Extend oversight of the Public Service Commission (PSC) to local government.
The Public Service Commission (PSC) will now be assigned more legislative teeth to oversee and professionalise the public service in local government. Previously, the focus was at national and provincial governments. This expanded mandate will see the commission playing a more active role in monitoring and regulating personnel practices and organisational structures within local government.
read more >>Update the White Paper on Local Government to reflect a fit-for-purpose local government system.
The new White Paper on Local Government of COGTA is expected to be gazetted in March 2026. The draft policy is in development/under review. The public and stakeholders were invited to submit written comments on the discussion document reviewing the White Paper by 31 July 2025.
read more >>Review the local government fiscal framework to enhance equity and service delivery.
National Treasury plans to review local government fiscal framework by 2028; there will thus be little movement before then.
read more >>Review and amend the Municipal Financial Management Act (MFMA).
National Treasury is considering wide-ranging amendments to the MFMA, focusing primarily on reforms to the municipal grant system and budget processes, Among these is the establishment of a Financial Misconduct Investigation Committee to address allegations of financial misconduct in institutions governed by the MFMA, including all municipalities and their established entities. Amendments to the MFMA…
read more >>Implement the trading services reform programme to create professionally managed utilities in all metros.
National Treasury anticipates that a performance-based incentive for metro trading services infrastructure investments will be developed by 2026. National Treasury (and likely Eskom and DWS) will be driving this initiative. In this model, trading services are managed and delivered by dedicated, professional utilities (or ring-fenced utilities), which can be structured as separate business units within…
read more >>Separate the functions of authority and service provider for water and electricity services in municipalities.
The implementation phase involves the service authority and the service provider roles. A municipality acts as the service authority (regulator and planner) with the right to decide who will distribute electricity or water within its area. It may appoint a suitable service provider (entity delivering the service) through a service delivery agreement. A dedicated utility…
read more >>Undertake an audit of municipal managers and CFOs to assess compliance with standards.
National Treasury is expected to play a role in the appointment of senior positions, enhancing the enforcement of the Municipal Minimum Competency Standards. This initiative is part of a broader effort to improve financial management and governance within municipalities. However, NT has not yet issued a specific public clarification on the new measures to be…
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