Pretoria: In a move aimed at enhancing service delivery, the government has announced a substantial budget allocation for Cooperative Governance, amounting to R410.9 billion over the Medium-Term Expenditure Framework (MTEF) period. The Cooperative Governance and Traditional Affairs Minister, Velenkosini Hlabisa, announced that a staggering 96.7% of this budget is earmarked for intergovernmental transfers and support to various entities.
According to South African Government News Agency, this significant investment will enable the implementation of critical initiatives aimed at delivering tangible and measurable improvements in the lives of citizens. During the budget announcement, Minister Hlabisa emphasized that the allocation focuses on ensuring benefits reach all South Africans, particularly those in underserved communities.
In addition to the allocations for Cooperative Governance, Vote 15: Traditional Affairs will see an appropriated budget of R195.530 million for the fiscal year 2025/26. Within this allocation, 24% (approximately R46.927 million) is specifically designated for transfers and subsidies, including a dedicated fund for the Commission for the Promotion and Protection of the Rights of Cultural, Religious, and Linguistic Communities.
The Minister acknowledged the vital role of traditional leadership in cultural preservation and community cohesion, stating that the budget reflects the government’s commitment to supporting this crucial sector and ensuring their inclusion in national discourse. The budget presentation and engagement are part of Parliament’s oversight function, providing a platform to transparently present the department’s financial allocations and strategic direction for the 2025/26 financial year.
The budget vote presentation detailed key areas of expenditure, offering a comprehensive breakdown of how the department’s resources will be allocated to drive impactful governance. A key component of the government’s reform agenda is the comprehensive review of the 1998 White Paper on Local Government, initiated on 19 May 2025. This review is part of a strategy to modernize local governance structures and improve service delivery amid challenges like urban growth and youth unemployment.
The review’s importance extends beyond governance, embodying a commitment to socio-economic development and emphasizing inclusivity in community engagement. The government aims to rectify historical imbalances by providing a platform for the voices of informal traders, women, youth, and rural communities. In response to high demand for broader community engagement on the discussion document concerning the Review of the 1998 White Paper on Local Government (WPLG), the submission deadline for the review has been extended to 31 July 2025.
In addition to governance reforms, the government is advancing targeted interventions in distressed municipalities, focusing on infrastructure maintenance and development support. The Inter-Ministerial Committee (IMC) is dedicated to addressing fundamental issues in 10 distressed municipalities, including outstanding debt resolution and improving governance structures.
Minister Hlabisa reiterated the importance of integrated efforts to address challenges in the local government sphere, as espoused by the District Development Model (DDM). The DDM remains the government’s flagship intergovernmental planning, coordination, and service delivery strategy, uniting all three spheres of government to address specific challenges across 52 districts and metros.
He also announced that the Municipal Infrastructure Grant (MIG) is set to accelerate infrastructure delivery, with an allocation of R493.8 million to support critical projects in priority municipalities. The reallocation of R244.7 million from the MIG to the Integrated Urban Development Grant (IUDG) aims to promote integrated urban planning and development in growth areas.
Meanwhile, the Municipal Systems Improvement Grant (MSIG) is increasing from R151.1 million in 2025/26 to R165.3 million in 2027/28 to strengthen municipal systems and improve intergovernmental planning and budgeting under the DDM. Collaboration with National Treasury is underway to establish a municipal debt relief framework, aimed at assisting municipalities in managing debt and enhancing financial sustainability.
With these substantial budget allocations and a renewed focus on local governance reforms, the government is positioning itself to create a responsive and effective local government system for all South Africans. The overarching goal remains clear: delivering quality services that foster community development and resilience in democracy.