Why South Africa’s Municipal Funding Crisis Is in Focus Ahead of the 2026 State of the Nation

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As South Africa approaches President Cyril Ramaphosa’s State of the Nation Address (SoNA) on February 12th, 2026, the South African Local Government Association (SALGA) urges a shift from policy commitment to practical implementation. As SALGA celebrates 30 years of organised local government and constitutional democracy, it urges President Ramaphosa to reiterate the municipality’s function as the heartbeat of national development.

 

SALGA believes that the SoNA for 2026 must address the implementation gap. Despite the satisfactory improvement in access to basic service delivery over the past three decades, the current infrastructure backlogs, unemployment rates, and shrinking municipal revenue base are challenging citizens’ trust. The President is expected to present a plan of action with regard to the maintenance of the infrastructure that is key to the stability of the community.

A significant expectation for this year’s address is further professionalisation in the sphere of local government. This is where SALGA is anticipating measurable outcomes in terms of institutionalising the District Development Model. With local government at the forefront of inclusive growth, the government can promote development in the areas where people live and work.

 

It remains an ongoing advocacy for a more equitable system. According to SALGA, unless there is an immediate review of the current model of municipalities being funded, they would not be able to fulfil their role as catalysts for development. Effective revenue management and the improvement of funding support from the three spheres of government are essential for the sustainability of municipalities.

The SALGA delegation under the leadership of the SALGA Presidency and CEO will be attending the SoNA to advocate for a unified voice in the sector. The message they carry to the SoNA is simple yet effective, as the success of the 7th Administration rests on the ability of the government to translate the policies developed in Parliament into progress in every home.

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