The Select Committee on Cooperative Governance and Public Administration has expressed support for a review of the local government funding model but has cautioned that simply increasing funding is not a solution to the deep-seated issues plaguing the system. During a briefing by COGTA and SALGA, the committee was able to examine the progress made on the update of the 1998 White Paper and discuss the need for urgent structural reform. A proposal has been put forward to almost double local government’s allocation of revenue from 9.9% to 17.8%, but the committee stressed that “we cannot just throw money at this problem.”
Chairperson Mxolisi Kaunda pointed out that the crisis is largely the result of a lack of technical capacity. This stems from the fact that many local governments are unable to attract the necessary professionals, such as engineers and technical directors. As a result, critical posts remain unfilled while administrative positions are overstaffed. This situation is further compounded by the absence of a fair and standardized salary structure across different grades and municipalities, leading to the migration of skills to wealthier metropolitan areas.
The committee also addressed the need for a comprehensive rural development strategy that extends beyond the current piecemeal approach to agricultural projects. One of the major concerns raised was the absence of comprehensive spatial planning in areas governed by traditional leaders. At present, land is often allocated without adequate planning for schools, health clinics, or infrastructure. The committee recommended the strategic integration of traditional leaders and municipalities to ensure that land-use management results in well-integrated, sustainable human settlements rather than fragmented development.
Lastly, the Chairperson encouraged new approaches to service delivery that move beyond the current outsourcing model. By organizing communities into social enterprises or cooperatives for services such as waste removal, municipalities can promote community ownership and prevent exploitation. Bureaucratic inefficiency also remains a concern, with the committee citing cases where private donations for public infrastructure were delayed for several years due to administrative bottlenecks.
The committee made it clear that unless South Africa addresses the migration of economically active citizens to metropolitan areas and improves its procurement systems, the structure of local government will remain inefficient despite increased budgets.
