By Johnathan Paoli
Cooperative Governance and Traditional Affairs (CoGTA) Minister Velenkosini Hlabisa has revealed the government’s strategic plans to restore failing municipalities, improve local services, enhance disaster response and deepen the role of traditional leadership in governance.
Delivering his 2025/26 Budget Vote speech to the National Council of Provinces (NCOP) on Tuesday, Hlabisa thanked stakeholders and called for unity across all spheres of government, formally tabling Budget Vote 3 (CoGTA) and Budget Vote 15 (Traditional Affairs), and emphasising the department’s commitment to responsive, ethical governance and people-centred development.
“With the tools in this budget and the will of our people, we can build resilient municipalities, restore trust, and bring dignity to every South African,” he said.
The minister started his address with a sombre reflection on the devastating floods that recently struck several provinces, with the Eastern Cape suffering the greatest losses; and confirming that disaster relief funding mechanisms have been activated.
Technical teams from the Municipal Infrastructure Support Agent are now deployed to assess damage and coordinate repairs across affected provinces.
As South Africa chairs the G20 this year, it also leads the Disaster Risk Reduction Working Group, focusing on building disaster-resilient infrastructure and ecosystem-based solutions and drawing key lessons from recent climate-related tragedies.
The department has been allocated R410.9 billion over the Medium-Term Expenditure Framework (MTEF), with 96.7% directed towards intergovernmental transfers and municipal support.
An additional R195.5 million is earmarked for the Department of Traditional Affairs, including support to Chapter 9 institutions and traditional leadership structures.
The budget strategy introduces targeted and differentiated interventions aimed at improving service delivery, particularly in dysfunctional municipalities.
Key allocations include R493.8 million through the Municipal Infrastructure Grant 6B to fast-track essential infrastructure in distressed municipalities; and R244.7 million reallocated to the Integrated Urban Development Grant (IUDG) to support urban growth nodes.
In addition the minister announced a rise in the Municipal Systems Improvement Grant from R151.1 million in 2025/26 to R165.3 million by 2027/28 to strengthen municipal governance systems; and a pending municipal debt relief framework, developed with National Treasury, to support municipalities drowning in debt.
A cornerstone of the department’s 2025/26 agenda is the comprehensive review of the 1998 White Paper on Local Government.
Launched in May, this review is central to crafting a modern, inclusive, and capable local government system responsive to challenges such as youth unemployment, climate change, and rapid urbanisation.
The public submission deadline has been extended to 31 July to allow for broader engagement, particularly from women, informal traders, and rural communities.
This review informs several legislative reforms including the Independent Municipal Demarcation Authority Bill, now in the NCOP, which will establish a Demarcation Appeals Authority to enhance public consultation; the Municipal Structures Amendment Bill which aims to regulate fragile coalitions and ensure stable governance; the Intergovernmental Monitoring, Support, and Interventions Bill proposing a structured legal response to collapsing municipalities; and reforms to staff structures and remuneration in local government will address bloated payrolls and attract skilled professionals.
The Inter-Ministerial Committee on audit outcomes has identified ten distressed municipalities for urgent intervention.
Outcomes will include settling debts with Eskom and water boards, enforcing funded budgets, improving financial governance, and implementing municipal turnaround strategies.
Thirty additional priority municipalities will receive support based on MISA’s assessments.
The District Development Model (DDM) remains the flagship strategy for coordinating all three spheres of government in service delivery.
Recent DDM engagements in the Western Cape highlight the importance of community-based problem solving and integrated planning.
Minister Hlabisa also presented Budget Vote 15 for Traditional Affairs, highlighting new developments in recognising and strengthening traditional and Khoi-San leadership.
The establishment of the Forum of South African Majesties and a dedicated Queens’ Council will deepen leadership roles in social and economic development.
Significantly, for the first time in democratic history, the Minister of Finance announced funding support for infrastructure at royal palaces.
Modalities for this support will be developed in consultation with the Treasury under Section 30(2)(d) of the Public Finance Management Act.
In addition, the implementation of the Customary Initiation Act is progressing, with Regulations finalised and consultations completed.
Fees for initiation rites will now be regulated to address the commercialisation of the practice.
Meanwhile, a Constitutional Court-ordered review of the Traditional and Khoi-San Leadership Act is underway, with a new deadline set for May 2027.
The Commission for Khoi-San Matters has received over 220 recognition applications, and the department will continue to support the Commission in processing these applications efficiently.
Hlabisa closed his announced with a repeated call on stakeholders to come together, and facilitate his department’s vision in addressing the challenges facing local government and expanding service delivery to the most affected communities.
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