Incoming municipal councils will face mounting pressure to address financial challenges, infrastructure backlogs and poor service delivery as South Africa prepares for a new term of local government following the 2026 Local Government Elections.

The Department of Cooperative Governance (DCoG), National Treasury and the South African Local Government Association (SALGA) have outlined measures to guide municipalities through the transition, including the establishment of new councils, coalition arrangements, administrative handovers and the implementation of development priorities.

The measures are contained in joint guidelines signed by the three institutions on 30 September, against the backdrop of a local government environment characterised by financial instability, infrastructure challenges and political uncertainty.

Following the 2021 Local Government Elections, the number of coalition-led municipalities increased to 76, highlighting the importance of stable political arrangements and effective municipal administration.

With the Electoral Commission of South Africa (IEC) expected to announce the final results of the 2026 elections on Sunday, attention will shift to establishing the new councils and ensuring continuity of municipal services.

One of the immediate priorities will be the election of political office-bearers.

In terms of the Local Government: Municipal Structures Act, 1998, municipal managers must convene the first council meeting within 14 days after a council has been declared elected.

The first meeting will provide for the election of Speakers, mayors, executive mayors and deputy mayors, where applicable, as well as the determination of Mayoral and Executive Committees.

Local councils will also be required to appoint their representatives to district municipalities within 14 days after the declaration of their election results.

Municipalities may conduct their first council meetings physically, virtually or through a hybrid arrangement, provided these comply with legislation and the relevant council rules.

Coalition negotiations are expected to feature prominently in municipalities where no political party secures an outright majority.

The guidelines make it clear that political agreements cannot override the Constitution or legislation governing municipal administration and finances.

Coalition agreements must operate within the framework of the Municipal Structures Act, Municipal Systems Act and Municipal Finance Management Act (MFMA), among other applicable laws.

Political parties have been encouraged to conclude agreements as early as possible to minimise uncertainty and ensure municipal governance structures are established within the prescribed legal timeframes.

Municipal managers and other officials must remain impartial and may not participate in, facilitate or influence coalition negotiations. Municipal facilities, vehicles, communication systems, officials and funding may also not be used for coalition negotiations or political party activities.

Another priority will be the handover of responsibilities from outgoing political leadership and municipal administrations to newly elected councils.

The guidelines require two separate handover reports to give incoming councillors a comprehensive picture of the municipalities they will be responsible for governing.

The political handover report, led by the Speaker and the Mayor, Executive Mayor, Executive Committee or Mayoral Committee, must outline the municipality’s political performance, progress made and outstanding challenges during the outgoing term.

Municipalities governed through coalitions must also document their governance arrangements, risks and lessons learnt.

The administrative handover report, led by the municipal manager, Chief Financial Officer and senior management team, must provide details of the municipality’s financial position, administration, service delivery programmes and infrastructure projects.

Particular attention must be given to cash and investments, outstanding creditors and debtors, budget funding, loans and other financial commitments.

The report must also include audit outcomes for the past three financial years, strategies to address audit shortcomings and the status of unauthorised, irregular, fruitless and wasteful expenditure.

Incoming councillors must receive information on basic service delivery, infrastructure backlogs, the condition of municipal assets, maintenance requirements and major projects planned for the 2026/27 financial year.

The reports must be submitted to provincial cooperative governance departments, National Treasury, DCoG and SALGA before the first council meeting.

Financial management will be another major test for incoming councils, particularly in municipalities struggling with unfunded budgets, poor audit outcomes and mounting debts.

The guidelines require municipal budgets to be credible, funded and aligned with realistically anticipated revenue.

“Municipalities with unfunded budgets, adverse audit outcomes or persistent financial challenges may be subjected to interventions and funding-related measures in terms of applicable legislation. Municipalities must prioritise the payment of creditors, including Eskom and Water Boards, to avoid service disruptions and financial instability,” the document states.

Incoming councils will also be expected to monitor audit action plans and ensure outstanding findings are addressed.

The guidelines further require handover reports to detail financial misconduct proceedings, criminal proceedings where applicable, and action taken against unauthorised, irregular, fruitless and wasteful expenditure in terms of Section 32 of the MFMA.

Municipalities are also prohibited from using public funds to finance political party activities, including caucuses and other political operations.

Any expenditure incurred in contravention of the MFMA may constitute irregular expenditure, with officials and office-bearers who authorise unlawful spending potentially facing financial misconduct proceedings and liability.

Beyond the immediate transition, incoming councils will have to review municipal planning and governance systems inherited from their predecessors.

Under the Municipal Systems Act, newly elected councils must review their systems of delegation within one year of taking office.

These systems determine how responsibilities and decision-making powers are allocated within municipalities. Existing delegations will remain in force until the review is completed to prevent disruptions to administrative functions.

Municipal managers are expected to prepare a process plan for the review and table it at the first council meeting.

Councils will also have to consider their Integrated Development Plans (IDPs), which guide municipal development priorities, planning and service delivery.

They may adopt the existing IDP or initiate amendments if they want to change the priorities set by the previous council. Any changes must comply with the Municipal Systems Act and relevant planning regulations.

Ward committees will also form part of the new councils’ community participation responsibilities.

In terms of the Municipal Structures Amendment Act, local and metropolitan municipalities have 120 days after the elections and first council meetings to establish ward committees.

These committees provide a link between residents and municipal councils, allowing communities to participate in local planning and raise service delivery concerns.

Newly elected councillors will also be supported through an Integrated Councillor Induction Programme to be developed by SALGA in collaboration with DCoG, National Treasury and the National School of Government.

“The programme will provide incoming councillors with a broad overview of the municipal environment and will, inter alia, cover their roles and responsibilities; the policy and legal framework; and various municipal processes,” the circular states.

The programme will cover councillor oversight, financial management, strategic planning, cooperative governance, delegations and compliance with the Code of Conduct for councillors.

Municipalities and provinces have also been urged to continue implementing the Municipal Staff Regulations of 2021, which set standards for recruitment, appointments, performance management and staff development.

The guidelines provide for municipal staff establishments to be reviewed within 12 months of the elections, subject to specified legislative conditions.

The District Development Model (DDM) will remain a key mechanism for coordinating support between national, provincial and local government.

Adopted by Cabinet in 2019, the model promotes integrated planning, budgeting and implementation through its “One District, One Plan, One Budget” approach. It covers South Africa’s 44 district municipalities and eight metropolitan municipalities.

The guidelines call on municipalities, provinces and national departments to align their planning, budgets and service delivery programmes with approved DDM One Plans.

Municipal Support and Intervention Plans will also continue to address financial management and service delivery challenges. Newly elected councils are expected to incorporate these plans into their municipal planning and oversight systems.

Municipalities already under intervention in terms of Section 139 of the Constitution and Chapter 13 of the MFMA will remain subject to the applicable arrangements.

DCoG and National Treasury are expected to issue a separate circular providing further guidance to municipalities that were placed under intervention before the elections.

The institutions have reiterated their commitment to supporting municipalities throughout the transition, urging all stakeholders to ensure that political changes do not disrupt municipal administration or compromise the delivery of basic services.

INSIDE METROS

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