The South African Local Government Association has renewed its call for a full overhaul of the municipal funding system following the 2026 State of the Nation Address.
In a media statement issued on 13 February 2026, SALGA said municipalities cannot meet their constitutional duties without a stable and predictable funding model.
What is happening?
SALGA responded to President Cyril Ramaphosa’s State of the Nation Address delivered on 12 February 2026.
According to the statement, SALGA welcomes the President’s renewed focus on fixing local government and professionalising the sector. However, it emphasises that structural funding problems remain unresolved.
The association said municipalities are under pressure due to:
- Unfunded mandates
- Governance instability
- Ageing infrastructure
- Insufficient technical capacity
SALGA supports a differentiated approach to municipalities. It argues that a one-size-fits-all system does not work because municipalities differ in size, capability and context.
While targeted funding to address backlogs in water and electricity services is welcomed, SALGA said long-term reform of the funding model is essential.
Why it matters to you
Local government delivers essential services such as water, electricity, sanitation and roads.
If the funding model remains unstable, service delivery delays, infrastructure failures and water supply problems are more likely.
In rural parts of the Eastern Cape, where infrastructure backlogs are already severe, predictable funding directly affects household access to basic services.
The association also linked climate-related disasters to weaknesses in the disaster management system, calling for a more agile and better-resourced response mechanism.
What you need to know
| Issue raised by SALGA | What it means for residents |
|---|---|
| Unfunded mandates | Municipalities perform functions without adequate funding |
| Ageing infrastructure | Higher risk of service disruptions |
| One-size-fits-all policy | Smaller or rural municipalities may struggle more |
| Short-term funding injections | Temporary relief, not permanent solutions |
| Disaster management reform | Potential changes in how disaster relief is coordinated |
SALGA also said it will monitor the upcoming national Budget Speech to see whether allocations match the President’s commitments.
What you should do next
Residents can:
- Monitor municipal council communications about infrastructure upgrades
- Follow the national Budget Speech announcements
- Engage with ward councillors about service delivery concerns
- Track official updates from SALGA and government departments
Staying informed helps communities understand whether reforms will affect local services.
For ongoing municipal coverage, vvisit our Local Eastern Cape News section.
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