Part 2: Unpacking The 2026 Local Government White Paper

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Webinar Summary

Moderator: Mr. Zolani SS Zonyane, Editorial Director of The Municipal Edge

Introduction: Zonyane opened the webinar, the second in a series discussing the review of the 1998 White Paper on Local Government, emphasising its significance given the current state of local governance in South Africa. He highlighted the diverse audience, including representatives from civil society, academia, government, and business, and noted the webinar's sponsorship by Business Engineering. The chat and QA functions were open for active participation, with a commitment to collate inputs for submission by July 31, 2025. Zonyane introduced the speakers and provided a brief biography of Deputy Minister Dr. Masemola, underscoring his extensive experience in governance and local government leadership.
Context and Purpose: The webinar aimed to engage stakeholders on the ongoing review of the White Paper, with a deadline for public submissions on July 31, 2025, and plans for further webinars and a policy indaba in September to consolidate inputs toward finalising the policy by March 2026.

Speaker: Dr. Namane Dickson Masemola, Deputy Minister of Cooperative Governance and Traditional Affairs (CoGTA)

Dr. Masemola greeted the audience and outlined the purpose of the webinar, emphasizing the urgency of reviewing the 1998 White Paper to address contemporary challenges in local government. He noted the tight timeline for submissions (July 31, 2025) and the goal of finalizing the policy by March 31, 2026, to guide the next municipal elections.
Local Government Structure: He detailed South Africa's 257 municipalities (205 local, 8 metropolitan, 44 district) and stressed the need to assess their design, functionality, and service delivery efficiency. The review aims to reposition local government for better performance through restructuring and change management, aligning with the Constitution and national development plans like the NDP and Medium-Term Development Plan.
Achievements and Challenges: Dr. Masemola highlighted achievements, such as establishing a constitutionally enshrined local government system, but acknowledged persistent challenges, including governance issues, infrastructure decay, financial mismanagement, and coalition politics' destabilising effects. He cited statistics: 161 municipalities are at risk, 35 are dysfunctional, and only 61 have clean audits, underscoring the need for reform.
Key Issues and Proposals: He outlined critical areas for reform, including:
- Funding Model: Addressing equitable revenue distribution (Section 214 of the Constitution) and municipal fiscal powers (Section 229). Proposals include reforming municipal funding and addressing traditional leaders' funding demands, as they seek recognition as a fourth sphere of government.
- Coalition Politics: Managing inter-party dynamics to stabilize governance.
- Traditional Leaders: Integrating traditional leaders into municipal governance with defined administrative roles, as per Chapter 12 of the Constitution.
- Intergovernmental Debt: Addressing the R200 billion owed by consumers and R18 billion by government departments to municipalities, alongside municipal debts to entities like Eskom and water boards.
- Spatial Justice: Responding to Dr. Kaywood's concerns, Dr. Masemola acknowledged the rapid urbanisation and 'metropolisation' of cities, which exacerbate spatial inequalities. He referenced the Integrated Urban Development Framework (IUDF) but admitted its implementation gaps, suggesting a need for collaborative governance and potential public utility models for services like water and electricity.
Policy Process and Next Steps: Dr. Masemola emphasised the inclusive process, involving a steering committee and administrative team, with a policy indaba planned for September 2025 to consolidate inputs. The review aims to prepare for the 2026 municipal elections, ensuring a refreshed policy framework that enhances professionalization, ethics, and community participation. He stressed the importance of bold decisions to address spatial planning, unfunded mandates, and financial leakages (e.g., R410 billion allocated over three years with limited impact).
Closing Remarks: Dr. Masemola underscored the complexity of municipal governance under the Government of National Unity, advocating for a policy clearing house to manage divergent perspectives. He urged stakeholders to contribute to the policy process, ensuring it reflects community needs and avoids being a top-down departmental exercise.

