These are South Africa’s 66 most ‘distressed’ municipalities
Out of South Africa’s 257 municipalities, 66 (~26%) of them are defined as being “distressed.”
This is according to a recent parliamentary response by Velenkosini Hlabisa, Minister of Cooperative Governance and Traditional Affairs (CoGTA), to a question posed to him by the DA’s Anna Maria Van Zyl.
Broadly, a distressed municipality in South Africa refers to a local government that is facing severe financial, operational, or administrative challenges, often leading to an inability to provide basic services to its residents.
According to the minister, the number of distressed municipalities per province are:
- Eastern Cape – 11;
- Free State – 11;
- Gauteng – 2;
- KwaZulu Natal – 12;
- Limpopo – 3;
- Mpumalanga – 6;
- Northern Cape – 9;
- North West – 10;
- Western Cape – 2.
“Generally, municipalities that are classified as distressed fail all the pillars of sustainability,” said Hlabisa.
This means that these municipalities are characterised by “political instability and infighting, unfunded budgets, lack or inadequate allocation of repairs and maintenance budgets, usage of grants for operational expenses, increasing indigency leading to lack of payment of services resulting in low revenue collection, poor planning and maladministration.”
Looking at the identified municipalities, these include:
| Province | Name of Municipalities |
|---|---|
| Eastern Cape | Nelson Mandela Bay Metro |
| Makana LM | |
| Amathole DM | |
| Amahlathi LM | |
| Raymond Mhlaba LM | |
| Sakhisizwe LM | |
| Enoch Mgijima LM: S139(7) | |
| Chris Hani LM | |
| Walter Sisulu LM | |
| Nqquza Hill LM | |
| OR Tambo DM | |
| Free State | Tokologo LM: S139(5) |
| Moqhaka LM | |
| Mangaung Metro: S139(7) | |
| Kopanong LM: (S139(1)(b) & S63) | |
| Maluti-A-Phofong LM | |
| Mafube LM: (S139) (5) | |
| Mohakare LM | |
| Nala LM | |
| Tswelopele LM | |
| Dihlabeng LM | |
| Masilonyana LM | |
| Gauteng | Emfuleni LM |
| Merafong LM | |
| KwaZulu Natal | Mpofana LM |
| Msunduzi LM | |
| Inkosi Langalibalele LM | |
| Newcastle LM | |
| Nquthu LM | |
| Emadlangeni LM | |
| Mtubatuba LM | |
| UThukela DM | |
| Ugu DM | |
| UMkhanyakude DM | |
| UMzinyathi DM | |
| Amajuba DM | |
| Limpopo | Mogalakwena LM |
| Modimolle-Mookgophong LM | |
| Lepelle-Nkumpi LM | |
| Mpumalanga | Lekwa LM |
| Govan Mbeki LM | |
| Dr JS Moroka LM | |
| Thaba-Chewu LM | |
| Msukaligwa LM | |
| Dipaleseng LM | |
| Northern Cape | Sol Plaatje LM |
| Phokwane LM | |
| Ubuntu LM | |
| Renosterberg LM | |
| Siyancuma LM | |
| Tsantsabane LM | |
| Kai Garib LM | |
| Gamagara LM | |
| Joe Morolong LM | |
| North-West | Madibeng LM |
| Kgetlengrivier LM | |
| Ratlou LM | |
| Tswaing LM | |
| Mahikeng LM | |
| Ditsobotla LM | |
| Ramotshere Moiloa LM | |
| Ngaka Modiri Molema LM | |
| City of Matlosana LM | |
| Dr Ruth Mompati LM | |
| Western Cape | Kannaland LM |
| Beaufort West LM |
It is important to note that this information, provided by the Minister in September 2024, covers the 2022 financial year.
The 2023 State of Local Government Report will be presented to the Cabinet sometime during October 2024, which will be covered by BusinessTech.
South Africa’s Constitution mandates local government to provide democratic, accountable governance, deliver sustainable essential services, promote development and a healthy environment, and involve communities in local matters.
However, “local government is inadequately equipped to fulfil its developmental agenda.”
The South African Local Government Association (Salga) presented this view in its recent presentation to Parliament’s Portfolio Committee on CoGTA.
Salga further expressed concerns about the declining level of service delivery, instability, weakening capacity of municipalities, and the debt owed to municipalities that impinge on their performance.
According to Salga, there are four root causes for the “digression and decline” of the trajectory of the developmental impact of many local governments, being:
- Poor political leadership capacity and weak administrative management;
- Inefficient and non-integrated LG delivery mechanisms, systems and processes to enable service delivery;
- Ineffective utilisation of financial resources (poor financial administration) & inability to collect revenue, and insufficient fiscus allocation;
- Degenerating infrastructure and non-existent or poor services provided to local communities.
Interventions by Departments
The government may intervene in distressed municipalities through various measures, including financial assistance, administrative support, or even placing them under administration to restore functionality and service delivery.
Hlabisa recently announced that, in collaboration with the National Treasury, the department will implement and enforce compliance with municipal support and intervention plans in distressed municipalities.
In some cases, financial recovery plans will also be put into action.
CoGTA will continue to monitor the 32 Section 139(1) interventions initiated by provinces, as well as the three Section 139(7) (municipalities under administration) interventions initiated by the national executive.
In his parliamentary response, Hlabisa emphasised that CoGTA will concentrate on “the pillars of sustainability” to assist distressed municipalities.
These are to do with:
Strengthening Governance Capacity
- National and provincial governments implement interventions based on municipal crises.
- Development of Municipal Support and Intervention Plans (MSIPs) and Financial Recovery Plans (FRPs) with input from National Treasury and sector departments, monitored quarterly.
- Provincial CoGTAs oversee recommendations from Section 106 investigations.
Enhancing Institutional Capacity
- Support for filling vacant Senior Manager positions and deployment of officials in acting roles.
- Provision of financial and technical expertise.
- Pilot staff establishments across municipalities.
Improving Financial Viability
- Support for budget funding plans to address unfunded budgets.
- Engagements on debt repayment plans with Eskom and compliance monitoring.
- Development and oversight of Audit Action Plans, with advisors deployed for budget and revenue support.
Accelerating Service Delivery and Economic Development
- Support for infrastructure projects through the Municipal Infrastructure Grant (MIG).
- Joint efforts on water and sanitation projects with DWS.
- Engagements with Eskom on municipal upgrades.
- Assistance in preparing Business Plans for MIG allocations, and use of funds for repairs, refurbishment, and asset management.
- Studies on water cost reflectiveness and ongoing discussions to convert allocations for municipalities facing DWS charges.
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