significant economic and structural challenges.
This assessment is based on the latest data contained in the 2026 Socio-Economic Review and Outlook, which points to constrained investment, sluggish growth and weak employment creation in local economies.
Maile said economic projections for the medium term show steady progress in the recovery of provincial growth, expected to reach 2.1% in 2026, slightly above the national average.
“Turning to our province, Gauteng remains the engine of the country’s economy, driven by sectors such as finance, trade and transport. The province’s annual Gross Domestic Product by Region (GDP-R) exceeds R2.4 trillion,” Maile said.
“This means Gauteng accounts for approximately 33% of South Africa’s GDP and more than 10% of the total GDP for the entire Sub-Saharan Africa region.”
He added that the province would continue prioritising job creation.
In 2025, Gauteng created more than 250,000 jobs, including 95,000 jobs in the second quarter alone.
“Trade and construction were among the leading sectors for job creation, demonstrating that despite the challenging environment, businesses still have confidence in the province’s ability to turn things around,” Maile said.
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