Government Initiates Plan to Enhance Municipal Utilities with Professional Management


Cape Town: National government and municipalities have committed to work together to set up professionally managed utilities for improved water and electricity services. During his first State of the Nation Address (SONA) of the newly elected seventh democratic Parliament, held in the Cape Town City Hall on Thursday evening, President Cyril Ramaphosa acknowledged that roads in many cities and towns across the country, are not maintained, including water and electricity supply, which is often disrupted.



According to South African Government News Agency, President Ramaphosa highlighted issues such as uncollected refuse and sewage in the streets, attributing these challenges to the lack of technical skills and resources in many municipalities. He noted that the failure to reinvest revenue from utilities into infrastructure upkeep has exacerbated the situation. The President pointed to the design of the local government system as a key factor contributing to these challenges.



The government is undertaking initiatives to ensure sustained investment and effective maintenance of service delivery within the municipalities. An extensive consultation to develop an updated White Paper on Local Government is planned, aiming to outline a modern and ‘fit-for-purpose local government system’.



The President mentioned the need to review the funding model for municipalities, many of which lack a viable and sustainable revenue base. He emphasized the importance of working with traditional leaders in implementing local development programmes. Support for municipalities requiring assistance will be expanded, drawing on lessons from the Presidential eThekwini Working Group.



President Ramaphosa acknowledged progress in eThekwini, as the government implements the District Development Model (DDM), which involves collaboration among government, business, labour, and community-based organisations. He also discussed plans to reform public service and enhance state capabilities through technology, including investing in digital public infrastructure and implementing a digital identity system. These measures aim to transform the relationship between citizens and government, making services more accessible to South Africans.