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Media personality Cathy Mohlalana directed the panel discussion on enhancing economic growth and improving service delivery through effective local government reforms. In her opening statement, she noted the severe financial distress facing municipalities. She emphasized unfunded budgets, major infrastructure backlogs and a R416 billion consumer debt burden. She said these challenges block the smooth running of municipalities across the country.
What Happened
The panel featured Minister of Finance Enoch Godongwana, Deputy Minister of Cooperative Governance Dr Dickson Masemola, City of Tshwane Executive Mayor Dr Nasiphi Moya and Durban Chamber of Commerce and Industry CFO Mike Raftery.
Minister Godongwana explained that the national economy continues to grow slowly, which limits the resources available for allocation across government. He stressed that dividing a shrinking budget among the three spheres of government becomes more difficult each year.
Dr Moya reflected on the upcoming new term of local government. She said the sector needs a clear vision that can improve how municipalities operate and respond to community needs.
Official Response
Deputy Minister Masemola said the Review of the Local Government White Paper must produce a single reform that can unlock municipal capacity. Masemola emphasized strong revenue collection, improved financial management and stable administration within municipalities.
He also pointed to the instability in coalition-led municipalities and said leaders must manage these environments better. He added that leadership and administration determine whether municipalities succeed or fail. When leadership improves, he said, corruption loses its grip.
Durban Chamber CFO Mike Raftery said the business sector remains willing to work with government. He said transparency, policy clarity and predictable systems are essential for cooperation. He added that investors need confidence and must view municipalities as attractive institutions for long-term investment.
Community Impact
Speakers agreed that municipalities must find innovative ways to close fiscal deficits and improve service delivery. They said better financial discipline, stronger leadership and fair policy frameworks can help communities access reliable services, stable infrastructure and economic opportunities.