Speaker: Mr. Lulamile Mapholoba, Municipal Manager, Knysna Local Municipality

Sector Challenges: Mapholoba described local government as 'under siege' citing declining revenue, aging infrastructure, and population growth pressures. He referenced examples like Mangaung municipality's R5 billion debt and threats to withdraw grants, illustrating the sector's regression.
Key Issues:
- Politicisation: High politicisation hinders discipline and accountability, as political affiliations influence senior management decisions. Past attempts to depoliticise the sector were struck down by the Constitutional Court.
- Coalition Politics: Single-seat parties can destabilize municipalities by making unreasonable demands.
- Infrastructure and Capacity: Aging infrastructure and lack of skilled managers limit long-term planning, especially in adapting to climate change.
- Traditional Leaders: He highlighted demands from traditional communities (e.g., Khoi in Knysna) for greater participation, suggesting clearer regulations to define their roles.
- Unfunded Mandates: Municipalities bear costs for functions like human settlements without funding, straining budgets.
Opportunities and Recommendations:
- Learning from Best Practices: He pointed to Western Cape municipalities' success (clean audits, no debts to Eskom/water boards) as a model for others.
- Structural Reform: Suggested reducing the number of municipalities and rethinking the two-tier system (district and local), noting proposals like Gauteng's suggestion to eliminate district municipalities in favour of metros and secondary cities.
- Community Engagement: Advocated for involving civil society (e.g., Afro Forum, Sanco) to reduce litigation and enhance collaboration.
- Legislative Input: Urged stakeholders to engage with bills before Parliament (e.g., Public Services Commission Amendment, Section 139 interventions) alongside the White Paper review.
Closing Remarks: Mapholoba expressed optimism about the review process, emphasising the need to maintain strong elements of the 1998 White Paper while addressing current challenges. He thanked the platform for fostering dialogue and encouraged continued engagement, specifically commending Dr. Kaywood's contributions and suggesting she pursue further studies in planning.

Speaker: Dr. Lungelwa Kaywood, Chair in Urban Law and Sustainability Governance, Stellenbosch University Faculty of Law

Personal Context: Dr. Kaywood noted her past role as deputy city manager under Mapholoba in Knysna, highlighting how politicisation led to their incomplete terms, a broader issue for the sector.
Focus on Spatial Justice:
- Concern: Expressed concern that spatial inequalities, a key challenge raised by stakeholders, were not adequately addressed in the White Paper review's themes or milestones, despite being mentioned in Dr. Masemola's presentation.
- Importance: Argued that social justice is unattainable without spatial justice, as apartheid-era spatial patterns persist, pushing the poor to urban peripheries and perpetuating poverty and exclusion.
- Evidence: Cited ongoing informal settlement growth, gentrification, and municipalities selling land to high bidders (e.g., Cape Town cases), neglecting affordable housing. She noted that spatial planning impacts education access (e.g., school zoning policies) and economic opportunities.
Challenges to Spatial Transformation:
- Stalled Progress: Despite progressive laws (e.g., Constitution, SPLUMA, IDPs, SDFs), spatial transformation has stalled due to weak enforcement, resource inadequacies, and lack of integration with municipal budgets.
- Local Politics: Elite capture and fragmented implementation undermine inclusive development goals.
- Decentralisation Issues: Decentralised municipal planning, while necessary post-1994, has led to disparities without strong intergovernmental alignment. Dr. Kaywood suggested reevaluating exclusive local government functions like planning, proposing reduced powers for municipalities unwilling or unable to prioritize spatial justice.
Recommendations:
- Incorporate Spatial Justice: Urged the White Paper review to prioritise spatial justice as a core theme, integrating it into milestones and research agendas.
- Strengthen Coordination: Advocated for tying conditional grants to national spatial justice goals and enhancing vertical/horizontal coordination across government spheres.
- Learn from History: Called for honest, uncomfortable conversations about the past 30 years to drive bold, accountable actions for inclusive cities.
Closing Remarks: Dr. Kaywood reiterated that social justice hinges on spatial transformation, urging the review to address this to ensure dignity and equity for all South Africans.